Instead of sticking with a safe but short-range pricing how to read large numbers on financial statements strategy, develop purposeful prices that will lead to more success. Of course, there needs to be added value to justify charging the additional price, but you don’t have to put in double the hours. Add (or extend) a warranty, include weekly progress updates over the course of the case, or include a detailed report with relevant forecasts and action items. The exact service that sets your premium package apart isn’t a huge deal.
Step 1: Hold a discovery call
- Location can play a major role in how much you charge for services.
- You’re also learning their business and don’t know exactly what tasks you will be doing.
- I’ve got many stories to illustrate my point, and some even involve family.
- While this isn’t a new concept, the term value pricing has been more popular lately with bookkeeping and accounting professionals.
Many accounting firms that I’ve spoken with have had bad experiences trying to adopt fixed pricing and value pricing approaches. Ideally, hire part time bookkeepers when you can do some of the accounting yourself, and could use extra help for employee timesheets, accounts payable, and accounts receivable tracking. Even if you hire a part time bookkeeper, your management would still have to review their work.
If the cost is similar to that of an actual bookkeeper for performing the same what is the difference between roe and roi tasks, then it may be better just to pay someone to do the job. Bookkeeping services are necessary for businesses of all sizes. Whether you decide to outsource your bookkeeping or do it with an in house bookkeeper, you should be aware of the costs involved.
Basic Bookkeeping Costs
The best way to know if a pricing structure will work for you is by testing it. Noticing trends for the different pricing systems that you test is key to establishing the right balance. You can take into account the client, the job type, your experience, along with many other factors to give a fair quote. In any industry, experience is influential in pricing decisions, and bookkeeping is no different. It means quality of service, efficiency, calmness, problem-solving, and confidence.
By definition, fixed-fee pricing is inflexible, and in a complex industry, inflexibility can cost you money. For example, the National Association of Certified Public Bookkeepers (NACPB) offers a QuickBooks Online certification. Xero and other accounting software have their own qualifications which, once earned, show you’re an expert in their product. Though you don’t need to be a certified CPA as a bookkeeper, there are still certifications you can gain to justify a higher fee for your services.
Value Pricing Accounting Services: How I Do It in 4 Steps
The important part is to figure out what services you provide and how much you want to charge for them. When you’re just starting your bookkeeping practice, you may not know how long it will take you to complete regular tasks. This is also true if you start working with a new client in a new industry. Just because it takes you 10 hours per week with your construction client doesn’t mean it will take that long with your restaurant client.
Regular employees receive a W-2 in January showing their wages from the previous year. Contractors perform special services for companies and aren’t hired on as employees. For this client, I do some tallying of their hourly employee amounts and then note certified bookkeeper how much is deducted for their health insurance and retirement savings. All I need to do is fill out the spreadsheet, and then I send it off to the payroll department.
Define the Scope
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 you’re already doing a client’s books, approach them with an offer to build on your role. They already trust you and you already know how their business works. 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.
