Are you struggling to find the right price for your bookkeeping services? We understand — numbers might be our business, but talking about money is always hard. It can be difficult to determine the value you provide to your clients AND defend that value when setting your prices. Nevertheless, the services you provide are incredibly valuable. That’s why you shouldn’t be struggling for hourly rates while much of the work you really do for your clients isn’t taken into account. So, here’s some of our best advice for pricing your bookkeeping services!
Use a Fixed (or Value-Based) Pricing System
When it comes to setting your bookkeeping prices, we recommend using fixed or value-based pricing. Fixed pricing means you have a set rate for your services rather than billing an hourly rate. With this model, you use internal metrics to dictate how much each service will cost. These can include the time it takes to complete the tasks associated with the service and how much value the service brings to your client.
Use Your Experience
We all sell ourselves short sometimes. That tends to happen when we talk about the value our experience and expertise bring to clients. When it comes to deciding the fixed fees for your bookkeeping services, you’ve got to start by assessing your team’s experience. The experience needed to complete different assignments should affect their pricing.
Understand That Time is Money
One of the most essential first steps to pricing your bookkeeping services fairly is understanding the time it takes to complete each task. Even if you are using a fixed pricing system, time is a useful tool to use in your decision-making. Calculate the amount of time it takes to complete your work and how much revenue is needed to cover that work and turn a profit.
Factor in Software
You use a lot of tools in your daily work, and those tools cost money too! When your clients are paying for your services, they’re also paying for access to the resources at your disposal. Be sure to factor in the cost of any technology and software you use to complete work for your clients into your individual pricing.
Package Your Services
After you’ve priced your individual services, you can start creating packages! Packaging your services is a great way to provide your clients with all the help they need! The most basic package should include full bookkeeping and tax filing. Beyond that, your packages should reflect the pairings clients will be most interested in. For example, one client might need tax planning, payroll support, AND basic reporting.
You know that your services are valuable — now, you just have to put a number to that value. Once you understand your own business and your client’s needs, the actual numbers should fall into place much more quickly. For more information on pricing advisory services or the difference between fixed billing and hourly rates, check out our other blogs!
