Maximising Profits in Accounting: Leveraging Tech for Effective Pricing Strategy

Need some confidence to price your services based on the value you offer? Here we share how new practice management software can help make that happen. 

As an accountant or bookkeeper, you understand the importance of knowing which clients and services drive your bottom line. 

It's crucial to position, package, and price your services in a way that is competitive, justifiable, and reflects the value you deliver. 

Here we'll explore how technology, such as accounting practice management software Pixie, can be a game-changer in helping you make informed decisions and unlock your profit potential.

Understanding Profitability

Gone are the days of guesswork when it comes to pricing your accounting and bookkeeping services. 

Software for accountants like Pixie is now enabling new possibilities to refine your pricing strategy. It is these cutting-edge analysis tools that provide you with a deeper understanding of your clients' profitability. 

This can help you to focus on offering value rather than simply relying on an hourly rate. 

1. Identify Most Profitable Services

Pixie allows you to analyse which services generate the most revenue overall. This invaluable insight helps you understand which services to emphasise, explain, and sell more effectively. Armed with this knowledge, you can tailor your marketing and sales efforts to maximise your revenue potential.

2. Assess Profitability per Hour Spent

Another powerful feature of Pixie is the ability to see which services are more profitable for the hours invested. This information guides your sales strategy and enables you to identify opportunities for allocating resources efficiently. 

By focusing on services that yield higher returns for the time spent, you can streamline your operations and increase profitability.

Related: 10 Habits That Lose Your Accounting Firm Time and Money

3. Determine Average Time Spent on Services

Understanding how much time, on average, is dedicated to delivering specific services is crucial for accurately pricing those services for future clients. 

Pixie provides you with valuable data on time spent, allowing you to determine the appropriate pricing that covers your costs and ensures profitability.

4. Identify Unprofitable Clients and Services

Pixie's analysis tools enable you to identify clients and services that are not contributing to your profitability. By recognising these areas, you can adjust your pricing accordingly. 

This insight empowers you to have conversations with clients about the need for pricing adjustments, ensuring that your services remain sustainable and profitable.

Related: How to Stop Overservicing Low-Fee Clients

5. Get A Complete Breakdown of the Numbers

At Pixie, we understand the importance of not just providing you with numbers but also presenting them in a way that is easy to comprehend and act upon. With our clever charts, colour coding, and bite-sized snapshots, Pixie now offers a comprehensive breakdown of the time dedicated to each client compared to the budget. 

Features like this allows you to identify clients with whom you've spent less time than budgeted and those that have exceeded the budget. Armed with this information, you can refine your pricing strategy, so you’re delivering value and maintaining profitability.

Related: How to successfully increase your fees (without losing clients) with Loren Fogelman

There’s even more to learn: Discover 7 Critical Steps to Pricing a New Client 

In the ever-evolving world of accounting and bookkeeping, technology is playing a crucial role in helping professionals make informed decisions about pricing strategies. 

To further assist you in your journey to master pricing strategies, we invite you to download our handbook titled "Discover 7 Critical Steps to Pricing a New Client." 

In partnership with Mark Wickersham, Chartered Accountant, public speaker and #1 best-selling author, we’ve put together this comprehensive guide. It will provide you with valuable insights and practical tips to ensure that you optimise your pricing strategies effectively.

This guide explains:

• Practical introduction emails for new client prospects.
• Important tips on how to research and prepare for your first introduction to your prospect.
• Practical tips on how to host that first meeting with your potential client.
• Questions to ask of your potential client to reveal whether they are the right fit for your business and where you could help solve their problems.
• How to explain and demonstrate your value, beyond an hourly rate.
• Easy templates to help you prepare the most professional response to your initial introductory meeting.
• How to close the deal with a professional onboarding process.
  
  

Download the handbook today: Discover 7 Critical Steps to Pricing a New Client 

With Pixie by your side, you can bid farewell to guesswork and embrace the power of technology to position, package, and price your accounting and bookkeeping services for maximum returns. Let's embark on this profitable journey together!