Have you ever underquoted your monthly bookkeeping fee?

Have You Ever Underestimated Your Monthly Bookkeeping Fee?

Last week, I welcomed a new client, and now, in the second week of working through their financial records, I’m beginning to suspect that I may have underestimated my monthly fee. Naturally, I’ll reevaluate this once I’m more acquainted with their accounts, but it has left me pondering—have you ever been in a similar situation?

Have there been times when you had to revisit your pricing and inform a client that the project was more complex than initially anticipated, leading to a potential fee adjustment? How did you manage that conversation?

Pricing remains one of my greatest hurdles. I often undervalue my services, resulting in charges that are likely lower than they should be.

Edit: Thank you for the incredibly helpful responses so far. I truly appreciate them!
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It’s not uncommon for professionals, especially those who are relatively new to their field or those who are sensitive to their client’s budget concerns, to find themselves in a situation where they’ve underquoted a job. Here’s a detailed approach to handling this situation:

Reflect on the Situation

Analyze the Scope: Before you approach the client, ensure you fully understand why the job is taking more time than anticipated. Was there a misunderstanding regarding the scope? Were there hidden complexities in their books?
Track Your Time: Document how much time you’re spending on various tasks. This not only helps in justifying a potential rate increase but also aids in future quoting.
Internal Setting: Understand where you set your prices too low. Was it due to a desire to close the deal, competition, or simply undervaluing your expertise?

Approach the Client

Have an Honest Conversation: Transparency is key. Arrange a meeting with your client to discuss the situation. Ensure you approach this discussion with:
A clear presentation of the additional work discovered.
Evidence of the time and complexity involved — timelines, tasks, etc.
Your value proposition and the quality of work you’re providing.
Reassess Together:
Get the client’s perspective. They might have budget constraints too.
Offer to find a middle ground. Perhaps a phased approach to billing where you gradually implement the new pricing.
Empathy and Professionalism: Approach the discussion with empathy. Acknowledge any impact this might have on their budget. Ensure it’s clear that your intention is to maintain the quality and consistency of your service.

Adjust for the Future

Price Evaluation: After resolving things with your current client, reassess your pricing model:
Consider tiered pricing or packages that offer flexibility.
Benchmark against competitors or industry standards to ensure your pricing is realistic.
Value Communication:
Improve your skill in articulating the value you bring to clients, beyond mere Bookkeeping.
Highlight your efficiencies, insights, and potential cost-savings from having a professional like yourself manage their books.
Client Onboarding: Develop a more rigorous client onboarding process that involves a detailed exploration of their books before quoting. This ensures you have a realistic view of the work required.

Learn and Grow

Seek Feedback: As you close

One response

APAdmin

25 February 2025 at 7:36 PM
It’s not uncommon for professionals, especially those who are relatively new to their field or those who are sensitive to their client’s budget concerns, to find themselves in a situation where they’ve underquoted a job. Here’s a detailed approach to handling this situation:

Reflect on the Situation
1. Analyze the Scope: Before you approach the client, ensure you fully understand why the job is taking more time than anticipated. Was there a misunderstanding regarding the scope? Were there hidden complexities in their books?
2. Track Your Time: Document how much time you’re spending on various tasks. This not only helps in justifying a potential rate increase but also aids in future quoting.
3. Internal Setting: Understand where you set your prices too low. Was it due to a desire to close the deal, competition, or simply undervaluing your expertise?
Approach the Client
1. Have an Honest Conversation: Transparency is key. Arrange a meeting with your client to discuss the situation. Ensure you approach this discussion with:
2. A clear presentation of the additional work discovered.
3. Evidence of the time and complexity involved — timelines, tasks, etc.
4. Your value proposition and the quality of work you’re providing.
5. Reassess Together:
6. Get the client’s perspective. They might have budget constraints too.
7. Offer to find a middle ground. Perhaps a phased approach to billing where you gradually implement the new pricing.
8. Empathy and Professionalism: Approach the discussion with empathy. Acknowledge any impact this might have on their budget. Ensure it’s clear that your intention is to maintain the quality and consistency of your service.
Adjust for the Future
1. Price Evaluation: After resolving things with your current client, reassess your pricing model:
2. Consider tiered pricing or packages that offer flexibility.
3. Benchmark against competitors or industry standards to ensure your pricing is realistic.
4. Value Communication:
5. Improve your skill in articulating the value you bring to clients, beyond mere Bookkeeping.
6. Highlight your efficiencies, insights, and potential cost-savings from having a professional like yourself manage their books.
7. Client Onboarding: Develop a more rigorous client onboarding process that involves a detailed exploration of their books before quoting. This ensures you have a realistic view of the work required.
Learn and Grow
- Seek Feedback: As you close
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