Can Accountants Help with Pricing My Services?
Setting the right price for your products or services is one of the most important decisions in running a business. Price too low, and you risk undercutting your own profitability. Price too high, and you might lose customers. While many people think of accountants as handling taxes and compliance, they also play a valuable role in helping businesses figure out their pricing.
So, can an accountant help with pricing your services? The simple answer is yes — and often in ways you might not expect.
Why Pricing Matters So Much
Pricing isn't just about covering your costs. It impacts:
Profit margins
Cash flow
Competitiveness
Customer perception
Long-term sustainability
It’s not unusual for businesses to base pricing on gut feel, competitor rates, or what they think clients will accept. But without understanding the numbers behind the business, it’s easy to end up charging rates that don’t actually cover your overheads — let alone generate a healthy profit.
How Accountants Help with Pricing
Understanding Your Costs
The first step in pricing is knowing what it actually costs to deliver your service. Accountants help break down:
Direct costs (materials, labour)
Indirect costs (rent, software, utilities)
Overheads (admin, marketing, insurance)
This ensures you aren’t overlooking hidden costs when setting prices.
Calculating Break-Even
An accountant can calculate your break-even point — the minimum revenue needed to cover all costs. This helps answer questions like:
What do I need to charge per project or per hour?
How many customers do I need each month?
What happens if costs increase?
Profit Margin Analysis
Accountants help set target profit margins. Whether that’s 10%, 30%, or more depends on your industry, risk levels, and goals. They work out how much markup you need over your costs to achieve those margins.
Pricing Models
There are different ways to price:
Hourly or day rates
Fixed fees per project
Retainers or ongoing packages
Value-based pricing (pricing based on the perceived value to the client rather than your time)
An accountant can help model different pricing scenarios and understand which approach makes sense financially.
Competitor and Market Analysis
While accountants aren’t market researchers in the traditional sense, they can help you benchmark your pricing by:
Looking at industry averages
Comparing profitability models with similar businesses
Stress-testing your prices against different scenarios (e.g., losing a client, increasing staff)
Tax and VAT Considerations
Pricing needs to factor in taxes. For example:
If you're VAT-registered, is your price VAT-inclusive or exclusive?
Are there services taxed differently?
How does tax affect your profit margin?
An accountant ensures you price in a way that covers not just your operating costs but also your tax liabilities.
Scenario Planning
What happens if:
A key client leaves?
Costs of supplies go up?
You want to hire staff?
Accountants help run “what if” scenarios to check whether your pricing remains sustainable under different conditions.
Common Pricing Mistakes Accountants Help Avoid
Forgetting to factor in overheads.
Underestimating how much non-billable time exists (admin, marketing, travel).
Failing to account for tax in the pricing structure.
Setting prices based on what competitors charge without knowing if those competitors are even profitable.
Not adjusting pricing when costs increase.
Real-World Example
A freelance designer charges £200 per day based on competitor rates. Their accountant reviews the numbers and finds:
Their real costs (software, subscriptions, rent, equipment, taxes) mean they need to bring in £3,500 a month just to break even.
Charging £200/day only works if they have 18 billable days each month — unlikely after factoring in admin, marketing, holidays, and sickness.
With this insight, the accountant helps the designer adjust rates to £275/day or switch to fixed-fee packages, improving financial stability.
Beyond the Numbers
Accountants don’t just focus on costs; they also encourage business owners to think about value. While the math ensures your pricing is sustainable, accountants can also support conversations around:
Positioning in the market
Moving from hourly rates to packages
Adjusting prices to reflect experience, demand, or value delivered
Should You Raise Prices?
Many accountants are often the first to spot when a client’s prices haven’t kept up with rising costs. They can help calculate:
How much of a price increase is needed to maintain margins.
Whether clients are still profitable after factoring in inflation and overheads.
The impact of raising prices versus maintaining current rates.
Summary
In short, yes — accountants absolutely help with pricing services. They bring clarity to the financial side of pricing, ensuring it covers costs, achieves profit targets, and sustains the business long-term. While they don’t decide what you should charge, they give you the numbers and insights needed to make informed, confident decisions.
