Accounting Invoice Example: Annotated Template with Line Items

Sample accounting invoice

The arithmetic: $850 + (2 × $175 = $350) + $2,800 + $350 + (1.5 × $275 = $412.50) = $4,762.50. The 0% tax line reflects this firm's own check that these services are not taxable where it works; it is not a rule for every state.

Payment Terms: Net 15. ACH or check payable to Clearpath Accounting Group. Completed returns are released for filing once this invoice is paid, as set out in our engagement letter. Overdue balances are subject to 1.5% monthly interest as agreed in the engagement letter.

Notes: Your tax year 2025 Form 1120-S draft is ready for your review. We filed Form 7004 by the March 16, 2026 due date, so the extended filing deadline is September 15, 2026. Please send any remaining documents by June 30.

Field-by-field breakdown

• From: Firm name with CPA designation, address and billing email. Some state boards of accountancy have rules on how a firm name and licence are displayed, so check yours. A PTIN is an IRS requirement for preparing federal returns for pay; it goes on the return you sign, not on the invoice.
• To: Client business name, owner or CFO, and billing address.
• Engagement reference: Ties the invoice to the engagement letter, which is where scope, fees, interest and the policy on releasing returns should be agreed.
• Fixed-fee services: Bookkeeping and tax preparation are often billed as flat fees. Show each as its own line so the client can match it to the engagement letter.
• Hourly advisory: Planning calls and ad hoc work are often billed hourly. Show the hours and the rate.
• Payroll processing: Per-run pricing with the number of employees helps the client check the charge. The IRS notes that an employer who outsources payroll stays responsible for its federal payroll tax deposits, so many firms say on the invoice or engagement letter which filings they handle.
• Deadline note: For a calendar-year S corporation, the 2025 Form 1120-S was due March 16, 2026 (March 15 fell on a Sunday), and Form 7004 gives an automatic six-month extension, per the IRS Instructions for Form 1120-S and Instructions for Form 7004 (accessed October 28, 2026).
• Tax line: Whether accounting services are taxable is a state question. New Mexico's gross receipts tax, for example, applies to services performed in the state, according to the New Mexico Taxation and Revenue Department. Check your own state revenue department before adding tax.

How the fee on each line is set

A fee on an accounting invoice should be a fixed amount or hours times a rate. Treasury Department Circular 230, 31 CFR §10.27, bars unconscionable fees and, apart from narrow exceptions, contingent fees for matters before the IRS. A fee based on a percentage of the refund or of taxes saved counts as a contingent fee. The exceptions include work on an IRS examination, claims solely about statutory interest or penalties, and judicial proceedings. A 2014 federal court ruling (Ridgely v. Lew) limited enforcement for ordinary refund claims, Treasury proposed revising these rules in December 2024, and CPAs also follow the AICPA Code of Professional Conduct and their state board. Check the current rules before agreeing any result-based fee. (eCFR text checked October 28, 2026.)

We have left out the "typical rate range" tables that many sample invoices carry, because none we found traced to a dated primary survey. For a published reference point, the 2025 NATP Fee Study found that tax preparers who charge a set hourly rate averaged $182 an hour, though only 7% of respondents price that way. For building your own rates and packages, see how to price accounting services.

Variations

• Bundled retainer: Some firms package bookkeeping, payroll and tax preparation into one monthly fee. List what the fee covers so out-of-scope work can be billed separately.
• Hourly billing only: Firms that bill purely by the hour list each task with time and rate.
• Audit engagements: Larger audit invoices often show a flat engagement fee plus staff hours by level (partner, manager, senior, staff).
• Advisory-heavy firms: Outsourced CFO invoices may have a monthly fee plus overage hours.
• Bookkeeping-only practices: See the bookkeeper invoice template and how to invoice as a bookkeeper.

Tips for accounting invoicing

1. Bill tax preparation when the draft return is ready for review. Many firms do this so the invoice and the review happen together.
2. Group recurring services (bookkeeping, payroll) together and list one-time work (tax preparation, cleanup) separately.
3. Note upcoming deadlines in the invoice notes so the client knows what they still owe you in documents.
4. Set up recurring invoices for monthly services. In InvoiceQuickly, Pro can create a recurring schedule that makes each month's invoice as a draft for review or sends it. Schedules run during daily automation checks or when an owner or admin uses Run now. The recurring form creates one line item with the saved tax rate and saved payment terms (30 days by default), so build multi-line invoices by duplicating last month's instead. InvoiceQuickly does not charge saved cards; clients pay each invoice by your usual method or through a Stripe or PayPal payment link on Pro.

Frequently asked questions

Should accountants charge sales tax on their services?

It depends on the state. Some states tax services through a gross receipts tax: New Mexico's applies to services performed in the state. Check your state revenue department before adding tax. InvoiceQuickly applies one tax percentage per invoice, so put taxable and non-taxable work on separate invoices if both apply.

Can an accountant charge a percentage of a tax refund?

Generally no. Circular 230 section 10.27 treats a fee based on a percentage of the refund as a contingent fee and bars contingent fees for matters before the IRS, apart from narrow exceptions. A 2014 court ruling limited enforcement for ordinary refund claims, and CPAs also follow AICPA and state board rules, so check before agreeing to one.

How do I handle a client who delays sending documents for tax prep?

Set a document deadline in your engagement letter. If the client misses it, file the extension (Form 7004 for an S corporation, by the original due date) and bill any extension fee your engagement letter allows as a separate line.

Can I hold a tax return until the invoice is paid?

Circular 230 section 10.28 requires you to return the client's own records promptly on request, even during a fee dispute. Returns and schedules you prepared yourself are excluded from those records while you hold them pending payment of the fee for that work (31 CFR §10.28, accessed October 28, 2026). State your policy in the engagement letter and check your state board's rules too.

This page is general information, not tax or legal advice. Last reviewed October 28, 2026.

---

Create accounting invoices from the accounting services invoice template, or sign up for InvoiceQuickly to draft and send them.