Many accounting firms believe their rates are competitive, yet a surprising number aren’t confident those fees reflect the true value they deliver. According to a 2025 Thomson Reuters report, less than one in five tax professionals are certain their pricing captures their expertise. Meanwhile, two‑thirds of firms saw revenue grow last year, but fewer than half achieved higher profits. Clearly, pricing matters.
Why Traditional Billing Falls Short
Hourly billing still dominates but accounts for less than half of client arrangements. Hourly fees can lead to unpredictable bills for clients and discourage efficiency. With inflation pressures and technology investments eating into margins, firms need pricing models that align with value, not just time spent.
Subscription and Bundled Pricing
- Subscriptions: Linking fees to ongoing value gives clients predictable costs and firms steady cashflow. Almost one‑third of firms using subscription models report high confidence in their pricing.
- Bundled services: Packaging services into tiered plans helps clients understand what they’re paying for and allows firms to raise prices as complexity increases.
- Despite rising adoption — subscription billing grew four‑fold in the past year — these models remain underutilised. Early adopters enjoy higher margins and stronger client loyalty.
Benchmarking and Data‑Driven Decisions
The report reveals that fewer than one‑third of firms regularly benchmark their rates against peers. Relying on gut feel or anecdotal evidence leaves money on the table. Benchmarking against competitors and conducting quarterly pricing reviews can prevent margin erosion, particularly as costs rise.
Client Communication and Value Demonstration
Less than 10% of firms survey clients about pricing satisfaction. Transparent conversations about fees, updates on regulatory changes and regular demonstrations of return on investment (ROI) help clients see fees as an investment rather than a cost. Firms that show how their advice saves tax, reduces risk or improves cashflow can justify higher prices.
Applying These Strategies in Australia
Australian firms face the same challenges: rising labour costs, technology investments and changing client expectations. Adopting subscription and bundled models can smooth cashflow, especially for firms serving SMEs on annual packages. Benchmarking against local competitors and conducting mid‑year pricing “health checks” ensure rates keep pace with costs.
Takeaway
In 2025, optimising pricing isn’t just about charging more; it’s about aligning fees with the value clients receive. Subscription and bundled services, data‑driven benchmarking and clear communication can help accounting firms improve profitability and client satisfaction. As competition intensifies, smarter pricing strategies might be your most effective differentiator.