Practice Management
Accountant Value-Based Pricing Boosts Profit, Saves Time
Over the years, businesses have evolved to adapt to new buying preferences, operational efficiencies, and technologies. Through it all, one goal has remained consistent: delighting clients. After all, when clients see the value of your expertise, they are more likely to extend your services and refer new business. That’s why many firms are turning to value-based pricing models.
Value-based pricing is a fee structure that effectively meets client needs with a results-based focus. This also provides the advantage of higher, fair pricing for accounting services—increasing profits for firms.
In this blog, we’ll cover:
- A brief overview of value pricing for accountants
- The advantages of accountant value-based pricing
- Next steps for adopting value-based pricing strategy into your business
What is Value-Based Pricing for Accountants?
A value-based pricing strategy is a fee structure based on the client’s perceived value of your service, paired with the true cost of your expertise. This system, as the name implies, is all about the value you create for the client, not the time it takes to do the work. It’s typically structured by packaging up services and charging one flat rate rather than tracking hourly work. For example, a value-based pricing package could highlight strategic advisory services for a quarter, which includes monthly meetings, a quarterly report, and unlimited phone calls.
As a result, your clients will know exactly how you’ll accomplish their goals in one transparent, fair price.
What Are the Advantages of Value Pricing for Accountants?
Value-based pricing strategy provides accounting firms with an advantage over competitors due to better quality service, the ability to boost client satisfaction by focusing on results over hours, and the opportunity to increase overall profit and productivity by charging more while potentially taking on fewer clients.
Better Competitiveness
You’ve probably encountered this scenario: After an overview of your expertise, the potential client asks about your hourly rate and expected timeline. While hourly rates are a straightforward approach to pricing for accounting services, you’re potentially undervaluing your work and now competing with other firms mainly on price.
However, with value-based pricing, you position your business with two better, more competitive offerings: quality service and predictable pricing. So, instead of discussing how fast you can perform the work, you’re now explaining how well you can achieve the desired outcome—which is key to becoming a more successful accounting firm. And in this era of quality over quantity, your portfolio will likely consist of more pleased clients and better results—increasing your competitive edge.
Increased Client Satisfaction
Clients are often amenable to new approaches to projects as long as the desired end result is produced. With value-based pricing packages, you can focus more on achieving your client’s desired outcome, rather than battling with clients to justify your hourly time.
This approach eliminates the tug-of-war between clients wanting you to perform as fast as possible (so they don’t have to pay as much) and your business profit. Additionally, value pricing for accounting services minimizes client frustration by removing minutiae hourly charges (like phone call charges)—reducing the likelihood of invoicing disputes.
Boosted Profits and Time Savings
Instead of fixating on how many hours you have per day for each client or tying each individual task to a set amount of time, you’ll be able to focus entirely on the client’s business objective. Accountant value-based pricing allows you to increase the price of your service to the highest level that clients are willing to pay.
This is based on a couple of factors:
- Your overall experience
- Your level of expertise on the potential assignment
Plus, you’ll save time by completely eliminating the time-tracking efforts required when managing an hourly system. All in all, you’ll be able to take on clients that are a better fit—at a higher price for improved accounting firm profitability.
So, as the next steps, how can you incorporate a value-based strategy into your business? Check out our e-book: “Three Key Steps for a Winning Value-Based Pricing Strategy.”
CPACharge Complements Value-Based Pricing Systems
Accountant value-based pricing allows you to charge what you’re truly worth for better profit while delighting clients with a results-focused approach.
CPACharge, designed specifically for accountants, pairs with a value-based pricing system by further increasing cash flow and efficiency.
Features include:
- Invoicing and online payments so your packaged value-based pricing is sent efficiently (while you get paid instantly)
- Fee funding (via the Pay Later solution), which provides clients with the option to pay their value-based packages under an installment plan
- Scheduled payments allow clients to easily set recurring payments on their value-based pricing invoices
- Reporting and reconciliation features allow you to track value-based pricing invoice statuses as sent, viewed, or paid
Book a free demo today so you can see firsthand how CPACharge can improve your firm’s productivity in conjunction with your desired fee structure.