Hourly billing makes accounting hard to budget: you only learn the cost when the invoice arrives. With fixed-fee accounting, you agree on a price for a defined set of work before it starts. Here is how it works in practice, and how to tell a good fixed-fee offer from a vague one.

What "fixed fee" means

A fixed fee is a price agreed up front for a defined scope: for example, monthly bookkeeping, GST/QST returns and year-end financial statements for a small corporation. The price stays the same whether a month takes your accountant two hours or five. If the scope changes, such as adding employees to payroll or a second company, the price is reviewed with you before any extra work is done.

What it usually covers

  • Bookkeeping: recording and categorizing transactions, monthly bank and credit card reconciliations.
  • Sales taxes: preparing and filing GST/QST returns on your filing schedule.
  • Payroll: pay runs, source deductions, and T4 and RL-1 slips, if you have employees.
  • Year-end: financial statements and the corporate returns (T2 federal, CO-17 Quebec), or the personal returns for a sole proprietor.
  • Questions during the year: a good fixed-fee arrangement includes reasonable email and phone questions, so you don't hesitate to ask before making a decision.

What can change the price

A fixed fee is calculated from your situation, so these are the things that move it:

  • the number of transactions and bank accounts each month;
  • the number of employees on payroll;
  • how organized your records are, and whether past months or years need catching up;
  • special situations: rental properties, foreign income, a holding company, a sale of assets.

Catch-up work on past years is normally quoted separately, once, and then the monthly fee starts.

Typical prices

At ABZ Accounting, bookkeeping starts at $175 per month and the full accounting package (bookkeeping, sales taxes and year-end) starts at $250 per month. A one-hour tax consultation is $125. Your exact price depends on the points above, and you get it in writing before we start. See all prices on our pricing page.

Fixed fee vs. hourly billing

  • Budget: a fixed fee is a known monthly cost; hourly billing varies with the work.
  • Questions: with a fixed fee you can ask without watching the clock.
  • Efficiency: the accountant has every reason to keep your file organized and the work efficient.
  • When hourly makes sense: one-off or unpredictable work, like an audit response or a complex reorganization, is often better priced separately.

Questions to ask before you sign

  • Exactly which returns and reports are included, and how often?
  • Are year-end statements and the T2/CO-17 included, or extra?
  • Are questions by email and phone included?
  • What would make the price change, and how will I be told?
  • Who works on my file, and who do I call?

Want to know what your fixed price would be? Ask for a fixed quote: it's free, and you get the price before any work starts.

← All articles