Value pricing and bundling is an obvious strategy to boost your bottom line. The challenge though, can be persuading your clients to agree to it. Templates, workflows and automations all give you time back in your day that you can spend building your client base and adding value for existing clients. 58% of accountants said updating debits and credits technology has improved efficiency and productivity, which is vital for creating space to add the services that clients demand. Fixed-fee pricing allows you to increase profit as you increase efficiency—the more efficiently you can work, the greater the profit margin. For example, the National Association of Certified Public Bookkeepers (NACPB) offers a QuickBooks Online certification.
This approach is useful for bookkeeping businesses wanting to focus on creating valuable products or services for their customers. When pricing your services, one item to keep in mind is which types of payments you will accept. If you accept electronic payments (either credit cards or ACH payments), you’ll want to consider the cost of payment fees. You can get an idea of market rates by talking to other bookkeepers in your area or searching for bookkeeping services online.
Overall stats of a large client
Again, the best course of action for you to take when setting prices is doing your research. Take a look at industry averages, rates by state, and more to get an idea of how much to charge your clients. When setting your bookkeeping services prices, consider creating different tiers for the size of the client.
It can also be used to share important updates, maintain transparency, and build trust with your clients. Every client relationship is founded on clear, transparent communication. When you’re ready to discuss your pricing strategy with your clients, there are a few key steps to consider.
How to Price Bookkeeping Services for Profitability
- Followed by Tax Returns (33.3%), Accounting (11.5%), Advisory (5.7%) and Consulting (3.8%).
- A higher plan may include several hours of monthly phone support, account payable collections, and coordination with a tax preparer at year-end.
- These are written by experts in value pricing, and can help you it all out.
- You know what they say—“You get what you pay for.” And, that saying holds true for bookkeeping services.
The 2024 firm revenue report revealed that 0.4% of firms made $5,000,000+ while 8% made between $1,001,000 and $2,000,000. You need to find the right balance between a price that wouldn’t scare away your target market but still doesn’t undervalue your expertise and ensures you’re profitable. Personally, I’m a huge Practice Ignition fan when it comes to quickly getting detailed, well-defined engagement letters out and for helping to automate some of your back-office processes. The best part is that within each service is where you can include your standard definitions of your services, which I highlighted as exceptionally important in Step 2.
Payment Fees
Fortunately, there are resources available that can help you refine your approach. Check out these articles for more tips on client communication and best practices for small agencies. A recent Deloitte survey clues us in on how you can attract millennials to your accounting firm. By the end of that conversation, you should work on your scope in Step 2, define your service offer and try to attach a price to it.
Asking yourself these questions is vital to knowing the right bookkeeping pricing for you. Location plays an important factor in pricing, although less-so since the pandemic and the rise of remote work and cloud accounting. This phrasing may help encourage them to select from your options rather than deciding whether to consider you at all. Check out this podcast episode for a few other things to keep in-mind when it comes to discovery calls. Find out more about fixed and value pricing in this blog post.
You should also consider your experience level and expertise. If you’re a small firm owner just starting, you may want to consider charging less than someone who has been in the business longer. However, having a low price may get your foot in the door. In this guide, you’ll discover how to masterfully price your bookkeeping services, blending strategy, communication, and technology, all in one cohesive approach.
