Firms know that offering advisory services means pricing will have to change. But it's easy to see why many are hesitant to leave the comfort zone of hourly billing.
Clients understand it. If you work five hours, that's what they see on the invoice. It's familiar to your firm. Your team knows how to track time, bill it, and explain it to clients. It's easy to defend. Timesheets are hard evidence that supports the charges clients see.
But advisory isn't measured in hours. It's measured in value and outcomes, neither of which an hourly rate can fully represent.
Value-based pricing can. Yes, it's more abstract than billing by the hour. But it's the best way to account for the impact your guidance has on a client's financial future.
Think about the difference between an hourly wage and a salary. When the hours put in are less important than the skill and experience you were hired for, time shouldn't determine what you earn.
That's why it's worth revisiting your advisory pricing model. Before you do, start by getting clear on what your clients are paying for, how you'll price it, and what the work actually costs to deliver.
In bookkeeping, clients get predictable results: the accounts are reconciled, the reports are prepared, and the books are closed.
But in advisory services, those results are viewed through an analytical lens. Instead of telling clients what happened, you're showing them what might happen next and how different scenarios may play out.
That's worth more to clients than a detailed report.
That's why value-based pricing makes sense for CAS. An hourly rate doesn't factor in what you're really providing to clients:
The clearer you can show this value to clients, the easier it is to price advisory services without relying on the clock.
Every client has different reasons to seek out advisory services. Tiered pricing can help you offer the right support in a bundle based on their needs.
For example, your firm might create three advisory packages:
No matter how you choose to package your services, it's important to keep the scope under control. That starts with a strong engagement letter.
Be clear about what each package includes upfront. Name the deliverables they can expect, how often you'll meet, how clients can communicate with you, what's not included, and how the package is priced.
When both sides know what the client is paying for, value-based pricing is easier to defend.
When advisory work happens every month, price it that way.
Forecasts, reporting, and planning aren't one-off services. That same client will need your help next month to keep an eye on the numbers, explain what's changing, and decide what to do next.
Use recurring pricing for ongoing services like these:
They need predictable guidance, and you need predictable revenue. Both sides win.
Pricing your advisory services based on value, not time, makes sense for both your firm and clients. Here's why.
Clients get more than historical reports and numbers when they take you on as an advisor. Your pricing should reflect that.
If you want to know what your work is worth, price confidently, and give your team faster access to the data you need to give clients sound advice accounting practice management software is the best place to start.
With reporting, projects, billing, payments, and client communications in one place, it's easier to offer advisory services that bring value to both sides.
And that's the strongest basis for pricing beyond the hour.
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