Are You Charging Enough? A Simple Way to Check Your Pricing

Simon Zryd
Apr 18
3 min read

Let’s be honest—pricing your services as a small business owner can feel like throwing darts in the dark. Too high, and you scare people off. Too low, and… well, you’re basically paying them to work. Not ideal.

If you’ve ever wondered whether your pricing actually makes sense (or if you just picked a number that “felt right”), you’re not alone. The good news? There’s a simple, no-nonsense way to check if you’re charging enough—and it starts with your numbers.

Why Most Small Businesses Undercharge

Here’s the pattern we see all the time in Denver bookkeeping clients:

Pricing based on competitors (who may also be undercharging 🙃)
Ignoring overhead costs
Forgetting about taxes (a classic)
Not paying themselves a real salary

The result? Revenue looks fine on paper, but profit is… suspiciously missing.

The Simple Pricing Check (No MBA Required)

If you want a quick gut-check on your pricing, use this formula:

Revenue – Expenses = Profit

Groundbreaking, right? But here’s the twist—most business owners don’t actually track this consistently or accurately.

Instead, break it down like this:

1. Calculate Your Monthly Expenses

Include everything:

Software subscriptions
Rent or home office costs
Payroll (including yourself!)
Taxes
Marketing
That random $39 tool you forgot to cancel

This is where having a bookkeeping service in Denver becomes your best friend—because guessing doesn’t count.

2. Set Your Target Profit

What do you actually want to take home?

Not “whatever’s left.” A real number.

For example:

You want $6,000/month in personal income
Add savings, reinvestment, and taxes

Now you have a clear profit target instead of wishful thinking.

3. Reverse Engineer Your Pricing

Once you know your expenses and profit goal, work backward:

Total needed = Expenses + Desired Profit
Divide that by the number of clients or billable hours

That’s your minimum pricing baseline.

If your current rates fall below that? We’ve found the problem.

A Quick Reality Check

Let’s say:

Monthly expenses = $4,000
Desired profit = $6,000
Total needed = $10,000

If you have 20 clients, you need to average $500 per client per month.

Charging $300? You’re leaving $4,000 on the table every month. Ouch.

The Hidden Pricing Killers

Even if your math checks out, watch for these silent profit killers:

Scope creep – Doing “just one more thing” for free
Underestimating time – Projects always take longer
Inconsistent invoicing – Late billing = delayed cash flow
Messy books – If your numbers aren’t accurate, your pricing won’t be either

This is exactly why working with an affordable bookkeeper in Denver isn’t just about compliance—it’s about clarity.

How a Denver Bookkeeper Helps You Charge Confidently

A solid Denver bookkeeper doesn’t just track transactions—they help you:

Understand your true costs
Identify profitable vs. unprofitable clients
Set pricing that actually supports your goals
Keep your financials clean and decision-ready

Because pricing without data is just guessing in a nicer outfit.

Final Thoughts: Stop Guessing, Start Pricing Like a Business Owner

If your pricing strategy is based on vibes, it’s time for an upgrade.

You don’t need complicated spreadsheets or a finance degree—you just need accurate numbers and a clear target.

And if your books currently look like a “figure it out later” situation, that’s your sign to bring in a bookkeeping service Colorado business owners trust.