How to Price Bookkeeping Services for Clients of All Sizes

No surprises at the end of the month, complete collar colors just the assurance of well-managed finances. And trust me, nothing makes a client happier than knowing they can count on you for this. Whatever structure and pricing you go with, make sure to lay it all out on the table for current and prospective clients. That way, there are no surprise fees, and clients know what to expect from you. Smaller clients generate less revenue than medium or large clients. Therefore, you generally want to charge a small client less because they have fewer needs.

The higher the value, the higher you can set your accounting firm’s prices. To clients seeking accounting services, they may place value in an accountant’s years of experience, the portfolio of clients, industry awards, and level of education. The quality and experience your accounting firm offers establishes the value of your service, which will help you to set the right prices. If you’re starting to evaluate what pricing strategy makes sense for your firm, you may consider taking a look at some common pricing structures other accounting firms use. We’ve rounded up five common pricing strategies and included an overview of some of the advantages and disadvantages of each.

Value-Based Pricing

1. We’ve rounded up five common pricing strategies and included an overview of some of the advantages and disadvantages of each.
2. Most people don’t want the most expensive option, but they also feel dissatisfied with selecting the base option because it lacks certain features.
3. Value pricing can help businesses generate higher profits.
4. For example, a manufacturing company might need inventory management, while a retail business might require point-of-sale integration.

With tech taking up so much airspace in modern accounting, those who are fluent users are quickly outpacing those who aren’t. In a survey by PracticeWeb, 66% of clients surveyed said they would pay more for a ‘tech-savvy’ accountant. Increase your accounting firm valuation by cluing into what buyers are looking for in a modern accounting firm today. Using this information, you want to guess at the highest price you think they’re willing to pay for each service level.

A strong alternative to hourly billing is fixed-rate (or flat-fee). It means you set a fee for each service you offer and provide clients with a ‘menu’ of sorts, with corresponding prices. To decide which type of pricing is best for you, consider your experience level, the type of work you’ll be doing, and the needs of your clients. Once you’ve considered all of these factors, you should have a good idea of how to price your bookkeeping services.

Communicating your pricing strategy effectively to clients can seem daunting at first. But remember, transparency, clarity, and value-based conversation are key. Use the right tools, refine your skills, and let your clients see the value you offer beyond the numbers. In this guide, you’ll discover how to masterfully price your bookkeeping services, blending strategy, communication, and technology, all in one cohesive approach. To illustrate what a large client looks like, I’ll be using a physical therapist office I do bookkeeping for that generates about $1.2 million in revenue a year. This office employs 10 speech pathologists and general staff and circulates child clients who come in for their services.

Practice barrier #6: value pricing & bundling

At some point or another, you may have clients of all sizes—aka small, medium, and large clients. And when one client’s size is larger than another client, you’re going to want to price services accordingly. For another great article about billing for bookkeeping services by the cash flow for dummies hour, check out this post over at Fit Small Business. On the other hand, there are times you can charge a much higher hourly rate. 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.

Overall stats of a medium client

Remember, the goal isn’t just to bill clients, but to build long-lasting relationships based on trust and value. As a modern, online bookkeeping professional, your strategic pricing model could be the deciding factor that distinguishes your services from the rest. Instead of charging by the hour, you establish a flat monthly fee that reflects the value is there a difference between an expense and an expenditure the client receives.

When pricing your services, one item to keep in mind is which types of payments you will accept. If you accept electronic payments (either credit cards or ACH payments), you’ll want to consider the cost of payment fees. You can get an idea of market rates by talking to other bookkeepers in your area or searching for bookkeeping services online. If you’re located in a major city, you may be able to charge more than someone in a smaller town. Clients in major cities may be willing to pay more for bookkeeping services than clients in smaller towns. Want to see what other accounting firms charge for tax preparation services?