When it comes to company compliance, there is so much to do it can be overwhelming. It makes sense to partner with someone who can help you manage the day-to-day or provide expert guidance when you’re doing more complicated things like setting up a new trust. But how do you work out what services you actually need and what it’s going to cost?
There are several ways you can do this, but often the easiest is to go with a company that offers different levels of service that you can choose from. This is called a tier pricing model and is quite common nowadays. Take Netflix for example. Netflix offers you three different pricing plans, so you can choose whether you want to watch in HD and how many people can use your account at any one time. You just select the services you need.
Although the service options are different, tier pricing for company compliance works the same way. Here are four benefits of tier pricing for company compliance.
No two businesses are the same. Some are large with hundreds of companies and trusts in their structure, while others may have just one corporate structure but have many different business and brand names. Some operate internationally, while others focus on their local market. Some have put in place a self-managed superannuation fund (SMSF) for their employees while others leverage external or industry superannuation funds.
Depending on how you operate and structure your business, you may have different company compliance obligations. That’s where you can benefit from a tier pricing model. It gives you a choice of various services to suit your needs and budgets.
If you’re a sole trader, your compliance needs may be relatively simple. There are tax obligations, GST and financial records to keep. But larger companies, trusts and SMSFs have more complex needs. Aside from tax obligations, you’re required to keep detailed financial records, hold regular meetings, keep minutes and document all resolutions, and comply with a range of administrative tasks laid down in legislation and by the Australian Securities and Investments Commission (ASIC) or the Australian Taxation Office (ATO).
Different types of companies also have varying needs. A proprietary company with a couple of members will have very different ASIC compliance obligations than one that has more than 50 members. And these will again differ to the administrative requirements of a public company.
With so many different needs it doesn’t make sense to accept a one-size-fits-all approach to pricing for company compliance.
People like to have viable choices – that’s just human nature. When you have a choice over how you’re charged it gives you a feeling of control over your business. But having too many options can be confusing and make it difficult for people to make a decision. This is more likely to happen when the choices relate to something that is complex or that you’re not an expert in, like company compliance. That’s where tier pricing models can help.
Using a tier pricing model for company compliance, you can see a list of all the services you’ll receive and check these against the other tiers available. You can then compare apples with apples when you’re choosing between company compliance providers or between different service levels from the one provider. The tiers are often designed to include the services that are most used by companies that are similar to yours, so you can also see what services you may need but weren’t aware of.
This is how tier pricing plans make life simpler for you. They can help you choose a service level that meets your business’s needs and budget.
As your business expands, it’s likely that your company structure may become more complex. With more complexity often comes additional compliance obligations. If your company compliance provider has a tier pricing model, you should have the flexibility to upgrade the services you need as your business grows. This means you don’t pay for the services you don’t need until your company is ready for them.
Budgeting is an essential part of running any business, but it can quickly become a problem when you’re getting advice from an expert. If someone charges you by the hour or for each task they complete, the costs can quickly add up and catch you unaware. One of the biggest benefits of tier pricing for company compliance is that you know exactly what it’s going to cost you before they get started.
This not only helps you budget for the cost and keep it under control, but it also means you don’t have to worry about how long each task takes. That means no more asking for timesheets or cost breakdowns, or having uncomfortable discussions about the value of the work that was completed. You can get on with running your business, knowing that your compliance obligations will be met.
If you’re thinking about moving to a tier pricing plan for your company compliance, it’s a good idea to speak to your adviser to make sure it’s the right decision for your business. To find out more about tier pricing for your compliance needs, please get in touch with CCASA.