Pricing Increase on Accounting Services During Tax Season
What most accountants don’t know, or perhaps forget, is that there is an incredibly powerful force at work this time of year. This force is the key to improving the overall profitability of your accounting firm. Tax season is the perfect time to have pricing increase on your accounting, tax, and bookkeeping services, and here’s why…
What Force Helps You Justify Price Increases For Your Accounting Firm?
The powerful force that can justify price increases for your accounting firm, is supply and demand. This economic principle ultimately determines and models pricing for ANY sort of product and service. It simply states that if demand increases and supply remains unchanged, prices should increase.
During tax season, deadlines set by state tax departments generate a sense of urgency amongst taxpayers. They need to file their returns on time and accurately in order to avoid late-filing penalties, which can amount to up to 5% of their total taxes due. So, they turn to the experts for help with this difficult endeavor. This causes a spike in demand for accounting professionals who can offer tax preparation services. Now, thanks to that spike in demand, tax professionals are in the perfect position to increase the price of their accounting services.
Notice that we said price instead of fees. Fees are the F-word. Defining your services by the word “fee” takes away the value of what you offer. Nobody wants to pay fees. Fees are just unnecessary charges tacked onto the end of a transaction. Your services are more than a useless transaction. Think about the difference between when you have to pay a fee versus when you choose to make an investment. Don’t let your clients associate the valuable results that you can deliver with that outdated language.
If you’re looking to increase how much your current clients invest in your services or maximize your relationship with new clients, tax season is the best time of the year to implement a pricing increase on your accounting services.
Why Should You Raise Your Accounting Firm’s Prices During Tax Season?
You should raise the prices of your accounting firm’s services because there is a low supply of tax professionals that can keep up with the demand during tax season. Delivering a high level of care and expertise should come with a premium. Moreover, proactive people like you deserve a higher value.
You are a limited, high-quality resource. The returns that your services give back to your clients are significant. And on top of that, not many accounting firms take on new clients during tax season.
Why Should Signing New Clients During Tax Season Change the Way You Price Accounting Services?
Signing new clients during tax season pushes you to your limits, so it must come with a premium. The high level of demand, low supply of proactive accountants, your distinct quality of service, and the additional time you have to work, should change the way you price your accounting services.
Your time is your most precious resource. If someone wants your attention and expertise during tax season, they should expect to pay a premium. You don’t have to sacrifice your time on clients who underappreciate the value of your services.
Don’t waste your time on prospective clients who waited until your busiest season to reconnect with you and demand your old prices, as discussed in an earlier conversation.
If they don’t want to accept your pricing increase on your accounting services, just wish them luck finding another quality accounting firm that will accept them. You have to recognize, own, and leverage your value during tax season. And know that it’s okay to show a client who can’t appreciate your value, the door.
What Should You Do Now?
Accounting firms should have pricing increases on their accounting, bookkeeping, and tax services during tax season. If you’re nervous about dealing with backlash from bad clients or having to detail why your value is so high, know that you don’t have to put up with that.
There are plenty of dream clients out there for you that will appreciate what you bring to the table and will be more than willing to pay for your services. And, we can show you how to connect with them and win their business.
Tax season comes with many highs and lows. Along with the opportunity to make record-high profits or increase your client base, there’s also the opportunity to make mistakes. There’s one mistake that tax firms make that costs them time & money every year, and it has nothing to do with the accuracy of tax returns. Read our article about the #1 mistake tax firms make during tax season and how to avoid it.
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