Fee Proposals

My major tasks in the current period are to prepare the fee proposals and negotiate the fees with the clients. In these days, I feel no achievement at all. As all the clients think the increase of the fees are unreasonable. Sometimes I feel ashame to bargain with the client. Bargaining is a common practice in China. Although my opinion is that our firm's name is the top brand, just like LV, we should not bargain at all. (Especially I am not good at bargaining.)

Most of the accounting firms in China are experiencing an annual staffing cost inflation of about 20% to 30% (depending on the level of the professionals) due to the strong demand for professional accountants.

The Chinese firm also has a solution of charging a 30% premium for the engagements required to be arranged during the busy season from January to March. The upward adjustment by 30% reflecting the scarce staff resources and concentration of engagements during the period. I think Toronto office could also adapt this approach in order to persuade some of the clients to move the engagement to a less busy month if possible.

As a result, there is about 15% to 100% increase of fee this year for all the clients in order to achieve a reasonable recovery rate. Now is November, I am worrying about the fee and engagement letters in order for us to start interim, or even year end work of my 27 clients.

GOD!!!