Today’s blog is inspired by a wonderful bookkeeper, whom I’ll refer to as Diane. She emailed me with a question about pricing, a critical topic for any thriving practice. When I say “thriving,” I don’t mean being busy. Too often, I hear bookkeepers talk about how busy they are, but when I dig deeper, I don’t see the income, time, purpose, or joy they truly desire.
Pricing is one of the key pillars of success, and Diane’s question gives me a fresh lens to revisit this important topic. Over the years, I’ve had countless conversations and engaged in continuous learning about pricing, but it didn’t come naturally to me. It took years before I fully understood and implemented effective strategies. That’s normal—learning isn’t instant. It requires hearing, accepting, understanding, and then acting.
This blog post allows me to share my thoughts on pricing through a new perspective, thanks to Diane. My goal is to provide insights and actionable steps that will help you achieve your goals—whether it’s increasing your income, reclaiming time, or finding joy and purpose in your work. I know these strategies work because they’ve been transformational for me.
For context, one of my biggest breakthroughs came in 2015 when I shifted from hourly to fixed pricing, doubling my net profits in a year. Since then, I’ve refined my approach and introduced the concept of “outcome billing” to the bookkeeping industry. It’s something I’m deeply proud of, and I want to empower you to embrace and implement it too.
Now, onto today’s topic. So Diane is actually a bookkeeper from Australia who works in a regional area, and is curious about how pricing might differ in her location. She pointed out that wages, housing costs, and other expenses tend to be lower in her region, and she wonders whether she should adjust her rates accordingly. Specifically, Diane asked if charging $95 per hour is appropriate for her area.
If you haven’t already, I recommend listening to my podcast series on pricing, Pricing for Profit and Joy (Part 1, Part 2, Part 3), which follows another episode called Plan for Success. You’ll find those episodes valuable, as they go into depth about effective pricing strategies. However, you’re welcome to continue with this blog post first and circle back to those later.
Diane’s question about pricing in regional areas is an excellent one and mirrors something I’ve pondered myself over the years. I’ve had my bookkeeping practice for 15 years, and I live in what could be considered a regional area—the Gold Coast. While it’s developed significantly, back when I started, it was still very much a regional location. I often questioned whether the rates charged in larger cities like Sydney were realistic for someone in a smaller or less urbanized area.
The short answer to Diane’s question—whether she should charge the same as bookkeepers in other areas—is yes. And here’s why:
Pricing isn’t just about where you live or work; it’s about the value you bring and the outcomes you deliver for your clients.
When you charge by the hour, you inherently set your clients up to focus on cost. It doesn’t matter if your rate is $5 or $1,000 an hour—hourly billing conditions clients to fixate on price instead of results.
That’s why I advise against charging by the hour altogether. Hourly billing is a broken model that leads to busy practices without true income, time wealth, purpose, or joy. The statistics back this up: nine out of ten bookkeepers who rely on hourly billing fail to thrive. Instead, I advocate for outcome-based pricing, which shifts the focus from time spent to the value delivered.
For example, Diane mentioned charging $95 per hour. To clarify, this is essentially a “keep your business alive” rate. In Australia, as of September 2024, $95 to $100 per hour is the minimum rate you should be charging if you want your business to be sustainable. This rate ensures you earn at least what you could in a well-paying job while covering the costs of running your practice. If you’re charging less than this, your business may already be “sick,” even if you don’t realize it yet. It might seem like you’re busy and growing, but without a sustainable pricing model, your income and time wealth will eventually stagnate.
To take this further, let’s talk about the importance of having a robust pricing calculator. Whether you create your own or access one through a program like mine, it’s non-negotiable. A pricing calculator helps you determine your minimum viable rate and set fees that reflect the true value of your services. If you’re not using a structured approach to pricing, you’re flying blind.
I’ll give you an example. One of our program members, Karen Andrews, runs an exceptionally successful bookkeeping practice. Even with her solid systems in place, she found our pricing calculator to be a game-changer. She shared that it outperformed her own methods and provided valuable insights she hadn’t considered. This tool isn’t just about setting rates—it’s about understanding the economics of your business and ensuring its health and sustainability.
Now, let’s revisit Diane’s question about regional pricing. It seems she’s primarily focused on working with clients in her immediate area. My advice? Don’t limit yourself geographically. In professional services like bookkeeping, especially in today’s remote-first world, you have the flexibility to serve clients across the country—or even globally. Limiting yourself to a regional client base can be restrictive and unnecessary. Unlike tradespeople, who are confined to their local areas, you have the tools and technology to reach clients wherever they are.
Whether you’re based in a small town or a major city, your pricing should reflect the value you bring, not the cost of living in your area. Remember, clients don’t buy what you do—they buy the results you deliver. Bookkeeping isn’t just about balancing the books; it’s the foundation of business success. Accurate, up-to-date bookkeeping gives entrepreneurs the clarity they need to make informed decisions about their profit, cash flow, and overall business health.
This brings us to a critical mindset shift: understanding the why behind your services. Entrepreneurs don’t hire bookkeepers for bookkeeping’s sake—they hire you because they want to achieve something greater. Bookkeeping is the vehicle that helps them reach their destination: a thriving, successful business. When clients come to you, they’re not buying your services; they’re buying the outcomes those services enable.
Let’s think of bookkeeping as the journey and the destination as “better in business.” Entrepreneurs don’t wake up thinking, “I can’t wait to pay for bookkeeping today!” Instead, they’re focused on improving their income, cash flow, time management, and peace of mind. Your job is to position yourself as the gateway to those outcomes, making it clear that bookkeeping is just one step toward their ultimate goals.
This mindset shift is transformative, and it’s one that many bookkeepers struggle with. Most focus too much on the “what” of their work—the features and functions—without considering the “why.” But when you frame your services around the impact they have on your clients’ success, you’ll find it much easier to command premium rates and differentiate yourself in the market.
Let me emphasize: you are not trading time for money. You’re solving problems, and your expertise, education, certifications, and intellectual property are part of that solution. The value you bring goes far beyond the hours you spend on the job.
Now, let’s address a common obstacle: the employee mindset. Many bookkeepers, especially those transitioning from employment to running their own practice, struggle with this. They tend to view their work through the lens of time-for-money transactions because that’s how they’ve always been compensated. But as an entrepreneur, this mindset will hold you back.
You’re not an employee anymore—you’re a business owner. That means shifting your focus from “how much time will this take?” to “what problems am I solving, and what outcomes am I delivering?”
Recognizing this is a pivotal step in building a thriving practice.
Here’s an exercise for you: Write down this mantra and repeat it until it sticks—I am solving problems, not trading time for money. Your solutions draw on your experience, skills, certifications, intellectual property, and time, but the value lies in the problems you solve and the outcomes you create. This shift in perspective will not only transform the way you approach pricing but also how you position your business.
Let me take this moment to remind you of something crucial: people don’t buy what you do; they buy why you do it. The bookkeeping itself is just a means to an end. When you focus on the value and results of your services, you’ll see your clients start to value them too.
So, if Diane—or anyone else—feels hesitant about charging $95 or more per hour, I’d encourage them to reframe the conversation entirely. Don’t sell hours or bookkeeping. Sell the outcomes, the peace of mind, and the success you deliver. That’s what clients truly care about.
To wrap up, let’s circle back to Diane’s question about pricing in regional areas. The short answer remains: yes, you absolutely can—and should—charge rates consistent with those in larger cities or other regions. But even more importantly, move away from hourly billing altogether. Adopt an outcome-based pricing model that reflects the true value of the solutions you provide. This shift will position you to build a thriving, sustainable practice.
I also encourage Diane—and all of you—to think bigger than your immediate geographical location. In today’s world, bookkeeping is a remote-friendly profession. By broadening your client base to a national or even global scale, you can unlock opportunities that wouldn’t exist if you restricted yourself to a regional area. The potential is there; you just need to tap into it.
Finally, remember that you are in the business of solving problems. Your work empowers entrepreneurs to succeed, and that’s something worth charging a premium for. By focusing on outcomes and embracing your role as a strategic partner in your clients’ success, you’ll create a practice that delivers income, time, purpose, and joy—not just for you, but for your clients as well.
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