I want to share with you 7 practical tips for how you might price bookkeeping services…
If you prefer you can watch the video here.
Tip 1 - Don’t Move Straight to Value Pricing
This is a big mistake I see often.
If you try to move from hourly billing to value pricing in one quick jump you are going to fail without a doubt.
Value pricing is a difficult concept to grasp in the first place. Trying to apply it to a complex compliance service like bookkeeping is going to make it even harder.
The move to value pricing is going to be a journey, not a quick fix, so be patient.
Tip 2 - Remember It Is Valuable
You need to recognise that bookkeeping is valuable.
The perception is often that it is a low value service, it’s just data entry. But bookkeeping can be so much more complex than that.
I know that my bookkeeper is quite expensive, but I don’t mind paying that price because I know I am getting great service. It gives me peace of mind knowing that the...
Do you struggle with knowing how to price your bookkeeping services?
Do you hate having the pricing conversation with clients?
Do you feel you are working crazy long hours for too little reward?
Trust me, you are not alone.
I know far too many bookkeepers who are underselling themselves and not getting enough money for the work they do.
I’ve noticed that people in the accounting profession are not typically very good at communicating their value to clients.
The ultimate problem is when clients don’t see the value of the work you do, they don’t want to pay a premium price for your services.
That’s why bookkeepers price so low. But you are worth so much more.
I hate seeing bookkeepers being under appreciated for the work they do. I’ve been there myself.
That’s why I have created this new ebook ‘How To Price Bookkeeping’ with these 5 easy steps to getting better prices:
Step 1: Change the way you price - stop quoting hourly rates and move...
As people move away from hourly billing and move towards value pricing, the first step in the process is being able to give a fixed price.
One of the problems with hourly billing is that the client doesn’t know the price until the work has been completed. If we can give them a fixed price they will feel more confident and more likely to buy.
You can watch the video here.
Just to be clear…
Fixed Pricing is not Value Pricing.
However, it is an important first step to have a system for coming up with a fixed price. Once you have this system in place, it is much easier to move through the steps towards value pricing.
So, how exactly do you come up with a price…
#1 - Work out the scope
For every service, there are primary scope factors.
These are factors that will determine how long the work will take. For example, the primary scope factor for payroll is likely to be the amount of employees. For bookkeeping, it may well be the number of transactions.
Is the bookkeeping profession is crisis?
There is such a huge amount of change going on in our profession right now.
We are seeing the rise and increase of Cloud accounting. We are seeing artificial intelligence, machine learning, automation like bank feeds, and not too long ago we also saw Intuit QuickBooks launching Bookkeeping Live - alive bookkeeper, at really low prices.
What we are going to see over the years to come is increasing downward pressure on prices for compliance work and particularly for bookkeeping.
If you are a bookkeeper, CPA, accountant, or do bookkeeping services, this blog is for you.
I’m going to share with you my thoughts on where the profession is going and how we can overcome that.
How do we rise to the challenge? How do we make sure that we can continue to build a very successful accounting practise? How do we beat technology, outsourcing, low cost competitors and now software companies that are getting in on the bookkeeping action.
Here are four...