Ignition’s 2024 US Accounting and Tax Pricing Benchmark report sheds crucial light on pricing strategies and fee adjustments, providing CPA and accounting firms with actionable insights to maximize profitability while staying competitive. As we approach 2025, this report reveals a significant trend: over half of the surveyed firms plan to increase fees across all services in the coming year.
But how should firms respond to these trends? How can they use these insights to not only maintain profitability but also strategically position themselves for long-term growth? Below, we break down the report’s findings and outline practical steps for firms to thrive in a changing pricing landscape.
Key Findings: A Data-Driven Approach to Pricing
The report surveyed 345 U.S. accounting firms, uncovering critical trends that firms can use as benchmarks:
- 57% of firms plan to increase fees across all services in 2025.
- 90% of firms plan to increase fees for individual tax returns.
- 87% of firms plan to increase fees for business tax returns.
- 70% of firms plan to increase fees for tax planning and advisory services.
- 85% of firms plan to increase fees for bookkeeping and accounting services.
- 76% of firms plan to increase fees for CFO and controller services.
Rising business costs—such as inflation, wage growth, and operational expenses—are the primary drivers for these adjustments, cited by 58% of respondents. Despite these upward adjustments, only 5% of firms mentioned revenue growth as a reason for price hikes. This presents an opportunity for firms to reconsider how pricing can serve not only as a reaction to costs but as a proactive strategy for growth and differentiation.
Pricing Model Trends: A Shift Towards Value
One of the most notable shifts identified in the report is the migration away from hourly billing models to fixed-fee and value-based pricing. This evolution represents more than just a change in methodology; it reflects a broader trend toward emphasizing outcomes and client value.
- 54% of firms use fixed-fee or value-based pricing for tax preparation services.
- 67% of firms use fixed-fee or value-based pricing for tax planning and advisory services.
- 79% of firms use fixed-fee or value-based pricing for bookkeeping and accounting services.
- 75% of firms use fixed-fee or value-based pricing for CFO and controller services.
By aligning fees with results rather than time, firms can:
- Enhance client relationships by delivering clearer expectations and perceived value.
- Strengthen profitability by bundling services that align with client goals.
- Establish trust through transparent pricing, reducing client pushback during fee discussions.
Firms that embrace these models are better positioned to mitigate increasing operational costs while maintaining client satisfaction.
Read our article on Accounting services pricing guide: How to emphasize value in 2025 for more details.
Exploring Outsourcing as a Strategic Cost Reduction Tool
In addition to revising pricing strategies, firms should evaluate outsourcing as a vital approach to cost reduction. Outsourcing enables firms to streamline operations, access specialized expertise, and reduce overhead costs. By partnering with an outsourcing provider, accounting firms can:
- Lower operational costs by eliminating the need for in-house support teams.
- Scale operations efficiently without adding fixed expenses.
- Leverage domain-specific experts who are familiar with global accounting standards and compliance requirements.
- Free up internal resources to focus on high-margin advisory and consulting services.
Outsourcing accounting, bookkeeping, tax preparation, and even CFO services ensures consistent quality while maintaining flexibility to adjust to market demands.
Practical Steps for Implementing Pricing and Cost-Optimization Strategies
Implementing price increases and transitioning to value-based models can be challenging. Here are actionable steps for accounting firms to consider:
- Conduct a Pricing Audit: Compare your fees against the benchmarks provided in Ignition’s report. Identify services where your pricing lags industry standards and opportunities to introduce value-based offerings.
- Communicate with Clients: Transparency is key. Explain the rationale behind fee adjustments, highlighting rising costs and the added value your services bring. Offer detailed breakdowns when introducing new pricing models.
- Leverage Outsourcing: Partner with specialized outsourcing firms like Finsmart Accounting to reduce costs, maintain service quality, and gain access to English-speaking, tech-savvy talent with domain expertise.
- Train Your Team: Equip your staff with tools and scripts to articulate the benefits of new pricing structures. Their confidence in communicating value will impact client acceptance.
- Test Tiered Pricing: Consider introducing premium service packages that cater to clients with complex needs. This approach allows you to offer flexibility while boosting revenue potential.
- Use Technology to Enhance Delivery: Leverage automation, AI, and cloud-based tools to increase efficiency, justifying pricing based on faster and more accurate results.
Opportunities Beyond Fee Increases
Firms that only view pricing changes as a response to operational costs may miss a larger opportunity. By treating pricing as a strategic lever, accounting practices can unlock benefits such as:
- Expanding service offerings to differentiate themselves in competitive markets.
- Improving resource allocation by focusing on high-margin services.
- Creating scalable revenue streams with subscription-based or retainer models.
The firms that stand out in 2025 will be those that use pricing not just as a necessity but as a competitive advantage.
How Finsmart Accounting Can Support Your Firm
To navigate these industry changes, partnering with a reliable outsourcing provider can make all the difference. Finsmart Accounting offers comprehensive outsourcing solutions tailored to meet the unique needs of CPA and accounting firms. Our services include:
- Accounting and Bookkeeping: Delivering accurate, timely financial management that reduces operational burdens.
- Tax Preparation: Ensuring compliance with U.S. and international tax standards, leveraging tech-savvy professionals.
- Advisory Services: Providing insights that help clients achieve their financial goals while enhancing your service portfolio.
- CFO and Controller Services: Offering experienced professionals to manage strategic financial planning and reporting.
With a team of English-speaking, domain-expert professionals, Finsmart Accounting empowers your firm to maintain quality while optimizing costs. Our tech-enabled processes ensure seamless integration into your operations, allowing your firm to scale without compromising client satisfaction.
Choose Finsmart Accounting to stay ahead of the curve in 2025. Leverage our expertise to enhance profitability, streamline workflows, and deliver exceptional client value in an ever-evolving market.
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In this Article
editor
Maanoj Shah is the Co-founder & Director of Growth Strategy & Alliances at Finsmart Accounting, where he pioneered the “Accounting Seat” model—a revolutionary offshore embedded staffing solution purpose-built for Accounting and CPA firms. Widely recognized as an outsourcing and offshoring expert, Maanoj’s insights have been featured in leading accounting publications, and he regularly speaks at premier industry conferences including Scaling New Heights, Bridging the Gap, BKX, and Women Who Count.
A dynamic growth leader with over two decades of experience, Maanoj has incubated, scaled, and exited ventures across Fintech, HR, and Consulting sectors, holding various CXO roles throughout his career. His passion for scaling businesses is matched by his commitment to social impact. He is the Co-founder of Mission ICU, a national healthcare initiative that installs critical care units in underserved areas of India, and was recognized by the World Economic Forum for its last-mile impact.
Outside of work, Maanoj leads an active lifestyle as an avid tennis player and passionate golfer, blending strategy and agility on and off the court.
CONTENT DISCLAIMER
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Finsmart Accounting does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.
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