Pricing remains one of the most persistent challenges for accounting and bookkeeping firms. Many firm owners work long hours, deliver essential services, and still feel underpaid, uncertain, or uncomfortable when discussing fees with clients. According to Laura Shepherd, founder of Momentum BK, the issue is not a lack of effort or expertise—it is how pricing decisions are made.
In this episode of Building the Premier Accounting Firm, host Roger Knecht sits down with Laura Shepherd to unpack why most accounting firms price their services wrong and how a more intentional, structured approach can transform profitability, confidence, and client relationships.
The Pricing Problem Holding Accounting Firms Back
Too often, accounting professionals set prices based on what others in the market are charging. They ask peers what they charge, scan competitor websites, and adopt numbers that feel “safe.” But as Laura explains, this approach leaves firms unable to justify their fees or explain their value.
“Accounting people tend to be arbitrary about how they go about setting fees,” she notes. “They ask other accounting professionals what they do, and then they take that and make it their own. That’s very challenging because they don’t know how to explain to a client where that price comes from.”
When pricing lacks clarity, confidence disappears—and clients sense it immediately.
Why Pricing Is So Hard for Accountants
The struggle with pricing is deeply tied to identity and mindset. Many accountants still view themselves as task managers rather than business owners. This makes it difficult to price strategically or protect profitability.
Laura points out that accountants often fail to evaluate their own strengths, service levels, and capacity. Instead of asking what they deliver and what it costs to deliver it well, they default to imitation.
“They don’t know who they are. They don’t know what bookkeeping and accounting is really about,” she explains. “They think bookkeeping is managing tasks.”
Without that clarity, pricing conversations become uncomfortable and reactive rather than intentional.
What “Pricing With Purpose” Really Means
Laura’s solution is a philosophy she calls Pricing With Purpose. At its core, it requires accountants to start with themselves before ever discussing numbers with a client.
“Pricing with purpose starts with you,” she says. “You’re assessing what it is that you have to sell. What are you selling to your clients?”
This approach demands specificity. Instead of vague service descriptions or bundled fees, firms clearly define what they deliver, why it matters, and what clients are paying for. When pricing is grounded in purpose and process, it becomes easier to explain—and easier for clients to accept.
The Three Core Accounting Services That Should Be Priced Separately
A major theme of the episode is Laura’s breakdown of accounting services into three distinct categories, each requiring its own pricing logic.
First is data management and task-based work. This includes transaction processing and routine bookkeeping, much of which is increasingly automated. While necessary, it carries limited standalone value.
Second is monthly closing and compliance services. This includes reconciliations, reporting, and ensuring records meet regulatory and IRS requirements. This work is recurring and essential, regardless of transaction volume.
Third is advisory services, such as budgeting, forecasting, and cash flow management. These are high-value services that directly impact business decisions and outcomes.
Laura emphasizes that advisory work should never be bundled into basic monthly services. “Those high-value services are choices that a client gets to make,” she explains. “If they decide they don’t want that anymore, you’re not losing the whole relationship.”
Compliance, Risk, and the Undervalued Month-End Close
One of the most overlooked aspects of pricing is compliance. Many clients believe accounting is simply reconciling bank accounts and producing reports. Laura challenges this assumption by reframing accounting as risk management.
“When the IRS calls and there’s an audit involved, somebody’s got to answer those questions,” she says. “We’re following what the IRS requires in the event of an audit. That’s the burden of proof.”
Month-end closing is not optional or transactional—it is foundational to compliance and protection. When accountants price it correctly, clients better understand its importance and the value it provides.
How Pricing Structure Impacts Workflow and Profitability
Pricing does not exist in isolation. It directly affects workflow efficiency, staffing costs, and margins. Laura shares real-world examples of firms that transformed their businesses by restructuring how they priced services.
In one case, a firm reduced labor costs by $3,500 within two months by reorganizing workflows around clearer service definitions. At the same time, they increased a client’s monthly fee by $1,500—not arbitrarily, but based on a more accurate assessment of what the work required.
“This isn’t just raising prices,” Laura explains. “This is really evaluating what the client needs and coming to them saying, ‘Here’s what it takes.’”
The Mindset Shift: From Bookkeeper to Accounting Entrepreneur
Perhaps the most powerful takeaway from the episode is the mindset shift Laura advocates. She urges accountants to stop seeing themselves as bookkeepers and start seeing themselves as entrepreneurs.
“You’re not a bookkeeper,” she says. “You are an accounting entrepreneur who provides bookkeeping services.”
This shift changes everything—from how services are positioned to how pricing conversations unfold. When accountants recognize that they control profitability, they gain the confidence to set boundaries, explain value, and price sustainably.
Laura sums it up with a guiding principle she lives by: “If I can’t explain it, it doesn’t exist.”
Introducing the Guest: Laura Shepherd
Her work focuses on elevating standards in bookkeeping and accounting by combining education, structure, and mindset—helping firms move from chaos to clarity.
Key Takeaways for Accounting Firm Owners
This episode offers clear, actionable lessons for firm owners at any stage:
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Stop copying competitor pricing without understanding your own costs and value
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Separate data management, compliance, and advisory services
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Combine hourly, flat, and value-based pricing intentionally
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Treat compliance as risk management, not just reporting
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Build confidence through clear processes and explanations
Why You Should Listen to the Full Episode
While this article highlights the core insights, the full episode provides deeper context, real-life examples, and nuanced explanations that are best heard directly from the conversation. Laura’s practical experience and candid advice make this episode especially valuable for firm owners serious about improving pricing and profitability.
Don’t Miss the Previous Episode
To continue building your knowledge, listeners are encouraged to also check out the previous episode of Building the Premier Accounting Firm. It complements this discussion by exploring additional strategies around firm growth, mindset, and operational excellence—helping accounting professionals strengthen their businesses step by step.
Listen, Subscribe, and Keep Learning
If pricing has been a source of frustration or uncertainty in your firm, this episode offers a clear path forward. Listen to Why Most Accounting Firms Price Their Services Wrong on Building the Premier Accounting Firm, subscribe to the podcast, and explore past episodes for more insights on pricing, profitability, and building a firm you can be confident in.
Offers:
Offers: With the purchase of the Pricing with Purpose Webinar & Workbook ($49.00) https://momentumbk.com/pricing-with-purpose/
And receive the bonus tool of “Pricing with Purpose Checklist” https://drive.google.com/file/d/1BPqND-4q8cHaY1_KE_5NptxwrWY8DL6r/view
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