How to Price Your Bookkeeping Services for Profit and Growth

gabi • April 8, 2025

Most bookkeepers and accountants undercharge for their services. That’s not an opinion—it’s a fact backed by benchmarking studies. The problem isn’t just about charging too little; it’s about pricing the right way and communicating value effectively.


Mark Wickersham, a profit improvement expert, has spent decades teaching bookkeepers how to price their services strategically. In a conversation on The Successful Bookkeeper podcast, he broke down the key challenges with pricing and how bookkeepers can move from hourly billing to value-based pricing. Here’s what you need to know.


Why Hourly Billing is a Mistake




One of the biggest pricing mistakes bookkeepers make is charging by the hour. It seems logical—more time spent means higher fees—but it actually limits profitability in several ways:


  • Clients focus on the clock, not the outcome. When you charge by the hour, clients compare your rate to other professionals or even their own employees. Instead of seeing the value of your expertise, they see a number they want to reduce.
  • You get penalised for efficiency. The better and faster you get at bookkeeping, the less you earn. That doesn’t make sense. Clients should pay for your expertise and the results you deliver, not just the time you spend.
  • It creates pricing uncertainty. Clients prefer knowing what they’ll pay upfront. Hourly rates make it hard to predict costs, leading to sticker shock when invoices arrive.


Understanding Value Pricing


Value pricing is the practice of setting fees based on the value you provide, rather than the time you spend. The challenge? Value is subjective. What’s worth £500 a month to one client might only be worth £200 to another. That’s why pricing needs to be flexible.

Wickersham explains that successful value pricing requires three key elements:


  1. Recognising that different clients value services differently. The same bookkeeping work can be worth more to a growing business than to a small freelancer.
  2. Using price discrimination strategies. This means structuring pricing in a way that allows different clients to pay different amounts based on their needs.
  3. Giving clients options. People like to feel in control. Offering tiered packages lets clients choose a price point that fits their expectations and budget.


The Power of Three: Menu Pricing for Bookkeepers




One of the most effective ways to implement value pricing is through menu pricing—also known as “the magic of three.” Instead of quoting a single price, offer three options:


  • Basic (Bronze): Covers essential bookkeeping services.
  • Standard (Silver): Includes additional services, such as reporting or payroll.
  • Premium (Gold): Provides high-level support, advisory services, or priority access.


Why three? Because most people instinctively choose the middle option. It feels like a balanced choice—not too expensive, not too basic. This simple pricing strategy can increase average fees significantly.


Options and Upsells: Pricing Beyond Packages


While menu pricing is a great starting point, adding customisable options can increase revenue even further. Instead of bundling everything into set packages, give clients the ability to select additional services based on their needs.



For example, before revealing a final price, ask:

  • Would you like us to provide a monthly financial report?
  • Do you need payroll processing for your team?
  • Would you prefer priority access to your bookkeeper?


Each “yes” increases the price automatically. Clients feel like they are in control of their costs, and you capture more value without feeling pushy.


How to Reveal Pricing Strategically



One of the most common pricing mistakes is revealing a number too soon. Wickersham suggests a better approach:


  1. Communicate value first. Walk clients through what you offer and how it benefits their business.
  2. Let them choose their preferred package or services. Ask, “Which of these options do you think is the best fit for your business?”
  3. Present the price after they’ve committed to an option. This shifts their focus from price to value.


If the price is too high, you can adjust by removing features—never by lowering your base rate. This ensures clients make value-based decisions instead of focusing solely on cost.


The Psychology of Pricing: Why Anchoring Matters


Pricing isn’t just about numbers—it’s about perception. When a client hears a price for the first time, it sets an anchor in their mind. Everything they see afterward is judged relative to that anchor.


For example, if you present your highest-priced package first, the other options seem more affordable. If you start too low, everything else feels expensive. That’s why the first price you reveal should always be at the top end of what a client might pay.

This technique helps you avoid leaving money on the table. If a client is willing to pay more for a premium service, they should have the opportunity to do so.


Overcoming the Fear of Raising Prices


Many bookkeepers hesitate to increase their rates because they worry about losing clients. But the reality is, most clients won’t leave over a reasonable price adjustment—especially if they see the value.


Here are a few ways to gain confidence in pricing:


  • Start small. If you’re nervous about price increases, begin with new clients before adjusting existing ones.
  • Use a system. Structured pricing strategies make it easier to justify fees and remove the guesswork.
  • Test different approaches. Experiment with different pricing models and track what works best.
  • Remember that quality clients value expertise. The clients who argue over every pound aren’t the ones you want to build a business around.


Why Confidence Matters in Pricing


Pricing isn’t just about numbers—it’s about confidence. Clients pick up on uncertainty, so if you hesitate when quoting a price, they’ll negotiate harder or look elsewhere.


Here’s how to build confidence:


  • Practice pricing conversations before meeting with clients.
  • Use a structured pricing tool to ensure consistency.
  • Remember that low prices don’t create loyalty—great service does.


Many bookkeepers who follow these principles see an immediate revenue increase. Some even double their income in less than a year—without adding more clients.


Take Control of Your Pricing


Your pricing should reflect the value you provide, not just cover your costs. If you’re undercharging, now is the time to make a change.


Try effective pricing today and start building a more profitable bookkeeping business.

You Can’t 'Excel' at Value Pricing: Why Tools Matter More Than You Think

By gabi • June 20, 2025
“We thought we could just build it in Excel...” It’s a phrase we hear often from firms trying to implement value pricing on their own. On paper, it seems smart: build a custom spreadsheet, plug in your formulas, and start quoting. But it rarely works out that way. Spreadsheets are great for tracking data, but they’re not designed for live pricing conversations. In fact, they can make value pricing harder, more stressful, and less effective than it needs to be. Here’s why DIY spreadsheets are holding your pricing back—and how switching to purpose-built software changes everything. Why Spreadsheets Fall Short for Value Pricing Value pricing is dynamic. It relies on real-time scope evaluation, client interaction, and pricing psychology. Spreadsheets weren’t built for that. Common spreadsheet limitations: Not interactive : Clients can’t engage with the process Error-prone : One wrong formula can derail everything Visually flat : Hard to make compelling during a live meeting Not scalable : Becomes messy as you add services or options Teresa Slack learned this the hard way. Early on, she and her sister tried to build their own value pricing model in Excel. It was cumbersome, inflexible, and ultimately couldn’t support the complexity they needed. “We thought we could just build it in Excel... We quickly realised how challenging that was.” — Teresa Slack The Hidden Risks of DIY Pricing Models Trying to manage value pricing through spreadsheets doesn’t just waste time—it can actively damage your business. Inconsistent Pricing Without built-in logic, every quote is different depending on who created it, what version they used, or how confident they felt. Sales Friction Spreadsheet quotes look clunky. They don’t flow in a live meeting. Clients feel like they’re watching you do maths, not discuss value. Confused Clients When clients don’t clearly see what’s included or how the price was calculated, miscommunication is inevitable. No Room to Scale As your team grows, spreadsheets become harder to manage and update. Version control issues creep in, and onboarding new staff becomes a nightmare. What Modern Pricing Software Should Do A well-designed pricing tool does more than just calculate a number. It enables a better sales experience and value conversation . Here’s what to look for: Scope-based logic that adapts to each client’s needs Live, visual interface that supports interactive meetings Pre-built templates for bookkeeping, payroll, tax, and more Behavioural pricing features , like rewards for referrals or efficiencies Built-in tiering (e.g., Entry, Full, Premium) Instant proposals or follow-up integrations This isn’t about tech for tech’s sake. It’s about delivering pricing with clarity, consistency, and confidence. How Tools Like Effective Pricing Transform the Experience When Teresa adopted Effective Pricing , she saw an immediate change: Clients understood the scope of work Pricing meetings felt professional and guided Clients selected their own services Fees increased substantially “You cannot do value pricing easily without this amazing tool.” — Teresa Slack One of her clients even increased their monthly fee by 204% during the initial meeting—not because of a sales trick, but because the process made it easy to see the value on offer. Tools Create Consistency, Not Just Efficiency Having the right software doesn’t just make pricing faster. It makes it repeatable . It ensures every client gets the same level of clarity and professionalism, whether you’re quoting them yourself or handing it off to a team member. You can standardise your offerings, track conversion rates, and iterate confidently without fear of breaking a formula. Most importantly, you create a pricing experience that feels like part of your brand. Conclusion: Stop Treating Pricing Like a Side Task Pricing is not admin. It’s not just a number you send after a call. It’s a core part of your sales strategy and client relationship . If you're still using spreadsheets to manage your pricing, it's time to upgrade. Not just for your efficiency—but for your credibility, your growth, and your peace of mind. Try Effective Pricing Want to see what pricing looks like when it’s done right? 🎯 Book a free demo of Effective Pricing and discover how to: Quote with confidence Align pricing with value Convert more clients—without the guesswork → Stop struggling with spreadsheets. Start pricing with purpose.

Why Giving One Price Is Always the Wrong Price

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

The Biggest Mistake Firms Make When Switching to Value Pricing (and How to Avoid It)

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.