You’ll be able to address any questions or concerns the potential client may have in real-time. For this step, you just need to list out the services, support, and technology for each tier, like the example below. 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. To give you an example of how pricing can make all the change in net working capital difference, check out this message from one of my Future Firm Accelerate members.
Fixed-rate pricing
- The number of tasks you assign to them directly impacts the price of each bookkeeping service.
- There are many aspects of being a business owner that drive success.
- You may not know how long you’ll need someone, but comparing the monthly bookkeeping cost of a contractor versus an in-house employee is the best way to see this angle side by side.
- There are a lot of aspects you need to be aware of if you’re choosing value pricing.
There are a number of certifications you can get as a bookkeeper. And in turn, these certifications can increase your expertise (and your pricing). One of the extra tasks I do for this law firm is their bill pay. 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. Value pricing and bundling is an obvious strategy to boost your bottom line.
If you’re already doing a client’s books, approach them with an what are accrued liabilities definition and explanation offer to build on your role. They already trust you and you already know how their business works. However, there are slightly more sophisticated ways to package your bookkeeping services that encourage repeat clients, and maximize profits.
Push value-add services
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. It’s a silly hangup, but I always want to find a way to skip past my hourly rate or the total cost of my first invoice and get straight to the work.
Overall stats of a large client
The thing you forget when you go out on your own is you’ve now got several bosses. If you need to raise your rates, you’re suddenly asking a dozen bosses for a raise. When deciding if you should do your bookkeeping yourself or hire outside help, the decision is entirely up to you.
58% of accountants said updating technology has improved efficiency and productivity, which is vital for creating space to add the services that clients demand. You can take into account the client, the job type, your experience, along with many other factors to give a fair quote. By definition, fixed-fee pricing is inflexible, and in a complex industry, inflexibility can cost you money.
This will show them which of the six classes is most profitable. The main types of checks I write are reimbursement checks if the teacher buys supplies estimating allowance for doubtful accounts by aging method with her own money, or certain vendors will send invoices, and I will write a check for those. I’m trying to help my client get away from that by training them to use their debit card to pay for vendors rather than having them invoice for a paper check. The best way to know if a pricing structure will work for you is by testing it.
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