Most accounting firms do not offer Bookkeeping services because they bill their labour on an hourly basis. Why do bookkeeping at $75 per hour when you can charge $165 per hour? This makes total sense in the traditional firm. In the modern firm, Accountants offer bookkeeping services but then have companies such as Tursa Group do the actual work and guarantee a 50% profit margin.
The accounting firm now has an additional profit stream and the clients are “stickier” as the Modern Accounting firm is providing a range of services to the client and there is a diminished chance of losing the client to another firm, as the client now has to replace two services instead of one.
Additionally, by using Value Pricing, the Modern Accounting firm can create better monthly cash flow for itself and decrease the amount of work done around tax time as the Bookkeeping is already up to date