Fixed Fee Billing I

Fixed Fee Billing I

1 February, 2016


There is a lot in the CPA industry pubs these days about fixed fee or value billing. The JoA is running a three-part interview with Ron Baker, value billing evangelist and very smart fellow. Full disclosure: I am a believer and my company, Commercial Logic, has been using fixed fee billing for years. So I wanted to begin a series of blogs on the subject.

Here is one of the key reasons that I like the fixed fee approach.
• It profoundly changes the relationship with the client from adversary to ally. In the time and materials scenario, the client doesn’t call because he fears the billing for the call. As a result critical communication fails to take place, often resulting in a greater problem and even less client satisfaction. With fixed fee, you and the client are allies in solving the problem or providing the service and the flow of communication is open — including the discussion to expand the scope. In my opinion anything lost in billable hours is easily regained through a better and more trusted relationship between you and the client.

Peter D. Coburn, President

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