Conquering the Beast: Charging the Right Fees | AccountingWEB

Almost every CPA I mentor tangles themselves in a web of confusion and wrestles with the same beast. The confusing nail biting beast that I am referring to is pricing.

It really pains me to see fellow practitioners struggle with pricing and not setting, or getting, the fees that they deserve. And realistically, when approached properly, setting your fees can be one of the easiest things you’ll ever do in your practice.

One of the biggest problems we face as a profession is that practices have taken their capital and commoditized it into a one-dimensional billing rate, but this is a SERIOUS mistake.

As CPAs, we have three basic ways to price our services: hourly, fixed fees or value-based hybrid pricing.

Hourly billing sets the tone that your services aren’t much different from any other CPA or bookkeeping firm. This hourly billing gives no incentive to be more efficient than your competition or get your work done faster, so you’re actually losing revenue.

Now with fixed pricing, the risk is transferred to you. If you use fixed pricing, you should charge more. A fixed pricing strategy can be used for one-time projects like tax preparation for a fixed fee, or it can be used for recurring monthly services.

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Conquering the Beast: Charging the Right Fees | AccountingWEB.