cpa billing rates

Four Options for Billing Clients

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two women shaking hands across desk

Of course we have a recommendation.

By Jody Grunden
Building the Virtual CFO Firm in the Cloud

When I attend CPA conferences across the United States, I often hear from CPAs: “I don’t want to bill for my time.”

So, how do you bill your clients?

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Client billing can include hourly billing, but it can also include flat-fee, retainer-based and/or value-based billing. Most people use one of these four methods. Some use all of them or even a hybrid.
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Price Advisory Work by Value, Not Time Spent

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Stop undervaluing yourself. 

By Jody Padar
The Radical CPA

As a professional in the industry, you may find some of what you do easy. Just because you find it easy doesn’t mean it isn’t valuable and worth more than the time you put into it. If it were truly easy, your clients would be doing it themselves rather than paying you.

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Undervaluing ourselves and what we bring to the table is a chronic problem plaguing accountants and CPAs. Why do I say this? Because people pay more for the luxuries they value. Let’s look at a comparison:

Today, the MSRP of a Cadillac Escalade is over $93,000 while the MSRP of a Chevy Suburban is slightly under $64,000. If these automobiles were priced according to the time it takes to make them, plus the cost of their parts, the difference between their retail prices would probably be far less. To maximize profits, GM spends a lot of time and money researching how much their customers value their different products. Certainly, the brand makes a difference, but the Cadillac also offers a more luxurious package. It doesn’t cost GM a lot more money to offer these luxuries, but their customers place a much higher value on them, and GM understands that value.

Pricing according to value really isn’t a radical concept!

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How the $25K Rule Works in Pricing

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Toss the timesheets and give your clients more value.

By Jody Padar
The Radical CPA

Consider the $25K Rule.

Because this method requires heavy lifting on the front end, a good rule of thumb is to only value-price engagements of $25,000 or more. If the client falls below $25,000, they are eligible for a fixed price or fixed price plus a value add. This rule is important because if your client is a small business, it doesn’t matter how much value they perceive in your services; they will not be able to afford value pricing above a certain level.

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Most services are fixed-priced, but based on conversations with the client, those prices may drop or be raised accordingly. Some of the data points used to set pricing are the PITA factor (pain in the a#%) and the client’s gross revenue.
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Cornerstone Report: CPA Billing Rates, Tax Return Fees, and Client Accounting Pricing at CPA Firms | 2026

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CPA Trendlines Research Cornerstone Reports deliver instant situational awareness on the day’s hottest topics.

By CPA Trendlines Research

Tax return pricing in 2026 is best understood as a structural repricing rather than a routine inflation adjustment. Firms are charging more, charging differently, and narrowing capacity.

MORE on Pricing.

In this Cornerstone Report, CPA Trendlines finds a 45.7% rise in the national average base fee for a 1040 with Schedules 1–3 (2023 to 2025); benchmark add-on prices for common schedules; national averages for entity and fiduciary returns; fee-increase cadence and the dominant 6%–10% increase band; a median typical-client fee level of $1,263; a common unbilled-work leakage estimate of 6%; and large-firm benchmarking metrics that show how higher rates interact with realization and income per partner.

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Shut Down the Scarcity Mentality

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Coins and small bills in a plastic box

Reconsider your prices. Here are 10 questions to help.

By Martin Bissett
Business Development On a Budget

Undercharging – or lowballing as it’s also called – is the scourge of the profession. It has always been present, and unfortunately, it will probably be with us for the foreseeable future.

Undercharging is directly related to fear – fear of rejection.

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When you are building your pipeline according to the process, you have assigned fees you think might be in the ballpark of what you believe you could get from a new piece of work or a new client. You may tend to estimate on the low side, which is not a bad idea in theory, because it lets you be pleasantly surprised when it’s anything beyond that.

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