Like other tax advisers, I had spent years relying on instinct and Excel with regard to pricing our services. Each tax season, we grappled with the same questions: Were we charging enough? Were we leaving money on the table? Were we pricing ourselves out of the market? And after last year’s exit of a major client over pricing discrepancies, I knew it was time to do things differently.
Enter AI pricing software for tax practices. I was very sceptical at first, but to my utter amazement, in no time, it changed how we did business. This program would take a deep dive into our historical pricing data, client demographics, complexity of services offered, and current market conditions to suggest optimal pricing paths. However, the brilliant real-time learning and adaptation were unique selling points.
With advanced analytics from Figsflow, we were able to find that there was a tendency to undercharge for complex international tax returns but overcharge basic services for small business clients. The dynamic pricing software for tax advisers allowed us to have much more interesting discussions around pricing, taking into view things like sectors, transaction volumes, and seasonal demand.
The results were impressive and immediate. Six months later, we have:
23% increase in average revenue per client
78% reduction in pricing-related client disputes
Slightly less than 15 hours saved per week previously spent on manual pricing decisions
Client retention improved from 76% to 91%
Most importantly, overlooked, was an increase in revenue of $50,000 per year through simple adjustments to our pricing framework. The software was accountable for its expenses within the first quarter.
But numbers are not everything. It gave us an AI-powered fortitude to engage clients in price talks within the constraints provided by data. By juxtaposing solid metrics against actual values of our services, we were able to clarify to clients the advantages we provided and defend ourselves concerning how we arrived at our rate. The very fact that we were being explicit about the conditions created better relationships with our clients and attracted higher-end clients that appreciated our systematic and professional approach.
For any tax practice still faced with such pricing predicaments, I strongly recommend the game-changing power of AI-powered pricing software. It’s not just about pricing—your success and profitability as a practice depend on it. Pricing is no longer a question of guessing, and a significant competitive advantage goes to those implementing this technology in a fast-changing tax advisory landscape.
In today’s data-centric world, do not consider pricing to be an arbitrary notion. Possessing the right software solution can either lead to getting by in the competitive tax advisory arena or making it.
