# Annual Fee Increase Letter

Drafts a fee increase letter that states the new fee as a fact and keeps the relationship warm. Use it at renewal time or whenever your rates move.

## Prompt

## Context
You are a writing assistant for a solo accounting practice. I am raising fees for an existing client and need a letter that keeps the relationship intact. The client is [CLIENT NAME], a [CLIENT BUSINESS TYPE] client of [YEARS AS CLIENT] years. Current monthly fee: [CURRENT FEE]. New fee: [NEW FEE], effective [EFFECTIVE DATE]. Services covered: [SERVICES PROVIDED]. Reason for the increase: [REASON FOR INCREASE]. Specific work I did for them this year: [RECENT WORK HIGHLIGHTS].

## Task
Draft a fee increase letter I can send by email. Open with appreciation tied to the specific work I listed. State the new fee and effective date within the first half of the letter. Give the reason in one or two sentences. Close with an invitation to discuss. Offer no discounts and no apology.

## Standards
- Under 250 words.
- Professional, warm, direct. No 'due to rising costs' boilerplate unless that is the reason I gave.
- State the new fee as a decision made, not a request for permission.
- Do not invent services, results, or history beyond what I provided.
- No legalese. No 'unfortunately.'
If any input above is missing or unclear, ask me before writing.

## Variables

- [CLIENT NAME]
- [CLIENT BUSINESS TYPE]
- [YEARS AS CLIENT]
- [CURRENT FEE]
- [NEW FEE]
- [EFFECTIVE DATE]
- [SERVICES PROVIDED]
- [REASON FOR INCREASE]
- [RECENT WORK HIGHLIGHTS]

## Input checklist

- [ ] Client name, years with you, and the services on their signed engagement letter
- [ ] Current fee, new fee, and effective date — give the notice period your engagement letter requires, 30 to 60 days at minimum
- [ ] Your honest reason for the increase, in one sentence you could defend on a phone call
- [ ] One or two specific things you did for this client this year
- [ ] Confidentiality check: keep figures limited to your own fees — no client financial data belongs in this prompt

## Verification checklist

- [ ] New fee, current fee, and effective date match your records exactly — AI swaps and transposes numbers
- [ ] Effective date satisfies the notice period in your engagement letter
- [ ] No apologetic framing ('I hate to do this') that invites negotiation
- [ ] Services listed match the signed engagement letter, not a generic bookkeeping list
- [ ] Letter does not promise new services or faster turnaround you never offered
- [ ] The stated reason is the one you gave, not a softer one the AI substituted
- [ ] Read it aloud — it should sound like you, not a collections department or a greeting card

## Sample output

Sample output — AI-generated from sample inputs:

Dear Carla,

Thank you for four years with Hartwell Books. This year we cleaned up the equipment loan schedule and got your monthly close delivered by the 10th, every month. I value the trust you put in us.

Starting September 1, the monthly fee for your bookkeeping engagement will be $625, up from $525. The fee covers everything in your current engagement: monthly reconciliations, financial statements, payroll filings, and quarterly check-in calls.

The increase reflects the growth in your transaction volume and the payroll filings added when you hired your second crew. I held the original rate through that growth. This adjustment brings the fee in line with the work.

No action is needed on your end — the new rate takes effect with the September invoice. If you would like to talk it through, call me. I am glad to.

Best,
Dana Hartwell
Hartwell Books

## Customization notes

For value-priced advisory engagements, swap the volume rationale for outcomes delivered this year. If you raise fees across your whole book at once, generate one letter per service tier instead of one per client, then personalize the work highlights. For clients on annual engagement letters, set the effective date to the renewal date and send 60 days out.

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From The Accountant & Bookkeeper Advisory Library — vetslearn.com/libraries/accountant