How to calculate accounting fees? 5 steps + example
Posted: Wed Jan 22, 2025 6:58 am
To accurately calculate accounting fees, you must:
list all services offered;
estimate the time required to execute each one;
calculate direct and indirect operating costs;
assess contractors’ perception of value;
set the desired profit margin.
Check out this example of accounting services pricing:
contracted solution : monthly accounting records;
estimated execution optometrist accurate email list time : 15 hours/month;
operating costs : R$ 1,612.50, because:
direct costs:
accountant salary: R$ 100/hour;
hours worked: 15 hours
total: 15 hours x R$ 100/hour = R$ 1,500
indirect costs:
administrative expenses: R$ 1,200/month;
indirect cost per hour (160 working hours per month): R$ 1,200 / 160 hours = R$ 7.50/hour
total indirect cost: R$ 112.50 (15 hours x R$ 7.50/hour)
customer value perception : R$2,000 (identified from feedback from contractors);
profit margin : 20%;
final value of accounting fees : R$1,935, given that:
operating costs: R$ 1,612.50
profit margin: R$ 1,612.50 x 20% = R$ 322.50
final price: R$ 1,612.50 + R$ 322.50 = R$ 1,935
The client's perceived value does not directly factor into the calculation. However, it is a guideline for defining whether the pricing of accounting services is fair and competitive or not.
In this example, it is, as the fees totaled just under R$2,000, which was the amount indicated by the contractors.
Reading tip for you: “ Price skimming: understand the concept and how to apply this pricing strategy ”
7 Pricing Strategies for Accounting Services
Do you want to achieve more competitive pricing in a simpler way? So, adopt these pricing strategies for accounting services:
use financial management tools to automatically calculate operating costs and profit margin;
use an accounting CRM to improve customer relationships and facilitate the identification of value insights;
keep up with changes in the accounting sector;
study your competitors and analyze the prices charged;
create service packages for different customer profiles;
periodically review your price list to ensure it does not become outdated;
Request feedback from contractors regarding your pricing of accounting services.
list all services offered;
estimate the time required to execute each one;
calculate direct and indirect operating costs;
assess contractors’ perception of value;
set the desired profit margin.
Check out this example of accounting services pricing:
contracted solution : monthly accounting records;
estimated execution optometrist accurate email list time : 15 hours/month;
operating costs : R$ 1,612.50, because:
direct costs:
accountant salary: R$ 100/hour;
hours worked: 15 hours
total: 15 hours x R$ 100/hour = R$ 1,500
indirect costs:
administrative expenses: R$ 1,200/month;
indirect cost per hour (160 working hours per month): R$ 1,200 / 160 hours = R$ 7.50/hour
total indirect cost: R$ 112.50 (15 hours x R$ 7.50/hour)
customer value perception : R$2,000 (identified from feedback from contractors);
profit margin : 20%;
final value of accounting fees : R$1,935, given that:
operating costs: R$ 1,612.50
profit margin: R$ 1,612.50 x 20% = R$ 322.50
final price: R$ 1,612.50 + R$ 322.50 = R$ 1,935
The client's perceived value does not directly factor into the calculation. However, it is a guideline for defining whether the pricing of accounting services is fair and competitive or not.
In this example, it is, as the fees totaled just under R$2,000, which was the amount indicated by the contractors.
Reading tip for you: “ Price skimming: understand the concept and how to apply this pricing strategy ”
7 Pricing Strategies for Accounting Services
Do you want to achieve more competitive pricing in a simpler way? So, adopt these pricing strategies for accounting services:
use financial management tools to automatically calculate operating costs and profit margin;
use an accounting CRM to improve customer relationships and facilitate the identification of value insights;
keep up with changes in the accounting sector;
study your competitors and analyze the prices charged;
create service packages for different customer profiles;
periodically review your price list to ensure it does not become outdated;
Request feedback from contractors regarding your pricing of accounting services.