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implementing fee increases

by ed mendlowitz

the practice doctor” answers practitioners’ critical questions with sample client letters, checklists, and illustrative schedules.

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accountants’ reviews

“the information regarding the overall effect of raising fees was very encouraging and assisted me with convincing my partners…”
– partner, seven-office firm, texas

“…almost everyone could get some good ideas & info from it.”
– sole practitioner, massachusetts

“good detail and rationale”
– cpa, five-person firm, ohio


mendlowitz qnaquestion 1: “my expenses have crept up greater than my fees. what happened?”

how to prevent fees from falling behind cost increases

question 2: “some clients resist annual fee increases. what should i do?”

the effect of not increasing your fees

question 3: “how do i advise clients that i am establishing a minimum fee?”

implementing a new minimum fee
sample letter to inform a client of an increase in fee for the coming year
sample letter to inform a client of a minimum fee and transition them to another accountant

question 4: “what’s the best way to terminate a client, and when is the best time to do it?”

how and when to let a client leave

question 5: “what are some ways to increase my fees?”

seven methods to increase fees today

question 6: “isn’t that a sneaky way to drop clients?”

effect of increasing fees and losing clients because of it
illustrative schedule: calculation of profit gained or lost due to increasing fees

question 7: “what are your best tips to increase billings and improve collections?”

12 strategies to increase your billings and collections

about the author

ed mendlowitz is a partner in new brunswick, nj, office of withum smith + brown and has over 40 years of public accounting experience. he is a licensed certified public accountant in the states of new jersey and new york and is accredited by the american institute of certified public accountants (aicpa) in business valuation and as a personal financial specialist (pfs). ed is also admitted to practice before the united states tax court and has testified as an expert witness in federal and state court regarding business valuations.

a graduate of city college of new york, ed earned his bachelor of business administration degree. he is a member of the aicpa, the new jersey society of certified public accountants (njscpa) and the new york state society of certified public accountants (nysscpa). in addition, ed was a founding partner of mendlowitz weitsen, llp, cpas, which merged with ws+b in 2005. currently, he serves on the nysscpa estate planning committee and was chairman of the committee that planned the nysscpa’s 100th anniversary. the author of 16 books, ed has also written hundreds of articles for business and professional journals and newsletters. he is the contributing editor to the practitioners publishing company’s 1998/1999 706/709 deskbook, and the aicpa 2004 edition of the management of an accounting practice handbook and is on the editorial board of bottom line/personal and tax hotline financial newsletters. appearing regularly on television news programs, ed has also been quoted in numerous major newspapers and periodicals in the united states. he is the recipient of the lawler award for the best article published during 2001 in the journal of accountancy.

ed is a frequent speaker to many professional and business groups, including the aicpa, njscpa, nysscpa, american management association, the national committee for monetary reform, university of medicine and dentistry in nj and many more. for 11 years, he taught courses on financial analysis, corporate financial policy and theory, monetary and fiscal policy and managerial accounting in the mba program at fairleigh dickinson university.

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implementing fee increases