Professional Accountant Invoice Template

An accountant invoice must be thorough and compliant with professional standards. Include all necessary details to ensure transparency and avoid disputes.

• Your firm name, CPA designation, and license number
• Federal Tax ID (EIN) and state registration
• Client name, company, and billing address
• Invoice number and date
• Service period covered
• Detailed description of services (tax prep, bookkeeping, advisory)
• Hourly rate or fixed fee for each service
• Time spent on each task (for hourly billing)
• Out-of-pocket expenses (software, filing fees)
• Applicable taxes on services
• Payment terms and due date
• Engagement letter reference number
• Professional liability disclaimer (if required)

Follow these proven practices to maintain compliance, build client trust, and ensure timely payment for your accounting services.

• 1Send engagement letters before starting any work
• 2Bill monthly or quarterly for ongoing bookkeeping services
• 3Invoice immediately after completing tax returns
• 4Separate billable time by service type for transparency
• 5Include a brief summary of work completed
• 6Document scope changes in writing before billing
• 7Use trust accounting for client funds (if required)
• 8Maintain detailed time records to support billable hours
• 9Offer secure payment options for client convenience
• 10Send reminders 7 days before tax filing deadlines
• 11Keep copies of all invoices for 7+ years for compliance

Accounting fees vary based on service type, complexity, and your credentials. Understanding market rates helps you price competitively while maintaining profitability.

• Bookkeeping services: $30-$90/hour or $200-$2,500/month
• Tax preparation (1040): $200-$500 for simple returns
• Tax preparation (complex): $500-$2,500+ depending on complexity
• Business tax returns: $500-$2,500 per return
• CPA hourly rates: $150-$400/hour depending on market
• Audit and assurance: $200-$500/hour
• Financial consulting: $150-$350/hour
• Payroll services: $50-$200/month based on employee count
• Value pricing for tax planning: 1-3% of tax savings
• Consider package pricing for bundled services

Setting appropriate payment terms ensures steady cash flow while maintaining professional client relationships.

• Tax preparation: 50% deposit, balance on completion
• Monthly bookkeeping: Invoice on the 1st, due Net 15
• Consulting services: Net 30 for established clients
• New clients: Due on Receipt or prepayment
• Audit engagements: Progress billing at milestones
• Late fees: 1-1.5% per month (check state regulations)
• Require payment before releasing tax returns
• Accept credit cards for client convenience (include fee if needed)
• Offer payment plans for large tax liabilities
• Hold work on delinquent accounts

Avoid these common billing errors that can harm your practice's cash flow and client relationships.

• ✕Starting work without a signed engagement letter
• ✕Waiting until year-end to bill for ongoing services
• ✕Vague descriptions like "accounting services rendered"
• ✕Not tracking time on "quick questions" that add up
• ✕Releasing tax returns before payment is received
• ✕Failing to document scope changes before billing
• ✕Not separating billable expenses clearly
• ✕Inconsistent billing cycles confusing clients
• ✕Not following up on overdue invoices promptly
• ✕Undercharging for complex work to keep clients happy
• ✕Missing professional liability disclosures