Packaging In-Depth: From Hourly Pricing to Profitable Packages

Sandi Smith Leyva, CPA, CITP, CGMA, Certified QuickBooks ProAdvisor, Xero Certified Advisor

Where to Get This PowerPoint

• AccountantsAccelerator.com/package-workshop

Agenda

• How many packages need to be created for each service line and when to make exceptions

• Features of a typical accounting package • Key deliverable needed to explain and sell

packages • Two occasions when packages won’t work • Sample packages • Tracking and Measuring Margins

Getting Started

• Decide on the service you want to focus on – Bookkeeping – Payroll – Tax – Individual – Tax – Corporate – Controller – Conbined

Package Reviews

Number of Packages

• Sizes: – Small, Medium, Large

• Exceptions should be a custom quote

Samples

• http://www.cloudaccountants.co.nz/ • http://www.summit-

accounting.com/packages.php • http://www.ledgersonline.com/services/online-

bookkeeping/pricing • http://www.magnusaccounting.com/prices • http://www.virtualisbookkeeping.com/pricing.html

Package Reviews

Package Features/Pricing

• Bookkeeping – AR, AP – # checking accounts or # transactions – Review frequency – Inventory # items – # reports

Action item

• Write down all of the features/deliverables/pricing factors you can think of for your service

• Put them in a chart or spreadsheet and add 3 blank columns

Package Reviews

Package Features/Pricing

• Payroll – # employees, # states, pay frequency – Quarterly deposits and reports – Annual reports – 1099s – Posters – W/C audit – New hire reporting – We pay the penalty – Direct deposit – Unemployment claims management

Key Deliverable Payroll Services Silver Gold Platinum

Number of employees 1-3 4-9 10+

# States 1 1 Multi

Pay frequency Bi-Wkly Bi-Wkly Bi-Wkly

Quarterly deposits and reports

Annual reports

1099s

Package Reviews

Key Deliverable Bookkeeping Silver Gold Platinum

Invoices Up to 5 per month Up to 25 per month Up to 50 per month

Bills Up to 5 per month Up to 25 per month Up to 50 per month

Posting You post You post, we review We post

Review frequency Quarterly Monthly Weekly

Reports 1 5 10

Aging management

Bank Reconciliation Quarterly Monthly Monthly

Merchant Reconciliation

Key Deliverable Bookkeeping Silver Gold Platinum

Transactions < 100 < 250 < 500

Posting You post We post We post

Corrections Up to 5* N/A N/A

Review Quarterly Monthly Monthly

Reports 3 5 10

Aging management

Bank Reconciliation Quarterly Monthly Monthly

Price $250/month $600/month $1,000/month

*Please note that more than 5 corrections require an additional fee

Package Reviews

When Packages Won’t Work

• When you have no experience/history • When client thinks it will be one hour and you

know it will be longer – Troubleshooting is best done by the hour – Training packages are good when the client realizes

how much they need

Pricing Tips to Make It Easier

• Separate setup from ongoing • Customers are different; go for the AVERAGE • Always do a range: worst case, best case • You may need to do a breakeven

Package Reviews

Pricing

• Put your cost accounting hat on! • Also your project management skills • Start by computing the number of hours you

expect your service to take – Use both your loaded employee rate and the billable

rate to do a range • Get a total of your hard costs

Pricing

• Example

Item Cost

Hosting (hard) 95.40

Backup (hard) 120.00

Wordpress install (1 hour) 200.00

Copywriting (3 hours – 5 pages) 900.00

Design (hard) 100.00

Pages build with graphics 400.00

Etc. $1815.40

Package Reviews

Pricing

• Example

Item Cost

QuickBooks Software

A/R

A/P

Reports

Pricing

• Adding Bells and Whistles

Item Cost

QuickBooks Software

A/R

A/P

Reports

Up to 2 hours of troubleshooting per month

Training videos

Monthly training calls

Package Reviews

Tracking Your Margins

• Keep timesheets by client/project • Run your numbers and calculate the average • Was my estimate right?

Client Hours Budget

A 8 5

B 4 5

C 6 5

Average 6 5

Package Reviews

How to Ask a Question

• If you are OK with dialoging with me – Type in the box and raise your hand.

• I will unmute you and we will talk

• If you prefer NOT to be called on: – Type in the box. I will answer and it will be a 1-way

conversation.

For best results Click “Telephone.” The phone number will appear with an audio pin.

Questions

• Post them under this discussion or in the Q&A section or email us at support@sandismith.com.

Your Action Items

• What one thing will you do from this webinar? • Mark your calendar, to do list, project

management system, etc.