Why CPAs Should Bill for All of Their Work

By Joy Francis, CFO and Revenue Capture Architect

CPAs should bill for all of their work because unbilled time is a hidden discount. It cuts firm revenue, teaches clients that expertise is free, and takes capacity away from clients who do invest. Firms recover this revenue by defining scope in writing, recording time when the work happens, and using a clear sentence when a request falls outside the engagement.

How Much Revenue Do CPA Firms Lose to Unbilled Work?

The Rosenberg MAP Survey reported that CPA firm realization reached 90.1 percent for 2022, up from 88.6 percent the year before. Realization measures how much of the standard value of recorded time a firm actually collects. At 90.1 percent, about ten cents of every dollar of recorded time did not reach the bank.

That figure only counts time someone recorded. A ten-minute answer to a client's quick question with no time entry never appears in realization at all. Rosenberg Associates also cautions that a realization rate near 100 percent can signal billing rates set too low, so a higher number is not automatically better. Its guidance places most firms in the mid to upper 80s.

Why Do CPAs Give Away Work?

Firms give away work mostly because the conversation feels uncomfortable. In Ignition's 2022 State of Client Engagement survey, conducted by YouGov among 506 decision makers at American accounting and bookkeeping firms with one to fifty employees, 89 percent said they had delayed or avoided an awkward conversation with a client. Among respondents whose client work grew in scope, 43 percent said they ended up absorbing the added time and cost themselves. Ignition sells software for this problem, so the survey comes from a vendor, and the findings reflect the views of the firms it surveyed.

What Does Giving Away Work Cost Beyond Revenue?

Free work sends a message. Clients who receive expertise with no invoice line learn that it has no investment attached. Free work also uses hours that could go to clients who pay, and it hides what each client truly costs to serve.

Does Billing for All Work Mean Billing by the Hour?

No. The Thomson Reuters Institute's 2025 report on tax, audit, and accounting firm pricing found that hourly billing still leads but makes up less than half of client arrangements. Subscription billing grew almost fourfold in the past year and remains underused. In subscription-first firms, nearly one-third of tax professionals said they were highly confident that their fees matched the value delivered. In hourly firms, fewer than 20 percent said so.

Whatever model a firm chooses, tracking time shows whether the fee covers the work.

What Are the Steps to Bill for All Work?

First, define scope in writing. The engagement letter names exactly what is included, so anything beyond it has a clear line.

Second, record work as it happens. Every call, email, and quick question gets a time entry that day, not a guess at month end.

Third, use a plain sentence when a request falls outside the engagement: "That sits outside our current engagement. Here is the investment to add it, and we can start Monday."

Frequently Asked Questions

Is it unprofessional for a CPA to bill for small questions?

No. Billing for expertise is how a firm protects the quality of service. A clear scope and a clear sentence make the conversation routine.

Will clients leave if a firm bills for out-of-scope work?

Clients leave over unclear value far more often than over a clear invitation to invest.

What is a good realization rate for a CPA firm?

Rosenberg Associates places most firms in the mid to upper 80s. Its 2023 MAP Survey reported 90.1 percent for 2022.

Is subscription billing better than hourly billing?

The Thomson Reuters Institute found higher pricing confidence in subscription-first firms, and it found subscriptions underused. Firms should still record time to confirm the fee covers the work.

How can a firm find out how much work goes unbilled?

Pull one report of work performed that was never billed, by client, and add it up.

Sources

Ignition. 2022 State of Client Engagement Report. Accessed October 13, 2026. https://www.ignitionapp.com/us/state-of-client-engagement.

Ignition. "Putting Off Awkward Client Conversations Is Costing US Accountants Over $76K Each Year." News release. Accessed October 13, 2026. https://www.ignitionapp.com/news/putting-off-awkward-client-conversations-is-costing-accountants-over-76k-each-year.

Rosenberg Associates. "Highlights of the 2023 Rosenberg MAP Survey." Accessed October 13, 2026. https://rosenbergassoc.com/highlights-of-the-2023-rosenberg-map-survey/.

Rosenberg Associates. "Keys to CPA Firm Profitability: Don't Ask a Partner." Accessed October 13, 2026. https://rosenbergassoc.com/keys-to-cpa-firm-profitability-dont-ask-a-partner/.

Thomson Reuters Institute. "New Report Shows Tax, Audit & Accounting Firms Need to Optimize Pricing for Profitability in 2025." 2025. Accessed October 13, 2026. https://www.thomsonreuters.com/en-us/posts/tax-and-accounting/tax-firm-pricing-report-2025/.