Fee increase letters for clients
Five letters for accountants, bookkeepers and consultants, with replies to common client questions.
Choose the letter that fits the change
Annual fee adjustment
SubjectYour [Service] fee from [Effective date]
Hi [Client name],
From [Effective date], your fee for [Service] will change from [Current fee] to [New fee] per [Billing period], [Tax basis].
The adjustment reflects [Specific change in the cost of providing the service]. Your package will continue to include [Agreed services and limits].
Your current fee applies through [Last period at current fee]. [How the revised terms will be confirmed under your agreement].
If you'd like to talk through the change, please reply by [Reply date] or call me on [Phone number].
Thank you for continuing to work with us.
[Your name] [Firm name]
Expanded recurring scope
SubjectAgreeing your [Service] package from [Proposed start date]
Hi [Client name],
Since [When it began], we've been providing [Additional recurring work] alongside [Original agreed services].
Over [Review period], our time records show [Time spent] on [Additional deliverables and coordination].
From [Proposed start date], we can continue [Original scope and limits] at [Current fee] per [Billing period], or include [Expanded scope and limits] for a total of [New fee] per [Billing period]. Both fees are [Tax basis].
The proposed scope and fees are set out in [Proposal or scope link]. Please confirm your preferred option through [Acceptance method] by [Reply date].
I'm happy to talk through which option would be most useful to you.
[Your name] [Firm name]
Long-standing client on an old fee
SubjectReviewing your [Service] fee
Hi [Client name],
We've worked together since [Year], and your fee for [Service] has stayed at [Current fee] per [Billing period] since [Last fee review].
To cover the cost of providing [Agreed scope and limits], we propose [New fee] per [Billing period] from [Proposed start date], [Tax basis].
If that fee doesn't fit your budget, we can discuss [Specific narrower service] and price that separately. The proposed terms are in [Proposal or engagement link].
I'd like to talk this through with you before [Reply date]. [How the revised terms will be agreed].
Thank you for the years you've trusted us with your work.
[Your name] [Firm name]
Consultant hourly or day rate
SubjectMy [Service] rate from [Effective date]
Hi [Client name],
I'm updating my rate for [Service] from [Current rate] to [New rate] per [Hour or day] from [Effective date], [Tax basis]. The change reflects [Specific reason for the rate review].
For [Existing quoted or committed work], the agreed [Rate or fee] will continue through [Agreed end date or milestone]. The new rate will apply to [Future work covered by the change].
Before we start the next piece of work, I'll confirm its scope and estimate at the new rate. [How the updated rate will be agreed under your contract].
If you have a fixed budget for [Upcoming work], let me know by [Reply date] and we can discuss the priorities that fit within it.
I've enjoyed working with you on [Project or service] and look forward to the next stage.
[Your name] [Firm name]
Moving from hourly billing to a fixed fee
SubjectA fixed monthly fee for your [Service]
Hi [Client name],
I'd like to propose a fixed monthly fee for [Service] from [Proposed start date], replacing our current rate of [Current hourly rate], [Tax basis].
Over [Review period], your monthly fees have ranged from [Lowest monthly fee] to [Highest monthly fee]. A fixed fee of [Proposed monthly fee], [Tax basis], would cover [Deliverables, frequency and service limits].
The proposal assumes [Client inputs, volumes and deadlines]. [Excluded services] would sit outside the monthly package; we'd agree the scope and price of any extra work with you before starting it.
Work through [Final hourly-billed period] will be billed on the existing terms. The proposed monthly package is set out in [Proposal or engagement link].
If this would suit you, please accept through [Acceptance method] by [Reply date]. I'm happy to discuss the scope before you decide.
[Your name] [Firm name]
Turn the extra work into a clear proposal
Take this example: a $3,400 monthly package covers two reports, a combined review meeting and follow-up questions. It allows 20 hours for delivery and coordination, plus a 2-hour allowance for data issues.
| Work recorded | Hours |
|---|---|
| Reports, additional stakeholder analysis and review meetings | 23 |
| Correcting the consultancy’s own reporting error | 3 |
| Total time spent | 26 |
With stakeholder support continuing, the revised scope allows 23 delivery hours plus the existing 2-hour allowance. At a $150 target hourly return and a $100 client-specific cost, the monthly fee becomes $3,850, excluding tax. Internal rework stays with the consultancy.
Propose the revised package
We've added analysis for your second stakeholder group and a separate review meeting. We can keep the original two reports and combined review at $3,400 a month, or include the extra analysis and separate reviews for $3,850 a month from [Agreed start date]. Both fees exclude tax.
For the calculations, use our retainer pricing guide and worksheet or bookkeeping pricing guide.
When a client pushes back
The new fee is outside our budget
Thanks for letting me know. The proposed fee covers [Services and limits]. If your budget is [Client's budget], we could look at [Specific reduction in scope or frequency] and price that service for you.
Which parts of the service matter most for the next [Period]? Once we agree those priorities, I'll send a revised scope and fee for you to consider.
Why more when the work hasn't changed?
You're right that [Agreed service] is unchanged. [Specific reason the existing fee needs to change].
We propose [New fee] per [Billing period] from [Proposed start date], [Tax basis]. If you'd like a lower-cost option, we can discuss [Specific narrower service].
Can we delay the increase?
I understand you'd like more time to plan for the new fee. We can offer [Transition option you can sustain], with [Fee and scope during the transition] through [End date].
From [Agreed start date], the fee would be [New fee] per [Billing period], [Tax basis], for [Agreed scope]. If that works for you, I'll send the revised terms for confirmation.
Confirm the revised terms
Our scope-creep guide covers how to agree the ongoing service, including requests you've already been absorbing.
ICAEW’s engagement-letter guidance recommends reviewing terms when scope changes and keeping evidence that the client has received and agreed to them.
Questions about changing client fees
- How much notice should I give?
Follow the notice and change provisions in your agreement, allowing time to discuss the proposal and confirm revised terms.
- Can I raise a fee without adding services?
An unchanged service can still need a pricing review. Give the cost or pricing reason for the increase.
- Should I include my timesheet?
A short summary is usually more useful than a full timesheet. For a scope change, name the extra reports, meetings or entities.
- Can I edit the letters in Word or Google Docs?
The download is an editable Word document (.docx), which Google Docs can also open.
See the work behind your next fee review
MinuteDock shows time by client, project and task, so you can spot the services taking more hours than their fee covers.