Setting fees is always a difficult proposition for service businesses and pricing an intangible is much harder than pricing a product. Your fee will, however, represent what you and your expertise are worth.
Get paid what you’re worth.  Setting fees that will represent what you are worth and make money for your business, is based on good judgment, knowing your client, having a good sense of self worth and also knowing what your options are.

Service Fee Options
Hourly fee: This option pays you for your time. This is not advisable as it is severely limiting to the growth of your business, and affects your perceived value with your clients. When you bill this way, each professional in the firm and every support person eventually reaches their limit of billable hours and then you need to add a new resource to the firm. As a client, I always wonder if I’m being billed as I chat on the phone to my accountant and he asks me about my holiday…tick, tick, tick…I always get the feeling that the focus is on billing more than service.

Contingency/success fee: This often comes to play when your service is helping a client to win a major piece of business, tender or project. If you charge a fee contingent upon success, you will only get paid when the client wins the business, although you are certainly backing yourself! However, there are many things that can affect the outcome over which you have no control. It is far better to charge for the service, and if the stakes are high, charge a success fee on top of that. It’s like a bonus for exceptional performance.

Project fee:   The best way to charge a set fee for a project is in staggered tranches. For example, you will always be paid faster if you don’t start the project until you receive the commencement fee. If the project is to take five months, for example, and you leave the bulk of the amount to be invoiced at completion, you may not be paid for eight months. A better option is 50 percent up front, 30 percent at completion of a (pre-agreed) major milestone and the remainder on completion of the project. Alternatively, you may decide to invoice 50 percent up front and 50 percent on completion if it is a relatively short project. Never leave the bulk of the fees to be invoiced at the end of the project.

Retainer: A retainer is the ultimate goal of all people in the service profession.  There are many forms for different types of services: monthly fee retainer for the provision of ongoing consulting/advisory services, monthly support fee (for software), monthly licence fee, monthly fee to be available on request for support/training, and so on. You may decide to charge a retainer on a monthly or quarterly basis in advance.  Do not nter into a retainer arrangement where you are paid after the service has been delivered. You could end up delivering three months of service and wondering when you will be paid. If your clients really need your help, they will accept your terms – terms that are agreeable to you!

To be continued…   (Reprint from DynamicBusiness.com.au)

Looks like Australia and other dairy exporters, including New Zealand and some South American nations, are set for higher demand in this decade as world markets are becoming increasingly hungry for Australian dairy products.  Only seven per cent of global milk production is being internationally traded because big producers like the US and Europe are likely to fully consume what their farmers can deliver.  A growing demand is also seen in neighboring Asia.

Reports had shown that the era of big production resulting to stockpiled mountains of butter and milk lakes in the northern hemisphere in the last two decades have already ended, slashing world stocks to minimal levels.

Facing Big Challenges
Despite a volatile global economy which can affect farmers’ confidence to rebuild herds, dairy processors will be exposed to increasing pressure to lock in long-term pricing and export schedules.  Other production challenges seen by Dairy Australia’s latest Situation Outlook include climate and water shortage pressures for traditionally irrigated dairy powerhouse areas in Victoria, NSW’s Riverina, and the Lower Murray.

“Unless we address the impact on arable land within a 300 kilometre radius of our major population centres we’ll soon have a major problem feeding our domestic and off shore markets efficiently,” Dr Lean, University of Sydney dairy specialist said.

Need accounting help?  Get help here.

Wednesday 11: Quarterly activity statement, quarter 1, 2009-10, due date for lodging and paying, if you are lodging via paper or electronic commerce interface.

Eligible for self-assessed deferral.

Saturday 21: October 2009 monthly activity statement, due date for lodging and paying. Eligible for self-assessed deferral.

Wednesday 25: Quarterly activity statement, quarter 1, 2009-10-due date for lodging and paying, if you are lodging via ELS or the Tax Agent Portal. Eligible for self assessed deferral.

Saturday 25: Due date for lodging Superannuation guarantee charge statement quarterly, and paying the super guarantee charge for quarter 1, 2009–10, if the employer did not pay enough contributions on time.

Employers who are lodging a Superannuation guarantee charge statement – quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They will still have to pay the remaining super guarantee charge to us.

The super guarantee charge is not tax deductible.

Use our online super guarantee charge statement and calculator tool for help working out the super guarantee charge and preparing the Superannuation guarantee charge statement – quarterly

The financial planning is an imperative aspect not only for companies and institutes but also for individuals as it entails to better future. Before learning some of the nuances of the field let us first understand what financial planning is all about. Financial planning can be defined as making comprehensive planning concerning money management in the present for future. There are many ways by which a professional like doctor, engineer or pilot and companies can plan their future; they have to work meticulously on each and every aspect of financial planning. In this context they can hire the services of a professional financial consultant or any firm working in this sector.

There are numerous firms that have professional expertise in the sphere of financial planning; you can hire their services as per your needs and requirements. Apart from these firms there are also individuals who are engaged in financial consultancy-you can hire there services as well. But remember some basic points while hiring any firm or individuals for financial planning, some of these are:

· Is it a registered firm/financial consultant?

· Its market reputation

· Experience in the area

· Testimonials

We at B.B. Whitehouse have expertise in the field of financial planning and are engaged with many top names of the business world. Our services have altered the fortunes of hundreds of people and companies across Australia including major cities namely Sydney, Melbourne and Canberra. By understanding the need of the company or individuals we offer tailor made solutions that are well applauded for their various salient features such as reliability, high return and minimal risk. The team of the financial consultant at our organization is well versed with the various intricacies of the financial planning, it will work scrupulously in the interest of the customers be it a professional or trader.

Some of the elements of financial planning offered by us are:

· Basic financial planning

· Retirement objective

· Education goals

· Tax planning

· Insurance planning

· Estate Planing

Australian Businesses need to consider today the impact and implications of the global melt down on their business.  The most significant issue for businesses today will be cashflow.  Any business that has a small number of large debtors (ie customers that owe them money) must ensure they collect these funds from them regularly – that is preferably fortnightly.  Just because a business is large does not mean it can not go broke – this has been proven by the number of large corporations that have recently been put in liquidation or administration and once this happens the likely hood of recovery of funds is low.

Look for the warning signs – any slow payments should be followed up directly and discussions held with the debtor to determine their ability to pay.  If there is any indication that the customer is in financial difficulty, get your debt secured, look for personal guarantees form directors and owners, ensure they have assets (many businesses execute asset protection methods that can hide assets), consult your accountant for advice on direction to take – even go as far as recommending the debtor seek professional help to rectify their problem – but most of all stop working for them – if they can not pay you now,there is a very high chance they can not pay you later – you are better off without the customer than doing work for someone who will not be able to pay you. 

Do not incur large capital investment on customer work without a secure commitment from them that they will and can pay – always ensure there are regular payment schemes in place to cover all costs within short time frames – no later than monthly – and cease work if they do not pay.

If you think you may have some cashflow fluctuations and/or problems – go to your bank today and arrange facilities while things look good – approaching the bank when things are bad is a waste of time and will not help you.

• Always check the balance sheet for reconciliation of debtors (accounts receivable) and creditors (accounts payable);
• Make sure your GST account is properly linked to the right accounts – the amount on the balance sheet should equal the amount payable to the ATO or refundable from the ATO at anytime;
• Make sure you record the taxes you pay against the same account that you record the taxes payable;
• Always keep your superannuation up to date;
• Check to make sure you are recording assets purchases and sales correctly;
• Do not record asset purchases as expenses regardless of tax consequences – your accountant can adjust for this at years end – as this will reduce the value of your business and your profits and make getting a loan harder.