How a Company charge for Consultancy Services?

Taking care of the cash flow is crucial for your business’ success. It gets a bit complicated when the company grows, and there are multiple employees and subcontractors working on various projects with different clients. There are some ways to charge for consultancy services in Kenya, and yet almost every consultant-client relationship is exclusive, requiring a special treatment when the time for invoicing comes.

Time and material based invoicing
If you and your client agree upon time and material based invoicing, you multiply the number of hours spent on the tasks with the hourly rate and add the prices of the materials you use. If multiple people are working on the project, the hourly rates may vary and you must keep track of all of them. You usually calculate the interior cost (hours and materials spent) at the top of every month and charge it to your customer.

Pre-paid hours
This type of contract allows clients to shop for and buy a pool of working time and material beforehand. When they get spent, clients usually buy a replacement batch. They might expect some kind of discount or advantage within the schedule.

Projects based on a fixed price
If a customer employs your consultancy services for a hard and fast price project, you've got to estimate the number of hours you and your team will spend thereon, the cost of materials you will use, and the cost of all the subcontractors you will work with. The best thanks to doing that are to seem for similar projects or bundles of tasks in some time tracking system and consult the team members for the time estimate.

Retainer
If your client requires your services on a regular basis, a retainer might be the best way to establish a business relationship. They can rely on you to provide them the service they need, and you can rely on steady cash flow for the duration of the contract. Based on the time tracking data you will be able to accurately estimate the time and costs you will spend on the client’s tasks, and charge them on a monthly basis.

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