Raising fees is easier when the message is clear, specific and tied to the continued delivery of reliable service. Avoid apologizing for the increase or writing a long defense. Give the new fee, the effective date, any scope changes, and a straightforward path for questions.
Template 1: straightforward professional notice
Subject: Update to your service fee
Hi [Client Name],
Thank you for the opportunity to continue supporting [Company]. Effective [date], your fee for [service] will change from [current fee] to [new fee] per [month/quarter/year].
This update reflects the scope and resources required to continue delivering your service reliably, including [brief relevant reason: increased transaction volume, expanded reporting, additional entities, service enhancements, etc.].
Your current scope will remain [unchanged / updated as follows: …]. The new fee will appear on invoices beginning [date].
If you would like to review the scope or discuss the change, please contact [name].
Thank you,
[Firm]
Template 2: scope-driven increase
Hi [Client Name],
Over the past [period], the work required for your account has expanded from the original scope, including [examples]. To keep the engagement aligned with the level of service being delivered, we are updating the monthly fee to [new fee] effective [date].
We have attached/outlined the updated scope so expectations remain clear. If you prefer, we can also discuss an alternative service package that changes the scope rather than the fee.
We appreciate the relationship and look forward to continuing to support your team.
Best,
[Firm]
When should an accounting firm raise fees?
- Realization or margin has fallen below the firm’s threshold
- Recurring scope is materially larger than the signed engagement
- The client requires disproportionate rush work or partner attention
- Service levels or deliverables have expanded
- The firm has not updated fees despite meaningful cost and market changes
Before sending a letter, quantify the reason. The Accounting Services Pricing Guide explains pricing floors and scope triggers. PracticeERP’s profitability intelligence can help identify clients and projects where realization, WIP or budget performance supports a pricing review.
After a fee change is accepted, update the engagement terms and the Accounting Engagement Letter or amendment so the operational system reflects the new scope and billing rules.
Ready to take the next step? Make fee reviews data-driven instead of reactive. PracticeERP helps partners see where scope, budget and profitability are slipping before the annual pricing conversation.
