5 Ways to Add More Profit When Pricing Your Accounting Services

5 Ways to Add More Profit When Pricing Your Accounting Services

business people in a meeting at officeWhy are some accountants able to get a higher price for their services than others? There are a multitude of basic reasons, such as education and expertise. But there are also several factors that are completely within your control and that will greatly affect your profitability. Here are five for you to consider:

Mix compliance with advisory

You need to perform the compliance work because that’s the foundation of what your client needs. But clients don’t necessarily value the compliance work. When you mix in your advisory services, your ROI soars, and many clients value and seek your expertise and knowledge. The clients that don’t value your advisory services probably don’t understand how it can help them.

An easy way to sell advisory services and to get more for your compliance services is to bundle the two services together. When you do that, you can include a higher profit margin because the client will be benefiting as well. Start by adding a monthly review session with your clients to help them interpret their reports. If you’re already doing this, take it to the next level with additional diagnostic work that helps your client increase revenue, profit, or cash flow.

Change your pricing method

If you’re still billing by the hour, there are more profitable options, such as fixed fee, package, and value pricing. These pricing methods simply require new pricing skills, a change in procedures, and a willingness to change.

Download our free ebook “Start with a Profit” here to learn valuable advice about starting your new business.

Get clear on your scope

Some clients ask for every extra there is. You may need to set boundaries if clients are asking you to do more than what they are paying you for. This happens in hourly billing when you are charging bookkeeper rates and your client is asking about CPA-level problems. It also happens in fixed fee pricing if the scope of the work is not nailed down.

Take a look at your clients and see if there are any leaks you need to plug when it comes to delivering services you are not being compensated for.

Communicate your value better

Many of your clients don’t have a clue about all the things you do for them in the background. When you can educate your clients on some of the background work that they never see, it helps them to understand and appreciate you more. Communicating this to clients requires a blend of marketing, selling, and educating your clients on the value you bring to their businesses.

Confidence

The last item that can make a huge difference in your ability to get the price you want is your own confidence. Think about how you present your offer to clients. Are you strong or meek? Do you cave in at the last minute and discount your price? Your buyer is equally concerned about choosing the right accountant for the work they have, and your confidence in yourself and your business will go a long way toward affirming your buyer’s choice. In fact, it is probably the most important of all five of these tips.

Try these five ideas to add more profits when pricing your accounting services. And if you would like more pricing, estimating, and selling tips, check out our course below, starting in November.

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