The Good Bad Ugly Insight Poll: 2021 Rates, Pricing & Outlook, was designed specifically around learning more about the next 12 months for the Australian accounting profession will be largely positive based on the results of the latest Good Bad Ugly Insight poll…Here are some of the key insights from the latest report:
Timesheets are not dead, along with compliance services. 83% of firms are still completing timesheets which has remained similar over the past years poll results. Results show smaller firms under $500k have a large number of firms not using timesheets compared to 100% of firms over $4m completing timesheets.
On average, the accounting profession will increase their fees by just 2% for the 20-21 year. (The lowest result over the last 5 years). This can be compared to a 5% charge rate increase in 2020, and half the increase forecast in the 2018 year.
One of the most requested pieces of Good Bad Ugly data is director/partner charge rates. Are they increasing in 2021? Simply, yes to an average of $327 per hour. We recommend you review the charge rates table to identify the director/partner charge rate based on your revenue group which has a range of between $252 and $427.
Are pricing methods changing within the profession? It seems that firms are equally divided in the way they price their services:
- 32% – Review WIP (but look at last year’s fee and increase by a certain percentage)
- 25% – Time charged to WIP x charge rates
- 33% – Value bill what the job is worth
- 10% – Other
Research reveals if you send your client invoice closer to the completion of the job, the faster you will get paid. On average 61% of firms send the invoice at the completion of
the job compared to 13% who send the invoice at the end of the month in which the job was completed.
Just 5% of firms request an upfront retainer and only 19% have some kind of periodic fixed recurring invoices (monthly/quarterly).
These results have remained consistent over the past few years of conducting the Good Bad Ugly – Rates, pricing and Outlook poll.
*Report based on 205 participating firms
Click Here to download your copy of the 2021 Rates, Pricing & Outlook Report
Click here to participate in the Good Bad Ugly Insight Poll: Technology 2020
Brad also co-ordinates the annual benchmarking study “The Good, the Bad and the Ugly of the Australian Accounting Profession.”
In his spare time you will find Brad in the backyard playing cricket with his two boys.