How To Implement Subscription Based Pricing For Accounting Firms

Understanding Subscription-Based Pricing For Accounting Firms
The CPA firm’s business model has been “effort determining value” for decades, but now we have to look for a more subjective model of value that allows for various levels of services.

If there were ever a trending buzzword in the business sector these days, I’d bet my left shoe it’s “subscription-based pricing.” Much like free refills at your local diner, a subscription model offers ongoing service for a regular payment. It’s like taking a year-long ride on the accounting merry-go-round, where the fun (and the bookkeeping!) never stops.

Why Subscription-Based Pricing Is Vital For Accounting Firms
What is subscription-based pricing for accounting firms?

In the subscription-based pricing model, customers pay regularly for a service or product. Subscription pricing differs from traditional product pricing in that it is frequently based on the length of the subscription, with longer subscriptions being the cheapest option.

Subscription revenue is central to the DNA of SaaS companies. Gym memberships, satellite television, and mobile phone contracts no longer monopolize this model. Microsoft products and Quickbooks have also shifted to subscription pricing. The rules to implement subscription-based pricing are:

1. If the customer is here to stay.
2. And services required are recurring.

Now, if you’re wondering, “Why should my accounting firm make this switch?” here’s my take: let’s imagine your firm as a lovely fruit tree. With the traditional hourly pricing, each client engagement is a ripe orange: plucked and consumed once. But with subscription pricing, your tree is evergreen, bearing fruits all year round and offering steady nourishment (income) for the firm. Read Full Blog Here