I’ve been wrestling with the pricing of remote controller services for small businesses.
I had, on my own, established a ‘rule of thumb’ that any business that does not spend one percent of its gross revenues on internal and external accounting will likely hit legal or financial disaster. The cost is closer to two percent of gross revenues, as a general average, to meet all legal accounting requirements. (This doesn’t include extra management support services like forecasting and meetings).
Today I attended a webinar that used an entirely different approach but wound up with the same result. I felt vindicated. The only problem remaining is that the smaller the business, the tougher it is to control the minimum costs of financial and accounting services. Businesses with under a million revenues typically must make choices to bypass some financial controls.