At a glance
- Rising costs and compliance burdens can make fee increases crucial for firm sustainability.
- Calculate your costs and define your firm’s unique value proposition.
- Review fees annually and consider using value-based pricing tiers.
- Focusing on value when communicating increases to clients.
Accounting firms’ costs are rising. Compliance demands are increasing, and are increasingly complex.
So the ability to raise fees is crucial to staying profitable and sustainable. Pricing is one of the most powerful levers firm owners can use to boost revenue, reclaim time and attract the right clients.
But a fear of upsetting clients means accountants often delay the price conversation for far too long. That can lead to unmanageable workloads, burnout, and an erosion in value and confidence. And at the same time, it can lead clients to expect an element of free service.
What firms think about their pricing
A 2025 Thomson Reuters Institute report, Steps for Increased Confidence in Pricing, is directed at tax firm operations. It says most tax professionals believe their rates are competitive. But it adds that many question whether pricing reflects the true value they deliver.
Accounting practice coach and consultant Amanda Gascoigne says fee increases “are not just necessary, they’re healthy”.
“They allow you to deliver the level of care and responsiveness your clients deserve, while also building a sustainable practice for yourself and your team. The key to rising fees without losing your clients lies in preparation, clarity and confidence.”
If you feel the pressure to raise prices, some practical scripts and strategies can help you keep your clients on board while charging them more.
Decide on your price
Experts suggest the first step to improved pricing is to crunch your firm’s numbers and calculate what you really need to charge.
“They say the first sale is to yourself – and for many accountants, that’s the biggest hurdle,” says Gascoigne. She recommends a four-step process where firms work out:
- what it really costs to deliver your service
- how long tasks actually take
- the value of that service to your clients, and
- what you need to earn to pay yourself and your staff sustainably.
“When you can see why your fees need to be higher, it becomes much easier to confidently articulate your value.”
“And forget about what your competitors charge. How do you know their quality, processes, skills or even their level of care?”
Creating a strong value proposition
Any fee increase should be framed to the client around your enhanced value proposition, experts say. So you need to be clear on what this is before you even have the conversation.
When clients understand why your service is worth more and the benefits to them, a price rise is easier to accept.
“The trick is to move from selling tasks like completing tax returns and monthly bookkeeping to selling an outcome,” says Canada-based Ryan Lazanis, CPA and founder of Future Firm.
To create your value proposition, he says you need to identify:
- your ideal clients (say, e-commerce shops)
- their biggest challenge (such as cashflow)
- their desired outcome (such as improved profitability).
“Then you simply join the dots: ‘We help $1m e-commerce shops gain control over their cash flow so that they can grow their profits’,” says Lazanis.
“With that value proposition in place, you can craft an offer that includes all of the services/features required to help a client achieve that outcome.”
When and by how much to raise your prices
Gascoigne recommends reviewing fees every year, with a minimum CPI adjustment across the board and more where needed. That’s especially important if it’s been some time since your last increase.
Lazanis says a huge proportion of accountants could do with a significant fee hike.
“For many, a 5-10% price increase is not enough, especially for those buried in work. Some firms could benefit from a 100%-plus price increase. And certainly the majority could roll out a 20% increase without much pushback.”
Ignition’s 2025 US Accounting and Tax Pricing Benchmark is based on data from more than 200 US-based accounting professionals, from solo practices to mid-sized firms. It shows 80% plan to raise fees in 2026. Of these, 37% aim for a 5% increase and 30% for a 10% increase, with rising business costs being the main driver.
However, a quarter cite potential client loss as a key barrier.
Pricing by value
How you price is a hot topic in accounting. Should you choose fixed fees based on value, minimum fees plus extras, or charge by the hour?
Ignition’s 2025 Benchmark shows fixed fees used by 37% of respondents, up from 34% in 2024. Minimum fees plus extras dropped to 23% from 30%. Hourly billing is down to just 3 per cent.
The Thomson Reuters report is based on data from more than 300 US-based tax professionals. It finds subscription and bundled models are gaining traction, helping small and mid-size firms in particular to boost profits while giving clients budget certainty.
Lazanis recommends fixed pricing based on value in three tiers – bronze, silver and gold – depending on business size and service complexity.
Bronze covers basics like tax and bookkeeping. Silver may add services like reporting and strategy via Zoom, depending on their needs. And gold may offer premium consulting, wealth management and in-person meetings.
He recommends each subscription run for 12 months, with any price increases shared two months before renewal.
Value-based pricing models can offer clarity, consistency, and also flexibility, says Emeritus Professor of Management Accounting David Dugdale at the University of Bristol.
“Some customers might want the basics and are prepared to wait for a less busy time, while others want faster turnarounds or more senior involvement. You can offer a single plan with extra services for an additional fee, like added phone support or priority consultations.
“You can certainly customise the product; just make sure the boundaries are clear.”
Communicating new prices
Announcing fee increases can feel daunting, but gets easier with practice and the right approach.
“Approach them with professionalism, empathy and confidence, with a focus on the value you’re offering,” says Gascoigne.
Scripts can help take the emotion out of the discussion, she says.
“You’re not justifying the change, but communicating it clearly and with care.”
She says scripts should acknowledge the change, frame it in the context of fairness and sustainability, and reinforce the value and ongoing partnership with the client.
Here are her examples of scripts you can adapt, potentially adding improvements you’ve made in the firm over the past year and ways you’ve helped your client’s business.
Email example for standard annual increase
“As part of our annual review, we’ve updated our fees to ensure they reflect the expertise, care, and resources required to support your business. From [date], your new fee will be £X. In future, we’ll continue to review fees annually, with adjustments generally in line with CPI to ensure sustainability. We greatly appreciate your trust and look forward to continuing our work together.”
Email example for larger adjustment after several years
“It has been some time since we last adjusted our fees. During that period, the costs of running our practice — including wages, insurance, compliance obligations and software — have risen significantly. To continue delivering the quality and responsiveness you expect, we will be increasing your fee to £X from [date]. We appreciate that this may feel like a larger step, but future reviews will be carried out annually and more modestly, typically in line with CPI. We understand that this adjustment may not suit everyone, and should you decide it’s time to move on, we will fully respect your decision and ensure any transition to another accountant is as smooth as possible.”
“They say the first sale is to yourself – and for many accountants, that’s the biggest hurdle.”
Amanda Gascoigne, accounting practice coach and consultant
Phone example for proactive ‘heads-up’
“I just wanted to give you a quick call to let you know that we’ve recently completed our annual review of fees. As part of this process, we’ve set standard fees across our practice and then applied them at a client level to ensure fairness and consistency. From [date], your new fee will be £X. You’ll shortly receive an updated engagement letter and quote outlining the details. This process helps us make sure our pricing reflects the time, expertise and resources required to look after your affairs, and ensures we can continue delivering the level of service and care you value.”
Phone example if challenged by a client
“I completely understand that fee increases can feel difficult. We’ve been very considered in our review, and our updated pricing reflects the true time, responsibility and expertise required to properly service our clients. We’ve benchmarked our fees carefully and applied them consistently across the practice, so they’re both fair and sustainable. What I can assure you is that the value, care and responsiveness you’ve come to expect will continue. Of course, if you’d prefer to discuss scaling back services, I’m happy to explore that with you – but the updated fee is the standard going forward.”
Keep communicating
Let clients know you’re always available for questions, many experts suggest, and follow up with an engagement letter that clearly outlines what’s included and what’s not.
Then, continue to communicate your value to your clients on a regular basis, and certainly after every major project, says Mark Wickersham, accountant and profit improvement expert.
“Remind them of the taxes, costs or time saved, or if you’ve helped them increase cash flow or profits, or overcome a challenge such as raising finance to buy critical machinery for the business.
“Make it about the benefits to the client or the pain that’s been removed. The more the firm reminds the client of the value they’ve created, the easier the re-pricing conversations become.”
Wickersham’s eBook How to price bookkeeping offers advice on pricing.
Handling pushback
With companies weathering higher costs across the board, client pushback is to be expected.
But shifting the focus from price to value changes the conversation, because clients will pay more when they see the benefit, says Wickersham.
“In 2001, I raised my fees by 40 per cent for a long-standing client after years of undercharging. He was shocked and asked why. I explained the challenges we’d had with his bookkeeping and the extra work involved. To my surprise, he appreciated my transparency and was happy to agree to the new rate, saying he valued the work we’d done.”
Gascoigne advises approaching pushback with empathy and confidence.
“Acknowledge that fee hikes aren’t easy but explain they reflect the time, responsibility and expertise required. Stress that increases apply practice-wide and, if needed, offer scaled-back services rather than discounts.
“This approach keeps you professional, fair and client-centered — even if some relationships end.”
What about those ‘quick questions’?
Clients seeking informal, out-of-scope advice can quickly eat up significant time.
Dugdale advises steering clear of “free advice” wherever possible.
“Clients can get exactly what they need – at a price. This means clearly identifying all services offered and ensuring your clients have all the pricing and service details at their fingertips.”
Resist the urge to answer on the spot, adds Wickersham. This avoids giving out negligent advice and reinforces the point that quick queries are rarely that.
“Explain that research is required to ensure you can give the best possible advice, which may be out of scope and require extra fees.”
Lazanis likes to see these moments as chances to upsell subscriptions.
“I may give a warning that ‘quick questions’ are not included in the engagement, that I’m happy to handle them in this instance, but in future instances, they may need to look at an upgraded plan that includes more support,” he says.
Making space for better clients
Gascoigne says increasing fees doesn’t have to mean losing clients.
“Most clients who value your expertise will stay,” she says. “In fact, when handled with care, it often strengthens the relationship.”
“Clients appreciate fairness and professionalism – and advisers who model business discipline. We regularly advise clients on how to review and communicate their own pricing, so let’s normalise these conversations.”
However, not every client will stay – and that’s okay, says Lazanis.
After all, losing clients creates capacity for more aligned, appreciative and valuable ones.
“Thoughtful pricing goes beyond profits and capacity. It creates space to do the work you enjoy, help clients build stronger businesses, and better support your team – all of which makes your firm more sustainable in the long run.”
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