Packaging In-Depth: From Hourly Pricing to Profitable Packages · Packaging In-Depth: From Hourly...
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Packaging In-Depth: From Hourly Pricing to Profitable Packages Sandi Smith Leyva, CPA, CITP, CGMA, Certified QuickBooks ProAdvisor, Xero Certified Advisor
Transcript of Packaging In-Depth: From Hourly Pricing to Profitable Packages · Packaging In-Depth: From Hourly...
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.
Your Action Items
• What one thing will you do from this webinar? • Mark your calendar, to do list, project
management system, etc.
