Accounting Firms Plan Fee Increase in 2026 Amid Rising Costs

What's Happening?

A recent survey conducted by Ignition reveals that 80% of U.S.-based accounting firms plan to raise their fees in 2026. The survey, which included 219 firms, indicates a shift from hourly billing to value-based pricing due to rising business costs. Approximately 37% of firms plan to increase prices by 5%, while 30% aim for a 10% hike. The report highlights that 40% of firms cite rising costs as the primary reason for the price increase, with others aiming to improve profit margins and revenue growth. Despite concerns about losing clients, many firms remain confident in their pricing strategies, with 65% expressing confidence and 26% being very confident. The survey also notes changes in pricing models, with a decline in hourly billing for services like tax preparation and CFO/controller services.

Why It's Important?

The planned fee increases reflect broader economic pressures faced by the accounting industry, including inflation and rising operational costs. This shift towards value-based pricing could lead to more predictable revenue streams for firms, enhancing financial stability. However, it may also pose challenges for clients, particularly small businesses, who might face higher costs for essential services. The industry's move away from hourly billing suggests a trend towards pricing transparency and efficiency, potentially benefiting firms with improved client relationships and profitability. As firms adapt to these changes, they may need to balance competitive pricing with maintaining service quality to retain clients.

What's Next?

Accounting firms are likely to continue exploring innovative pricing strategies to optimize revenue and client satisfaction. The introduction of AI-powered pricing intelligence by Ignition later this year could further support firms in making informed pricing decisions. As firms implement these changes, they may face scrutiny from clients and industry observers, necessitating clear communication about the value and benefits of their services. Additionally, firms may need to monitor client retention closely to ensure that price increases do not adversely affect their business.