Tax & Accounting News

TaxBuzz Chat: A Discussion About Charging for Expertise, Rather Than Hours

TaxBuzz Chat: A Discussion About Charging for Expertise, Rather Than Hours

It’s that time again, #TaxTwitter. As hard as it may be to believe that August has passed, the September #TaxBuzzChat arrived and was busy as ever. In this month’s chat – hosted on our Twitter account @TaxBuzzOnline – we invited pros across the country to join us to discuss their thoughts on charging for expertise, rather than charging for hours. 

Some of our key takeaways from the conversation included:  

When asked about their primary approach to billing and ways of charging clients, @TGorcz said, “Value pricing plus monthly packages as needed. I don't track my time at all.”

Many #TaxTwitter pros choose not to display their fees; for example, including a pricing page on their website. “I understand the client's wish for a fixed price quote, but things always "come up" that require additional work. When I've made an exception and agreed to a fixed price, I've more often than not regretted it.” - @PKubeyEA.

There are a handful of benefits to niching down, and presenting yourself as an expert in your field. When asked about the benefits of niching down, @CertTaxCoach said, “My specialty is advanced tax reduction for closely held businesses with 5 or more employees and will either work with my accountant of choice or have an in-house accountant.  Huge benefits - first, filters at least some of the non-ideal clients, second - attracts a lot.”

In the same line of thought, we are curious to know how #TaxTwitter pros are presenting themselves as experts in their field. @justinmilleresq noted, “There are multiple ways to establish yourself as an expert in your field: teach a class, present at conferences, write articles, record podcasts, post on social media, get quoted in publications, etc. The challenge is trying to balance all that with your day job.”

In today’s digital age, your digital presence helps determine whether a prospect contacts you. When asked about optimizing touchpoints to help ensure prospects pick them, @JohnRDundon said, “Google My Business seems to offer the most prolific engagement after my web site and tax blog. Also relevant traction comes from moderating groups like -> https://reddit.com/r/IRS/. No, I do not ask for reviews but they are appreciated when volunteered.” On the other hand, @taxtherapist505 said, “I don’t agree. Too often prospects think they drive the deal. They don't. It's a seller's market. It's getting harder to find good tax & accounting help. Most of us are maxed out and/or retiring.”

It’s always a good idea to strategize ways to retain your clients. How are #TaxTwitter pros doing just that? @MainStreetInv said, “Making sure our value add is truly that, either at the complex end with knowledge or at the low end with hustle (value pricing) & simple #taxplanning suggestions. Importantly, you also have to know why a client doesn't return, when that happens.” In response, @PKubeyEA said, “Yes, learning from unsuccessful relationships is key to building more successful ones going forward.”

We asked our tax pros if they implement up-selling strategies, and if they do, what their results are. @TGorcz said, “Start with planning and then move to annual compliance work... Start the relationship by creating value.” Similarly, @CertTaxCoach said, “I always start with planning and upsell to compliance.  Compliance work is a given, but the planning is not quite understood.  If they don't want to play in that order, I refer out.”

Click on any of the embedded tweets to see the full set of responses on Twitter.

Q1. What is your primary approach to billing? Do you charge by the hour, per a schedule, through monthly packages, value pricing based on results, or other? #TaxBuzzChat pic.twitter.com/uobrdqYE4h

Q2. Do you charge upfront? If yes, what is the feedback you receive from clients? If not, are you challenged to collect fees? #TaxBuzzChat pic.twitter.com/K3LwvYiELm

Q3. Are you upfront with your prices and display them somewhere a prospect could see? Or do you wait for an initial conversation? What do you believe works best? #TaxBuzzChat pic.twitter.com/lJwLKx3PnN

Q4. Along those lines, how are you tackling payments? Do you have specific tools or platforms in place to streamline payment processing? #TaxBuzzChat pic.twitter.com/tzTBjEEkDf

Q5. We talk a lot about the benefits of niching down and becoming an expert in your field. Are you currently offering services for a niche, and if so, what are some benefits you are noticing? <ahref="https://twitter.com/hashtag/TaxBuzzChat?src=hash&ref_src=twsrc%5Etfw">#TaxBuzzChat pic.twitter.com/KNJUjbl2dj

Q6. In that same line of thought, are you strategizing ways to show clients that you are an expert in your field? If so, how? Are you putting out content, utilizing social media, networking, or podcasting? <ahref="https://twitter.com/hashtag/TaxBuzzChat?src=hash&ref_src=twsrc%5Etfw">#TaxBuzzChat pic.twitter.com/nh3huKUOPe

Q7. Do you feel your firm competes more as a commodity player, or have you differentiated your practice to demand higher fees? #TaxBuzzChat pic.twitter.com/X7MUZ8MByv

Q8. Tax and accounting prospects are in control of your selling process. They ask for referrals, they Google your name, and more. Your digital presence helps determines whether they contact you. How do you optimize these touchpoints, so they pick you? #TaxBuzzChat pic.twitter.com/j6NkUh6ruO

Q9. It’s always a good idea to strategize ways to retain your clients. What are some things you are doing to increase client retention, i.e keeping your clients? #TaxBuzzChat pic.twitter.com/62m1VZkMNQ

Q10. Do you have an upsell strategy for current clients? Ex: Tax preparation to tax planning packages. If yes, what are the results? #TaxBuzzChat pic.twitter.com/rcpAUjVBnp

Q11. Do you actively blog? If yes, where? Ex: On your website, LinkedIn, Medium, etc. #TaxBuzzChat pic.twitter.com/GZwNeMGjsK

— TaxBuzz.com (@taxbuzzonline) September 7, 2022

Thank you to all the members of the #TaxTwitter community who participated in our September chat – and welcome to all our new attendees. Make sure to check out the full recap below for top highlights of our conversation and sign up to receive our chat invites and recaps via email here.

@TaxBuzzOnline will be hosting our next #TaxBuzzChat on Wednesday, November 2nd at 10am PT/ 1pm ET. We’ll be skipping October’s chat due to the deadline! Check back for updates to make sure you don't miss out on the conversation and Tweet us if there are topics that you'd like to chat about in the future.

share this post
Search for matches...
TaxBuzz Staff

TaxBuzz Staff

Our experts cover the hot topics in tax, personal finance and business planning. Follow us on @taxbuzzonline to get the latest updates year round.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts