Outlook 2026: The Painful Paradigm Shift in Staff Pay and Hiring

Pivoting with the Paradigm: Staff salaries are rising sharply even as job growth plateaus.

New jobs data signal fundamental pivot for accounting firms.

By CPA Trendlines Research

The year 2026 may be long remembered as the paradigm-shifting moment when accounting firms were forced to pivot everything from their business models to their budgets.

MORE Outlook 2026, Pay, Hiring

The reason: Salary and pay increases are accelerating even as hiring momentum stalls.

Going into 2026, labor costs have been cleaved from labor supply. The new, structurally higher staffing line is forcing firms to rewrite their budgets as well as business models.

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Outlook 2026: Can Tax & Accounting Payrolls Keep Surging to New Highs?

Record High: Tax and accounting industry hits 1,163,600 jobs, an annualized growth rate of 2%, and a new all-time high.

By CPA Trendlines Research

The full tax and accounting industry—which includes accounting, tax preparation, bookkeeping and payroll services—has hit a new record high with 1,163,600 jobs, representing an annualized growth rate of 2%, which is measurably stronger than the year-over-year 1.23% gain, according to new data examined by CPA Trendlines. But a choppy economy and political volatility have accountants and observers alike wondering if the trends can continue in 2026

MORE Staffing and Pay Trends

CPA offices managed to add 1,700 jobs over the past year, keeping the segment on a slow but positive trajectory. Employment at offices of certified public accountants is holding steady at 544,300 positions, matching the month-before figure. The revision from the previous estimate of 544,600 marks a modest 0.06% downgrade. The year-over-year trend improved slightly to 0.3%, up from 0.2% in the prior report. READ MORE →

Weak Business Models Exposed | Gear Up For Growth

AI accelerates advisory work, but only if firms rethink pricing and risk.
Sponsored by “Radical Pricing: How to Optimize Profits, Delight Customers, and Build a Top-Value Firm” by Jody Padar | See Today’s Special Offer

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Gear Up for Growth
With Jean Caragher
For CPA Trendlines

On this episode of Gear Up for Growth, host Jean Caragher sits down with John Higgins, founder and CEO of Higgins Advisory, to explore how ChatGPT and generative AI are reshaping advisory services, pricing models, and the way CPAs work.

Higgins is blunt about the opportunity—and the risk. “AI and ChatGPT-type tools can become your advisory services assistant,” he says. “They help CPAs communicate better as advisors and focus on what matters most for each client. But you can’t let them turn into a way of giving away your time.”

Gear Up for Growth spotlights the best strategies for smart and effficient growth in today’s competitive landscape. More Gear Up for Growth every Friday here.More Capstone Conversations with Jean Caragher every Monday | More Jean Caragher here | Get her best-selling handbook, The 90-Day Marketing Plan for CPA Firms, here | More CPA Trendlines videos and podcasts here

For decades, CPAs have been told they need to “become more advisory.” The challenge hasn’t been belief—it’s been execution. Many practitioners equate advisory with answering questions accurately, rather than proactively guiding decisions.

Generative AI changes that equation.

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2026 Outlook: Why Small Firms, PE Giants, and the Middle Are Headed in Different Directions

A profession splitting in three.

By CPA Trendlines Research

The U.S. accounting profession is no longer moving along a single growth continuum. It is splitting into three distinct economic paths—each governed by a different logic, facing different challenges, and offering different prospects. In 2026, these paths are likely to diverge further.

MORE Outlook & Analysis

At one end, solo and micro-firm accountants are increasingly choosing independence and control over scale. At the other end, large firms backed by private equity are consolidating aggressively in areas where profits are already concentrated. Between them sits the traditional mid-size firm, caught between two models that are pulling the profession apart.

For many mid-size firms, 2026 will force a choice: Grow larger and enter the consolidation race? Or deliberately shrink, specialize, and adopt a more solo-like economic model?

For smaller practices, it means they will find a supportive environment, provided they specialize and price their services intelligently. Large firms will accelerate consolidation and extract scale-driven returns. And mid-size firms will face increasing pressure to choose a direction. READ MORE →