5 steps to price and offer premium advisory with confidence

For tax firm owners, a common goal is to increase revenue, and gain more freedom and time. While many struggle with anxiety and burnout, charging low rates, and barely making ends meet, it is possible to change. You can have double firm revenue, charge three times more than competitors, get paid upfront, and say goodbye to burnout.

Making these changes is possible, even if your rates are low, only offer transactional services, or, even worse, feel like quitting and giving up on your firm.

Here are five steps to help accounting, tax, and bookkeeping firm owners confidently price and offer premium advisory services.

1. Check your beliefs about sales

To become successful, firm owners must first examine their beliefs about sales. Unfortunately, many think that selling is manipulative, pushy, or sleazy. On top of that, some tax, accounting, and bookkeeping firm owners may feel they are not natural salespeople. Instead, they feel they are people pleasers or just lucky to have clients.

These limiting beliefs can sabotage a firm’s success. The truth is this: Selling is an honorable and moral skill anyone can learn. Selling is about providing solutions to a client’s problems and giving them the opportunity to make a decision they feel good about.

2. Know your value

Undervaluing your knowledge, expertise, and experience can result from offering low prices, charging hourly rates, and attempting to compete with others on price. The reality is that clients pay for the results you deliver, not just the hard work. Higher fees communicate that you are an expert and demonstrate the real ROI without needing to say a word.

To determine your value, list your strengths, experiences, and accomplishments. Compile stories and testimonials from satisfied clients, and consider the time, money, and energy you have invested in your professional development and education. Download the Abundant Accountant Template to get started.

3. Choose clients wisely

Just as a brain surgeon wouldn’t treat a patient with a common cold, a firm owner should not take on every client. It is essential to set clear boundaries and identify clients that are a best fit. Remember: You are the one who chooses with whom you work. By being selective and understanding your ideal client’s problems and frustrations, you can better serve them. An abundance mindset and the willingness to say “no” to clients who are not a good fit are crucial for growth.

4. Create a different, unique client experience

To charge premium fees, you must create a different kind of client experience. This is especially important when moving from working with smaller clients to those with higher annual revenue. Good service and technical expertise alone are not enough. 

However, it is essential to communicate changes in your firm to new and existing clients. Examples of changes to communicate include updated services, fee increases, or late fees for documents submitted past a deadline.

5. Have a system for packaging and pricing services

Working without a sales system leads to being overworked, underpaid, and burned out. A simple, repeatable system enables you to engage with ideal clients, get upfront payment, and effectively communicate your value, making clients willing to pay a premium.

A successful sales system has the following components:

• Prepare and gather information. Before meeting with a client, get access to their financial information, such as the books or tax returns, to diagnose their problems and understand the scope of the service. This allows you to determine the price based on the value you will provide. If they balk at giving you access to even the most basic information, it could be a red flag. Just like a surgeon who sees X-rays, MRIs, blood work, and CT scans before any surgery, we, as firm owners, must start doing the same!
• Ask the right questions. Use strategic, open-ended questions to show you understand the client’s situation and to position yourself as an expert. Avoid yes/no questions because the answers won’t give you information you can use to understand more about the client.
• Share your findings. During the meeting, share your high-level findings, focusing on the issues you found and painting a picture of what their future will look like after working with you and solving those problems. Remember: People buy confidence and certainty, not technical jargon.
• Make an offer. Do not send a proposal and wait for a response. Instead, proactively invite the client to work with you. For example, you could write something like this: “Let’s get started on this cleanup project. I’ve got the engagement letter here. Let’s review it, and we can get your payment as well so we can get started. Would you like to use ACH or a credit card?”
• Collect payment. Collect the payment in the first meeting. A proactive approach to payment eliminates wasted time and stress from chasing clients for money. No more A/R!

You are in the driver’s seat

At the end of the day, remember that you are in control of your own practice. The best scenario is to have a firm that meets not only the needs of your clients, but also your own needs. You can be the best tax, accounting, or bookkeeping firm owner in your neighborhood, but unless the firm brings you the kind of satisfaction that motivates you and your staff to do even more, you’re left with a static practice that isn’t going to be fulfilling for the long term.

Start today to make changes in the way you sell, but also be aware of your own goals. Good luck!

Editor’s note: Get even more tips with Michelle Weinstein’s webinar on pricing and offering premium advisory services. Watch it now