For example, if a firm decides to focus on value pricing, it may choose to sell its products at a higher price point than its competitors to make more profit. However, if the company instead chose to focus on cost, it might end up selling its products at a lower price point to save money. In general, value pricing is a more profitable method for businesses. Value pricing is a bookkeeping method that assesses the value of products or services based on their perceived worth to the customer rather than on their actual costs.

You can use different programs to get electronic copies of their bills, or they can be emailed to you if there isn’t anything confidential on the bill. There’s also a program called Hubdoc that you could use. The last task I do for the preschool is to categorize income, which doesn’t take all that long. Essentially, free personal finance software to simplify your finances we get a lump sum of money, and we want to categorize it to see how much each class is making.

It’s good to be aware of how your competitors are pricing their services if for no other reason than so you can know where you where do dividends appear on the financial statements fall on this spectrum. Even better, try to learn from how other accountants are charging for their services. Keep an open mind and be prepared to change strategies if the change will help your business. Financial Cents can help you grow and scale your bookkeeping firm. With our automation features, you can free up valuable time to focus on building strong client relationships and delivering exceptional service. It positions your service as a commodity and overlooks your expertise because it prioritizes time over knowledge.

2 Ways to Grow Your Bookkeeping Business

When implementing fixed-fee or value-based billing, it’s easy to under or overestimate the time it will take you to complete a task. Having an open dialogue with clients about this when you’re first signing them can be a good idea to pre-empt adjustments down the line. Bookkeepers, especially new businesses (the ones who don’t have to make the sometimes messy transition to another pricing model), should avoid hourly billing for that reason. Once you’ve landed on a price for each tier, estimate the time required to deliver each service to determine your monthly costs. The bookkeeping services provider may focus more on billable hours rather than the value delivered to the client.

Payment Fees

1. Once you’ve considered all of these factors, you should have a good idea of how to price your bookkeeping services.
2. Value-based pricing is putting a dollar amount on that differentiation.
3. Expand that ideal into a fee structure that lets the client keep close track of what you’re working on and where they’re spending their money.
4. Often, these clients don’t have the budget to employ a full-time CPA or accounting firm, and that’s where we come in.
5. Then we will compare this to the fixed-rate monthly pricing I charge for bookkeeping services along with the bookkeeping tasks I do for each one.

Then you multiply 40 by your old hourly rate of $40, and you decide to charge a flat $1,600/month. What is the difference between small, medium, and large client accounts for bookkeepers? Let’s break down the different sizes to their locking cash box revenue, employee numbers and other key metrics. Then we will compare this to the fixed-rate monthly pricing I charge for bookkeeping services along with the bookkeeping tasks I do for each one. My goal is to help you understand what these breakdowns look like for each client.

Your expertise is in streamlining workflow, optimizing cash flow, and delivering accurate financial insights that empower small business owners and startups. Frame your pricing within this context of value, emphasizing the long-term benefits your clients will gain. Many business owners underprice their services in an effort to compete on price. If you don’t charge enough to cover your costs and leave a reasonable profit margin, you’ll quickly struggle to keep your business afloat. Remember, clients are often willing to pay more for quality – so don’t sell yourself short when setting your prices. But don’t just focus on the time it takes you to complete tasks.

Step 3: Create a Comprehensive Service List

Figuring out the right price or the right way to package your services isn’t easy. But breaking it down and building your pricing model by considering all the relevant factors will give you a reasonable solution to test. Though you must be willing to make changes if it isn’t working for you—even if that means having tough conversations with clients.

If it has to do with accounting, practice management, or Canopy, it’s here. Instead of a sales pitch, guide a discussion highlighting the value you deliver and how you can help clients achieve their goals. There are two additional benefits if this method will work in your situation. They enter all their patient’s information into the HIPPA Compliant system, and this is sent to the patient’s insurance first. Usually, once it goes through the insurance, there is a left-over balance that I have to charge the patient. The thing that takes the most time with this client is the invoicing.

You can read more about how to implement the 3-tiered pricing system here. Download The Pricing Playbook for practical steps for doubling your pricing without increasing your workload. 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.

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