{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"How to Escape the Hourly Billing Trap w\/ Jonathan Stark","description":"In today\u2019s episode of Building the Premier Accounting Firm, Roger Knecht and Jonathan Stark discuss the pitfalls of hourly billing and the significant benefits of shifting to value-based pricing for accounting firms. Learn how to transform your business model, increase profitability, and build stronger client relationships by focusing on client outcomes rather than billable hours. This episode offers practical strategies for making this critical transition and leveraging your expertise effectively. In This Episode: 00:00 Introduction to the Podcast 01:21 The Problem with Hourly Billing 03:31 Discovering Value-Based Fees 06:25 Fixed vs. Value-Based Pricing 09:11 Understanding Value-Based Pricing 12:25 The \u2018Why Conversation\u2019 in Pricing 16:16 Transitioning to Value Pricing 20:54 Project-Based Value Pricing 29:19 Upfront vs. Commission-Based Pricing 37:07 Delivering Outcomes, Not Deliverables 38:49 Mindset Shift for Accounting Professionals 43:36 Transitioning to Fixed Pricing 48:31 Client\u2019s Perception of Value 53:46 Pricing Easy Work 55:19 Podcast Conclusion & Resources Key Takeaways: Identify how hourly billing negatively impacts firm profitability and motivation for efficiency. Understand the distinction between fixed pricing, deliverable-based pricing, and true value-based pricing. Implement a \u201cwhy conversation\u201d with clients to uncover the true value and urgency of their desired outcomes. Transition away from hourly billing by starting with project-based, value-priced offerings. Leverage client testimonials and past successes to inform future pricing and marketing strategies. Featured Quotes: \u201cHourly billing is causing all of these problems that we had been wrestling with.\u201d - Jonathan Stark \u201cIf you\u2019re not taking any risk, then you\u2019re not going to get any reward. You\u2019re not going to make any profits.\u201d - Jonathan Stark \u201cIf things feel hard and tedious, find the easy things that deliver a lot of value and set your prices based on the value of those things.\u201d - Roger Knecht Behind the Story: Jonathan Stark recounts his epiphany in 2005 when, as VP of a software firm, he discovered that hourly billing penalized efficiency and rewarded slowness. This realization prompted a personal quest for a better pricing model, leading him to discover value-based fees. His initial struggle to convince his boss highlighted the deeply ingrained nature of hourly billing, yet his eventual success led to doubling his income and significantly improving client relationships, experiences he now shares with other firm owners. Conclusion: Thank you for joining us for another episode of Building the Premier Accounting Firm with Roger Knecht. For more information on how you can establish your own accounting firm and take control of your time and income, call 435-344-2060 or schedule an appointment to connect with Roger\u2019s team here. Sponsors: Universal Accounting Center Helping accounting professionals confidently and competently offer quality accounting services to get paid what they are worth.   Offers:   Are you ready for a change, both personally and professionally?  Then accept and participate in the Accountrepreneurs Challenge.  This is a FREE opportunity to apply best practices and make this the best year yet in your career.   Be sure to join us for GrowCon, the LIVE event for accounting professionals to work ON their business. This conference is one you don\u2019t want to miss.   Get a FREE copy of these books all accounting professionals should use to work on their business and become profitable.  These are a must-have addition to every accountant\u2019s library to provide quality CFO & Advisory services as a Profit & Growth Expert today: \u201cRed to BLACK in 30 days \u2013 A small business accountant\u2019s guide to QUICK turnarounds\u201d \u2013 This is a how-to guide on how to turn around a struggling business into a more sustainable model. Each chapter focuses on a crucial aspect of the turnaround process - from cash flow management to strategies for improving revenue. This book will teach you everything you need to become a turnaround expert for small businesses. \u201cin the BLACK, nine principles to make your business profitable\u201d \u2013 Nine Principles to Make Your Business Profitable \u2013 Discover what you need to know to run the premier accounting firm and get paid what you are worth in this book, by the same author as Red to Black \u2013 CPA Allen B. Bostrom. Bostrom teaches the three major functions of business (marketing, production and accounting) as well as strategies for maximizing profitability for your clients by creating actionable plans to implement the nine principles. \u201cYour Strategic Accountant\u201d - Understand the 3 Core Accounting Services (CAS - Client Accounting Services) you should offer as you run your business. Help your clients understand which numbers they need to know to make more informed business decisions. \u201cYour Profit & Growth Expert\u201d - Your business is an asset. You should know its value and understand how to maximize it. Beginning with the end in mind helps you work ON your business to build a company you can leave so that it can continue to exist in your absence or build wealth as you retire and enjoy the time, freedom, and life you want and deserve. Follow the Turnkey Business plan for accounting professionals.  This is the proven process to start and build the premier accounting firm in your area.  After more than 40 years we\u2019ve identified the best practices of successful accountants and this is a presentation we are happy to share.     Also learn the best practices to automate and nurture your lead generation process allowing you to get the bookkeeping, accounting and tax clients you deserve.  GO HERE to see this presentation and learn what you can do today to identify and engage with your ideal clients.   Check it out and see what you can do to be in business for yourself but not by yourself with Universal Accounting Center.   It\u2019s here you can become a:   Professional Bookkeeper, PB Professional Tax Preparer, PTP Profit & Growth Expert, PGE   Next, join a group of like-minded professionals within the accounting community.  Register to attend GrowCon and Stay up-to-date on current topics and trends and see what you can do to also give back, participating in relevant conversations as they relate to offering quality accounting services and building your bookkeeping, accounting & tax business.   The Accounting & Bookkeeping Tips Facebook Group The Universal Accounting Fanpage Topical Newsletters: Universal Accounting Success The Universal Newsletter   Lastly, get your Business Score to see what you can do to work ON your business and have the Premier Accounting Firm. Join over 70,000 business owners and get your score on the 8 Factors That Drive Your Company\u2019s Value.   For Additional FREE Resources for accounting professionals check out this collection HERE!   Be sure to join us for GrowCon, the LIVE event for accounting professionals to work ON their business. This is a conference you don\u2019t want to miss.   Remember this, Accounting Success IS Universal. Listen to our next episode and be sure to subscribe.   Also, let us know what you think of the podcast and please share any suggestions you may have.  We look forward to your input: Podcast Feedback   For more information on how you can apply these principles to start and build your accounting, bookkeeping & tax business please visit us at www.universalaccountingschool.com or call us at 8012653777 ","author_name":"Building the Premier Accounting Firm","author_url":"http:\/\/premieraccountingfirmuac.libsyn.com\/website","html":"