Implementing consistent pricing strategies in your accounting firm

Is your accounting firm making as much money as it could? In today’s fast-changing world, a strong pricing strategy is one of your firm’s most powerful levers. The right prices attract the right clients, improve competitiveness, and let you grow without sacrificing profit. Getting pricing right can boost revenue and margins – often without spending more on marketing.

This guide explains practical steps to understand and improve pricing. We cover why firms are changing pricing, the main pricing models, how to evaluate your current approach, how to move towards value-based pricing, and how to introduce price changes to clients.

Pricing: Your accounting firm’s secret weapon

In today’s uncertain business world, having the right pricing strategy can be a powerful advantage for your accounting firm.

A well-designed pricing strategy helps you to:

• Win and retain the right clients.
• Meet business goals such as higher profitability, market-share growth or better client quality.
• Scale your services while protecting margins.
• Improve revenue and profit without greater customer acquisition costs.

According to research by McKinsey, a 1% increase in price can lead to an 8.7% rise in operating profits. The bottom line is that the right pricing strategy can help your firm make the most money and gain an edge over competitors.

What this guide covers

• Why accounting firms are rethinking pricing.
• How to evaluate your current pricing strategy.
• Pros and cons of common pricing models.
• Why value-based pricing is rising.
• How to choose and introduce the right pricing structure for your firm.

What is a pricing strategy?

A pricing strategy is how businesses decide how much to charge for their products or services. It takes into account the value of the brand, the market, and the customers. It also depends on what’s happening in the industry, the company’s goals, the competition, and the economy. The aim of a pricing strategy is to find the price that helps you make more money while still attracting and keeping clients.

Why is pricing strategy important?

Pricing affects your profits and how customers see your business. If your prices are too high for what people think your company is worth, you might lose customers. If your prices are too low, you might also lose customers. It’s important to remember that pricing strategies aren’t set in stone. As the business world changes, companies may need to adjust their pricing.

Why pricing models have changed for UK accounting firms

Several forces are reshaping how accounting services are priced:

• Technology and automation. Cloud accounting, automation and AI are changing what clients pay for and how work gets delivered.
• Shifting client expectations. Clients want more advisory insight and flexibility, not just compliance.
• Market pressure and service standardisation. Automation can make commodity tasks cheaper and more commoditised, so firms need to differentiate.
• Changing buyer preferences. Many clients now prefer predictable monthly fees or outcome-based arrangements over hourly billing.

UK compliance factors that impact pricing (MTD, VAT, Payroll)

Compliance in the UK has become more complex and time-consuming for accounting firms. The rollout of Making Tax Digital (MTD) for VAT and soon for Income Tax requires firms to use approved software and provide more frequent submissions. Similarly, VAT registration thresholds and ongoing Real Time Information (RTI) payroll reporting increase workload and admin costs. These factors mean that pricing models should not just cover compliance but also reflect the advisory and technology support firms now provide to clients.

Changing your pricing strategy in the UK market

If you want to change pricing, begin with a clear plan and metrics. Steps include:

• Define goals: why change pricing? (profitability, better client mix, productised services).
• Map services: what you offer and the true cost-to-serve each package.
• Segment clients: identify which clients are price-sensitive and which value outcomes more.
• Choose models to test (fixed-fee, tiered, value-based).
• Pilot & measure: test with a subset of clients and track churn, win-rate and margin.
• Communicate changes clearly and confidently.

11 Best practices for evaluating your current pricing strategy

1. Do market research: Ask your target market what they’d pay for a service and how they want to pay.
2. Look at your competition: See how successful firms price and package their services.
3. Know your firm’s value: Identify and communicate all the ways your firm provides value.
4. Test and revise: Keep testing until you find the right balance between customer budget and your revenue goals.
5. Consider your growth strategy: Decide how aggressive you want to be with pricing based on your growth goals.
6. Align pricing with business strategy: Make sure your pricing matches your overall business goals.
7. Consider product led growth pricing: Connect your pricing to a business metric that the client values and that you have a direct positive effect on.
8. Define your best customers’ needs: Find the 20% of your customers who will spend more with you then meet their needs.
9. Resist commoditisation of your services: Add extra features, services and approaches to make your offerings worth a premium.
10. Know your brand value: Understand how your firm is seen in terms of brand value and price accordingly.
11. Know your market: Understand what your ideal client expects and meet those expectations in every part of your business.

4 Essential tasks when devising a pricing strategy

• Consider your target audience: Are you targeting small businesses or large corporations?
• Consider your unique selling proposition: What makes your services unique?
• Define your scope of work: What exactly will you be doing for the client?
• Consider your costs: How much do your accounting services cost to deliver?

4 Best practices for introducing pricing changes

• Use multiple platforms to communicate pricing changes, such as calling or meeting with clients in person, or sending a letter.
• Focus on the value that your services deliver, not just the tasks you perform.
• Understand your client’s business challenges and position your services to directly address those issues.
• Communicate confidently and avoid sounding apologetic.

Pros and cons of 5 popular pricing strategies for accounting firms

1. Cost-plus pricing

This involves adding a fixed percentage on top of your costs to determine the price.

• Pros: Simple to implement, easy to justify price increases, provides a consistent return.
• Cons: Can result in prices that are too high, doesn’t guarantee all costs will be covered, doesn’t encourage efficiency, and doesn’t always reflect customer value.

2. Flat rate pricing

This involves charging a fixed rate for a service instead of charging by the hour.

• Pros: Rewards productivity, transparent and easy for customers to understand, simplifies cash flow management.
• Cons: Can lead to poor quality, any obstacle that gets in the way of productivity reduces income, can be that a pre-packed one-size-fits-all approach satisfies no one.

3. Competition based pricing

This involves researching your competitors’ prices to determine your own.

• Pros: Reflects market dynamics, benefits from competitor experience and market research, quick approach.
• Cons: Can lead to lower margins, companies that base their prices on their competitors’ prices can risk leaving potential revenue and profit on the table if they have a premium or superior product, you have less in-house insight into what price is acceptable to your customers.

4. Time based pricing

This is where prices change depending on the time of purchase.

• Pros: Allows businesses to remain competitive, by adjusting prices to match demand, businesses can reduce excess inventory and optimize their stock levels, Dynamic pricing can provide customers with better prices, increasing customer loyalty and satisfaction.
• Cons: Inaccurate market data can cause significant profit losses, Time-based pricing can be time consuming, Fluctuating prices may cause customer confusion and a poor user experience.

5. Value based pricing

This involves charging based on what customers are willing to pay.

• Pros: Can lead to higher prices, establishes how much a customer is willing to pay for services, potentially increases the firm’s brand value.
• Cons: Client research and product differentiation may require a substantial investment, clients’ perception of value can change over time, evaluating the perceived value of a service can be complicated.

Value-based pricing can help you gain new clients, increase profits, and improve your brand. Value-based pricing is changing the accounting industry by promoting transparency, strategic planning, improved collaboration, and enhanced client relationships.

Steps to implement value-based pricing

• Shift your firm’s mindset to focus on outcomes and impact.
• Set expectations with clients about outcomes and measurement.
• Package services to elevate the perception of value (e.g. advisory+technology bundles).
• Communicate benefits repeatedly – not just once.
• Use technology to automate delivery and free up time for higher-value work.
• Monitor performance and adjust pricing accordingly.

Choosing the right pricing model for your UK accounting firm

When deciding on a pricing model, consider the following:

• Understand your clients’ needs and preferences
• Ensure the pricing model covers all costs and provides adequate profitability
• Conduct market research and analysis
• Develop a unique value proposition
• Segment your client base
• Align pricing model with profitability goals

Practical checklist: immediate edits to your pricing approach (what to do this quarter)

• Run a cost-to-serve analysis for top 30 clients.
• Identify 1–2 services to productise into fixed-fee packages.
• Create a pilot value-based package for a target client segment.
• Update client engagement letters to reflect scope and billing terms.
• Train client-facing staff to explain value changes and handle objections.

How to communicate price increases (short script)

Email subject: Update to your service package and fees

Body (short):

Dear [Client name],

From [date], we’re updating the fee for [service]. This reflects new work we carry out to keep your business compliant and to deliver expanded advisory insight. The change will allow us to continue providing [specific benefit – e.g., faster turnaround, dedicated advisor, MTD-ready reporting]. If you’d like to review how this affects you, let’s book a 20-minute call.

Best regards, [Your name]

Conclusion

In today’s dynamic business environment, a well-defined pricing strategy is crucial for accounting firms to thrive. It’s more than just setting a number; it’s a strategic tool that attracts and retains clients, achieves business goals, and maintains profitability.

As the accounting landscape evolves with technology and changing client demands, firms must re-evaluate their pricing models. While strategies like cost-plus, flat-rate, competition-based, and time-based pricing each offer advantages and disadvantages, value-based pricing is gaining traction as a way to highlight the unique value an accounting firm provides.

By understanding client needs, aligning pricing with business goals, and effectively communicating value, firms can implement a pricing strategy that fosters growth, profitability, and strong client relationships. Ultimately, a successful pricing strategy is about more than just making money; it’s about positioning the firm for long-term success in a competitive market.

Need help? For help implementing productised fees or rolling out value-based pricing in your firm, contact Outbooks at info@outbookstech.com or call +44 3300578597 (UK London).