Pricing for your accounting firm's services: method and benchmarks

Setting prices is one of the most crucial decisions for an accounting firm, yet one of the least well-equipped to make it. Many firms inherit a fee schedule established years ago, maintain it out of caution, and silently absorb the increase in their costs: salaries, software, rent, liability insurance. The result: under-billed engagements that eat into margins, long-standing clients paid at outdated rates, and growth based on volume rather than value.

The good news: pricing isn't a mysterious art. It's a three-step process: knowing your minimum cost, positioning yourself in the market, and choosing the right model for each type of project. This guide details the three main pricing models (hourly, fixed price, value-based), provides market benchmarks from the Bankeo Barometer , based on over 15,000 requests from entrepreneurs received since 2023, and offers a concrete approach to increasing your rates without losing your best clients.

Hourly rate, flat fee, or value-based system: the three models compared

There is no single model that is superior to others in absolute terms: there is a model suited to each type of project. The classic pitfall is to apply the hourly rate everywhere, including to recurring and predictable work where it penalizes your productivity: the more efficient you become, the less you charge.

• The hourly rate bills for time spent. It protects the firm in case of unforeseen circumstances regarding the scope of work: accounting catch-up, disorganized files, representation before tax authorities.
• The monthly or annual fee covers a defined scope of services: bookkeeping, tax returns, payroll, accounting, and income tax returns. It provides predictability for the client and recurring revenue for the firm.
• Fixed -value billing places the price on the result for the client, not on the time spent: tax planning, business reorganization, incorporation support. Advice that saves tens of thousands of dollars isn't worth three hours of work; it's worth a fraction of the savings.

Most profitable firms combine all three: a base of recurring fees that cover fixed costs, hourly rates for unpredictable work, and value-based services that generate profit. The transition to more fees and value-based services is also a matter of positioning: it's easier when the firm is specialized, a topic discussed in "How to Find Clients for Your Accounting Firm ."

Fixing your flooring: the price starts with your costs

Before examining the market, examine your own practice. A price that doesn't cover your full costs isn't a competitive price; it's a subsidy for the client. The floor calculation consists of four components:

• The cost of production : fully loaded salaries of the team assigned to the case, including the value of your own partner time, too often counted as zero.
• Fixed costs are allocated as follows : rent, accounting and tax software, professional liability insurance, professional association dues, continuing education.
• Non-billable time : administration, business development, training. In many firms, this represents a significant portion of working hours; each billable hour must therefore bear its share. The extent of this phenomenon on the prospecting side is quantified in the time lost finding clients .
• The target margin : what remains to invest, absorb unforeseen events and compensate for the risk of entrepreneurship.

This calculation almost always reveals the same thing: small, disorganized contracts, billed at a discount "as a favor," cost more than they bring in. Identifying them is the first step in any pricing overhaul.

“Price sends a message. A firm that charges too little tells the client that its work isn’t worth much, and it ends up attracting clients who think the same way. Serious entrepreneurs aren’t looking for the cheapest accountant; they’re looking for one who understands their reality and who responds when it matters.” Arnaud Bertrand, CEO of Bankeo

Positioning yourself in the market: the benchmarks of the Bankeo Barometer

Once the floor is established, it's still necessary to know what the market is actually paying. Public data is scarce at Canada This is precisely why Bankeo publishes the Accounting Fees Barometer , built on more than 15,000 requests from entrepreneurs received since 2023. The central benchmark: a business client pays a median of about $2,000 per year in accounting services, in a range of $500 to $6,000 depending on the sector, size and complexity of the case.

Three practical lessons can be drawn from this for your grid:

• The sector is significant. A self-employed professional and a restaurant owner with payroll, tips, and taxes don't have the same profile. Your grid needs to reflect the complexity of the sector, not just the client's revenue.
• The median is not a ceiling. It describes the market as a whole. A specialized, responsive, and well-equipped firm can legitimately position itself above it, provided it makes its value visible: deadlines met, proactive communication, and advice that goes beyond compliance.
• Recurring business is more valuable than one-off transactions. A monthly accounting engagement maintained for several years is worth several times more than a single tax return. Your pricing and acquisition efforts must reflect this; the calculation method is detailed in the cost of acquiring an accounting client .

A word about the profession: the Canada has more than 220,000 CPAs according to CPA Canada Competition is real, but it's rarely based on price alone: ​​the demand for available and responsive accountants exceeds the supply in several regions and sectors. This is what Bankeo observes every week in the requests it receives: entrepreneurs who fill out a request are primarily looking for someone who will call them back and understands their industry.

Increase your prices without losing your good customers

The price overhaul is causing concern: people imagine clients fleeing. In reality, a well-prepared and well-communicated price increase is rarely contested by good clients; it's primarily the least profitable mandates that are lost, which is often the intended outcome. The five-step approach:

1. Rank your mandates by actual profitability. Cross-reference fees billed with actual hours spent, case by case. Identify the least profitable quarter: that's where the priority for increase should be.
2. Revise the offer before revising the price. Convert recurring mandates into fixed-price contracts with a clearly defined scope: deliverables, deadlines, communication channels, what is included and what is not. A clear scope justifies the price and prevents requests from exceeding the scope of the mandate.
3. Announce the increase in writing, with advance notice. A simple communication, sent before renewal or tax season, including the effective date and the new tax brackets. No need for defensive justifications: the quality of your service speaks for itself.
4. Handle sensitive cases verbally. For long-standing or vulnerable customers, a call is better than an email. If necessary, offer a two-step transition rather than a permanent discount.
5. Accept losing the mandates you decline. A client who leaves because the price finally covers your costs frees up capacity for higher-value mandates. However, you still need to be able to fill that capacity: this is where a steady stream of qualified leads makes all the difference.

On this last point, the model matters. With Bankeo Pro , your firm receives pre-qualified requests from entrepreneurs, aligned with your industry strengths, often within 48 hours. The service cost is a fixed amount known in advance, a fee per completed deal, never a commission or a percentage of your fees: your pricing structure remains entirely yours, and you keep everything you bill. Since 2023, hundreds of deals have been closed between entrepreneurs and firms within the network. Canada .

Key takeaways: Your floor is your total costs, including non-billable time. Your market benchmark is the median of approximately $2,000 per year in fees per business client, ranging from $500 to $6,000 depending on the sector ( Bankeo Barometer 2024-2026 ). Your leverage is the right model for each engagement: a flat fee for recurring work, an hourly rate for unpredictable work, and a value-based rate for consulting. And review the fee schedule annually.

Frequently asked questions

Which pricing model should an accounting firm choose? Combine the three depending on the mission: flat rate for recurring and predictable work (bookkeeping, taxes, payroll), hourly rate for unpredictable work (catch-up, disputes), value-based billing for high-impact consulting (tax planning, reorganization).

How much does a business client pay for Canada services? According to the Bankeo Barometer 2024-2026 , based on more than 15,000 requests received since 2023, the median is around $2,000 per year, ranging from $500 to $6,000 depending on the sector and the complexity of the case.

How do you announce a price increase without losing customers? In writing, with advance notice, before renewal or tax season, and by clearly outlining the scope of services. Reserve phone calls for sensitive customers. Good customers rarely contest an increase justified by reliable service.

Is a monthly fee risky for the firm? It's only risky if the scope is unclear. A written fee agreement that specifies deliverables, deadlines, and exclusions protects both parties, smooths your cash flow, and rewards your productivity gains, unlike an hourly rate.

Should you display your prices on your website? At the very least, showing price ranges or starting packages reassures entrepreneurs and filters out requests that are out of budget. Price transparency has become a key factor in building trust when choosing an accountant.

Does Bankeo take a percentage of my fees? No. Bankeo Pro does not charge any commission: the cost of the service is a fixed amount known in advance, a fee per completed transaction. Your rate remains yours, and you keep all of your fees. The network's quality criteria are documented in the Bankeo Index .

Sources

• Bankeo, Accounting Fees Barometer 2024-2026 , internal data from more than 15,000 requests received since 2023.
• CPA Canada About CPA Canada , more than 220,000 members, accessed July 2026.
• Bankeo, Bankeo Index , grid of 67 network verification criteria, accessed in July 2026.

By Arnaud Bertrand, CEO of Bankeo. Bankeo Pro connects more than 1,500 audited accountants with pre-qualified requests from entrepreneurs worldwide. Canada Qualified clients, without prospecting (4.7/5 based on over 180 Google reviews). Discover Bankeo Pro for your firm .