Competing on price seems logical, doesn’t it? If your prices are lower than a nearby competitor for equivalent quality, clients are likely to choose you. However, the significant drawback is that you’ll need to put in much more effort just to maintain the same income you had previously. On the other hand, by outsourcing your bookkeeping needs, you may discover a more effective approach to tackle your competition.
Expand Your Service Offerings
Rather than reduce your prices, consider broadening the range of services your firm provides. Move beyond just payroll and tax assistance to include advisory services.
By transforming from a traditional accounting firm into a financial advisor, you will benefit both yourself and your clients; this approach allows for multiple services to be delivered in one location, which can lead to savings in both time and money. Additionally, it enables you to engage more closely with the daily operations of your client’s business, enhancing your ability to deliver timely financial guidance.
How does your firm manage this expanded suite of services? You delegate bookkeeping tasks to an overseas team that specializes in these functions.
Outsourcing Bookkeeping
Broadening your range of services naturally leads to an increased workload from current clients and new business opportunities arising from prospective clients who were not attracted by your previous services, but are now interested due to your expansion.
As clients become accustomed to viewing you as an advisor, they will increasingly see you as a vital component of their operations. Consequently, they’ll request more of your time for consultations.
So, what’s the best way to manage these rising demands on your schedule? One option is to recruit in-house personnel. However, this decision can impose a significant financial burden on your firm when considering costs such as sick leave, physical equipment (like furniture and computers), benefits, and other expenses—potentially amounting up to 1.4 times the base salary range.
If these new employees prove to be exceptional in their roles, then it’s essential that the benefits and salaries offered are quite appealing to prevent larger companies from trying to attract them away. However, by outsourcing bookkeeping tasks, you can rely on a team of skilled accountants who will manage all standard compliance duties for you, making them less susceptible to being recruited.
Moreover, as there are no expenses linked with the hiring process involved, you position yourself as a comprehensive service provider with only a minimal increase in your overhead costs.
Additionally, since you’ll be delegating the tedious number-crunching outside your firm, you’ll have more quality time to dedicate to your clients—a factor they will undoubtedly appreciate.
Compete Against the Major Compliance Firms
There’s one final aspect to consider regarding competing on price—it’s a losing battle.
This is particularly true for smaller firms. Large compliance-only corporations, such as H&R Block, have the capacity to undercut your prices thanks to their high volume of business.
Nonetheless, these companies concentrate on a limited range of services. In contrast, your diverse offerings in financial management, forecasting, succession planning, and more will appeal significantly to clients seeking a comprehensive solution for all their accounting needs within a trusted firm.
