The short answer
Explain the proposed new fee, the service it covers and the period when it would take effect. Check the engagement's notice and approval terms before sending, offer a clear response route and save the agreed version. A template is a proposal, not proof that the client has accepted a change.
Check the basis before drafting
Review the engagement's pricing and notice terms. Confirm the current scope, fee, tax treatment and authority to agree a change. A template cannot create a contractual right to impose a new price. Where agreement is required, present a proposal and record acceptance rather than sending an invoice as the first notice.
Use a specific reason you can support: sustained volume growth, an added payroll service or a reviewed change in delivery costs. Do not claim every client has the same increase if that is untrue. Avoid exposing employee pay or other clients' financial information to justify your decision.
Make the change easy to check
Fields to confirm
| Field | Example |
|---|---|
| Current service | Monthly bookkeeping and payroll for five employees |
| Current fee | €400 per month, excluding VAT where applicable |
| Proposed fee | €460 per month on the same stated tax basis |
| Effective service period | From the agreed January service period |
| Included / excluded work | Named deliverables and changed limits |
| Response date and contact | Named person and date consistent with the engagement |
In this fictional example, the increase is €60, or 15% of €400. State the amount as well as any percentage. Distinguish the service period from invoice date, especially where the firm bills in advance or arrears.
A proposal you can adapt
Fee-change proposal
Fee-change proposal
Subject{client}: proposed accounting fee from {period}
Hello {name}, we have reviewed the work covered by our engagement: {services and limits}. Since {date}, {specific, evidenced change} has changed the recurring work required. We propose changing the monthly fee from {old fee} to {new fee}, {VAT basis}, for services from {effective period}. The fee includes {deliverables}; {excluded work} remains separately agreed. Please let us know by {response date} whether you accept or would like to discuss the scope. We will confirm the agreed terms in writing before applying the change. Your contact is {person and details}.
Edit the wording to the contract and jurisdiction. Where the terms permit notice rather than a proposal, use accurate notice wording only after checking the required conditions. Do not manufacture an acceptance deadline that removes rights the client actually has.
Offer a scope discussion, not a hidden discount
If the client needs a lower-cost package, identify a real change in optional service scope. For example, quarterly management commentary may be separated from monthly bookkeeping where appropriate. Do not promise to remove necessary review or required work to preserve an old price.
Prepare for questions with the fixed-fee calculation and several representative periods of client contribution. Explain the service and change clearly; the client does not need your entire internal cost model.
A pre-send checklist
Before the fee letter goes out
Before the fee letter goes out
- Engagement terms and required notice or acceptance checked.
- Old and new fees verified on the same VAT basis.
- Effective service period and invoice timing stated.
- Scope and any changed limits explained.
- Reason supported by actual information.
- Correct recipient and authorised sender confirmed.
- Response and agreement retained before billing changes.
After acceptance, update the billing instructions and scope record together. Tell the delivery team about any changed package limits. A new fee with the old undocumented scope leaves the same disagreement waiting for the next unusual request.
Questions
Use the engagement terms and applicable requirements. This template does not prescribe one notice period for every firm or client.
State the old and new amounts on a consistent tax basis. Add the percentage if useful, but do not make the client calculate the new bill.
About this article
Author: Claister
Published by Claister, the company building the accounting practice management software discussed on this website.
Design partner: Natalija Miadzelic
Editorial review: Natalija Miadzelic · Accountant · Approved
Editorial policyAccounting firm capacity, fees and profitability
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