While much of the industry remains steadfast in billing by the hour, there is an emerging trend and need for firms to change their billing practices. Many are beginning to realize the benefits of using fixed fee billing. Here are some reasons why.
Technology – If you have moved at least part of your firm to the cloud, you are probably working more efficiently and therefore not billing as many hours. Fixed fee billing focuses on the results rather than the process and enables you to bill your clients for stellar work, rather than clocked time. By the way, if you’re still resisting the cloud, read our post on “Why Your Firm Should Switch to the Cloud”.
Predictability – Fixed fee billing helps both sides to better predict cash flows. Your clients know exactly how much they are going to pay at the end of the month and you know exactly how much you will receive. Any changes or additions to the initial scope of work are flags for negotiating additional costs.
Enhanced Client Trust – Using fixed fee billing requires more proactive conversations with your clients about their specific needs. Keeping the lines of communication open helps to establish and enhance your clients’ trust in you and your firm.
Stand Out from the Crowd – In an industry dominated by the almighty billable hour, moving to fixed fee billing might seem like a daunting task. However, it is also an opportunity to stand out from the crowd.
If you’re ready to make the switch to fixed fee billing, but not quite sure how, we can help! When you join HWA Alliance, we will give you the tools and guidance to work more efficiently and bill your clients more accurately. Contact us today.