The risk with project-based pricing is that projects may take longer than you estimate, or the scope of the project grows beyond the initial proposal. Whether you use Practice Ignition or not, you’ll need some way of cementing the fixed price per month agreement. Here, every single price that you offer is going to be different and will take into account the uniqueness of that particular situation.
These tasks might require different certifications, specialized skills, or additional time, which means they can be billed at a different rate. Value is what sets an accounting firm apart from the competition and that perceived value influences how much clients are bookkeeping pricing packages willing to pay. The higher the value, the higher you can set your accounting firm’s prices. To clients seeking accounting services, they may place value in an accountant’s years of experience, the portfolio of clients, industry awards, and level of education.
How to charge for bookkeeping services.
Monthly retainers are geared towards long-term clients, so you won’t be able to use them with everyone. Occasional, one-off services will need to be priced differently. As with fixed pricing, you must define the workload scope clearly and accurately. Otherwise, you could end up taking on more work, without the pay to go with it. Value based pricing works on the principle that the cost of your services relates to the value you provide clients. It’s also one of the more challenging pricing models to implement because value is subjective and will change depending on each client.
- For as long as many can remember, accountant fees have always been based on the billable hour as a pricing strategy.
- Some clients will be a one-time deal, while others may need you on a regular basis (e.g., quarterly).
- If you’re not there already, it’s worth upskilling to get to that point, as you’ll be able to justify higher pricing packages.
- Value-based pricing is the future of billing for accountants (and the rest of the world).
This approach is useful for bookkeeping businesses wanting to focus on creating valuable products or services for their customers. On the other hand, if you offer more complex services, like tax preparation or strategic planning, you may want to charge a higher price. If you’re having trouble pricing accounting and bookkeeping services for your fixed-price mandates, you’re not the only one (and you’ve come to the right place). Remember, pricing isn’t just about covering costs; it’s about recognizing the value of the service provided.
Relax about tax
And trust me, nothing makes a client happier than knowing they can count on you for this. Partnering with Patriot earned this accountant a 50% cost savings from his previous provider, decreased his time running payroll, and more! Look at the types of services you offer and compare what you currently charge to others.