OUTLOOK & ANALYSIS

Tax Leads Accounting Industry in Price Hikes

PPIMay15thumbnailAccounting industry shows healthier pricing power than most other industries — and its own clients.

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By Rick Telberg
CPA Trendlines Research

Following hefty hikes in billing rates during tax season, the tax, accounting and bookkeeping industry is pushing through price increases three times faster than the rest of the nation’s economy, according to a new CPA Trendlines study.

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While most other industries — and, by implication, most of the profession’s clients — are barely managing to maintain price levels, the accounting industry is forging ahead aggressively. The industry’s powerful position in pricing suggests huge demand for the complex services that only accountants can provide. And many practitioners appear to be taking every opportunity possible. To be sure, costs are rising as well, with talent, technology and retirements putting pressure on many firms.

In this report, CPA Trendlines analyzes pricing trends and billing rates for:

  • CPA firm services in general,
  • Auditing and assurance services in particular,
  • Tax preparation and planning, and
  • Bookkeeping and compilations