Managing the financial aspects of a business can be daunting; especially when the traditional model of hourly billing adds up quickly and creates uncertainty about costs.
But, fear not! Subscription-based accounting is here to save the day (and save you money)! With its fixed monthly fee structure, subscription-based accounting offers businesses a refreshing approach to financial management.
This innovative model provides cost predictability, improved cash flow management, and real-time financial insights by shifting the focus from billable hours to value-driven services.
For businesses based in Boise, subscription-based accounting offers a tailored solution that aligns with the local economy and provides the necessary support for growth and success. So, grab your green visors and pocket protectors and we will dive into the pros and cons of subscription-based accounting to see if this option fits your Boise based business.
Pros of Using a Subscription Based Accounting Service:
- Peace of Mind!
When you engage in a subscription with a company like Netflix, you know that you will have access to the content when you want it and there is never a question of whether or not you can watch your show because of capacity issues. You have a spot that is reserved!
The same is true with a subscription to an accounting service. The services you have subscribed to are always available to you. You do not have to worry about whether the subscription-based accounting firm will have time for you or will send you a large one-off bill for asking a question. You are now part of their ecosystem and we are available to you! You will have a personal accounting team who won’t ghost you or spend hours trying to find your “files” in their black hole of data storage.
- Predictable expenses
Paying hourly rates can be intimidating and can diminish the relationship between you and your accountant. You might hesitate to call or feel frustrated when they ask questions about your business or life that are not directly related to accounting as you know the clock is ticking. The amounts charged are also unpredictable so you may pay $500 one month and then $4,000 the next. Subscription-based accounting alleviates all this pressure as the clock never starts.
Plus, we don’t shy away from learning more about you, your company, and the goals you have in life. These all play into your accounting and we will take that all into consideration as we help you plan for the financial success of your business. Think of us as your financial therapists, without the chaise lounge.
- Personable service
With subscription-based accounting, you will have a set team assigned that you will work with on an ongoing basis. These folks will gain a deep understanding of the accounting for your business and will be able to identify process improvements, make suggestions for new systems, and even be able to step in if you find yourself short-staffed! According to BPlans, one of the best “pros” of a subscription based service, is the deepened relationship that a business gains with their advisor. We’ll be your accounting wingman – ready to swoop in and save the day!
Cons of Using a Subscription Based Accounting Service:
- Getting stuck in a contract
Ah, the dreaded long-term contract. We’ve all been there trying to break free from a commitment we never really needed and no longer want. Hours are lost on phone calls trying to cancel a subscription only to be routed through multiple channels and still struggling to connect to the right correct person. Unfortunately, many subscription-based accounting companies require a one or two year contract, which can make you feel trapped with a service provider you don’t even like. There is a reason that there are industries built around finding and canceling unneeded subscription services!
At Executive Allies, we believe in setting you free from long-term commitments. We don't want our clients to feel "stuck" with us, so we don't require any length of a term to engage our services. However, because we invest a significant amount of time and resources during the initial onboarding process, we do have higher pricing during that time. Consider it our way of making sure we're both committed to this financial adventure.
- “One Size Fits All” Services Do Not Fit All
Most subscription services offer few options of services levels for you to choose from. Considering streaming services, Netflix alone has about 36,000 hours of content available. That’s over 4 years of non-stop binge watching! On average, users watch 2 hours of content every day which equals 730 hours in a year or less than 2% of the available content, but users pay the same rate, no matter how much you use the service. Seems a little unfair, right?
According to Digital Route, subscription based business models overlook the differences between big and small clients, which can be detrimental to your business. Sometimes, paying an hourly rate for a specific service may be the best fit, provided you with the most tailored option available. Better yet, engage with a company, like Executive Allies, that provide customizable subscription offerings! That gives you the best of both worlds!
If you are looking for continued accounting support, and a team you can rely on to accurately complete the task you hate most (ahem; accounting), a subscription-based service might be a fantastic option for you and your business. However, there are many factors to consider when evaluating a subscription-based service. We wish you the best of luck as you evaluate your choices!