OUTLOOK & ANALYSIS

Outlook 2027: Price Hikes to Drive Revenue Growth as Headcounts Are Held in Check

Accounting firm owners expect higher prices and revenue in 2027. Fewer than two in 10 expect to hire.

Practitioners’ Plans for 2027:
Higher Billing Rates, not More People

More than 3 in 4 tax and accounting firm owners are planning rate increases for 2027, according to the CPA Trendlines 2027 Outlook Survey. 71.4% expect revenue growth. And 62% are planning increased tech expenditures. Only 17.6% are planning on more headcount.

By CPA Trendlines Research

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Stymied by capacity issues, tax and accounting firms are hoping to get new top-line growth not so much from more clients or more work as from higher billing rates, according to the new CPA Trendlines 2027 Outlook Survey.

More than nine in 10 owners expecting revenue gains, 92.2%, are also planning to push through higher billing rates in 2027.

MORE 2027 Outlook: Accountants Weigh Business Risks and Client Cash | MORE in Surveys & Research | Firms Look to Pricing for Growth | IRS Problems, Staffing Issues and Client Wrangling | Clients, Pricing, Staffing… CRUNCH | Red Flag Warning: Accountants Lose Faith in the Economic Outlook | CPA Firms Show Signs of Profit Weakness, Even as Fees Strengthen
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“I think we are at a growth hump. It is hard to get over,” says the owner of a firm with one to nine people.

The CPA Trendlines survey shows 77.6% expect prices or billing rates to rise, 71.4% expect higher revenue, 61.6% expect higher technology spending, and 53.1% expect higher net profit. Just 17.6% expect staffing to increase. Among those expecting revenue gains, 76.3% expect flat or lower headcount. Of those, 57.5% also expect to handle more clients.

Price increases are mostly moderate: 67.7% expect increases of up to 10%, and 9.9% expect more than 10%. Profit expectations trail revenue, with 53.1% expecting an increase, 36.9% expecting little or no change, and 10% expecting a decline.