How to write an accounting fee increase letter (with templates and tips)

Accounting fees aren’t set in stone. From time to time, you’ll need to increase your fees in line with market conditions and your growing expertise. But informing clients about a price increase is a sensitive process. This is where a well-crafted accounting fee increase letter can be invaluable.

By communicating fee increases clearly and transparently, you can maintain client trust and reinforce the value you provide. In this guide, we’ll walk you through the process of writing an effective accounting price increase letter. And to speed the process up, we’ll provide you with some free customizable templates that you can download and use today.

When and why to increase accounting fees

Raising fees isn’t something accountants should take lightly. Careful consideration is required to understand the right time to increase service fees and by how much. If you increase your fees too often, for no apparent reason, or by too much, you risk damaging client relationships. 

So, when should you consider increasing your accounting fees? Here are some justifiable circumstances: 

• Inflation and rising operational costs. Inflation means that the cost of goods and services is constantly going up. If you don’t increase your fees in line with inflation, they are essentially getting cheaper over time. In times of high inflation, increasing your fees is essential to protect your profit margin.
• Expanding services and expertise. As your career progresses and you gain more experience, you’ll add new skills and expertise to your repertoire. Your fees should reflect this added value. In most cases, clients will be willing to pay more for services provided by someone with greater experience and expertise. 
• Market trends and competitive pricing. Your pricing should reflect changing market trends, as well as what other accountants are charging. If your competitors start charging more due to an accountant shortage, for example, you should consider increasing your rates too.
• Increased demand for specialized accounting services. Specializing in a particular accounting niche helps you differentiate yourself from competitors. If you become an expert in cryptocurrency tax or green accounting, for example, and demand for these services increases, you can raise your rates accordingly. 

How to write an accounting fee increase letter

When writing an accounting price increase letter, it’s important to get the tone right. The exact tone you should take will depend on the size of your firm, how well you know your clients, and your brand image. Generally speaking, it’s important to be clear, respectful, and reassuring when communicating price changes. 

When structuring your letter, there are some key components to include to ensure that you address the situation professionally and thoroughly. For example: 

• Salutation. Your letter should start by addressing the client appropriately.
• Expression of appreciation. Before you get into the details of your price increase, acknowledge how much you value the client relationship.
• Reasoning. Explain clearly why you’ve decided to increase your rates. This part is crucial to maintaining client trust. 
• New pricing details. Next, you should outline the details of your fee changes and new pricing structure. 
• Implementation timeline. Explain when these changes will take effect and anything the client needs to do (e.g. sign a new engagement letter) in the meantime. 
• Offer special deals. You can help soften the impact of price increases by offering loyalty discounts, payment plans, or other initiatives that add value. 
• Call to action. Wrap up your letter with a call to action (CTA) encouraging clients to take the next step — for example, “Reach out if you have any questions.”

Sample templates for accounting fee increase letters

Using a price increase letter template can help speed up the process of communicating fee changes. With this in mind, we’ve prepared some free templates you can download and use today. Because no two accounting businesses are the same, we’ve provided three different templates, each with slightly different wording and tone to suit different client types and situations.

To use these accounting fee increase letter templates, simply click on the links below, copy and paste the text into a new Google doc or Word document, and customize the details to suit your needs:

• Accounting fee increase letter template for large, corporate clients
• Accounting fee increase letter template for small businesses and long-term clients
• Simple accounting fee increase email template

Transform your workflows with free TaxDome templates

The TaxDome website is a great resource for accountants, with tons of free templates, checklists, and spreadsheets to help make your life easier. From month-end close checklists to engagement letter templates, there are resources to streamline all sorts of accounting workflows. Check out these blog posts to explore them. 

Best practices for communicating fee increases

Increasing service fees is often a necessary step for your accounting or bookkeeping business. But how you communicate these changes can be the difference between clients sticking around or jumping ship. To help you write the best possible price increase letter, here are some tips and best practices.

Give clients plenty of notice

When it comes to changing fees, your clients won’t appreciate a surprise. Instead of springing the news on them at the last minute, make sure you inform clients about changes well in advance. Ideally, you should send your fee change letter 30 to 60 days before the changes take effect. This will give your clients plenty of time to adjust their budgets. 

Be transparent and confident

Clients appreciate honesty. When informing them about an increase in fees, make sure you clearly explain the reasons why this is necessary. For example, due to rising operational costs, expanded services, or industry trends. 

Make sure you explain these reasons with empathy and confidence. If you are overly apologetic, your clients will automatically see the change as something to hold against you. 

Reinforce the value you offer to clients

In addition to explaining the factors behind your decision to raise service rates, you must highlight the value you bring to your clients. 

Clearly outline what you offer that other competitors don’t. For example, you could highlight niche expertise, an incredible client experience, or a non-nonsense approach. Whatever your unique selling points, your clients should feel like you still represent excellent value for money, even after the fee increase.

Personalize messages wherever possible

Clients always respond well to personalization. It shows them that they are valued. Where possible, add a personal touch to your fee increase letter. This could simply be using first or second names rather than “Dear client.” For long-term or high-value clients, however, it might pay to tailor the message to their particular needs, concerns, or services. For example, you could reference previous work you’ve done for them or how you’ve enjoyed helping their business grow. 

Handle client concerns or objections proactively

As we discussed earlier, your letter could include a call to action asking clients to get in touch if they have any questions or concerns. It’s always important to respond to client communications promptly, but for a particularly sensitive matter such as fee increases, you must react proactively and answer any questions they may have.

How TaxDome can transform the way you manage your practice and clients

Running a high-performing accounting, bookkeeping, or CPA firm requires the best tools. With TaxDome, you have a complete practice management platform where you can manage your team, projects, clients, documents, and workflows. With TaxDome, you can:

• Automate entire workflows
• Boost collaboration and transparency
• Provide an incredible client experience
• Simplify billing and payments
• Gain data-driven insights into firm performance

And all without jumping between multiple different apps. When the time comes to inform clients about pay increases, TaxDome can help you automate communications and customize messages based on client data and segments. But more than that, it can provide clients with the slick digital experiences they expect, helping them to see the true value your firm brings.

Ready to see TaxDome in action? Request a demo today!