Why firms should review their pricing / Amanda Aguillard
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TextDescription: Vol 239 (1) pages 36-40 : illustrations ; 27 cmISSN: - 0021-8448
- Journal of Accountancy / January 2025
There is a direct correlation between an accounting firm's capacity and its pricing meth-ods. If a firm is underpricing, it will not be able to hire the staff it needs to keep up with the work it has, let alone take on additional clients or services. Its revenue is capped, and the firm's value is stagnant at best.
The problem is particularly acute for small firms that don't raise fees high enough to pay for the staff or technology needed to handle the workload. In those cases, partners must bear the burden of the extra work, adding to their stress and taking away from their time to work on the business.
Proper pricing leaves firms either with the same revenue and fewer clients or with the same number of clients and higher revenue. Either way, the firm - and its people - come out ahead.
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