From a business standpoint, Fisher & Associates, Inc. (F&A) has a similar form of business relationship with its clients as do most others in the professional services (e.g. lawyers, accountants, architects), field. Following are some of the major components of how F&A works with its clients:

Fees
Regardless of the format of the billing, F&A charges its fees based on an hourly rate for the time of its professionals. The individual hourly billing rates are based on such factors as years of experience, position in the firm and special expertise. The three formats that F&A uses to bill its clients are:

• Hourly - Within a monthly billing period, F&A professionals keep careful records of time expended for clients on a daily basis. At the end of the period, clients are billed by the cumulative total of the hours multiplied by the corresponding individual billing rates.
• Monthly Retainer - For clients who prefer to work on a fixed budget level each billing period, F&A works on a monthly retainer basis. This can work two ways: (1) a flat, fixed fee without any variance; or (2) F&A will notify the client in a given billing period if and when it has reached the retainer limit and ascertain whether the client may wish to have additional service. On a monthly retainer working relationship, F&A requires a minimum three-month initial engagement period.
• Spot Project - F&A will work on the spot project basis, billing by the hour against a projected fee. If the time expended is under the fee, F&A will only bill for actual time. If it appears it will go over, F&A will advise the client and discuss what action should be taken.

Expenses
F&A bills clients for all out-of-pocket expenses. These fall into two categories: (1) costs incurred internally (e.g. postage, telephone, copies, fax transmissions, supplies); and (2) purchase of outside services and good (e.g. messenger service, photography, artwork, taping service).

Billing Procedure
In a retainer relationship, the first month's fee is required in advance and in subsequent months, the client is billed at the beginning of the billing period and the fee is due at its conclusion. Expenses are billed at the end of each period. On an hourly basis, statements are sent at the end of the billing period and are due and payable within 10 days. On spot projects, F&A normally requires a portion of the money in advance with the balance due at the end or in incremental stages if project will last over two months. There is an interest charge of 1-1/2% per month for overdue statements.

Letter of Agreement
F&A requires a Letter of Agreement be signed prior to the beginning of the working relationship.