14th October, 2021
Value-based pricing is here, and it’s a game-changer for accounting firms. Here’s how to get the most out of it.
Before we look at why value-based pricing in accounting software creates flexibility and choice for accountants and their clients, it’s important to understand how and why accounting platforms have changed in recent years.
For a long time, accounting platforms were pieces of software installed on your computer. But the latest accounting platforms are accessed through websites, and all data is stored online (or ‘in the cloud’) rather than on the user’s computer.
These new cloud-based platforms offer a range of advantages, from enhanced security to improved data sharing between accountants and their clients, who can also log in to the platforms. They represent a giant leap forward for the accounting profession.
READ: Cloud accounting explained
One of the main benefits is what’s called subscription-based billing: simply paying a monthly fee for access, rather than an up-front fee. There are no lock-in contracts, and you can access the most current version of the platform at all times.
Subscription-based billing also gives users more options than before – and this is where value-based pricing comes in.
Platforms such as MYOB Business offer different subscription tiers to suit different types of users. Those with basic needs can pay less for fewer features, while those with more advanced requirements can pay more for greater functionality. This is value-based pricing.
Because your clients are paying for access monthly, they can switch between tiers if and when needed.
Value-based pricing can be of benefit both to accountants and to their clients.
READ: Pricing models for professional services firms
First, let’s look at what accountants stand to gain. You can recommend clients use new features as and when their needs grow. This means you can administer the right product for them at the right time.
If all the software is cloud based and on a single platform, your clients and your staff only need to learn one system, and it’s accessible to everyone, anywhere.
For clients, value-based pricing on cloud-based platforms can be just as useful. For instance, some will need access to payroll capabilities, others won’t.
One client feature that might be unlocked at higher subscription tiers is advanced expense management. This enables a client’s employees to scan receipts using their smartphones.
Not all clients may want or need expense management, particularly if they are a new or a small business. But the feature might be helpful in the future, particularly if the business grows. Value-based pricing means they can pay for it when they need it.
Value-based pricing is just one example of how the new cloud-based platforms provide accountants and their clients with unprecedented flexibility. In unpredictable times, it’s reassuring to know that these tech solutions can adapt to everyone’s needs.
Find out more about how MYOB Business can help your practice grow and simplify your customers’ operations by making time to speak to your Sales Specialist today.