Does Undervaluing Yourself Affect Your Profits , How?

Does Undervaluing Yourself Affect Your Profits , How?

• Managment
• August 17, 2021

Does Undervaluing Yourself Affects Your Profits  , How?

Do you undervalue yourself during tax season or in your day to day business? Do you realize how this may affect your profits?

Financial professionals, often undercharge clients. The question is why?  Often it is because of competition and there too many accountants charging for services at minimal cost in order to compete or make themselves known in the marketplace.

No matter what the question is, is this a good strategic plan?

Consensus is accountants, CPA's, new accounting graduates and people running small businesses, such as filing taxes/bookkeeping, undercharge clients for services as part of their business growing strategy. It makes you wonder, as their business grows and as the number of hours spent completing services for clients increases, are they still charging a percentage of what they deserve? At what point do they begin charging what they are worth without risk of losing the clients they spent so many years cultivating. Ultimately, the question to ask is, does this strategy really work long term?

Sometimes it is acceptable to undercharge for the services. Undercharging for some services and properly charging for other services as part of your strategic business plan can actually help you grow your accounting/bookkeeping business. The problem is, it’s easy to fool yourself into thinking you are making  the best strategic decision to undercharge, when something else could really be the cause.

Often, the main reason accountants and bookkeepers are undercharged, could simply be because they devalue their own knowledge and capabilities. You have to remember clients will shop around, looking for the lowest cost possible. Many accountants and bookkeepers that are just starting to build their business fall prey to this type of client, it is often difficult to turn potential business away. 

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