When it comes to choosing an accountant for your business, one of the most important decisions is how you’re billed—by the hour or with a fixed monthly fee. While traditional firms still stick to hourly billing, modern firms are moving toward fixed fee pricing—and for good reason.

In this article, we’ll break down why fixed fee accounting is not just simpler, but smarter—for both accountants and their clients.

Why Hourly Billing is Outdated

Let’s start with the obvious: hourly billing is unpredictable. Imagine going to an accountant with a few limited companies and asking, “How much will this cost?” and hearing, “We’ll see how long it takes.” That just doesn’t cut it anymore.

It’s like asking a builder to quote for an extension and getting a response like, “£50/hour… not sure how many hours it’ll take.” You wouldn’t accept that for a building job—so why should you for your finances?

Hourly billing makes it hard to:

• Budget your business expenses
• Understand the true value of the service
• Plan ahead with financial confidence

Worse, it gives accountants no incentive to work efficiently or embrace new technology. The slower they go, the more they bill.

The Benefits of Fixed Fee Accounting

With a fixed monthly fee, you get complete clarity and consistency. You know exactly what you’re getting—and how much it’ll cost—every single month. No surprises. No hidden charges.

Here’s why fixed pricing works:

1. Better Budgeting

Both you and your accountant can manage cash flow better. You’re not hit with a massive bill at year-end. The accountant has predictable income to reinvest in service improvements.

2. Certainty of Outcome

You’re paying for an outcome, not time. Whether it’s tax planning, quarterly check-ins, or accounts filing, you know what to expect.

3. More Transparency

Fixed pricing removes the guesswork. You won’t find yourself wondering why a five-hour job suddenly took ten. You’ll know the cost upfront—no back-and-forth, no grey areas.

4. Incentive to Innovate

Firms using fixed pricing invest in better tools. In our case, we spend over £30,000 a year on accounting software—because better tools mean better service. Hourly billing firms have no reason to streamline anything.

The Problem With Timesheets

Old-school accountancy practices still monitor their teams with timesheets, clocking what every staff member does every five minutes. Not only is that inefficient, but it also creates a culture of micromanagement—and it’s a red flag that the firm isn’t moving with the times.

The Bottom Line

If you’re still being billed by the hour, it’s time to ask whether your accountant is giving you the clarity, confidence, and service you deserve. Fixed fees aren’t just modern—they’re fairer, more transparent, and better for your business.

Thinking about switching accountants?

If you want certainty in pricing and a team that embraces tech and transparency, we’re here to help. Get in touch today for a no-pressure chat.