How to price your accounting services (+how time-tracking helps)?
We know that many of you (especially those of you who have started your practice recently!) find it difficult to establish the price list for your services. Here’s how technology can help.
When you start a new practice, deciding how much you’ll charge is difficult because you need to take many factors into consideration, including the number of clients you have, your range of services, where you are based, etc.
To help you through this process, Uku keeps track of the time your team spends working on each task, so you can see what the cost is for your firm and can bill your clients accordingly.
Making Tax Digital (MTD) is making billing more difficult. Many clients don’t appreciate the fact that you have had to spend money and time using new software and digital workflows to file their returns.
Understandably, clients just want to see the final results and they sometimes resist price increases to a service that, from their perspective, hasn’t changed.
However, having visibility on the time you spend on their accounts and being able to produce reports will help you document and justify any changes to the prices of the services you provide.
Uku, with its reports and monitoring, gives you full visibility of all your clients, employees and tasks.
Uku’s client profile also allows you to specify the budget for the work volume and monitor in real-time. Unplanned projects can be marked as additional work which are easily noticeable and, if necessary, provide an invoice for additional work.
For example, if a client calls and asks for a different report on top of the ones they receive usually, the request can be registered in the software and show up in an end-of-the-month overview that reflects all the work that has been done for the client.
This allows the practice to increase prices up to 30 or 40% for clients by having an overview of the work that is actually being done. And this is not just useful to increase prices, but also to start negotiations based on the service evidence report.
This allows you to flag (and get paid for) extra work, including those phone calls from clients and special requests via email that are often not written anywhere and therefore not billed to the clients.