For years, our tax advisory firm followed the traditional hourly billing model. It was how things had always been done, and we never really questioned it—until we started noticing the cracks. Clients were frustrated by unpredictable invoices, our revenue was tied to the number of hours we worked, and, most importantly, our pricing didn’t reflect the real value we provided. We knew there had to be a better way, so we decided to transition to value-based pricing. It wasn’t a simple shift, but with careful planning and the right pricing software for tax advisers, we made it work.
One of the biggest problems with hourly billing was the uncertainty it created for clients. No one likes receiving an invoice that’s higher than expected, and we found ourselves constantly explaining time logs and justifying fees. Some clients even hesitated to ask for advice because they worried about additional costs. On our side, we were limited by the number of hours in a day. No matter how efficient we became, there was a ceiling on our earnings. Worse still, the model didn’t align with what we were actually selling. Clients weren’t paying for our time; they were paying for our expertise and the results we delivered.
The first step in our transition was redefining our services. Instead of thinking in terms of hours worked, we focused on the outcomes we provided. Tax compliance, tax planning, and structuring advice all carried different levels of complexity and value. By grouping our services into clear, structured offerings, we were able to create fixed-fee packages that made sense for both us and our clients. These packages provided transparency, allowing clients to choose a service level that met their needs without worrying about fluctuating costs.
To ensure consistency in pricing, we turned to Figsflow’s pricing software for tax advisers. This allowed us to standardise our fees based on real industry benchmarks, making sure that every quote we provided was fair, competitive, and aligned with the value delivered. The software also made it easy to generate professional proposals, giving clients clarity on exactly what was included in their chosen package. This eliminated guesswork and made conversations about pricing much smoother.
Of course, transitioning to a new pricing model required careful communication with our clients. We were upfront about the change, explaining that fixed fees would provide greater cost certainty and a fairer pricing structure. Some clients were initially hesitant, but once they saw that they were paying for results rather than time, they embraced the new approach. In fact, many appreciated the clarity it provided, knowing that they could reach out for advice without worrying about unpredictable invoices.
Since making the switch, we’ve seen significant improvements. Our clients are happier, our revenue has increased, and our processes have become more efficient. No longer bogged down by time tracking, we can focus on what truly matters—helping our clients navigate complex tax matters. The transition wasn’t without its challenges, but with the right strategy and pricing software for tax professionals, we made it work. Looking back, we only wish we had done it sooner.
