It surprises and worries me that a significant number of questions on here relate to such issues as pricing, marketing, business growth etc of practioners own businesses.
If accountants do not know how to price their own services, market their own business, and manage their own growth, then how can they possibly advise clients on such issues? Or are these areas that many neglect, prefering to focus on pure compliance work for clients?
These areas are all covered in detail when studying the exams so why are so many having trouble putting these into practice?
Appreciate your thoughts.
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Replies (72)
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Not surprising at all
Accounting services are one of the most difficult services to price. Potential clients regularly ring me up and ask 'how much do I charge for a tax return'. There's no magical figure. Its not like buying a bar of chocolate. Accordingly we need to discuss how to price. Its not obvious.
As to marketing and growth of practices I dont know when Jason qualified but I took my final exams in 1989 and dont recall much on these topics being covered in the syllabus. Consequetly when I set up practice in 1993 ( pre AW) I took a load of markeing books out the library and swotted up on what to do.
Why?
Why is it not obvious?
Why is it difficult to price up a tax return?
Surely all you need to do is obtain the cost of the preperation, add your desired contribution, scope the service as to how it is delivered, and give variable prices on the number of sources of income? May need to tweak for factors such as going rate, risk and opportunity but surely a headline price is easy enough to establish?
Seems pretty obvious to me and think that as accountants this sort of thing should come quite naturally (sales and marketing excepted)
Granted marketing is covered in less detail but costing, pricing and strategic development are covered quite fully these days, not sure about 1989 though.
cost of preparation?
you rather simply state that you take ''the cost of the preperation,'' and add you desired margin etc. But what is the cost ? how long is a piece of string ? There are many factors to consider and a headline figure is misleading and dangerous
£ s d
Granted marketing is covered in less detail but costing, pricing and strategic development are covered quite fully these days, not sure about 1989 though.
Posted by Jason Dormer on Mon, 14/06/2010 - 23:07
I wil simply say that when I qualified tax returns were completed in £ s d. (work it out).
I still remember the absolute nightmare of switching everything from £ s d to decimal, which is why I'm dead against adopting the euro - I do NOT want to go through that again.
What I can say is that back then we covered a lot about job costing, a fair bit about commercial law, but next to nothing about selling, advertising etc. Maybe that was an advantage, because it let us learn by experience, instead of having the latest theory shoved down our throats.
Cost = time taken by level of staff and cost of paying staff.
Add in some review/explanation/submission time.
Chuck in some contribution to overheads if you really want to.
If my view is simplistic then is yours not the opposite?
Accountants are still trained to be accountants
Hi Jason.
Firstly, you are discounting a huge number of people who didn't take exams. Do you find that they too are useless at these things? If so what do you put that down to, or maybe you think they should take exams? Alternatively, maybe the "un-examined" get it right?
With regard to exam syllabi, are you serious? They make reference, for example to sustainablity and, if you refer to the ICAEW's, ACCA's etc websites, they all put this topic at the top of their agendas, but how many accountants know what it means? Most, I believe, think it means making it to the end of the day without falling asleep.
Yes, there are in-depth modules within the professional exams for business strategy including marketing, opportunity/risk assessment etc but how many students, upon passing their exams, get jobs in business strategy, marketing etc? They don't, they stay in practice and do accounts, audit & tax or move into industry/commerce as accountants/finance people.
As and when they wake up and see that there's more to life than what they are doing and maybe think about becoming business analysts or even market strategists, they may get their 10 year old exam books out for a guide but will soon realise they will need a huge amount of re-training, before being allowed on the first rung.
Alternatively, they want to have a go at being in practice in their own business (rare I think these days), in which case, unless they have time & personal wealth, few of their number will up-skill (or whatever it's called) to bring marketing & business development into their purview, ie they will stick with what they know to make some money.
Despite having been lucky enough to have studied for a business management diploma and to discover the alternative "out there" world of marketing (a job I would now pick were I to be considering a career at 20) I still call myself an accountant, but with the experience of hundreds of business clients over the years and running my own practice I now have no problem in advising clients on their business nor in how to price a tax return. I though am not typical.
All of this is "obvious" to me and I too ask why you are surprised? You say you are also "worried" which is strange given that if all of us knew about this stuff, you would presumably be out of a job?
PS: Just checked back before submitting, welcome back CD, that was a short retirement? Can I suggest that if we all considered every "latest theory" in the same way you do, you'd not be driving your car nor posting on this site.....thinks.....OK you're right?
My favourite piece of marketing
I was amused to see an advert "put your debt related problems behind you" on the Vantis website yesterday! If only they could . . .
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The reason people post about business of accountancy is that the best way to learn is by asking questions of people that do it already, rather than sitting as an academic spouting theory.
The best way to learn about business is in my opinion to observe and do.
All learning starts with a theory
@Jason – just because it is easy to calculate a price it doesn’t mean it’s the right or the best price.
The chances are, if you are pricing thinking about “your” costs and “your” desired net profit you are less likely to be thinking about what the client wants so you will miss opportunities, not just with a price for one client on a particular client but a whole host of opportunities because you are thinking about yourself rather than the client.
I’ll cover this in the new online sales and marketing course for accountants I’ll be launching soon. I joke that most accountants are about 2/3rd communist because of the way they price. You see, job costing and time based billing is derived from the labor theory of value from Karl Marx published in the nineteenth century. The only part of the price which doesn’t fit this theory is the desired profit which is usually set at 1/3rd of the overall price.
@CD - old theories make new theoies harder to take onboard.
@Paul – most accountants accept that they are not good at what they perceive as marketing but what many don't realise is that the foundation of marketing is the 4Ps of Product, price, Place and Promotion.
Many are excellent at the first P of product with customer service and care for clients and as you have seen from Apple, if you get this first P right people cue at your door without needing to spend too much on the last P of promotion. But, I bet they didn’t set the price on what it cost to make the iPad.
Bob Harper
Cost = time taken by level of staff and cost of paying staff.
Add in some review/explanation/submission time.
Chuck in some contribution to overheads if you really want to.
If my view is simplistic then is yours not the opposite?
@ Jason - I suppose you know exactly how long each job is going to take before you do it, even if it is your first time doing it, and there are ambigous areas, or areas that require some reasearch? Even when a prospective client phones up to ask how much you charge for a tax return ...and gives you sketchy details?
Perhaps you have a Crystal Ball that tells you the time taken, perhaps you would like to share the name of crystal ball supplier?
Perhaps this post was intended to turn in to a Sales pitch for Seahorse (UK) Ltd
Alpha
*apologies, I'm in a grumpy, cynical mood today*
Jason, you are confusing me
I thought this was part of the service offering you provide for your accountancy practice clients?
If it is, it's a bit like me complaining that my clients can't prepare their own accounts and file their own tax returns.
Or have I misunderstood?
-- Kind regards Andy
There is a different way
@Alpha - you can break jobs down into manageable sections which you can be more certain of.
For example, dealing with a Tax Investigation...you could quote say £300 for getting all the stuff to the taxman and then maybe £750 or £1,500 to answer the initial response after you see the questions from the taxman. Or, you can take a chance and just quote £3,000 start to finish with some caveates like if tax evasion is discovered or there is the need to go to Commissioner you will not cover this in the bill.
There is another way than just recording time and billing and it forces you to have a discussion with the client which is always a good idea.
I dealt with a tax issue for a client once which I had no experience of. I told the client this and asked if they wanted me to help them find an expert to help them. They said no and asked me to do it on a results basis. I agreed bexcause I am like that and generated £13k fee for four letters and a bit of telephone work. And, the client was really happy because a £50k tax bill disappered.
Bob Harper
Andy
I agree with Andy, surely Jason should be glad Accounants are having trouble with these areas - surely that is what still keeps him in business, and it also sounds like his business should be booming!
Then again maybe his post was a veiled Sales pitch! Trying to put that Marketing theory into practice?
Motivation
@Anon and Andy - maybe Jason is using this forum to get a better understanding of accountants in practice? That's OK for this section of AW, isn't it?
Having just got a strike myself and read the new guidelines I'd be careful to ensure your posts address the OPs question. What value does questioning the motivation of the OP have to encouraging a healthy discussion?
Bob Harper
Not at all
Haven't got time to repsond in full, it was meant to provoke debate, not as a sales pitch at all hence the reason for leaving any links off my signature as I usually do.
You should know me better than that.
Will respond to other points when time permits.
Sorry Bob, but
I think questioning the motivation is entirely relevant as it helps to contextualise the answer. I expect you know that really, but Jason is an old friend of yours and you are looking out for him.
Don't get me wrong, I like Jason and am certainly not looking to stifle debate, but to draw out from Jason why he is asking the question - is he frustrated by his clients? has he changed the substance of his business? I am interested even if I was clumsy with the wording of my answer.
-- Kind regards Andy
Benchmarking?
I would imagine that a lot of people post such questions on here simply to find out what their competitors are doing. It's simple market research.
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Morning all
@Peter - You mention that ICAEW, ACCA put this topic at the top of their agendas, but how many accountants know what it means? In that case is it an issue for more rigorous examination?
You also ask whay I am surprised and worried? I would say surprised for the reasons I mentioned in that business owners often expect their accountants to guide them in this area to add some real value, Worried in that, despite how I can benefit personally, I care about the profession and the way it is perceived by it's clients.
@Bob - I didn't calculate the price, I calculated the cost!
@ Alpha - You are over complicating things, 90% of tax returns, when number of sources of income are known and a bit of fact finding is taken, can be calulcated in time relatively easily. If still unsure you can band the price on the variables. I do have a crystal ball as it happens, it has just told me that that England will go crashing out of the World Cup on penalties, just as everyone starts thinking we can actually win the thing.
@ Andy - I don't understand the comparison, I would not expect business owners to have knowledge/experience/desire to prepare their own accounts and file their own tax returns. I do think though, that accountants should have some concept to costing / pricing and strategy. My question was not meant to be provocative or salesy in any way (back door marketing is seen negatively in my opinion so I would never contemplate it) it was to debate whether accountants training is put into practice or whether people are purely focusing on compliance work.
Yes, it is a good morning
@Andy – Jason is a competitor although I think we target different markets and have a differently priced solution and from his comments about pricing with a different methodolgy - he is fixed pricing I am value.
Having re-read you post I should have not included your name with Alpha who suggested the purpose was to sell Seahorse services, sorry about that!
@Jason - you use your calculation of the cost as the basis for the price. This is a massively different perspective because you are not thinking about what they clients want, what they are happy to pay and how to deliver it within the budget.
Cost-Plus Pricing is - Product > Cost > Price > Value > Customers
Value Pricing is Customers > Value > Price > Cost > Product
@All - my question would be what role should accountants play in society?
Should we just carry on doing accounts and tax returns or can we do a little more?
It's one things to fight the tax rises for clients with tax planning and force the Government to address the deficit from the people and organisations who caused the problem. BP are under massive pressure it would be good to see governments putting more pressure on the banks. But, I believe accountants can coach their clients towards a better future and get them paying more tax - this will have a massive impact on the economy and our standard of living.
Now that's a purpose and it's why I help accountants with that level of passion with their marketing.
Bob Harper
Pricing
Bob - I am all for value pricing where appropriate, but that's not always the case.
In this thread tax returns have been mentioned - how many clients value the preperation and submission of a tax return? Not many - its somehting that is forced upon them. Therefore fixed price mostly approriate.
The giving of the advice and the education to the client of the implications of the advice on the tax position is what the client values and then value pricing can be appropriate.
Horses for courses.
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@Andy
"Don't get me wrong, I like Jason (Me too - thanks!) and am certainly not looking to stifle debate, but to draw out from Jason why he is asking the question - is he frustrated by his clients? has he changed the substance of his business? I am interested even if I was clumsy with the wording of my answer.
-- Kind regards Andy"
Im not frustrated by our clients, I love working with accountants who require support in these areas and have also not changed the nature of the business.
The question was purely out of interest and to gain some understanding of why people who are trained in areas have trouble applying them to their own business, and if they are missing a trick by not applying them to their clients businesses.
I really don't want any answers on this thread to mention our business as that was genuinely not the intention. If some people think differently then there's not much I can do about that.
Back to topic
@Jason (think you meant @Paul not Peter?) apologies for any "jumping to conclusions" on my part, there are frequent postings designed to generate self promotion. I don't know you but it's clear I assumed there was an element of this in your posting.
My own view and experience is that most small businesses and their accountants are let loose on the world with little if any coaching over what the real world has in store, much the same as school leavers having little idea about money management and employment rights.
This has really been brought home to me as I get more involved with charities and NFP organisations. Unlike most of my SMEs they take it as natural and obvious to prepare business plans, strategies, cash flow forecasts and proper staff supervision as part of their everyday operations and are a joy to deal with. I know it's too easy to come to this conclusion but I am sure that it's greed & the primitive principle of "growth @ any cost" that drives the distinction, ie the hopeless elements of capitalism.
The distinction has now been extended in the "Sustainability" issue, ie even the smallest charities are way ahead of SMEs in acknowledging their responsibilities and then demonstrating their policies in this area, ie that they should have the smallest negative impact on the environment and community and that operating in this way is a plus.
@Bob As you can see I agree that accountants should have a greater role in assisting with the improvement of society however I see my job as assisting clients to pay the right amount of tax rather than more tax, it's for the Government to decide on what they need and what they can save.
Without meaning to sound patronising in any way...
I couldn't resist popping my head in and saying - isn't it much more pleasant when we all get along and take time to consider others' views without jumping to conclusions? And if it transpires that perhaps we did jump to conclusions, that we can be 'man' enough to apologise for that.
How very refreshing this thread is; you have all made my day today so thank you! Keep up the good work, the community does work better when we all really listen and throw in a valuable and resonable response to posts.
Also, special thanks to Bob for being aware of the rules and I think Andy is right here, I think it is relevant but you've all excelled in self-policing today. A stars all round!
A very happy Becky
Theories v Real World
CD - old theories make new theoies harder to take onboard.
Bob Harper
Posted by Bob Harper on Tue, 15/06/2010 - 09:22
I'd answer that - if I knew what you were on about !
I don't "do" theories, old or new. I always recall the saying - "Those that can - do, Those that can't - teach". As far as I'm concerned that relates to any so called "experts" and all their theories.
For 40 years my philosophy has been simple - if it needs doing then get off your backside and get it done. I believe that if you have a business, whether its an accountancy practice or a chip shop, its up to you to make it work, and, to make it work in a way that YOU as the owner are happy with.
I don't dismiss any theory, even if it is "new", BUT, years of experience do tell me if its been tried before, and believe me most so called "latest ideas" are only really revamps of old ideas, and, I use 40 years experience in the real world to weigh against these theories.
Puzzled
Why do accountants not understand value pricing? You don't expect Heinz to charge for their beans on the basis of the cost, do you? Having happy clients depends on delivering 1) a good service and 2) at a price they consider reasonable. If you can't balance 1 & 2 then you're in the wrong business.
Which Real World ?
Surely, if a problem or set of choices arise and they need resolving to move forward and develop then, in many instances, you (being the one who has just got out of your seat) will take notice of any theories that are currently around to resolve the dilemma? If this never happens to you then surely you would still be doing accounts & tax returns on bits of paper with lots of carbon paper and would certainly not be posting on this site.
When, a few years back, your client came to you and said, I've found this piece of rock with pretty shapes in it and have heard about a bloke called Charles Darwin who says it could be millions of years old & worth a fortune, did you say "I don't do theories, the word of god has always been ok for me, it was just him/her doodling on day 4, it's no more than 4,000 years old, chuck it away"?
Referring to your chip shop analogy, I suggested to one the other night that they may generate some more local business (me & mine included) if they advertised that they cooked the chips in separate oil to the other stuff. It's a theory he's going to try, who knows.
So, if you still use a horse & cart & a piece of chalk and a slate and get out your seat to grab them whenever something needs doing then I agree you don't do theory...but then, you're still posting on A.web so goodness knows what's going on?
Marketing is a professional (social) science now
Marketing is far more sophisticated than it was a generation or two ago - it even has its own Chartered Institute!
Although marketing is in the professional accountancy syllabus, reading about it is no substitute for doing it for real.
Just as we often hear that an accountancy qualification doesn't necessarily equip someone to provide a quality accountancy and tax service to a client, it can not mean we are equipped to provide marketing advice.
How many accountants in practice have held a job in a marketing department? Not many I should imagine.
-- Kind regards Andy
Andy is spot on
Accountants can advise on revenue and costs but pure marketing is not our field. We read up on it and do our best but if we professed to being experts we'd be wrong. To be a good accountant needs a lot of knowledge and experience in our chosen field and insufficient of either would be a total disaster. If we knew enough about marketing to get by we might be happy.
Reputation
There are two distinct areas here.
1) Advising clients on how to market their businesses.
2) How to market our own business.
Item (1) we are not trained or equiped to give more than the most basic common sense advice on.
Item (2) - well we must have done something right or we wouldnt still be in business. Could we have done mre, or done it better, of course we could. But, would the end result have been an improvement on where we are now - no one knows.
Which is why I say, each individual knows what's worked, and what hasnt worked, in the past for them. Some people find newspaper ads and yellow pages work - I wouldnt waste my money because they dont work for us. Sponsoring local sports teams works for us, in the middle of a city it probably wouldnt.
A "shop front" will get passing trade in a city - where we are the only passing trade we get is the postman and the occasional sight of the local farmer (usually complete with flock of sheep).
Also, the kind of businesses you're targetting, and the kind of area you live in, can make a difference to how you market your business. But, your biggest selling point, and the thing that will get you more clients than everything else put together, is your reputation.
Value all the way
@Jason - Value Pricing is always appropriate because it does not mean a high price but the right price so it works at £100 or £1,000 for a tax return.
The low cost option is perhaps where the client sends everything by email and maybe fills out a form on your Website and submits the return themselves. An example of the more expensive service is where I went to the home of a pensioner, opened all her post for a year, checked to make sure she received all her dividends, filed all the legal paperwork and store it for her and then had as meeting to explain the tax bill.
You get to the "product" by understanding what the client wants and how much they are prepared to pay then you designing a service. The priced is fixed but it is calculated with the client, not for the client with the cost in mind.
If you end up with a product which isn't profitable you say no so for me pricing is a one horse race and it’s called value.
@Peter – where accountants can be very effective on client’s marketing (with minimal training) is helping business owners with marketing management. Specifically, this can includes working out the ROI of all the tactics, forecasting growth with different mixes of marketing tactics and working out the cashflow implications.
I have developed something called the "Q Report" which is a resource accountants can use with clients to structure the support.
Bob Harper
Value pricing
I don't understand how it can work with basic services. Example: preparing a basic tax return for a CIS subbie. If we charged different prices to different subbies I think we would lose their trust. At the moment, they all know that extra work, eg. doing their bookkeeping, is extra, and they can understand that.
How could you explain why you charged 'Joe' less than 'Fred'. I am sure Fred would get annoyed and start badmouthing us if we said Fred 'valued' our work more so we charged more.
I don't want an in-depth review of value pricing, just a quick basic idea as to the types of services it can be applied to, and possibly a pointer to some guides or books.
We are a very small practice doing mainly compliance work for small business, so it may not be suitable for us, but I always like to explore possibilities. Also, we live in a part of the country that is notorious for low fees.
Value pricing works for everyone
@Shirley – Value Pricing can be applied to all work and the good news is that it is easier with basic services.
I have an audio CD I can send you click here but you may find the value and the price with your clients maybe very similar. What Value Pricing does is also get you to question your strategy. Are you in the right market in terms of your product range and client profile?
Bob Harper
Clients needs & wants
Thanks Bob
I am open to new methods (especially if it helps my practice and/or my clients), but I always wonder how value pricing fits in with client expectations.
Vitually every practice seminar I have attended said clients want clarity over pricing, and we have found this to be true. We try to give them this clarity, ie. cost of a basic return is so much, if you want us to do bookkeeping it will cost £ extra, if you have cap gains it costs another £, etc. We try to keep it fairly simple and understandable to our clients.
HOW do you explain to a client why his mate is charged less for the same work? We had lots of problems with clients querying exactly this, until I started explaining WHY charges vary and giving a breakdown of fees when quoting. This gives the client opportunity to reduce the fees by doing more themselves, eg. bookkeeping and/or bank rec, or as happens occasionally, they are happy to pay more to save themselves time.
I will get your guide and study it. Hopefully it will give a solution for the above problem.
Strategy not tactics
@Shirley - first, I wouldn't discuss one clients service with another.
This is just a tactic from your client to keep the fee as low as possible - that's what they do becasue they are in business and are trying to maximise their profit by reducing your costs. My suggestion of not discussing other people's fees is a tactic to keep it as high as possible but I think you need to be thinking strategy not tactically.
Sopecifically, the issue is your product range and client profile and I can only see it getting worse. Have a read of the post about value pricing and what I do with Websites.
The answer to your problem is easy and enjoyable but it is not something that can be adrressed overnight. I'd suggest this is a five year plan.
Bob Harper
Clients
Bob, we never discuss clients with other clients. I specifically mentioned CIS subbies because they all talk to one another..... a lot! If I charge one subbie just £5 less than another they all know about it. Currently, we have a clear pricing system, they all understand it and are happy with it.
Maybe CIS subbies are not your ideal client, but I love 'em (most of them!). We have a very good relationship with our clients and I put a higher value on job satisfaction than profits. However, if I could keep our good client relationships, keep pleasure in my work AND make more profit that would be ideal, hence my endless questions.
I will stop nagging you now and read the guides ;)
Treat clients as individuals
Shirley - each client needs to be happy with the fee they agree with you base on their individual cirmcumstances. If one client questions you you can just explian that there are variations based on individal circumstanes. For example, different people require/want different levels of service. Think about "how" you deliver the service not just what you do.
I had one guy who I charged more than anyone else because he always left everything to the last minute. I told him he was paying a premium because of this and offered a lower price but he carried on. One day he left because a competitor low-balled. A year later he was paying the same or more than me and was asking for my help because he couldn't understand the other firm - I used Plain English as a USP. So, I could justify a higher fee because my clients understood their tax bill. The USP will only benefit clients who want to understand their tax bill so it's about niches within segments!
If a client questions your fee the chances are there is something in their mind they are not happy with. Address their issue without comparing it to another client and you are done or you will end up with all the clients with the small low fee.
Bob Harper
Open mind
I am keeping an open mind, and trying to see how value pricing would fit into my business.
We do treat clients individually, and it does not mean they are unhappy with our services if they query whether our fee can be reduced. I know this because I ask them why they want (or expect) a lower price. We are happy to quote a lower fee if we are providing less services, ie. the client does their own bookkeeping. The clear pricing structure keeps the client happy, we are happy, and they stay as our clients and don’t go elsewhere. This has happened a few times with CIS subbies recently because of the layoffs in construction. We are not the cheapest small accountant in our area but we give them a high quality personal service, and we don’t bend the rules (ie. claim imaginary expenses) to get higher refunds, which is the tactics used by one or two accountants in our area. I know our clients like clarity over pricing and this is where I struggle with value pricing.
to busy to get involved in this discussion
HI Guys
Haven't you got any work to do today?
I'm far to busy working for clients and making loads of money. Much better use of time that writing thousands of words or quite amusing banter!
Clarity
@Shirley - value pricing is clear because you agree it with the person...just give them options.
Think about an airline - you can be sitting next to someone who pays more or less than you but the price is clear. Having said that prices in your market will probably not vary too much.
Bob Harper
Too busy
@Paul - interesting that you are too busy to get involved in a discussion.
Everytime I assess with an accountant the value of time and look at time spent on work which produces a bill compared to building relationships (marketing) or building knowledge the "work" always comes in a poor second best.
Bob Harper
I don't understand
Thanks for trying to explain, Bob, but I am still struggling with the concept.
If you are giving various options in value pricing it wouldn't make much difference to our present pricing policy where we give various options with fees to match. So your prediction that it would have little effect may be true.
I will still review value pricing when I have more time, even if only to satisfy my curiosity.
Trying
@Shirley - I hate trying because it means I failed! I just tried to persuade a colleagure to make me a cup of coffee, they said no because it's my turn!
Call me 0844 567 4321...I normally charge £175 for a Mentoring Session but I'll do this for free on the basis you make a small donation to a charity if you feel you have a better understanding.
Bob Harper
Thank you Bob
for your generous offer, which I would be delighted to accept.
Please advise of the most convenient time for me to call you.
Value pricing
"@Jason - Value Pricing is always appropriate because it does not mean a high price but the right price so it works at £100 or £1,000 for a tax return"
How can value pricing ALWAYS be appropriate when sometimes there is no value? If a limited co director requires a tax retrun prepared and submitted, has basic salary, some dividends, taxed interest etc up to basic rate so the net effect is nil tax - then there is no value to the client but there is the job of the preperation and submisison of the return. How would value pricing be appropriate in that scenario? There has to value to value price.
Where is the value?
@Jason - who said there is no value?
I think you could be in danger of thinking with your map of the world when you shoud be understanding the clients.
The value for the job you mentioned could be the time and hassle the saves and/or the knowledge it has been done correctly and sent in on time. You would only know by speaking WITH the client.
The chances are this is one element/product of a package so you would pull up the price with more valueable elements/products. But, it could be a standalone service with value.
Bob Harper
If there was no value there'd be no demand for the service
The value of compliance based services is related to the opportunity cost to the client.
What if they ignore their statutory obligations? What if they're late? What if they make mistakes?
They place a value on the service that's provided to them and accountants should do so too.
The 'cost' of providing the service is almost irrelevant - other than for identifying the rock bottom lowest price you can afford to charge. Imagine the accountant who's based at home with no employees. He or she will be stuck there if they started by charging 'cost-based' fees that reflect the absence of overheads and staff. On the other hand if they set their fees at a full commercial (value-based) level they will be able to afford to take on staff and to move to offices as their practice grows. Clients won't perceive a higher value or be willing to pay higher fees just because the accountant has moved to an office or recruited a secretary/junior.
Mark Lee
Value a tax return
Hi Jason - following on from Mark's comment there's a parallel thread going on about value pricing (and I'm getting very confused) but have a look at my response to the same question you pose, earlier today:
https://www.accountingweb.co.uk/anyanswers/do-clients-value-pricing-question-bob-harper-and-others
Value
Apologies, I was unlcear.
There is no ADDED value. Any firm could provide the same service in that scenario with no additional / less value to the client between them.