Hourly rate or flat fee: which billing model should your accountant choose?

In short. In Quebec, flat fees are by far the most common: of the 1,248 mandates completed through Bankeo between 2024 and 2026, 73% were billed at a flat rate (46% annual and 27% monthly), compared to 19% at an hourly rate and 8% using a hybrid model. A CPA's hourly rate is most often between $100 and $300, while an accountant's is between $40 and $60. The median accounting budget for a business remains around $2,000 per year, with most mandates ranging from $500 to $6,000. All amounts are in Canadian dollars.

Two accountants can offer you the exact same work and provide two incomparable quotes: one charges $175 per hour, the other offers a flat fee of $2,400 per year. Which is the better deal? The answer depends less on the number itself than on the billing model, what it includes, and how your business uses accounting services throughout the year.

This guide compares the two approaches for Quebec in 2026, with data you won't find anywhere else: the actual distribution of billing methods observed in the Bankeo network. It complements our Quebec Accountant Cost Barometer report , which details the amounts by type of engagement.

Hourly rate, flat rate or hybrid: what are we talking about?

Before comparing, we need to name things correctly, because Quebec firms actually use three models, not two.

• The hourly rate. You pay for the actual time spent on your case, at the rate of the professional handling it. The bill varies from month to month and you only find out the amount afterward.
• The package. A fixed price for a pre-defined scope of work. It is available in an annual version (the year-end mandate: financial statements, tax returns) and a monthly version (continuous bookkeeping, VAT returns, payroll).
• The hybrid model. A basic package for recurring services, plus a bank of hours or an hourly rate for unforeseen events: one-off tax questions, special projects, requests for information from the tax authorities. Canada or from Revenu Québec.

The issue is not just the total amount. Each model creates different incentives: with an hourly rate, each call starts the meter and many entrepreneurs end up avoiding asking their questions; with a flat fee, the firm has an incentive to work efficiently and you are encouraged to consult early, before the problem becomes costly.

The actual distribution of billing methods in the Bankeo network

How many French companies actually pay a flat fee rather than an hourly rate? This data is not available in any public statistics. Here's what our data shows. Based on the actual fees for 1,248 mandates completed via Bankeo (2024-2026), out of more than 15,000 requests received, flat fees are the dominant billing method in France, and the gap is widening year after year. A breakdown of the amounts per service is published in the Bankeo Barometer .

Three key takeaways emerge from these figures. First, fixed-price contracts alone account for 73% of all contracts awarded: budget predictability has become the primary criterion for Quebec entrepreneurs. Second, hourly rates are not disappearing: they remain the natural approach for one-off projects and situations that are difficult to anticipate, such as catching up on work that has been outstanding for several years. Finally, monthly fixed-price contracts are on the rise with cloud accounting: when accounting is done continuously in shared software, fixed monthly billing becomes the obvious choice.

The hourly rate: when it works in your favor

In Quebec, the hourly rate for a CPA (Chartered Professional Accountant, a designation regulated by the Quebec CPA Order) is most often between $100 and $300, depending on the professional's experience, the size of the firm, and the region. For accounting work, an accounting technician or accountant typically charges between $40 and $60 per hour. This is, in fact, the first rule of a well-negotiated hourly rate: the right level of expertise for the right task; never a CPA charging $250 an hour to file invoices.

An hourly rate is the right choice when:

• The need is occasional and short-term. Incorporation, a question about the choice between salary and dividends, a tax return review: paying for 2 or 3 hours is cheaper than an annual package.
• The scope is impossible to define in advance. Catching up on two years of accounting or responding to a tax audit depends on what is discovered along the way. No reputable firm will offer a fixed price for the unknown without allowing for a margin of error.
• You want to test the relationship. A few billable hours allow you to judge the quality of the work before committing to an annual package.

Its biggest drawback remains its unpredictability: the timer keeps running, the bill arrives after the work is done, and discrepancies between the estimate and reality are frequent. Always demand a written estimate of hours, a rate displayed per income level, and an alert threshold: beyond an agreed amount, the firm must notify you before continuing.

The fixed-price package: the predictability that conquered the market

The annual package covers the year-end mandate: for an incorporated company, the compilation of financial statements and T2 returns for federal purposes and CO-17 returns for Quebec purposes; for a sole trader, the business schedules for T1 and TP1 returns. Within the Bankeo network, it generally ranges from $500 to $1,200 for a self-employed individual and from $1,500 to $3,500 for an incorporated company, with a complete SME package potentially costing up to $6,000 per year.

The monthly package covers day-to-day operations: bookkeeping, bank reconciliations, VAT returns, payroll deductions (DAS) if you have employees, and often a monthly dashboard. In monthly terms, mandates executed through Bankeo range from approximately $165 per month for a simple file to $500 or more for a business with payroll and a high transaction volume. Our guide on the cost of bookkeeping per month in Quebec details these ranges by profile.

The key point to consider with a flat fee is its scope. A flat fee is only advantageous if what it covers is clearly stated: the number of transactions included, tax returns covered, response times, and, most importantly, what is excluded. An IRS inquiry, advanced tax planning, or a change in structure almost always incurs additional charges, often at an hourly rate. This is precisely what the hybrid model formalizes, and why 8% of the network's mandates adopt it from the outset.

How to choose: the right model for your situation

The distribution observed within the Bankeo network is not uniform: it varies significantly depending on the company profile. Here are the most frequent combinations in our 1,248 completed mandates.

Three questions are usually enough to decide:

• Is your volume regular? Stable transactions each month argue in favor of the flat rate; seasonal or unpredictable activity is better negotiated on an hourly or hybrid basis.
• Do you have employees? Payroll and DAS impose a strict monthly rhythm: the monthly flat rate becomes almost indispensable, because late payment penalties cost more than the service.
• Do you often ask yourself questions? If you consult your accountant several times a year, the package that includes calls will save you money and, above all, you will call before problems arise rather than after.

The three clauses to check before signing

Regardless of the chosen format, the quality of the written agreement matters more than the billing method. Before signing, check these three points, and for further information, consult our questions to ask an accountant before hiring them .

• The exact scope. What statements, how many transactions, and what response times are included? Anything not specified will be billed separately.
• Handling extra work. At what hourly rate are extras billed, and from what amount must you be notified before work begins?
• The annual review. A good plan is adjusted annually based on your actual volume, either increasing or decreasing it. Ask how and when the price will be reviewed.

If the quotes you receive are difficult to compare, base everything on a common basis: the total estimated annual cost, excluding taxes, for the same scope of work. This is the only figure that allows you to compare an hourly rate, a monthly fee, and an annual fee. You can also browse the audited accountants in the Bankeo network to begin your comparison.

Frequently asked questions

What is the most common billing method used by accountants?

The flat fee, by far. Of the 1,248 mandates executed via Bankeo between 2024 and 2026, out of more than 15,000 requests received, 73% were billed at a flat rate: 46% at an annual rate and 27% at a monthly rate. The hourly rate represents 19% of mandates, and the hybrid model, which combines a basic flat fee with additional hours as needed, accounts for 8%.

What is the hourly rate of an accountant in Quebec in 2026?

A CPA's hourly rate typically ranges from $100 to $300, depending on their experience, the size of the firm, and the region. For bookkeeping, an accounting technician or bookkeeper usually charges between $40 and $60 per hour. A well-organized firm allocates the appropriate level of resources to each task, which reduces the overall bill.

How much does an annual accounting package cost?

Within the Bankeo network, the annual fee typically ranges from $500 to $1,200 for a self-employed individual and from $1,500 to $3,500 for an incorporated company; a comprehensive SME package can reach $6,000. The median accounting budget remains around $2,000 per year, with most engagements falling between $500 and $6,000, based on the actual fees of 1,248 engagements completed through Bankeo (2024-2026). A breakdown by service is published in the Bankeo Barometer.

Is the monthly package worth it for a small business?

Once accounting becomes regular, yes, and this is almost unavoidable with employees: payroll, social security contributions, and VAT returns impose a strict monthly rhythm. For mandates executed through Bankeo, the monthly fee ranges from approximately $165 per month for a simple account to $500 or more for a company with payroll and a high volume of transactions.

Are accounting fees tax-deductible?

Yes. For a business, accounting fees related to operations are deductible as a business expense, both federally with the CRA and provincially with Revenu Québec. The 5% and 9.975% VAT are added to the invoice, but they are generally recoverable if you are registered for tax purposes. The net cost is therefore lower than the listed price.

Can the billing method be changed mid-course?

Yes, and it's actually good practice. Many companies start with an hourly rate for a one-off need, then switch to a fixed price when the volume becomes regular. Request an annual review of the agreement based on your actual volume, and if your accountant refuses to adjust the model to your situation, compare other proposals: the Bankeo matching service is free and without obligation, and we'll support you for as long as necessary.

Official sources

1. Revenu Québec Business Space
2. Revenu Québec, VAT and VAT;
3. Government of the | Canada Corporate Income Tax
4. Quebec CPA Order