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bids on an engagement and finds that other firms
are offering similar bids, “that is the best indica-
tion that our rates are market rates,” he said.
Review relationships regularly
Lokhorst recommended that firms consider fee
increases during annual assessments of client
relationships to determine whether the client still
fits the firm’s service model, capacity, processes,
and other factors. That effort can help firms decide
if the client relationship is worth keeping and also
serve as a review of the value the firm offers the
client. Turn to the PCPS Client Evaluation Tool
(available at tinyurl.com/y8pey8hs), the Good Fit
Client Tool (available at tinyurl.com/wdshcr42),
and the Proposal Meeting Prep List (available at
tinyurl.com/2pkkc3rs) for help.
After assessing their client relationships, firms
will be better prepared to justify a fee increase,
Lokhorst said. “You can highlight the ways you’ve
delivered value in the past and discuss future
opportunities to do the same,” he said. “Empha-
size the client’s pain points and the significant
problems you help them solve,” including financial
and nonfinancial benefits that clients gain from
their relationship with you.
No matter what services you offer, point out
the added advice and information you offer.
“Recognize that you do much more than compli-
ance,” Koch advised.

Be confident in your decision
During the actual conversation with a client,
stop talking after you’ve explained the increase,
Lokhorst recommended. Don’t undermine your
case by offering to lower your fee before giving
the client a chance to respond, he said. The PCPS
Overcoming Pricing Objections Tool (available at AICPA RESOURCES
tinyurl.com/24v7dbff) can help. Survey
To maintain confidence in their fees, CPAs
AICPA PCPS/CPA.com 2021 National Management of an Accounting Practice
should identify reservations they have and
(MAP) Survey, tinyurl.com/ycknq28o
consider whether they’re valid. For example, in
Tools
some cases, practitioners are uncertain about fee
increases because they have spent fewer hours Client Evaluation Tool, tinyurl.com/y8pey8hs (AICPA member login required)
performing the same services due to new technol-
Good Fit Client Tool, tinyurl.com/wdshcr42 (Private Companies Practice
ogy or other efficiencies. In that case, Koch said, Section (PCPS) member login required)
remember that you are efficient because of the
Overcoming Pricing Objections Tool, tinyurl.com/24v7dbff (PCPS member
investment the firm and its professionals have put
login required)
into education, expertise, and technology, which
justifies the increase. Pricing Tool, tinyurl.com/s5a54jbu (PCPS member login required)
Raising fees is simply a matter of recognizing Proposal Meeting Prep List, tinyurl.com/2pkkc3rs (PCPS member login
the value of your work. “As a profession, we tend required)
to undervalue our services,” Peterson said. ■

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