To optimize the definition of your accounting fees, you can use one of these billing models:
pricing per hour worked :
when to use: in the provision of complex services or consultancy;
positive point: it is adjustable according to the level of difficulty;
negative point: it makes it difficult to estimate a total price for the client, as it depends on the number of hours required for completion;
pricing by project :
when to use: in cases of one-off and non-recurring hires, such as audits and tax restructuring;
positive points: the client knows how much they will pay right when signing the contract;
negative point: it generates a risk optometrist accurate email list of underpricing, especially if complexities arise during the project;
value-based pricing :
when to use: for services with a high competitive edge, with strategic tax planning;
positive point: increases the probability of profit by aligning the amount charged with the customer's perception of value;
negative point: requires in-depth understanding of what the contractor understands by value in accounting services;
fixed pricing per service :
when to use: for recurring, common and standardized solutions, such as monthly balance closing and pro-labor calculation;
positive point: certainty of how much will be paid for each service;
negative point: it does not cover unforeseen events and changes in complexity;
pricing with adjustable profit margin :
when to use: if the objective is to increase the business's competitiveness and increase its power of attraction;
positive point: it opens up room for negotiations when attracting new clients and renewing contracts;
negative point: it can compromise profitability if not calculated correctly.
However, sometimes a good price alone is not enough to win over a new customer. So, find out how to capture the attention of leads and prospects with the tips in this infographic:
pricing of accounting services
How to calculate accounting fees? 5 steps + example
To accurately calculate accounting fees, you must:
list all services offered;
estimate the time required to execute each one;
calculate direct and indirect operating costs;
assess contractors’ perception of value;
set the desired profit margin.