Question

Bookkeeping Pricing

  • 13 June 2022
  • 3 replies
  • 27 views

Hi Everyone. A quick question regarding bookkeeping pricing. We are finding our current method inefficient, in terms of 1, actually calculating what the fee should be, and 2, trying to ensure the price is a true reflection of the work undertaken.

 

We use GoProposal, and our fees are set up using the following line items:

Invoice processing fee - Fee based on no. of invoices processed.

Bank rec fee - A fee for reconciling the bank rec each month.

VAT return fee - A fee for producing and submitting the return.

 

Could anyone share how they price these services and any tips you have found when pricing bookkeeping?

Thanks in advance.


3 replies

Userlevel 5
Badge +6

we bundle our pricing, but definitely following!

Userlevel 7
Badge +19

Hi @Adam Kusnierek, we are late to the fixed fee party and recently started using GoProsal for engagement letters and proposals.

I wouldn’t say that we have a great system, so I’m eager to hear how others approach this.

Userlevel 5
Badge +7

Hello,

We bundle our services as well and have really taken to heart the Ron Baker value pricing philosophy.  It has been a mind shift for sure.  

Some things we have done to help us assess a baseline value include

  1. assigning a charge out rate to each role that will be working on the project (the value each team member is bringing to the project)
  2. assessing how much time each role would reasonably spend on the project and multiplying that by the various charge out rates (the time the project is forecast to take)
  3. assigning a ‘basic’ value to each service - we will not go below this
  4. we have some line items like bookkeeping based on number of transactions for example up to 100, up to 200, up to 500 and over 500 per month, that each have a baseline value
  5. the client only sees the combined fee for all services included - the break out for each service item is internal
  6. we offer options - the lower end has fewer touch points and reporting cycles that can be handled by team members with lower charge out rates
  7. we ALWAYS have a second set of eyes go over the proposal before it goes out
  8. don’t forget the value of the subscriptions that the firm pays for to get the work done

We use Ignition for proposals and engagement letters and have it integrated with Karbon so each service item sets up a work order for that client in Karbon and we just have to go in and adjust the schedule and assign people and budgets.

Hope that helps,

V

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