Ignition’s Pricing Benchmark uncovers shift among U.S. accounting firms toward price increases

San Francisco, CA, November 6th — Ignition, the leading contracts, billing and collections automation platform for professional services, today released the 2024 US Accounting and Tax Pricing Benchmark, which highlights that 57% of accounting firms plan to increase fees across all services in 2025 due to rising business costs.

Based on insights from a survey of US-based accounting decision-makers using Ignition, the benchmark enables firm owners to assess pricing strategies and competitiveness for common tax, accounting, and advisory services.

“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,” says Greg Strickland, Ignition’s Global President. “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.

“Ignition’s platform can help firm owners price and package their services more effectively to maximize revenue – and take the awkwardness out of raising fees with ‘one-click’ price increases when renewing client agreements.”

Firms embrace price increases in response to rising costs

The report highlights that rising business costs are driving fee increases, with most firms planning to increase fees across services by 5% or 10%. Key findings include:

• 57% plan to increase fees across all services
• 90% plan to increase fees for individual tax returns
• 87% plan to increase fees for business tax returns.
• 70% plan to increase fees for tax planning and advisory services.
• 85% plan to increase fees for bookkeeping and accounting services.
• 76% plan to increase fees for CFO and controller services

A shift toward strategic pricing models

The report also indicates a clear shift from hourly billing to fixed-fee and value-based pricing. This trend underscores a growing focus on aligning fees with outcomes and long-term client value, rather than the time invested. Key findings include:

• 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

Opportunity for firms to use pricing as strategic lever

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.

Reflecting on the overall report findings, Ryan Lazanis, CPA, CEO of Future Firm and former Ignition customer, says that excluding the firms in the highest revenue ranges, many firms are still underselling themselves.

“Pricing and packaging services are critical areas in which many firms struggle, yet they’re two of the most important levers to pull to boost a firm's performance,” says Lazanis. “Too many accountants are undercutting themselves, charging far less than they should for the value they deliver, which can lead to being overworked and burned out. 

“With better pricing and packaging, firms could charge more for the same work – and need fewer clients to reach their financial goals.” 

To download the 2024 US Accounting and Tax Pricing Benchmark and Ryan Lazanis’ How to set and land high prices guide, visit http://www.ignitionapp.com/us/2024-accounting-tax-pricing-benchmark.