5 Key Value Pricing Principles for Accounting and Bookkeeping Services

gabi • April 8, 2025

Pricing is one of the biggest challenges for accountants and bookkeepers. Many firms still rely on hourly billing, which often leads to frustration, undervaluing services, and pricing pushback from clients. Value pricing provides a better way to set prices that align with the value you deliver rather than the time you spend.


In this blog, we’ll cover the five key value pricing principles that will help you achieve better prices for your accounting and bookkeeping services.



1. Move Away from Time-Based Billing

One of the biggest shifts you need to make is moving away from time-based billing. There are only two ways to price services:


  • Cost-Plus Pricing – This method calculates the cost of delivering a service, adds a profit margin, and sets a price. Time-based billing falls into this category, as hourly rates are set based on firm costs and desired profit.
  • Value Pricing – This approach focuses on pricing services based on the value they deliver to clients, not the cost of delivering them. The customer’s perception of value dictates the price.


Cost-plus pricing ignores the client’s needs, while value pricing puts them at the centre of the pricing decision.


Why Time-Based Billing Doesn't Work


  • Clients dislike it – A Sage study from 2005 found that the number one thing business owners dislike about accountants is surprise bills. Time-based billing prevents clients from knowing the final cost upfront, which creates uncertainty and dissatisfaction.
  • It limits your income – If you charge by the hour, the only way to earn more is to work longer hours or increase your hourly rate. This caps your earnings and can lead to burnout.
  • It ignores efficiency – The more experienced and efficient you become, the faster you complete work. With hourly billing, working faster means earning less. With value pricing, expertise and efficiency are rewarded.


Switching to value pricing allows firms to set prices based on the value provided rather than the time spent, making services more predictable and profitable.


2. Recognise That Clients Will Pay More for Value




Many accountants hesitate to increase prices because they assume their clients are price-sensitive. The reality is that most clients are value-sensitive, meaning they consider the value they receive before making a buying decision.


Understanding Value Sensitivity


  • Price-sensitive clients always choose the cheapest option, regardless of value.
  • Value-sensitive clients compare the cost with the benefits and are willing to pay more for better quality or service.


Most business owners fall into the value-sensitive category. If you offer valuable services and communicate them well, clients will pay higher prices.


For example:

  • Clients who purchase Apple products value quality, branding, and the user experience.
  • Clients who buy coffee from Starbucks instead of the cheapest alternative value convenience, experience, and taste.


Your clients make similar decisions with accounting services. If they see the value in your offering, they’ll pay a fair price.


3. Understand the Value Pricing Journey


Transitioning from time-based billing to value pricing doesn’t happen overnight. It’s a journey, and the first step is often moving from hourly billing to fixed pricing.


The Pricing Journey


  1. Fixed Pricing – Instead of billing by the hour, provide a set price for a service before starting the work. While fixed pricing is still cost-plus pricing, it eliminates surprises for clients and allows for better profit margins.
  2. Menu Pricing – The next step is offering multiple pricing tiers (e.g., Bronze, Silver, Gold) so clients can choose the level of service that fits their needs.
  3. Value Pricing – Finally, shift towards pricing based on the perceived value to the client rather than the cost or time involved in delivering the service.


4. Use Menu Pricing to Give Clients a Choice




A powerful technique in value pricing is menu pricing, where you offer different service levels (e.g., Bronze, Silver, Gold).


Why Menu Pricing Works


  • Clients love choice – When given multiple options, clients can select the package that best fits their needs and budget.
  • Higher revenue potential – Some clients want premium services and are willing to pay more. Without an upgraded option, they can’t choose to pay a higher price.
  • Better pricing psychology – Most people pick the middle option, making it easier to position higher-value services.


Successful companies like Apple use this strategy. When purchasing a MacBook, clients see multiple configurations at different price points, making them more likely to upgrade. Accounting firms can use the same principle to increase revenue while serving clients at different levels.


5. Reprice Existing Clients for Better Profits


Many firms focus on pricing new clients correctly but forget to reprice existing clients. If you’re currently undercharging, repricing existing clients is the fastest way to improve profitability.


How to Reprice Clients Successfully


  • Communicate added value – Explain what has changed in your service offering and how clients will benefit.
  • Provide options – Offer different pricing tiers so clients can select the best fit.
  • Start with new clients – Implement value pricing for new clients first, then gradually adjust existing ones.


Firms that follow a structured repricing strategy often increase average fees by 20–40% without losing clients. This improvement can double profits without taking on more work.


Implement Value Pricing in Your Firm



Shifting from time-based billing to value pricing leads to better pricing, stronger client relationships, and increased profitability. By applying these five principles, you can achieve higher prices and build a more sustainable firm:


  1. Move away from hourly billing – Price based on value, not time.
  2. Recognise that clients will pay more for value – Focus on delivering and communicating value.
  3. Follow the value pricing journey – Start with fixed pricing, then move to menu and value pricing.
  4. Use menu pricing – Offer different packages to increase revenue and appeal to different client needs.
  5. Reprice existing clients – Improve profitability by adjusting fees for current clients.


Try Effective Pricing


Confidently set prices that reflect the true value of your services. Try Effective Pricing and take control of your firm’s profitability.

Value pricing ensures that your fees align with the benefits you deliver to clients. Apply these principles today to make pricing more strategic and effective.

By gabi June 13, 2025
“When you give one price, it’s always the wrong price.” — Teresa Slack It’s a common scenario. A prospective client asks for a quote. You review their details, estimate the work involved, and deliver a single price. Their reaction? They hesitate. They ask for a discount. Or worse—they ghost you completely. The issue isn’t that your price was too high or too low. The real problem? You gave them only one option. Why One Price Doesn’t Work A single price turns your service into a yes-or-no decision. You’re putting pressure on the client to either accept or reject your offer—without the context of value or flexibility. Even if you believe your price is fair, your client may not be ready to commit without understanding what they're really paying for. Plus, you’re locking yourself into a number that may not reflect the complexity, needs, or expectations of the client. The outcome? You either: Undercharge (and resent it later), or Overcharge (and lose the deal) Neither serves you or the client. What Clients Really Want: Control and Clarity In today’s world, clients expect transparency. They want to know: What they're getting Why it costs what it does What options are available They want to feel in control of the buying process. When Teresa Slack shifted to letting clients "build their own package" through Effective Pricing, everything changed. Clients began engaging with the process, asking better questions, and ultimately choosing higher-value packages themselves. The Power of Presenting Options Instead of giving a single number, offer clients a structured choice: Entry Level Full Service Premium Experience Or even better, let them dynamically adjust their selection based on scope. When clients see the value behind each service line, they make better-informed decisions. You move from price being a sticking point to it being a reflection of value. Teresa shared how one client increased their monthly fee by 204% after going through this process. Why? Because he realised everything that was on offer—and valued it. How to Present Pricing the Right Way Here’s how you shift from pricing resistance to pricing confidence: Scope Before You Quote Start with a discovery session or diagnostic review. Uncover: Volume and complexity of work Pain points and priorities Desired outcomes Use Interactive Pricing Tools Forget spreadsheets and static quotes. Use tools like Effective Pricing to: Show real-time price changes based on scope Let clients see what’s included Build transparency into every quote Let Clients Shape Their Package Allow toggling options on or off. If the full package is too expensive, don’t discount—adjust the scope. “We don’t discount. We remove services.” — Teresa Slack From Negotiation to Collaboration This approach changes the nature of the sales conversation: Old way: "Can you do it for less?" New way: "What if we removed reporting or payroll support to reduce the price?" You’re no longer justifying your fee. You’re collaborating with the client to find the right fit. That builds trust. That wins work. Conclusion: Stop Pricing in Absolutes If you’re still offering one quote per client, you’re missing a huge opportunity to: Position your value clearly Increase your average fee Build better client relationships The right price is the one the client chooses—because it reflects what they truly care about. Try Effective Pricing Want to see how flexible, transparent pricing can transform your firm? 🎯 Book a free demo of Effective Pricing and discover how to: Price confidently Scope accurately Convert more clients → Try it now and give your clients a choice they’ll actually value
By gabi June 6, 2025
Think you’ve moved away from hourly billing and embraced value pricing? You might not have. For many bookkeeping and accounting firms, pricing remains the Achilles' heel. Despite good intentions, most who "switch" to value pricing actually end up using fixed pricing—and they don't even realise it. On the surface, it feels like progress. But under the hood, it's often just the same problem dressed differently. In this article, we’ll explore the most common misstep firms make when transitioning their pricing models, why it matters, and how to make a true shift to value pricing that increases revenue, improves client relationships, and restores profitability.
By gabi May 30, 2025
"There were times we couldn’t make payroll. We pulled money from our personal investments just to pay staff." That’s how bad things had become for Teresa Slack, co-founder of Financly Bookkeeping Solutions. On the surface, her business looked like a success. It had a growing client base, a team of skilled staff, and years of momentum behind it. But underneath, the numbers told a different story: they were barely breaking even, despite all the hard work. The culprit? Outdated, ineffective pricing. Meet Teresa and Financly Based in Ontario, Canada, Financly is a virtual bookkeeping firm specialising in e-commerce businesses, particularly those selling on Shopify and Amazon. With a team of 10 working remotely across Canada and Europe, Teresa and her sister Connie built a thriving niche-focused firm. But as the business grew, so too did the pressure. In the early days, they charged hourly rates as low as $18, later increasing to $35. Eventually, they transitioned to fixed pricing, offering packages at $200, $300, and $400 per month. But even that wasn’t enough. The business couldn’t sustain the team they had built. "We were paying our staff more than what the clients paid us," Teresa recalled. Overworked, Underpaid, and Out of Options Despite having more than 100 tax clients and 50 consulting clients, Teresa and Connie weren’t paying themselves. They were burning out, fast. "It was incredibly stressful because we knew we needed to do things differently, but we didn’t have any money." Then came a pivotal moment: a conference in Toronto where they first heard Mark Wickersham speak about value pricing. The Lightbulb Moment They joined the Value Pricing Academy and soon learned they had been confusing fixed pricing with value pricing. The difference? With fixed pricing, every client pays the same. With value pricing, every client pays according to the unique scope of their needs. They began trying to build their own pricing models in Excel, but it was clunky and time-consuming. That’s when they discovered Effective Pricing . "You cannot do value pricing easily without this amazing tool," Teresa said. Putting It to the Test Teresa used Effective Pricing for the first time with a new client. She was nervous. "My heart was pounding. My mouth was dry. I didn’t know how it would go." But the result was astonishing. The client loved the process. They appreciated the transparency, the ability to select what services they wanted, and how the pricing adjusted dynamically based on scope. The outcome? A 204% increase in pricing. Reinventing the Sales Process Since then, Teresa has redesigned her entire sales approach. She now begins with a paid diagnostic review to uncover scope and pain points. Only after that does she present pricing using Effective Pricing. This two-step method means clients see the value before seeing the price. And Teresa can tailor each pricing conversation with precision. "When you give one price, it’s always the wrong price. Clients either ask for a discount or say no. Now, if a client thinks the package is too much, we remove services. We don’t discount." The Transformation: Financly 2.0 Financly is now thriving. The business is profitable. Staff are paid well and enjoy benefits. Teresa and Connie now take a salary. The firm is approaching $1 million in annual turnover. And clients? They now pay what they’re truly worth. "We have clients paying $4,000 a month for bookkeeping," Teresa said. "Ten years ago, I couldn’t have imagined that." Hidden Wins The benefits didn’t stop at pricing. Miscommunication has plummeted. Clients now see exactly what is and isn’t included. Upsells are natural. Clients return months later to add more services they saw during onboarding. Client fit has improved. Teresa now works only with clients who respect and value her work. Teresa’s Advice to Bookkeepers and Accountants "If you’re struggling, working long hours, and undercharging, make the leap to value pricing. The shift will let you attract better clients, do better work, and actually enjoy your business again." Ready to Make the Shift? Explore how Effective Pricing can transform your practice, just like it did for Teresa Slack. → Learn more and sign up for Effective Pricing today.