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

Over half of firms plan to increase fees across all services in 2025 due to rising business costs; shift to fixed-fee and value-based pricing models more common

SAN FRANCISCO, CA, UNITED STATES, November 6, 2024 /EINPresswire.com/ -- Ignition¹, the leading contracts, billing and collections automation platform for professional services, today released the 2024 US Accounting and Tax Pricing Benchmark³, 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.”

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

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

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 Firm² 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.

Research methodology
Ignition gathered responses from 345 customers across the US in August 2024 using an online survey. The responses were segmented to show national survey results and survey results by firm revenue, with percentages rounded to the nearest decimal. Respondents were owners or decision-makers in accounting firms, with nearly 40% of surveyed firms reporting annual revenue of $701k to $3.5M.

About Ignition:
Founded in 2013, Ignition is the leading contracts, billing and collections automation platform for professional services to maximize revenue and efficiency. With a vision to transform how professional services and their clients do business together, Ignition helps around 7,500 businesses to sell, bill and get paid for their services with ease. To date, Ignition customers have engaged over 1.7 million clients and generated over USD $8b in revenue via the platform. Ignition’s global workforce spans Australia, Canada, New Zealand, the Philippines, US and the UK. Visit ignitionapp.com

Kasia Ciszak
Ignition
media@ignitionapp.com
Visit us on social media:
Facebook
X
LinkedIn

¹ https://www.ignitionapp.com
² https://futurefirm.co
³ http://www.ignitionapp.com/us/2024-accounting-tax-pricing-benchmark