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aising fees can be a challenging consider-
ation for firms. Practitioners want their fees About the
Rto reflect the value they offer and to provide author
sufficient revenue to run a profitable and healthy
Anita Dennis is a
firm. On the other hand, they worry about losing New Jersey-based
clients by charging too much, particularly in light freelance writer.
of economic uncertainties of the COVID-19
pandemic.
But rest assured that a well-thought-out
analysis and plan to raise fees is a good idea, and
following these tips from experts can take the
worry out of it.

ACKNOWLEDGE THE IMPACT OF COVID-19
Despite the many recent economic uncertainties,
don’t let the pandemic deter you from rais-
ing rates.
“If you do not raise fees now, when will you?”
asked Todd Koch, CPA, partner at 40-person
John A. Knutson & Co. PLLP in Falcon
Heights, Minn. With complexity at an all-time
high after a year of shifting tax deadlines,
COVID-19 relief programs, and a shortage of
professionals, firms need to hire and hold on to
the best people, he said. That could require pay
increases or added benefits for talented staff.
In addition, he noted that the clients who have
been hardest-hit by the economic uncertainty of
the pandemic are also the ones who have relied
most heavily on CPAs to develop new business
models and other solutions and to navigate relief
programs. Since firms have clearly demonstrated
their worth to these clients, it should be easy to
justify a fee increase.
While there may be difficult conversations
with clients who have struggled, “it’s important
to acknowledge the client’s challenges while
showing your firm’s value in coming alongside to IMAGES BY ALEXEYVS/ISTOCK
help them weather the storm,” advised Jon Lok-
horst, CPA, a coach and consultant at Lokhorst
Consulting LLC in Andover, Minn.

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