1. Effective Billing Techniques Presented by: Bill Parrish (oneplusone) 3

2. Those Pesky Disclaimers This Information is copyright protected by (oneplusone) 3 and may not be reproduced or otherwise distributed without the written consent of (oneplusone) 3 This presentation is for informational purposes only and should only be implemented by a practitioner after appropriate due diligence has been performed Not all of the concepts and strategies proposed in this presentation may be appropriate for all practices. Careful study must be undertaken by anyone considering the implementation of these concepts and special attention should be given to individual state laws governing the practice of professionals.

3. How Much Am I Worth to my Clients? Our Value Lies in our: Knowledge Experience Independence We are of Most Value When Providing Advice and Guidance We are of the Least Value When Recording Yesterday’s News

4. Roadblocks to Effective Billing Our Lack of Confidence Do we do inferior work? Is our work as good as the firm up the street? Is our work better than the firm’s up the street? Then why don’t we bill as much as the firm up the street?

5. Roadblocks to Effective Billing A Reliable Fee Tracking System Time to get the Billing Done Hesitance to Present Bills to Clients Incorrect belief that clients cannot afford larger fees

6. Billing Methods Hourly Fee Method Fixed Monthly Fee Method Transactional Based Method Value Added Method

7. Hourly Fee Method Rate needs to be adequate Need to keep good time records Rates need to be consistent But, may vary by service Need adequate billing system Need to account for entire work periods Bill for everything we do

8. Fixed Monthly Fee Method Easier to maintain system If requiring payment in advance, collection is easier Needs to be adequate Still need to track time per client Need to adjust periodically Still need to bill for extra work

9. Transactional Based Method Fees vary as work load varies Need good tracking and billing system Fees automatically increase as client’s work grows May slow down collections Vs pay in advance Requires statements to be generated before payment can be anticipated

10. Value Added Method Rewards us as we provide more value Clients pay more based upon the benefits we provide Encourages us to continue to improve our service level Clients benefit because we provide more for them

11. Combinations of Methods Most effective Provides for different billing techniques for different types of service or personnel Requires even more complex billing and tracking systems Provides the most rewards of all

12. Bill for Everything we do! Send an invoice for everything we do, even if there is no charge. Describe benefits to client in the invoices Detail invoices sufficiently to clearly separate each service provided Describe services in terms clients can understand

13. Bill at Least Monthly May wish to send invoices with each communication to clients Summarize into a statement at least monthly Show past due amounts separately Clearly state terms in statements Consider billing on the 25 th rather than the last day of the month

14. Set and Enforce Collection Policies Have written agreement (Engagement Letters) with each client Apply and Collect late payment fees Declare work cut off dates for non paying clients Enforce Provide multiple payment options

15. Fee Increases At least annually If less often, increases will appear larger Preferably quarterly Compounding effect Minimum should be cost of living index increases Explain increases in writing to clients

16. Bill With Pride Understand the value you provide Train your clients as to your value Include statement stuffers with every communication leaving the office Let your clients know you are not the cheapest accountant in town and ask if they want the lowest bidder doing their work

17. Reap The Benefits Go ahead, set a massive fee increase now for next February Focus on those clients most willing to pay adequate fees Fire any clients not willing to pay an adequate fee Watch your bank balance grow

18. For Information About ConnectEd: Jodi Goldberg, Director of Member Services National Society of Accountants 800-966-6679 Ext 1304 jgoldberg@nsacct.org About the Presentation Bill Parrish, Founder & CEO (oneplusone) 3 800-867-0065 Ext 1013 billparrish@oneplusone3.com

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