Undercharging is incredibly common among accountants.

When you really want to hook a client, it’s always a temptation to set a low fee. And if a prospect says, ‘I just want to know how much it costs,’ it can be hard not to give them a figure, even if you just pluck it from the air.

The consequences can be very long lasting though.

Overworking because you just need to get the cash in. Accepting low quality clients because, again, you need the cash. No time to focus on higher value clients because you don’t have the time.

And when you do eventually have to raise your fees, it strikes horror into your heart! I often talk to accountants who would rather stick with an unprofitable client than raise their fee and risk losing them. I know of one who, until recently, hadn’t increased prices for some clients since 2013!

To avoid this kind of situation, you have to start off with your prospect in the right way. Here are three practical ways to make sure your fees reflect the real value you deliver.

Have a proper discussion

It’s tempting to rush through that first conversation with a potential client, especially if they’re eager to ‘just get a price’. But if you want to charge what you’re worth, your first meeting shouldn’t be about price. It should be about understanding them and their business.

So start with a genuine, open discussion. Ask questions about their business model, goals, and challenges. For example:

• How are you structured – sole trader, partnership, limited company?
• What are your growth plans or pain points?
• Do you have any related companies or ventures?
• Aare there any significant changes coming up (expansion, downsizing, sale, succession)?
• Ddo you own any business or personal property?
• Have you sold or plan to sell any assets soon (potential CGT exposure)?
• Do you have a team, subcontractors or directors?
• Are you VAT-registered or should you be?
• What are your short- and long-term goals for the business?
• What would success look like to you in the next one to three years?
• What are the biggest challenges you face in getting there?

Many business owners don’t actually know what they need. They might come to you thinking all they require is a tax return. But by asking these kinds of questions, you’ll uncover needs they didn’t realise they had and spot opportunities to add real value.

When clients feel understood, they’re more willing to invest in your expertise rather than see you as just another number-cruncher.

Don’t give a price in the first meeting

When a prospect asks, ‘So how much will it cost?’, resist the pressure to answer on the spot. Giving a price too early is one of the biggest reasons accountants undercharge.

There’s nothing wrong with saying ‘I’d like to go away, look at all the options properly and come back to you with a fair, accurate price based on what you actually need’.

This does two things. It shows professionalism, and it gives you time to make a considered proposal that reflects the value you’ll bring, not just the hours you’ll spend.

Then, arrange a follow-up pricing meeting for when you’ve had time to analyse their situation. If possible, request access to their books beforehand. Tools like Xenon Connect can help you check data quality, highlight risks and spot opportunities.

This simple step can save you from dramatically underpricing your work. It also positions you as a trusted adviser who takes the time to do things properly.

Give value, not just numbers

Put simply, clients pay more when they understand the value they’re getting. Numbers alone don’t excite most business owners, but context does.

When you deliver reports or financial data, take the time to explain what the numbers actually mean for their business. Show them how improved margins, reduced tax or better cash flow directly affect their ability to grow, add to their team or invest.

Help them see the possibilities. For example:

• ‘If we adjust your pricing by 10%, you’ll increase profit by £X.’
• ‘Your debtors’ days are costing you £Y. Let’s look at tightening credit control.’

This transforms your role from ‘just an accountant’ to strategic partner and that’s where true value lies. When clients see that you’re helping them achieve their goals, not just meet compliance deadlines, they’ll happily pay more for your expertise.

The accountants who thrive aren’t the ones who do the cheapest work, they’re the ones who deliver clarity, insight and real business improvement. That’s what clients will always pay for.

Shane Lukas – AVN Accountants

I’m running some training on how to have the kind of conversations that lead to profitable, meaningful work for you – and make a positive difference to your clients’ business.