116 From Hourly Billing to Flat Rate for Cares Act Documentation

My guest today is Erica Goode. 

Erica is a freelance finance professional, working with a small handful of clients, focusing on financial forecasts while staying out of tax as much as possible. 

Many CPAs choose hourly billing when they don’t know how long it will take. 

This pricing methodology - if it can be called that - leaves your client without a clear price. 

While it may seem like the safest option, if the project takes much longer than you anticipated, either your client is left with the high cost of your unanticipated work, or you eat the hours. If you split the difference, you are likely both left with a sour taste. 

By simply setting the price at the maximum length of time you might take, you

• Provide a clear price to your client, so they can make an informed buying decision
• Force yourself to actually think through how long it might take, to ensure it’s worth it to you
• Are motivated to be expedient in your work. 

Pricing new and one-time projects is difficult. Consider these strategies when setting your price:

• Set it at the maximum amount of time you think it might realistically take - Scope Creep always happens, and setting the price at the top end of your window gives you margin for the extra follow up communications. 
• Set it just shy of the maximum, knowing you will work more quickly once the price is set, and give your client a “good deal”
• Set the price 15% above the maximum, and give your client the best possible service. You could argue this last strategy is also an excellent deal. 

When you share your price, pay attention to their reaction. 

If it was an immediate Yes, you know there may have been room to go up. If there is a pause, you are likely in the right range. If they say no, recognize they just saved you from either sending a higher-than-desired bill, or eating your hours. In this case, no is not a bad thing. 

 

Getting your pricing right is the single most important change you can make in your business. 

If you still bill by the hour, head on over to SheThinksBigCoaching.com and take my free 5 day email course: Better Pricing Strategies for CPAs. 

Episodes mentioned:

082 Cashflow Forecasting, Niching, and Raising Your Rates with Emily Sandberg 

https://shethinksbigcoaching.com/082

 

Upcoming training: 

TRANSLATE YOUR EXPERTISE INTO CASH

Thursday, December 17th, 12pm ET 

https://shethinksbigcoaching.com/accountants-anonymous-12-17

 

Download the ebook “6 Simple Steps to Double Your Revenue”

https://shethinksbigcoaching.com/download-double-your-revenue

 

Schedule time with Geraldine:

https://calendly.com/geraldinecarter/15min

 

Work with Geraldine:

https://shethinksbigcoaching.com/coaching-options/