How to Price Your Cash Flow Service
Deciding how to build app advisory into your services can be a real struggle. Finding a price point and format that works for both you and your clients involves striking a delicate balance.
We’ve spoken with our partner accounting and bookkeeping firms, and these are ways our current partners are charging for Float:
1. Include it as part of a higher tier of services
Many of our most successful partners have chosen to pay the discounted cost of Float themselves, and use Float to attract clients to a higher tier of accounting services, perhaps bundled with other key apps. Our partners frequently bundle Float with automated data entry software like Receipt Bank or Autoentry, and debtor management software such as Chaser.
This option will help increase conversion to a higher paid plan, and help increase the retention of those clients.
“Float has helped create a more attractive Virtual FD plan, meaning we can now truly outsource the whole finance department.” – Simon Kallu, GrowFactor
2. Create a new cash flow service
Another option is to create bolt-on cash flow forecasting service. In this case, you could bill for the cost of Float, plus training clients, and ongoing support for managing their forecast. Here, we’d recommend regular reviews of Float to be a key part of your interactions with clients.
For instance, if you charge for two hours for full set-up at £100/hr, and then one hourly check-in per month, you could make £1400 per client per year. If you’re more involved, then this could be much higher.
3. Make an existing cash flow service more efficient
If you’re currently offering a spreadsheet-based cash flow service, then introducing Float can bring massive time savings. You’d be able to either continue offering the service at the same price and free up more time, or you could reduce the price and offer the service to more clients, making more overall.
4. Make a margin
The cost of Float for your clients is significantly lower than what they would pay if they did not go through you. This means that you could make a margin while still allowing clients to pay less than full price, but greater than the exact cost that Float charges you. This gives you the capacity to train your clients on the software and potentially help with ad hoc questions further down the line.
5. Pass on the exact cost
If you don’t have the capacity to continue to support clients with questions about their forecast and use Float as one of the focal points of your meetings, you could pass on the exact cost of the software. This is beneficial for your clients as they would get a greatly discounted rate than what they’d pay for Float without you as the intermediary.
There are many ways to build accounting apps into your services. In fact, this is something that can help prepare your firm to build upon your business advisory services, and weather the future of accounting.
Check out our top ten list of the best Xero Add Ons for businesses for more inspiration!