Yes, You Can Afford White Label Accounting Solutions

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If you want to scale your accounting business effectively, you can’t ignore white label accounting solutions.

Putting your name and branding on bookkeeping services done by others frees you up to handle clients’ more substantial matters—matters that can earn you more than the necessary but routine balancing of income and expense columns could.

Many accountants assume white label bookkeeping service is beyond their budget. How, they wonder, will they realize their ideal profit margin while paying for third-party bookkeeping?

But at Remote Books Online, we find accountants worried about the cost of white label accounting solutions often need to give their pricing structure a long-overdue second look.

Hourly Billing: Time and Money Too Tightly Tied Together

You may bill clients by the hour, half hour, or quarter hour. This approach seems straightforward. People know it from dealing with such other skilled, highly trained professionals as attorneys and financial advisors.

But is it the best way to serve clients, let alone your bottom line?

“A big problem with hourly billing is it’s an internally focused metric,” Ron Baker, CPA and founder of VeraSage Institute, told the Journal of Accountancy. “There’s nothing in the hourly billing formula that looks at client value.”

Relying on timesheets may make clients feel you’re “nickeling and diming” them should a task take more time than estimated. If you don’t want to go back to your client with a bigger bill, your only option is to absorb the overage, dragging down your realization rate.

Hourly billing also restricts your potential income. Each day only has 24 hours. Time-saving technology may let you pack more clients into each one, but you’ll be doing more work for only modest gains.

Transactional Billing: Clear Prices, Unclear Value 

Billing accountants by the transaction also seems logical at first glance. Tracking money in and out is the heart of accounting and bookkeeping services.

Charging by the transaction can help you set a flat monthly fee, as Roger Knecht, President of Universal Accounting, explained on The Successful Bookkeeper podcast. According to Knecht, “most people … are charging about 75 cents to a dollar per transaction.” The more transactions your client has, the larger your monthly flat fee can be.

Transaction-based billing satisfies clients’ desire for upfront pricing. They know the monthly amount they pay includes an agreed-upon range of transactions.

But is it actually better for them?

If they pay a fee covering up to 500 transactions a month, say, but their statements reflect only 200, they’re overpaying. That “breakage” raises your revenue, but could cost you customer loyalty in the long run.

And does transaction-based billing accurately reflect the value of what you do any more than hourly billing does, especially for complex tasks like years’ worth of catch-up bookkeeping or especially thorny tax preparation?

This model, too, reflects only input from the customer—the volume of transactions generated—not valuable outcomes for the customer.

Account-Based Value Pricing: You and Your Clients “On the Same Page”

More accountants are moving to account-based value pricing.

In this model, you focus on the value you offer your clients. You communicate that value to them and let them choose a package or “bundle” of services based on their account’s specific needs.

Ideally, you’ll adopt tiers. Think of bronze, silver, and gold medals as an analogy. As Firm of the Future’s Ian Vacin explains, clients immediately “understand what they are giving up when they choose the smallest package and [are] enticed to sign up for more services based on the conversation of what each additional service will provide them.”

Over time, you may even be able to move some “bronze medalist” accounts to the podium’s top step!

Like other models, account-based value pricing isn’t without drawbacks. It’s more complicated to design and explain. It may take you time to assess your work’s true value. And presenting it to some existing clients will require you use marketing muscles you may not have flexed for a while.

But people buy results. And value pricing clearly delineates the results each account you handle can expect.

Price and Profit Coach Loren Fogelman says this model puts you and your client “on the same page … You both want the job to be completed as quickly as possible. Your ideal clients invest in solutions; they don’t buy time.”

You Can Afford White Label Bookkeeping from Remote Books Online

Account-based value pricing contains an additional advantage. When you’re setting the value of the services you provide, you can easily set a price that lets you afford white label accounting solutions.

You can legitimately and easily fold the cost of white label bookkeeping into your package prices—especially when you’re using Remote Books Online.

Our own flexible and affordable pricing is account-based. When you adopt the same model, you are likely to raise your revenue because you’re charging not by your number of clients but by the total number of their accounts.

Your clients will be happy because they know what they’re paying and why. You’ll be happy because you know you’re giving clients value, you’ve established a stable cash flow, and you’ve removed the self-imposed income caps of the other pricing models.

To get started using Remote Books Online as your white label accounting solution, call us at 1-800-583-0148 or email sales@remotebooksonline.com.

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