And yet, for decades, we’ve built entire business models around a process that’s flawed from the start. It’s inaccurate. It’s inconsistent. It’s based on memory. And half the time, it’s a guess.

The problem isn’t just that timesheets are annoying. It’s that they’re bad data. And bad data leads to bad management decisions, bad pricing and bad culture.

But what if we could fix that without forcing anyone to fill out another timesheet from memory?

That’s exactly what Laurel is doing. AI can finally take the pain out of timesheets, making it easy for firms to rethink what they’re really measuring.

Automating the “Ugh” Out of Timesheets

Laurel’s AI captures your digital work automatically — emails, meetings, documents, projects — and organizes it into accurate, real-time data. It frees people from the mental gymnastics of reconstructing their week.

Accountants lose hours every month trying to remember what they worked on. Laurel gives that time back. The result? More accurate data, less frustration and a clearer picture of how your team actually spends its time.

When their users forget to log about 30 minutes of billable work a day. That’s not just lost time, it’s lost value.

Why Accurate Data Matters More Than Ever

I’ve been anti-timesheet for years, but there’s something valuable in the data. When that data’s accurate, it can transform how you price, plan and lead.

Plus, not every 15 minutes is created equal. The 15 minutes spent solving a client’s problem is worth far more than 15 minutes waiting for QuickBooks to load. But traditional timesheets treat them the same.

AI fixes that. Laurel captures the real story of your work, the value behind the minutes. With clean data, firms can finally move away from tracking hours and toward pricing on outcomes.

That’s the shift the profession’s been waiting for.

From Time Sheets to Time Freedom

Studies show the average knowledge worker spends nine hours a day “working,” but only three of those hours actually create leverage or impact. AI can help reclaim the other six. Think about how you could use that time? You could focus on deep work, strategic thinking or even just being present at home.

That’s not automation replacing people. That’s automation restoring balance.

The Radical Takeaway

Firms were built around timesheets because we thought that was the only way to measure productivity. It’s not. AI gives us a better way. One that’s faster, fairer and more human.

So no, I’m not saying bring timesheets back. I’m saying if you’re still stuck in that old way of managing, this is your halfway step out.

Use the data. Trust the tech. Then use what you learn to finally price on value, not hours.

Because honestly, accountants, we don’t have time for this sheet.

About Laurel’s “No Time for This Sheet” Campaign

If you’ve seen the billboards popping up in a few cities across the country, you already know: Laurel’s not just automating timesheets — they’re starting a movement.

Their “No Time for This Sheet” campaign says out loud what every accountant has quietly thought for years. It’s funny, it’s bold and it’s a perfect reflection of where the profession is headed.

Because we really don’t have time for this sheet — literally or figuratively. AI’s ready to take it off our plates. And the faster we let it, the more time we’ll have to focus on the work (and life) that actually matters.

“As AI comes in, as more technology comes in, you can't bill by the minute. You have to price on outcomes.”

Yeah, I said it. And I’ll keep saying it until every partner in every firm finally gets it…the billable hour is dead.

AI and automation have already blown up the math on hourly billing. The second a machine can do in seconds what used to take a human two hours, your “time-based” revenue model falls apart.

So why are so many firms still clutching their timesheets like security blankets? Keep reading as I highlight what Michael Bird, president of Rightworks, and I covered in a recent Fireside Chat on making sure your firm is relevant in 2030.

Time Isn’t Value Anymore

Look, there was a time when billing by the hour made sense. Effort and value were closely tied.

But that world is gone.

Clients don’t care how long something takes. They don’t want to see a timesheet. They want results:

• Are my books clean and accurate?

• Did you save me money?

• Did you give me clarity and confidence in my decisions?

You can’t put a stopwatch on that kind of value. And you sure as hell can’t build an AI-first firm on 6-minute increments.

Pricing Is the Lever That Changes Everything

When you stop billing for minutes and start pricing for outcomes, your whole firm shifts.

• Your people see their worth. They stop thinking they’re worth a line on a timesheet and start seeing the real value they deliver.

• Your client relationships get stronger. You’re no longer a vendor; you’re a partner in their success.

• Your margins improve. Efficiency stops being a threat and becomes a growth driver.

I learned this the hard way. It wasn’t until I sold my own firm that I realized what had actually transformed it. It wasn’t the tech. It wasn’t the processes. It was pricing. Pricing was the thing that forced us to reimagine everything.

You Can’t Lead with AI on an Hourly Model

Right now, most firms are dabbling in AI. They’ve got a tool here, a workflow there. But there’s no true AI-first firm yet.

And you know why? Because you can’t build one on an hourly foundation. The math doesn’t work.

Outcome pricing gives you the freedom to innovate. It gives your people room to experiment without partners freaking out about “lost hours.” And it lets you deliver more value, faster, without tanking your revenue.

That’s how we move from dabbling in AI to truly leading with it.

Lead the Change or Get Left Behind

Stop waiting. Stop pretending the world hasn’t changed.

If you want your firm to survive this shift, here’s where you start:

• Stop billing minutes. Start pricing outcomes.

• Make pricing a team sport. Get everyone involved in scoping and defining value.

• Let AI elevate your people. Use the tech to clear the grunt work so your team can focus on the work that really matters.

• Focus on relationships and results. That’s what clients value. That’s what they’ll pay for.

AI isn’t a someday conversation. It’s today. The only question is whether you’re going to keep fighting to stay in the past or step up and build the future.

Because in this new world, minutes don’t matter. Outcomes do.

Ready to lead?

Start building your AI-first, outcome-driven firm with XcelLabs!

Take the free AIQ Self-Assessment to see where you and your firm stand today. In less than 10 minutes, you’ll get a personalized look at how you’re using AI now and where the biggest opportunities are to build an outcome-driven, AI-first firm.

LLC setup services represent a big opportunity to add value and streamline client services. By embedding LLC setup into your service packages, you position your firm as a one-stop shop for business formation and ongoing advisory needs. And what client doesn’t love that?

Positioning LLC Setup as a Standard Business Service

Many clients assume LLC setup is a straightforward, DIY task until they hit roadblocks like state-specific requirements, compliance deadlines or legal nuances.

As an accounting professional, you understand the ins and outs of LLC setup. So why not simplify the client’s journey by integrating LLC setup into your offerings?

Here’s why it makes sense:

• Clients trust you. You’re already managing their financials and compliance needs. Adding LLC setup builds on this trust and positions your firm as a comprehensive solution provider.

• It’s a natural fit. Business formation is the first step in a client’s entrepreneurial journey. By offering LLC setup, you ensure their foundation is solid before moving on to higher-value services like advisory.

• Avoid client-made messes. DIY setups often lead to costly mistakes (e.g., filing in the wrong state or missing key deadlines). By handling this process upfront, you eliminate future headaches for both your firm and your clients.

Packaging LLC Setup into Tiered Pricing Models

To make LLC setup a profitable and scalable part of your service offerings, consider incorporating it into a tiered pricing model. This approach allows you to cater to different client needs while maximizing revenue potential.

Consider this sample tiered approach, including package elements, ideal clients and price point.

Basic Tier: Essential Setup

• Includes state filing, registered agent designation and EIN application

• Ideal for startups or solopreneurs who need the basics done right

• Price point: Entry-level to attract new clients

Mid-Tier: Compliance Plus

• Adds services beyond the Basic Tier, such as operating agreement drafting and first-year compliance tracking (e.g., annual reports)

• Perfect for small businesses that want peace of mind without managing ongoing requirements themselves

• Price point: Moderate, reflecting added value

Premium Tier: Full-Service Formation

• Combines all setup services with ongoing advisory support (e.g., tax planning, entity optimization)

• Tailored for growing businesses or those with complex structures

• Price point: Premium, emphasizing high-touch service

By bundling LLC setup into tiers, you not only meet diverse client needs but also create opportunities to upsell them into higher-value packages over time.

Overcoming Common Objections

When introducing LLC setup as part of your service packages, you may encounter some pushback. Here’s how to address common objections effectively:

Q: Isn’t this a legal service?

A: While some aspects of LLC formation touch on legal considerations, much of the process, like filing forms and obtaining an EIN, is administrative in nature. As accountants, we’re uniquely qualified to handle these tasks efficiently while ensuring everything aligns with tax and financial planning strategies.

Q: Do clients really need help with this?

A: Absolutely, they do! Many clients underestimate the complexity of setting up an LLC, which can quickly translate to missing deadlines or skipping operating agreements. Firms offer expertise that ensures a compliant start while mitigating risk.

Q: Isn’t this just extra work for my firm?

A: Not if you leverage the right tools! Modern LLC platforms streamline the process, allowing you to manage filings in minutes while tracking deadlines automatically. This reduces manual workload and frees up time for higher-value advisory services.

Hard to Pass Up

Embedding LLC setup into your service packages isn’t just about adding another line item; it’s about enhancing your value proposition and deepening client relationships. By positioning yourself as a trusted partner from day one of their business journey, you set the stage for long-term loyalty and growth.

With the right pricing model and tools in place, offering LLC setup becomes a win-win. Clients enjoy the peace of mind that comes with knowing their entity is set up correctly. And your firm can enjoy an additional revenue stream without sacrificing efficiency.

Make Your Strategic Move Now

Integrating LLC setup into your service packages is not just a value-add. It’s a strategic move that addresses client pain points, reduces administrative burdens and creates a new revenue stream.

By adopting intuitive LLC formation platforms and tiered pricing models, firms can ensure accuracy, compliance and a superior client experience from the outset. This proactive approach not only prevents costly DIY mistakes but also frees up time for higher-value advisory work, strengthening client relationships and supporting clients’ long-term business growth. It’s time to make your move.

Pricing isn’t just about what you charge. It’s your business model. It affects every process in your firm — from client onboarding to how your team works, to your ability to scale, automate and deliver meaningful client experiences. That’s why pricing, when done right, is actually the core innovation most firms are missing. Here’s a summary of a pricing webinar I did for my friends at ADP that looks at why pricing is your biggest opportunity to transform your firm.

Why Pricing Is the Missing Link in Client Experience

Accountants love their clients. Ask any CPA why they started their firm and the answer is usually the same: “I wanted to help people.” But the traditional business model where you bill by the hour, track time and measure realization often creates a disconnect between intention and execution.

To be truly client-centric, firms must align their pricing with the value clients perceive. That means setting prices before the work begins, not after. It also means streamlining internal operations so the entire delivery process supports the pricing model. When you get this right, clients are happier, your team is more empowered and your margins improve.

Automation Killed the Billable Hour

The billable hour made sense in an analog world. But in the age of cloud computing, automation, and now AI, it’s obsolete. If a bot completes a task in 0.5 seconds, how do you bill for that? You don’t. And you shouldn’t try.

Automation is eliminating routine work, and that’s a good thing. It opens the door for accountants to focus on what really matters including human insight, strategic advice and deeper client relationships. But to take advantage of that opportunity, firms must abandon time-based billing in favor of value-based pricing.

Productization is the Key to Scalability

The fastest-growing, most profitable firms aren’t selling time — they’re selling outcomes. And they’re doing it through productized service offerings.

Think of it like baking a cake: 85% of what you do is the same for every client. That’s things like bookkeeping, payroll, reporting, etc. The remaining 15% is customized. It’s the frosting, the sprinkles, the advisory services. When you standardize the base and offer optional enhancements, you create a repeatable, scalable model that’s easier to price and deliver.

Standardization Before Automation

Technology is not a silver bullet. Applying automation to a disorganized, inconsistent workflow just makes the chaos move faster.

Before layering in tech, firms must standardize:

• The type of clients they serve

• The format and timing of the data they receive

• Internal workflows and deliverables

Only then can automation be applied effectively. This "clean first, automate second" mindset is essential to building a future-ready firm.

Onboarding Is a Pricing Strategy

The onboarding process is the foundation for client experience and profitability. When firms set expectations early, standardize data inputs and assign a dedicated onboarding or customer success role, they:

• Improve turnaround time

• Reduce scope creep

• Increase client satisfaction

• Protect margins

Clients who know what to expect, and what’s expected of them, are easier to serve and more likely to stick around.

Price the Whole Process, Not Just the Output

To be profitable in a post-hourly world, firms must consider the full cost of service delivery. Not just labor, but tech, automation, onboarding, support and management.

Automation tools should be viewed as a labor replacement and built into your pricing model accordingly. Bots are cheaper than people, but they still have costs: training, oversight, iteration. The ROI comes when those tools free up humans to deliver more value…and charge accordingly.

Moving Now Is Non-Negotiable

The accounting landscape is changing fast. Private equity, tech disruptors and AI-powered platforms are already reshaping the market. Firms that stick to legacy models will struggle to keep up.

Those who embrace pricing innovation along with automation and standardization will unlock new levels of profitability, scalability and client satisfaction.

The choice is clear. Don’t cling to the past. Build the kind of firm that’s ready for what’s next.

I’ve been preaching about pricing for years, and I even did a webinar series for my friends at ADP on this very topic late last year. And let me tell you, the firms that get it — those who shift to value pricing, fixed fees or subscription models — are absolutely killing it. They’re more profitable, their clients are happier and they’re running their businesses with intention instead of just reacting to whatever walks in the door. And guess what? You can do this too.

Why Now? Because the Perfect Storm is Here

Automation and AI are changing everything. The work that used to take hours? It now takes minutes or maybe even seconds. So, if you’re still charging by the hour, you’re stuck in a losing game. How do you bill for something AI completes in two seconds? You don’t.

Meanwhile, consumers are already comfortable with subscription pricing. My daughter’s dog, Howie, has a vet on subscription pricing. If veterinarians can do it, why can’t CPAs?

Oh, and let’s not forget that the accounting tech startups (the ones trying to replace us) are already doing this. If we don’t evolve, they’re going to eat our lunch. We have to stop competing with the firm next door and start competing with the tech companies productizing tax and accounting services.

The Six Steps to Pricing Like a Pro

So, how do you get started? Here’s the simple version:

1. Define Your Ideal Customer – Stop taking everyone who walks in the door. Get intentional about who you serve and who you don’t.

2. Productize Your Service Offering – Standardize what you do so it’s repeatable, scalable and clear.

3. Define Deliverables & Scope – Clients need to know exactly what they’re getting (and so does your team). No more scope creep!

4. Determine Your Costs – If you’ve always billed by the hour, this might feel weird at first, but knowing your real costs is key.

5. Set a Fixed, Transparent Price – Clients LOVE knowing what they’ll pay. No more surprise bills!

6. Market and Sell With Confidence – A clear, repeatable offering makes sales so much easier (and you don’t have to be a natural salesperson to do it!).

But Wait, Will My Clients Really Pay More?

YES. And they’ll actually be happier about it. Clients don’t mind paying for certainty. In fact, studies show that people will pay 20% more for a fixed price over an unknown variable price. Why? Because they don’t want surprises. Nobody likes surprises when it comes to their bills, especially not your clients.

The Customer Experience Connection

Here’s where it gets even better. When you move to value pricing and productized services, your entire customer experience improves. You have time for real conversations. You can be proactive instead of drowning in compliance work. You can schedule meetings ahead of time and actually uncover new revenue opportunities.

Clients want to talk to their CPA, but they hesitate because they’re afraid they’ll get charged just for picking up the phone. That’s crazy! When pricing is aligned with service, clients feel like they’re getting MORE value, not less.

This is Already Happening

Some of the most successful firms today are already doing this. They’re defining their personas (aka, their ideal clients), structuring their service offerings and making their business models work for them instead of against them.

Want proof? Think about R&D tax credits. That’s been a productized service offering for years. Why? Because firms realized that you don’t start an R&D credit engagement unless you know the client qualifies. So they scope the work upfront, price it upfront and deliver it in a structured, repeatable way. This exact model can apply to ANY part of your firm.

Take it One Step at a Time

I get it. Change is hard. But you don’t have to overhaul everything overnight. Start with one persona, one service offering, and one pricing model. Get that working, then expand.

And if you need a roadmap, I lay it all out in my book, Radical Pricing. It’s time to stop selling time and start selling outcomes. Because when you do, your firm will run better, your clients will love you, and you’ll finally feel like you’re building something scalable and sustainable.

It’s time to rethink pricing. Not tomorrow, not next year, but NOW.

Let’s talk about why the time is right for change, and why modern pricing models like value-based pricing are exactly what the profession needs to survive — and thrive.

The World Is Changing And So Should Our Pricing

Today’s world is a far cry from what it was even a decade ago. Technology is disrupting every single industry and accounting is no exception. But what’s not being disrupted? Our pricing models.

Think about it. We’re still stuck in this time-based, hourly billing model that was created during the industrial era. You’re basically charging for your time, not the value you bring to clients. And in a world where everything is measured by outcomes, why are we still so attached to a model that doesn’t align with the value we deliver?

The rise of automation, AI and data analytics means that the way we approach our work is being revolutionized. While machines take over more of the repetitive, low-level tasks, we’re left with the high-level strategy and advisory roles that require expertise and insight. So, what does that mean for how we charge clients?

It means the time-based billing model is rapidly becoming obsolete. And if we don’t change our pricing now, we’re going to fall behind.

Clients Want More Transparency And We Can Deliver It

Clients expect more than just a service — they expect results. They want clarity, transparency and predictability. No more wondering if that extra 10 minutes of work is going to show up on their bill. No more uncertainty about what the final cost will be.

That’s where modern pricing models like value-based pricing come in. By focusing on outcomes and deliverables, you’re not only meeting the expectations of today’s clients, you’re exceeding them.

With value-based pricing, you’re able to offer clear, fixed prices that align with the results your clients are looking for. It’s a win-win: clients know exactly what they’re paying for, and you’re getting paid based on the value you create, not the time you spend.

And let’s be real here. Clients want the certainty of predictable costs. They can get fixed-price packages from their software vendors, their outsourced marketing teams and even their local plumbers. So why should accounting be any different?

The Traditional Pricing Model Is Costing You Money

If you’re still charging by the hour, let me hit you with the cold, hard truth. You’re probably leaving money on the table. The traditional hourly model is inefficient. It creates confusion. It leads to scope creep. And, worst of all, it doesn’t allow you to capitalize on the full value of your expertise.

Here’s why it’s costing you:

• You’re not being paid for results. Your time may be valuable, but it’s not the value your clients are paying for. They want results like better financial management, more efficient tax strategies and strategic business advice.

• You’re priced to work more, not smarter. Charging by the hour rewards more time spent, not better outcomes. The more efficient you are, the less you get paid. Doesn’t make sense, right?

• You’re stuck in a time-tracking nightmare. How much time have you spent justifying your hours to clients? How much time is wasted trying to track every minute? That’s time you could be spending on delivering higher-value work.

With a value-based model, you’re free from all of this. You can focus on delivering results, and get paid for the value you’re bringing to the table.

The Benefits of Rethinking Pricing

So, what happens when you make the switch to modern pricing models like value-based or fixed pricing? A lot, actually. Here’s what you can expect:

• Predictable cash flow. No more chasing down payments or haggling over hours. With fixed pricing or value-based pricing, you know exactly what you’ll earn for each project.

• Better client relationships. Clients appreciate transparency. They don’t want to wonder if their bill is going to include that extra phone call or meeting. With clear deliverables and pricing, you build trust.

• Increased profitability. You’re no longer tied to the clock. You can charge based on the value you’re delivering, meaning you’re no longer leaving money on the table.

• Improved efficiency. The less time you spend tracking hours and justifying work, the more time you have to focus on high-level advisory work — where your expertise truly shines.

• A competitive edge. Firms that adopt modern pricing are setting themselves up for success in a changing marketplace. They’re able to scale faster, deliver more value and position themselves as leaders in the industry.

If You Don’t Change Now, You Will Fall Behind

You can’t afford to wait. The world of accounting is changing, and if you don’t change your pricing now, you’ll find yourself stuck in the past while the rest of the industry moves forward.

Now is the time to embrace value-based pricing. The benefits are clear, the demand is there and the tools to make it happen are already at your fingertips. The clients are ready. The technology is here. And the market is waiting for you to step up and redefine how accounting services are priced and delivered.

So, let’s make this shift. The time is now.

It’s like hitting the reset button on your entire business model. And the best part? These changes are all for the better.

It Starts with Pricing, But It Doesn’t End There

When you shift to value-based or fixed pricing, it’s like unlocking a new level of clarity and control in your practice. Suddenly, you’re not just selling time. You’re selling outcomes, results and expertise. That one change ripples out into every corner of your firm, transforming the way you work, how you think and even how your team feels about their jobs.

Let’s break it down.

1. Say Goodbye to Time Tracking Drama

Remember the days of tracking every minute of your workday just so you could justify your bill to clients? Yeah, those days are over. When you adopt value-based pricing, you’re no longer tethered to the clock.

This means:

• No more micromanagement. Your team isn’t obsessively tracking their time, so they can actually focus on doing great work.

• Freedom to innovate. Without the pressure to bill hours, your team can think creatively, solve problems and deliver more value to clients.

• Happier teams. Trust me, nobody misses timesheets. Eliminating time tracking boosts morale and reduces burnout.

And let’s be real. You’re not in this business to count minutes. You’re here to deliver results.

2. Clearer Boundaries = Better Relationships

Scope creep. It’s the worst, right? Clients that add “just one more thing” until your team is overwhelmed and your profits are shot. But when you price based on value, you have crystal-clear deliverables.

Everyone knows exactly what’s included and what isn’t. Your team knows the plan. There is no more guessing what’s expected or scrambling to meet unclear demands. As a result, your clients respect the boundaries. When it’s defined upfront, clients are less likely to push for extras without renegotiating. It makes the entire conversation easier. Instead of arguing about hours or tasks, you can have productive talks about outcomes and results. Setting boundaries is good for your bottom line and your sanity.

3. Operational Efficiency Skyrockets

When you move to modern pricing, your processes get streamlined. Why? Because you’re no longer reinventing the wheel for every client. Fixed pricing and productized services force you to standardize your workflows. This leads to consistent deliverables, faster turnaround and less stress.

When you’re no longer winging it, your team knows exactly how to deliver each service, every time. And standardized processes mean fewer delays and faster results for clients. Everything just works better. Efficiency lets you create a smoother, more profitable practice.

4. Predictable Revenue, Finally!

One of the biggest headaches in traditional pricing models is unpredictability. How many hours will this job take? Will the client pay on time? Is this project even profitable? Value-based and fixed pricing eliminates the guesswork. You know exactly what you’re getting paid and when.

The result? Your cash flow becomes steady and predictable. With consistent revenue, you can invest in your team, tools and growth with confidence. And billing becomes stress free as you don’t haggle over price and chase unpaid invoices.

Predictable revenue is a financial win that changes how you manage your practice.

5. Clients See You as a Partner, Not a Vendor

Hourly billing makes clients see you as a commodity. But when you shift to value-based pricing, the entire dynamic changes. Now, you’re not just a service provider — you’re a strategic partner.

You have deeper relationships with clients since they value your insights and expertise, not just the tasks you complete. That leads to deeper conversations with clients where you get to talk about results and goals, making them more likely to stick around.

When you’re a partner, not just a vendor, you create long-term relationships that are both rewarding and profitable.

6. A Culture of Innovation Takes Root

Changing your pricing is about shifting your mindset. When you focus on value, your whole team starts thinking differently. They’re not just clocking in and cranking out work. They’re finding new ways to deliver value and improve the client experience.

They feel empowered to find better solutions. With clear goals and a continuous improvement mindset, everyone’s focused on getting better every day. Your firm becomes a place where innovation thrives.

The Ripple Effect Is Real

When you change your pricing, it’s not just about making more money (though that’s a nice bonus). It’s about creating a better, more sustainable way to run your practice. You’ll:

• Attract and retain top talent because they’ll love the way you work

• Build stronger relationships with clients who see and appreciate your value

• Have the freedom to grow your business without the constant grind of hourly billing

And it all starts with one simple, radical decision to rethink how you price your services. Really, it’s a revolution in how you manage your practice. It transforms the way your team works, how you interact with clients and how you plan for the future.

So, what are you waiting for? The ripple effect of better pricing is waiting to take your firm to the next level.

For decades, accounting firms have operated with a "time and billing" mindset. You’ve probably heard it a million times: bill by the hour, track every minute and squeeze as much as you can out of your time. But here’s the problem — this model isn’t built for today’s world. In fact, it’s fundamentally broken.

How can you charge by the hour in a world where technology can do in seconds what used to take days? Automation is changing the game, and it’s creating a disconnect between what accountants deliver and what clients value. When we cling to hourly billing, we’re not just undervaluing our work; we’re also frustrating our clients, who hate unpredictable invoices and surprise charges.

Why Pricing Holds Firms Back

Pricing isn’t just a number you slap on at the end of a job. It’s the foundation of your entire business model. Pricing affects everything: how your clients interact with you, how your employees deliver services, how you build capacity, and ultimately, how your firm grows.

The reason many firms struggle with pricing is because they treat it as an isolated task. They think of it as something marketing does or something that’s decided on the fly. But pricing is holistic. It’s woven into every aspect of your firm, and if you’re not being intentional about it, you’re missing out on major opportunities.

The Perfect Storm for Change

So why change now? Because the stars are aligning for a pricing revolution. Automation is eliminating repetitive tasks, which means we can’t justify billing by the hour anymore. And let’s be honest: your clients are already used to subscription models. From Netflix to their dog’s vet, they expect predictable, upfront pricing. Why should accounting be any different?

Clients crave certainty. They want to know exactly what they’re paying and what they’re getting in return. When you embrace fixed pricing, subscription models or value pricing, you’re not just meeting those expectations — you’re exceeding them.

Six Steps to Radical Pricing

If you’re ready to leave the old ways behind, here’s how you can get started:

Read more

I personally didn’t get a lot of pushback from my clients. I sweated this way more than they cared. But I know that may not be the case for everyone. Some of you may feel like transitioning clients to a new value-based pricing model is comparable to dragging a boulder uphill. Afterall, you are asking them to change something they are accustomed to and move to something unfamiliar. That can be tough for a lot of people. But this doesn’t have to be painful. If you approach it right, you’ll not only get them on board, but they’ll actually thank you for it (yes, really).

Here’s how to make the shift and keep your clients, and your sanity, intact.

Read more

Check out the full podcast here!

Yet so many firms skip this step — or rush through it — and then wonder why their team is scrambling, clients are confused and profitability tanks. The culprit is almost always unclear or non-existent scoping.

Scoping is about laying it all out. It’s your roadmap to success, with crystal-clear boundaries that ensure everyone, including the team and the client, is in sync. Scoping should answer the big questions:

• Deliverables. What’s the client actually getting? A tax return? A financial plan? A dashboard?

• Processes. How are you delivering those deliverables?

• Exclusions. What’s not included? (Yes, this is just as important as what is.)

• Timelines. When’s it due? And what happens if it’s late?

• Pricing. What’s this all going to cost?

If you get this nailed down upfront, you’ll sidestep 90% of the chaos that derails poorly scoped jobs.

Why Scoping is Essential

Scope creep is the silent killer of profitability and team morale. It’s when clients keep piling on “just one more thing” until your team is stuck in a never-ending loop of extra work. With clear scoping, you’ve got boundaries in place, so you can confidently say, “That’s outside the scope. Let’s talk about adding it.”

Read more

Service packaging is all about clearly defining what you offer, how you deliver it and why it’s the best option for your target clients. And a well-packaged service offering doesn’t just help your clients — it makes your entire firm run smoother. From keeping your team on track to boosting client satisfaction and profitability, packaging your services is the hidden gem that can take your firm to the next level. Ready to dive in? Let’s go!

Why You Need to Package Your Services

Before we get into the how, let’s talk about the why. Why should you care about packaging your services? Isn’t it enough to just offer great service and call it a day? Not anymore!

In today’s world, clients expect clarity, efficiency and transparency. If they don’t know exactly what they’re getting from you — and what’s in it for them — they’re more likely to move on to the next option. A clear service package not only tells them what they’re getting but reassures them that you’ve got a process in place to deliver.

And guess what? It’s not just for the clients. Your team needs service packages too. When your offerings are packaged neatly, your team knows exactly what they’re delivering, what’s included and how to execute it. No more guessing, no more scope creep, no more stressful fire drills. Just smooth sailing.

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The bottom line is that the time has come for firm partners and stakeholders to admit defeat when it comes to timesheets. It’s time to move to a newer, better business model. Because, as the great Maya Angelou said: “When you know better, you do better.”

Hear me out…

Firms have allegedly evolved to say employees are measured on “other things” besides time. But we know that’s not really the case. Michael Maksymiw, CPA CGMA MSA makes this point pretty clearly. Click here to check out his story.

And then there’s a work conversation that sticks with me. I’ll never forget getting in ‘trouble” over my timesheet and the hours I spent on one particular job. I used to sit outside a managing partner’s door where he could hear me on the phone with clients. As I was leaving that day, I made a negative comment about myself and the partner said to me:

“Jody, it’s not the end of the world. I can teach you to be more efficient, but you have something that I wish I could teach the rest of this firm. You have a special rapport and understanding in the way you handle clients that I can’t replicate.”

And yet, I was still judged against everyone else on timesheet data. Ree-dic!

As Ron Baker says, “Timesheets are the cancer” in a firm.

I don’t believe that most partners want to be toxic. It’s the business model that’s significantly broken.

But what if timesheets were accurate? Does that mean using data pulled directly from keystrokes? Creepy, yes. But having accurate data for your pricing floor would be so valuable because you’re going to have to change the way you price. I guarantee it. There’s no way to bill a nanosecond when AI is going to do a third of your work.

Kicking timesheets to the curb is the right thing to do. But do you know what the hardest part of this change is going to be?

Answer: Partners admitting that they’ve been doing it wrong for decades.

So the big question is: Do firm leaders have the humility to admit they’ve been wrong and transition to new a business model?

I highly recommend biting that bullet and following the words of Maya Angelou. You remember, right?

“When you know better, you do better.”

What do you think? Tell us in the comments!

#accountingandaccountants #CPA #CPAfirm #timesheets #valueprice #RadicalPricing #radicalcpa

By the way…

Are you going to #IntuitConnect? I'm hosting a lunch with my Accounting for Innovation podcast co-host Matt Tait, and I'd love to have you there. It's Tuesday at noon at Javier's right in the Aria.

We're having good food and great conversation. There's no formal agenda so come with your questions to ask a really smart group of your peers. It's bound to be great networking and learning.

Seats for practitioners are very limited, so you have to register to attend: https://bit.ly/3YvSjq0.

A big thanks to SysCloud for sponsoring this event and supporting innovation in accounting!

So, what’s the big deal with value pricing? Let’s break it down.

1. Clients will love you for It

When your clients get an invoice based on hours, it usually comes with some stress. “Why did this take so long?” they wonder. It makes every email or phone call feel like a ticking meter. But with value pricing, you’re giving them something different—you’re charging for results, not time. Suddenly, they feel like they’re getting what they’re paying for. No more mystery, just clear value.

2. Your team will thank you

Imagine a work environment where your team isn’t glued to the clock, tracking every minute of their day. Instead, they’re focused on delivering great results. Value pricing shifts the focus from counting hours to achieving goals. This kind of environment fosters creativity and problem-solving, which keeps employees happy and motivated. And let’s be honest, a happy team means better work.

3. Your profits will go up

The traditional billable hour ties your earnings to the number of hours your team can log. But let’s be real, that’s a cap on your potential. Time is limited, but the value you deliver? That has no limits. When you price based on the value you provide, you’re no longer stuck trading hours for dollars. Instead, you can grow your profits by offering premium services that clients are willing to pay for.

4. Efficiency will skyrocket

Think about this: When you’re being paid by the hour, where’s the incentive to work faster? The longer a job takes, the more you make, right? But value pricing flips that script. Now, you’re rewarded for being efficient, for getting things done well and quickly. This pushes your firm to streamline operations, leverage technology, and work smarter—not harder.

5. You’ll attract the best talent

No one wants to join a firm where success is measured by how many hours you can log. Top talent wants to be valued for their skills and expertise, not their time sheets. With value pricing, you create a progressive, innovative firm that attracts people who want to solve problems and deliver real value. Plus, you’ll keep your best people longer because they’ll find more satisfaction in their work.

6. Clear Boundaries, Fewer Headaches

Ever had a client ask for “just one more thing” that wasn’t included in the original agreement? Under the hourly billing model, this is a nightmare, with blurry boundaries and awkward conversations. But with value pricing, the scope of work is clearly defined from the start. Everyone knows what’s included and what’s not, leading to fewer misunderstandings and stronger client relationships.

7. Experience growth without limits

If you stick with the billable hour, the only way to grow is to keep hiring more people to bill more hours. That’s not exactly scalable. But with value pricing, you can increase revenue by offering high-value services, even with the same number of employees. Growth becomes scalable and sustainable. You’re no longer tied to adding headcount to boost profits.

What do you have to do to reap these benefits?

It’s time to break up with the billable hour. As automation takes over many of the tasks that used to define accounting, you have the chance to focus on delivering real value. By moving to value pricing, you’ll open the door to higher profits, happier clients and a more engaged, fulfilled team.

Isn’t it time you started that conversation about pricing in your firm?

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A Radical New Vision

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Radical New Vision

Creating a radical new vision for accounting firms.

By Jody Padar, The Radical CPA

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I’m able to bring this to you thanks to AD

Listen now on LumiQ!
https://lnkd.in/gEptYa5C

Listen in with Jody Padar and Dr. Kristy Short on Rightworks’ latest episode of The Modern Firm Podcast. In this episode, Jody digs into value pricing, people, process, and the future of the accounting profession. Jody also shares her expert insights on the transformative impact of technology and AI on accounting firms and advocates for adopting value pricing to enhance client and staff experiences and broad firm operations.

Tune in and turn it up!

#TheModernFirmPodcast
#TheRadicalCPA
#ValuePricing

Embracing client-centric models and recognizing the true value of your services gives you a brighter future. More than that, it translates into more satisfied clients and empowered teams – both of which are imperative in today’s competitive market.

It's time for accountants to embark on a transformative journey and redefine their approach to pricing. As you do, here are highlights from a complete season of my Radical Ideas show, Transforming Pricing, to help you see why you need to charge for the value provided and not hours worked. 

Why you need to pay attention to price

As the profession shifts to providing more advisory services, using technology to help do the grunt work, how do you price for these services? It comes down to the value you provide.

Automation is not taking jobs away. It’s opening new doors for accountants. It’s giving you the capacity to focus on analytics and help clients make informed business decisions, and we’ve learned through the pandemic how valuable this is to clients.

 “Automation in the accounting profession will only accelerate the opportunity and the avenues to do more. You have the data and the analytics to help clients make really good business sense of where they need to go next.” - Heather Sperduto of ADP

As an accountant, you provide intimate insights into businesses – clients welcome you into their financial underwear drawer. This is the work you enjoy and your clients value. It’s what lets you go deeper into those relationships, and it’s worth more to you and them.

It’s what is driving the shift toward ongoing revenue streams and client-centric pricing, setting the stage for a more advisory-focused and value-driven future.

Expressing your value

Billing and pricing are not the same. You bill after the work is done and price up-front. It’s hard to sell the value you provide through a bill based on hours after the fact! Being able to have conversations with clients about value is critical.

Whatever technology you are using is part of your costs of delivering that service and it has to be included in your price. It also has to be used consistently. When clients look at your packaging, and you let them pick apart what they want and the technology they’ll use, the value weakens.

“Where we're seeing the most successful firms thriving is when they're looking at the standardization and the process, where they're selecting the tech stack for their firm [and not letting the client dictate it].” - Heather Sperduto

When it comes to pricing, you have to understand what you are selling and how you are selling it to be able to communicate the value. Business owners love this and they value having an advisor who is engaged in their business life today.

Pricing fundamentals

You have to think about what you are doing before starting the work to price effectively. This is how you can assign a value to the service upfront. And don’t mistake value pricing for value billing – with pricing, the client sets the value and in billing, you do.

Clients have different perceptions of value, too. That’s why you have to price the client and not just the service. For example, how much would you pay for a bottle of water at a convenience store? When it’s 2 a.m. and you’re in a hotel and need water, how much would you pay for a bottle right there in your room? It’s likely worth a lot more to you now. 

Value is subjective, and it's the perceived value that your customer is willing to pay for. So just because something is easy for you, doesn't mean it is for the person who hired you.

Your knowledge and experience increase when it comes to advisory. Your years of training, experience, and industry insights are incredibly valuable to a client looking for insights to help them run their business. You need to change your thoughts about pricing, break up with the billable hours, and really see your value from the eyes of our customers. 

How pricing changes improve profitability

Many firms today still have a high-volume, low-cost model – a model in need of a drastic shift! Today, progressive firms are pricing on the complexity of a client and how that client sees the value of the service provided. Firms that have made this switch, like Boscia & Boscia PC, have seen substantial changes in growth and profitability.

Accountants fear that a change of this magnitude will result in a total loss of all their clients. But that’s not the case. Clients who value you will be okay with this; some may even recognize you’ve been undercharging in the past.

“This past year was the first year we really made a significant push to value price clients. Some who had been undercharged for years are finally paying what they should be paying, and I would say 90% of them were completely okay with it.” - Nick Boscia, CPA, EA of Boscia & Boscia

It may seem counterintuitive that fewer clients equal more profit, but the reality is that you now have time to do more for those clients who want it. And they don’t push back on the price. Not only do you have happier clients, but you also have happier staff doing work for people they like.

Transformative pricing in firms today

Everyone seems to be talking about advisory, but not everyone is providing it. Clients shared in an ADP survey that they believe their accountant can do more for them. Are you? When it’s included in the services you provide at a set price, clients call you proactively, letting you help in new ways. You know their problems and become that trusted advisor they need and that you want to be.

Value pricing is also transforming teams. It lets you hire more people, work fewer hours, have a happier team and maybe even take that PTO you deserve. That’s the kind of culture where people want to work; a value-add to current staff and potential hires. It’s also the culture that will give you the growth you want.

“This past year we had significant growth. Our gross revenue was up 43% over the prior year even though our client base went down from 1800 to 1500. We were able to give more services to a core group of clients.” Nick Boscia 

In addition to value pricing, firms are tailoring service packages and even charging upfront for those services. When clients are at the core of what you do, and you transform your pricing model, your firm will reap the rewards.

Now, go find an alternative to the billable hour

The billable hour and timesheets are outdated. Value pricing, subscription pricing, packaging and bundling are the new trends. These models allow you to offer ongoing advisory services, fostering a more collaborative and proactive relationship.

There is a lot to learn from the five episodes that make up season 2 of Radical Ideas, sponsored by ADP. After watching, I hope you see the need to transform your pricing and get paid for the value you provide. And realize that it’s not as hard as you might have thought.

The accounting landscape will continue to change. Technology will become more prevalent. Finding people will remain hard. Clients will want and need more from you. Embrace a value-based pricing model so you can continue to thrive.

Listen to Jody detail the importance of operational alignment to ensure successful value pricing on a recent episode of AFO Wealth Management Forward with Rory Henry.

Pulling from her book, Radical Pricing, Jody emphasizes that many firms struggle with value pricing because their back-end operations aren't aligned. She offers a unique perspective on the importance of “clean” back-end processes to elevate service value.

The increased use of technology, new outside investors and changes in buyer demands are shaking up the accounting industry — rewriting the rules for a profitable practice at every turn. The time has come for accountants to value their worth, move to value pricing and remove their current pricing ceilings.

In my most recent book, Radical Pricing: How To Optimize Profits, Delight Customers and Build A Top Value Firm, I guide accounting professionals through the evaluation of their current pricing as they restructure it to be more value based. It’s time for accountants to lead next-generation firms and moving from a ticking clock will help retain talent, increase efficiency and create more loyal customers. That’s a win-win-win!

“This book is about so much more than pricing. With questions throughout that get readers thinking about and detailing how they would implement the ideas contained within, this is truly a workbook for a more client-centric firm. How you price and package then becomes your key differentiator.” ~ Joseph P. Manzelli, Jr., Manzelli Consulting Inc.

The speed of change is faster than ever. How are you going to react to it? That's what this book is really preparing you for — redesigning your entire business model to become a more customer-centric advisor.

Pricing changes are imperative

Today’s automation, new competitors, staffing challenges and new technologies are conspiring to bring more value to customers than they ever could have enjoyed before. All of it is shifting the way you need to think about your services, what customers value and how you get paid fairly for the expertise you bring to the table. 

You possess something more valuable than time. You have knowledge. You have been trained to know things other business people don’t know. You have experience doing things of critical value to any business, and customers value your advice because they don’t know the things you know.

It’s how all these forces come together that will impact your business model. That’s why you need to rethink pricing — it affects every aspect of your firm. Profitability, operations, capacity management, customer experience, culture, recruiting and retention, and even your happiness can be improved with proper pricing. It’s truly a holistic approach to practice management.

“Padar unveils the strategies that pave the way for a profound metamorphosis — from the antiquated ‘We sell time’ ethos to the dynamic realm of a ‘We sell outcomes’ business model. It will propel your firm into a paradigm where pricing is anchored in the value generated.” ~ Ronald J. Baker, founder, VeraSage Institute

New pricing is possible

Breaking with tradition can be hard, but if handled properly, it can lead to a more profitable future. Value pricing is a learned behavior and takes getting used to. You can take things one step at a time and adjust as you progress along the learning curve. For example, you may find yourself setting prices that customers quickly agree to pay. That’s a clear sign that the price is below what they think the service is actually worth. It sometimes takes time to align price and value.

Start small by changing your pricing structure on one service. Then take another and another until your total revenue is equal to the value the customer places on the services you offer. It’s one small step for your firm, one giant leap for your profitability.

Everything in this book is about unlocking your true value. But never forget tat value is in the eye of the beholder. Customers value your services because you offer them something important to the success of their business. 

“Jody takes 21st-century high-value service offerings and the tech required to support them to tackle the next logical step — what is the value and how do the offerings get priced? Any accountant who is the least bit entrepreneurial should read the step-by-step lessons given here to increase the pricing and value of their service offerings. And, thereby, greatly increase the value of their accounting firm!” ~ Martin D. Eisenstein, CPA and attorney at law

Despite the long reign of the ticking time clock, CPAs and accountants have always provided value. Technology and automation have simply paved the way for accounting firms to explore value-based pricing for value-based services.