The New Proposal Editor is generally available in the US and Canada. Customers in other markets (including Australia, New Zealand, United Kingdom and South Africa) are welcome to join our public beta program by logging in as an administrator and opting in via Settings → Proposal Settings → Proposal Editor Experience. Note our New Proposal Editor doesn’t currently support Xero Practice Manager but we’re improving functionality all the time.
The minimum proposal term can be thought of as the minimum period that a proposal will be in effect. Both parties will be bound by the proposals' terms & conditions.
This period does not specifically relate to when a proposals billing will occur or when it will end. This is covered by the Billing Rules.
In the New Proposal Editor, there are two components that define a proposal minimum term:
- Effective start date
- Minimum contract length
A good analogy is to think of these dates may be how they are set in a rental agreement or a mobile phone contract. These types of contracts typically have a minimum contract obligation (e.g. 12 months), which then moves to month-to-month once the contract reaches the minimum length. These dates should set out a similar expectation for your clients in reference to your services.
In this article we give some guidance in how to set these values for your proposal.
Effective Start Date
The effective start date can be thought of as the date when both parties to the proposal (your practice and your client) agree to be bound by the terms and conditions of the proposal.
You should be sure to set the proper expectations for clients with this date as to the start date of your relationship with them.
This date should be set as the same day you will commence providing services to a client or earlier.
This date does not specifically indicate when billing will commence for services - this is controlled by the Billing Rules. However, as billing and payment for services should be covered under the general terms and conditions of the proposal, you should also ensure that this date the same date or earlier that you will begin billing for services.
If you are unsure of how to set this date, you can leave this as the default of "On Client Acceptance" meaning the proposal comes into affect when the client signs.
Minimum Contract Length
The Minimum Contract Length can be thought of as the minimum period that the general terms & conditions included in your proposal will be in effect.
This should be set as the minimum amount of time you expect to be providing the services detailed in the proposal for the client.
If you do not have a time period in mind (e.g., you have ongoing services), you may want to consider the timeframe in which you would like to review your relationship, scope and price.
For example, if you have an annual review cycle for clients, setting this to 12 months may be a good idea.
Again, this date does not specifically indicate when billing will commence for services - this is controlled by the Billing Rules. However, you should consider when all billing will commence for all services detailed in the proposal.
For example, if you are not billing for a service for the first 3 months of relationship with a client (e.g., first 3 months free) - then this contract length should be at least 4 months to ensure you cover the first billing for this service.