My billing over the past 10 years was tiered based on income levels: $380K, $880k, $1.5 million, $6 million. The new billing is based on expenditures processed: more expenditures means more transactions to process, review and more after-work in terms of CRA compliance.
This move is also in response to CRA’s increased audits of different expense account and industries.
If you are going to do something, do it as best you can. There is no sense in working 30 years, sacrificing your health and time with your children if you can make the same money in 10.
Efficiency is only important when a resource is scarce. As a young person with a whole lifetime ahead, money was the priority. As we get older, time and attention is the priority. (Attention is important, for example, Spending 1 hour QUALITY time with your kids, interacting with them and reading to them is much better than spending 2 hours with them in front of the television)
We all should maximize our limited time left on earth and improve our craft each day. Office workers are not capable of more than 5 hours of focused deep work each day. The best way for me to improve is to work with big numbers on limited accounts. Big numbers mean the errors of others would compound to adversely affect my customers.
Businesses that revolve around E-commerce, beauty/aesthetics, food/health are all great businesses that could effectively give you $20,000 or more a month in after-tax income and being in Alberta, there is still some opportunity left in the oil/pipeline sector as well.
Keeping in mind, Pareto’s principle aka the 80/20 rule, 80% of the effects come from 20% of the causes and in our case, 80% of the inefficient use of time comes from 20% of the customers. By refusing service to companies that do not use their time and resources efficiently guarantees we don’t have to lose time with audits. This, in turn, gives us more time to spend with our valued clients.
In 2016 we cancelled the consultant category because it made no sense to corrupt our Dunbar’s # when half the people we dealt with only generated 10% of our revenue.
2017 we have improved where 14.67% of our revenue comes from 37% of our customers. But it clearly makes more sense to give up $115,000 of revenue (14.67%) if we can save 37% of our time, hence we have eliminated the next category up.
e all-inclusive flat fees including GST are as follows:
$8,800 Industry: Annual expenses over $1 million
$7,100 Enterprise: Annual expenses between $450k and $1m
$5,600 Venture: Annual expenses between $200k and $450k
$4,700 Boutique: Annual expenses between $100k and $200k
$3,900 Micro: Annual expenses less than $100k
Save 1 free month of bookkeeping for every new client you refer to us. Your referral will also get 1 free month of bookkeeping and you’ll receive a thank-you for introducing them to a service that at a cost of 1% or less, legitimately reduces the 3 sources of negative cash flow that matter (taxes, payroll, and housing) by 3-30%. If you have those 3 sources of negative cash flow figured out, leasing a Benz for $1,000 /month really can never make a difference.