Accountant & bookkeeper invoices

Accountant invoice FAQ

How should accountants and bookkeepers invoice?

Three pricing models dominate: hourly (CPA partners $200–$450/hr, staff $90–$200/hr, bookkeepers $40–$120/hr), monthly retainer for ongoing bookkeeping/CFO work ($300–$5,000/mo depending on scope), and flat-fee per deliverable (tax returns $150–$3,000+, monthly close, quarterly reviews). Pick a model per client and stick with it; mixing inside a single engagement creates billing disputes.

Should I list every billable hour or summarize?

Hourly engagements need full itemization (date, task, hours, rate, total) same as legal billing. Clients expect to see what their money bought. Retainer clients only want a one-line confirmation of the retainer amount; itemizing inside a retainer relationship creates unnecessary friction and invites scope renegotiation. Flat-fee deliverables can show the deliverable as a single line ("2025 Form 1040 + Schedule C, $475").

How do I bill for tax-prep work?

Preparers usually charge per form: 1040 base price + per schedule (Schedule C, D, E), per state return, per K-1 received, per dependent. List each form on the invoice so the client sees what's included. For more complex returns (multi-state, partnership, S-corp, multi-year) quote first; tax-prep flat fees on complex returns are how preparers lose money.

Can I bill for IRS notice responses and audit work?

Yes; these are separate engagements from the original tax-prep work and should be billed accordingly. Hourly is standard ($200–$500/hr depending on credentials). Issue a separate engagement letter and a separate invoice tied to that engagement; mixing audit response with prior tax-prep blurs the engagement-letter scope and exposes you in malpractice claims.

Should bookkeeping retainers go up over time?

Yes: annual reviews are standard, with 5–15% increases reflecting volume growth and inflation. State the review cadence in your engagement letter ("Retainer reviewed each January"). Surprise increases mid-year poison client relationships; annual increases telegraphed in advance get accepted as routine. Issueable lets you note the new rate effective date in the terms section so the change is documented on the first invoice at the new rate.

Do accountants charge sales tax on services?

Most states exempt accounting and tax-prep services. Hawaii, New Mexico, and South Dakota tax most services including accounting. West Virginia taxes most services but exempts professional services, including work by CPAs, public accountants, and enrolled agents; bookkeeping is taxable there. Texas exempts most accounting work but taxes "data processing", and reasonable people disagree on whether bookkeeping is data processing. Confirm with your state CPA society or department of revenue. Issueable applies tax to the whole invoice, so bill taxable work on its own invoice if your state splits the treatment.

Should the invoice reference the engagement letter?

Yes, every time. Cite the engagement letter date and scope in the notes section: "Per engagement letter dated 2026-01-15: Q1 2026 bookkeeping and quarterly close." This anchors the invoice to the contracted scope and makes fee disputes simpler; you can point to a signed agreement for everything billed. Without the reference, billing disputes drag on.

How do I handle pass-through expenses (e-filing fees, software)?

Pass them through at-cost as separate line items, clearly labeled "Reimbursable expense" or "Pass-through cost." E-file fees ($25-50 per state), tax software per-return charges, document-storage subscriptions, and overnight shipping are all common pass-throughs. Don't bundle them into your fee. Clients react badly to discovering a hidden $75 software charge baked into what they thought was your hourly rate.