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Have You Ever Underestimated Your Monthly Bookkeeping Fees?
Last week, I welcomed a new client and now, diving into the second week of their books, I can’t shake the feeling that I might have underestimated the monthly fee. As I continue to familiarize myself with their accounts, I’m planning to reassess the situation. But it got me thinking—has this ever happened to you?
Have you ever found yourself needing to revise your initial pricing because the work was more extensive than you anticipated? How did you address the situation with your client?
Pricing has consistently been one of my biggest hurdles. I often struggle with undervaluing my services, which leads to charging less than what’s probably fair.
Edit: Thank you so much for the incredibly helpful feedback so far. I really appreciate it!
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One response
Have I Ever Underquoted My Monthly Bookkeeping Fee?
Yes, I’ve been in your shoes before, and it’s a situation that many Bookkeeping and Accounting professionals encounter, especially as they’re starting out or when transitioning to new client scenarios. Underquoting a monthly fee can occur for various reasons, such as misunderstanding the scope of work, underestimating the complexity of the client’s financial situation, or simply wanting to secure a new client relationship.
Have I Needed to Backtrack on Pricing?
Absolutely, it’s something that can happen, and when it does, it’s crucial to handle the situation with transparency and professionalism. Here’s how I’ve approached the matter:
Conduct a Thorough Assessment:
Once you realize you may have underquoted, spend some time getting intimately familiar with the client’s books and workflow. This helps you clearly outline the additional tasks or complexities that were not initially anticipated.
Prepare a Justification:
Document why the original quote doesn’t cover the work needed. This could include unexpected complexities, additional transactions, reconciliation challenges, or requirements that were not initially disclosed or apparent.
Communicate Early:
The earlier you address the issue with your client, the better. Call a meeting or write a detailed email explaining your findings and the discrepancy. Emphasize that the initial quote was based on the information available at the time.
Be Honest and Offer Options:
Honestly convey that the scope of work is larger than anticipated and discuss the need for adjustment. Offer options like:
Phasing in the price increase, allowing the client to adjust to new budgeting.
Negotiate Respectfully:
Be open to feedback and negotiation. Understand that clients may have budget constraints and might need time to accommodate changes in pricing.
Seek a Win-Win Solution:
Always aim for a solution that maintains the relationship. You might consider offering a one-time discount or value-added services at no additional charge to cushion the fee increase.
Managing and Avoiding Future Underquoting:
Define and Document Scope Clearly: Always clarify and document the scope of the work in the proposal document. Ask detailed questions about the client’s needs.
Get a Comprehensive Understanding of the Client’s Needs: Consider spending more time during initial consultations or offer a paid diagnostic phase before quoting a