Increasing annual fees: Five approaches
AccountingWEB member Thomas struck a chord with other practitioners as he asked: "How do I increase my annual fees to keep pace with inflation?"
"I've had some clients now about 12 months and need to think about increasing the fees to at least keep pace with inflation," he said. "How do I do this? Do I need to justify the increase? I'm only thinking 5%."
Nervous about scaring clients off, Thomas asked members the best way of increasing fees, notifying them about the change and whether or not he needed to justify it.
Members who had advice for Thomas included chairman of the Tax Advice Network, Mark Lee, who advised accountants to consider fee increases due to inflation when quoting them in the first place.
Register with AccountingWEB for free to read the rest of the article, which includes:
- Include facility for inflationary fee increases in engagement letter terms
- Use RPI
- Change from standing orders (SO) to direct debits (DD)
- Increase year-on-year in small chunks
- Become more efficient with a USP