Discover how your firm's pricing compares to other US firms with Ignition's 2026 U.S. Accounting and Tax Pricing Benchmark. Get insights on current fees, pricing models and planned increases for common accounting and tax services. Stay informed and confidently adjust your firm’s pricing to boost revenue in 2026.
Thank you! Please find the link to download the report below. You will also receive it in your inbox shortly.
Thank you! Please find the link to download the report below. You will also receive it in your inbox shortly.
2026 U.S. Accounting and Tax Pricing Benchmark
How to communicate a price increase to your clients (without feeling awkward)
Influential thought leader Ryan Lazanis (CPA, CEO and Founder of Future Firm) and other industry experts uncover what US firms are charging for tax, advisory, and compliance services, and share actionable insights to help you optimize your pricing strategy, boost profitability, and stay competitive in 2025 and beyond.
This article has been modified for different regions, click here to access the Australian or UK version
You’re thinking about raising your prices to line up with the value your firm provides. Now you just need to tell your existing customers (and you’re dreading it).
According to Ignition's 2025–2026 Agency Pricing & Cash Flow Report, 97% of agencies are raising prices this year. But knowing you need to raise rates and communicating that confidently are two distinct issues.
Communicating a price hike well means combining timing that respects billing cycles, transparency about the reasons, and the right delivery channel for each client. When all three come together, most clients are open to the change. This guide walks you through a simple, repeatable approach so you can raise your rates confidently and keep your best clients in the process.
The most effective way to raise prices is to give clients enough time to prepare.
Aim for at least 30–60 days' notice before the new rate takes effect. For larger increases or enterprise accounts with longer contract cycles, a 90-day window shows respect for their planning process.
Remember: clients who feel caught off guard may react defensively. Those who receive enough notice have time to budget, ask questions, and adjust.
As Ignition's research confirms, most clients accept periodic price increases when handled well; they often expect costs to rise over time. The friction generally comes from how the news is delivered.
Timing your notice to billing cycles is equally important.
Announce the change before a client's renewal period, not mid-engagement. This gives them a natural decision point to either renew at the new rate or consider alternatives. Many firms find the cleanest transitions happen when increases align with annual renewals or fiscal year starts, since clients are already reviewing their spending at those times.
Make advance notice a professional standard in your firm. If you use a platform like Ignition, you'll be prompted to review pricing at renewal time and can apply increases in just a few clicks.
When it’s time to notify customers about the price change, there isn’t a single one-size-fits-all solution. The right approach depends on two things: how much revenue that client represents and how deep the relationship runs.
Segmenting your clients before you communicate a price increase helps you balance efficiency with relationship preservation. A simple three-tier framework works well for most firms:
Each tier calls for a different communication method. Here's how to approach them.
Have a conversation with your most important clients before you send a written notice.
Schedule a brief phone or video call to go over the changes. The goal isn't to sell them on the increase, but to deliver the news and allow them to ask questions. You also want to make it clear that they matter enough to hear from you personally.
Before the call, prepare a few talking points:
This personal outreach can strengthen loyalty and build trust with your high-value clients.
Not all regular clients need a phone call. For many established retainer clients, a personalized email is perfectly fine.
"Personalized" means more than a mail merge with their first name. Reference the services they receive and acknowledge the history of the relationship before you get to the numbers. Personal touch matters here.
Open by acknowledging the partnership, then move directly to the facts: current rate, new rate, effective date, and the value-driven reason. That context positions the rate as earned instead of arbitrary.
For one-off or infrequent clients, personalized outreach isn't a practical use of your time. But you still don’t want them to be surprised.
You can notify these clients through automated channels like:
Even for lower-touch clients, clarity and advance notice are non-negotiable. Include the new rate, the effective date, and a short explanation. If your client portal supports it, link to a brief FAQ or policy page that addresses common questions. That way, clients can self-serve rather than emailing your team.
Download Ignition's 2025–2026 Agency Pricing & Cash Flow Report and see exactly where your pricing stands.
Whether you're communicating by email, letter, or client portal message, structure matters. A well-structured message prevents client confusion and reduces back-and-forth questions.
The price increase letter templates below give you a starting point for each billing model. Before you customize them, review the three principles below—they apply to every message you send.
The most common mistake in price increase letters is burying the news. Many firms open with context, reasoning, and appreciation before getting to the actual change. This forces clients to scan for the actual number (which is what they care about the most).
So, lead with the facts. Your opening sentence should answer two questions: how much and when. For example:
"Starting [date], your monthly rate will increase from [current price] to [new price]."
Front-loading this information respects your client's time and immediately establishes transparency.
Vague openings like "We're writing to share some important updates to our service agreement" create uncertainty, which erodes trust before they reach the actual number.
Once you've stated the change clearly, you can follow with context, reasoning, and appreciation.
Here’s what that might look like:
Hi [First name],
Starting [date], our fee for [service] will increase from [old price] to [new price], reflected in your renewal agreement. [Personalize with a value point.] This change ensures we can continue delivering the high-quality service your business depends on.
Please don't hesitate to reach out with any questions.
Sincerely,
[Your name]
Hi [First name],
Beginning [date], your monthly engagement fee will increase from [current amount] to [new amount]. [Add a specific value point.] This change reflects our ongoing investment in the team and tools that serve you.
We appreciate your continued support.
Best regards,
[Your name]
Hi [First name],
Beginning [date], our hourly rate will increase from [current rate] to [new rate] per hour. [Personalize with a specific outcome.] This adjustment ensures we can continue delivering the careful, accurate work you've come to expect.
We look forward to supporting [business name] going forward.
Best regards,
[Your name]
"Rising costs" is a valid reason for higher prices, but it's also the weakest way to frame it in your price increase notice. Clients who hear only about your costs tend to focus on the burden rather than the value.
If you have specific outcomes to share, use them, as numbers are more persuasive than general statements. A client who reads "We found $4,200 in tax savings last year" is in a different headspace than one who sees "We've been a valuable partner to your business."
A stronger approach connects the increase to what you deliver. Consider framing it around:
Every price adjustment message should close with a clear path forward:
Then end the conversation with a warm sign-off, like "We value working with you and look forward to continuing to support your business at this new rate."
Relying on a single channel risks clients missing the price increase announcement entirely and gives them grounds to dispute a billing change later.
Email is the primary channel and should be your first touchpoint with your retainer and project-only clients.
Use a subject line like "Important update to your service agreement,” which eliminates ambiguity about what's inside.
For traditional or high-value accounts, a physical letter alongside the email adds formality and creates a paper trail that protects both parties. And for key clients, you’ll want to start with a call.
If your firm uses a client portal or practice management platform, set up an in-app notification to appear when clients log in during the notice period. It catches anyone who missed your email and ensures no one can claim they were unaware.
Many firms communicate the increase clearly, but then fail to update their systems consistently. The result is billing at the old rate by mistake or payments that auto-collect the wrong amount, which can erode the customer trust you just built.
The fix is treating the price increase as an operational event rather than a set of disconnected updates across your tech stack.
Ignition makes it easy to implement price increases. The platform centralizes proposals, contracts, billing, and payment collection so that when you update a rate, it flows through to everything automatically. Update your service library, send the new proposal, have the client sign, and the new pricing is locked in across every downstream system.
Here’s how the platform compares to a manual approach:
Manual approach | Ignition automated workflow |
| Update each client agreement individually | Bulk-update pricing across multiple proposals at once |
| Risk billing at the old rate by mistake | New rate auto-populates in invoices and payments on the effective date |
| Chase clients for payment after a rate change | 91% of payments collected automatically upfront |
| Hours spent on admin during renewal season | Renewals trigger with a prompted price review built in |
| Inconsistent messaging across agreements | Standardized templates ensure every client sees the same language |
Even when you've communicated a price increase well, some clients will push back. Preparation is what keeps you from making hasty discounting decisions just to end an uncomfortable conversation.
Update your contracts, invoices, and payments in one automated workflow.
When a client questions the new rate, the instinct is to explain costs again.
A more effective response redirects to results. Clients often forget how much value they're receiving, and a reminder shifts the frame from "this costs more" to "this delivers a lot."
Before any price conversation, have two or three concrete examples ready:
Even something as simple as preparing a balance sheet involves collecting information, reconciling accounts, and making legislative adjustments. Helping clients see the full scope of what goes into your work reframes the conversation from cost to investment.
Some clients will express frustration, hint at leaving, or ask for exceptions. The right response depends on the situation, but as a default, maintaining the increase is usually the best business decision.
A useful model response that's both confident and empathetic: "I understand this is an adjustment, and I'm confident the value supports it."
That said, if a long-term client is genuinely struggling, you have options that don't require backing down entirely:
That said, don’t offer discounted rates prematurely. Lead with the full rate. If a client pushes back meaningfully, you can introduce options, but frame them as accommodations.
A well-handled price increase this year is a good start, but a firm that raises rates confidently every year (and ideally without any anxiety!) is in a fundamentally stronger position. To get there, you need to stop treating price increases as one-off events and start building them into your operating rhythm.
Ignition's AI-powered Price Insights replace guesswork with data, showing how your pricing compares across similar clients, services, and market benchmarks. That way, you know where you're undercharging and where you're aligned.
And since these insights tie to real engagement data, you can connect rate increases directly to the value you deliver, which makes it easier to justify decisions internally and communicate them externally with confidence.
Practically, this means:
Effective price increase communication comes down to four things:
Firms that combine all four reinforce their professionalism and deepen client trust. Clients who feel respected during the process are more likely to renew and accept future increases without resistance.
Ignition brings all the moving pieces together: proposals, contracts, billing, and payment collection in a single automated workflow. With 91% of payments collected automatically and customers saving an average of 18 hours monthly on admin, everything runs smoothly. The increase gets communicated clearly, documented properly, and collected on time.
Ignition's platform brings together proposals, contracts, billing, and payments in one place.
Honor the original rate for the current project scope and apply the increase to future work or renewals, providing clear guidance on timing. Confirm the cutoff and new rate in writing to avoid confusion about what changes and when, and emphasize documentation.
Grandfathering can reward loyalty (but often erodes profitability over time), acknowledging both the relationship benefit and the business risk. A smaller increase or a phased adjustment usually protects the relationship without creating a permanent pricing gap, offering a middle-ground solution.
Yes, selective increases are common and can be easier for clients to accept, validating this approach. Clearly explain which services are affected and why in your price increase notification to customers, connecting to the communication principles covered earlier.
Increasing your prices? Read this practical blog to navigate the process effectively. Includes free email templates.
Thank you! Please find the link to download the guide below. You will also receive it in your inbox shortly.
Find out how to set and land high prices for your firm with this downloadable guide by Ryan Lazanis, CPA and CEO of Future Firm.
Discover how thousands of accounting firms have fast tracked their efficiency and profitability with Ignition.
