Citing Rising Costs, Accounting Firms Plan to Increase Fees in 2025

*Smaller shops, that is. We know Big 4 and mid-tiers have this pricing thing down.

Ignition has released its 2024 US Accounting and Tax Pricing Benchmark report and it reveals that the 325 Ignition customers surveyed are going all-in on fee increases in 2025. Or at least half-in.

90% plan to increase fees for individual tax returns, 87% plan to increase fees for business tax returns, 85% plan to increase fees for bookkeeping and accounting, and 76% plan to increase fees for CFO and controller services. 57% of accounting firms plan to increase fees across all services in 2025. Clients are just going to loooove that.

Per the 2023 National Association of Tax Professionals Fee Study, the overall average charge for individual returns, regardless of method, increased $35 and the overall average charge for business returns, regardless of method, increased $85. Nearly half of firms surveyed by Ignition (49%) charge $400 to $799 for basic individual tax return services, with approximately 17% nationally charging less than $400.

A few more key findings from Ignition’s survey:

• 54% use fixed-fee or value-based pricing for tax preparation services
• 67% use fixed-fee or value-based pricing for tax planning and advisory services
• 79% use fixed-fee or value-based pricing for bookkeeping and accounting services
• 75% use fixed-fee or value-based pricing for CFO and controller services

The report also benchmarked current fees for tax, accounting, and advisory services, which varied based on firms’ annual revenue range. The greatest variance in pricing was for tax planning and advisory services in particular. For firms with revenue of as much as $250k, about 23% said they charge less than $500 for these services, while a near-equal number (around 21%) said they charge more than $2000.

According to Ignition Global President Greg Strickland, very few firms are raising fees just to raise revenue. “While accounting firm owners are embracing price increases in 2025, the report shows that the majority (around 58%) cite rising business costs as the main motivator,” he said in a press release. “Only 5% are raising prices to increase revenue, which indicates an opportunity for firms to leverage pricing as a strategic tool to unlock revenue growth.”

Here’s what the report had to say:

Heading into 2025, many US accounting firms are re-evaluating their pricing strategies, embracing the need to increase fees for the services they offer, with nearly 57% of firms planning to increase fees next year for all services. As for the extent of these increases, the most common range is from 5% to 10% increase across all services, highlighting an industry-wide shift toward higher pricing.

The rising costs behind price increases

Mounting business expenses are driving the decision to increase fees, with nearly 58% of firms citing rising costs as the primary motivator. This indicates that firms are looking to maintain profitability by adjusting prices to keep pace with inflation, wage increases, and the general cost of running a business in current market conditions.

A missed opportunity for strategic revenue growth?

Interestingly, only around 5% of firms reported increasing fees with the specific goal of growing revenue, revealing a potential gap in how firms are leveraging pricing as a strategic tool. Although covering operational costs is essential, this finding suggests that many firms are not fully capitalizing on the opportunity to use pricing as a proactive driver for revenue growth.

Firms confidently adapting pricing strategies

Whether the goal is to manage rising costs, improve profit margins, or introduce premium service offerings, firms are taking a more strategic approach to pricing services. There is a clear shift from traditional hourly billing toward fixed-fee and value-based pricing models, signaling a broader transformation in how firms are packaging and delivering services. With hourly rates declining in popularity, this shift highlights the growing recognition that pricing should reflect outcomes and results rather than the invested time. By embracing fixed-fee and value-based pricing, firms are positioning themselves to cover rising costs and enhance their client relationships, offering the clarity and value that build long-term trust.

It sure took them long enough to get the memo.

Quick update: Completely related article we posted today.

US Accounting and Tax Pricing Benchmark [Ignition]