Time-based pricing a risk to accounting firms, warns consultant
Making the switch to value-based pricing should be a priority for accounting firms in 2017, with the time-based pricing model likely to place the firm at significant risk of losing business, one consultant has cautioned.
A lot of accounting firms still use time based charging and unless they move to a more value based approach they will find other firms start to overtake them, according to 9rock consultant Kim Payne.
“It’s not just about the price; it’s about well what do you get for the price. They need to be packing up their service and offer into something, assigning a price to it and then delivering it like that,” said Ms Payne.
“I think if they don’t start to do this, it is going to impact their business and quite significantly.”
Using a time based approach instead means accounting firms have a good indication of the bill and don’t worry about calling up clients with questions because they’ll add too much to the bill.
“They’ve got to move away from that because they’re going to be losing business,” she said.