• • • Changing the balance of taxes 鈥� Budget鈥慸riven tax swaps and incentive reforms are changing the balance between income, property, and sales taxes, forcing large companies to revisit their multistate footprint.

    • How revenue is sourced is changing, too 鈥� Rapidly evolving digital and AI鈥憆elated taxes are creating new nexus, sourcing, and base鈥慸efinition issues for businesses that rely on revenue from digital advertising, social platforms, data monetization, and automated tools.

    • Planning amid continued uncertainty 鈥� New federal tax regulations, tariff鈥憆elated uncertainty, and even the elimination of the penny are all amplifying state鈥慴y鈥憇tate complexity for in鈥慼ouse tax departments.

WASHINGTON, DC 鈥� Tax industry experts who gathered at to provide updates on the current landscape of state and local tax (SALT) policy and offer insight that corporate tax departments should consider found, not surprisingly, that they had a lot to talk about in the current economic environment.

Mapping the new SALT frontier

For starters, this year鈥檚 SALT agenda is not just an abstract policy story for large, multistate businesses, rather, it鈥檚 a direct driver of cash taxes, effective tax rate (ETR) volatility, and audit exposure. Indeed, several state legislatures are advancing new taxes on digital advertising and data, revisiting incentives and data center exemptions, and using conformity to federal law 鈥� especially the tax provisions in the One Big Beautiful Bill Act (OBBBA) 鈥� as a policy lever, all against the backdrop of slowing revenues and contentious elections.

鈥淭ax swaps鈥� and incentives 鈥� States that are facing budget pressure are, unsurprisingly, looking at tax swaps to reduce income or property taxes while broadening the sales & use tax base and trimming exemptions. For example, on March 3, the state of Florida 鈥� which already doesn鈥檛 have a state income tax 鈥� passed legislation that in the state.

Moreover, with the rapid expansion of AI come the extensive need for data centers. Several states are reassessing data center exemptions and credits, either tightening qualification standards, requiring centers to supply more of their own power, or repealing incentives outright. A decision in Virginia to , for example, is viewed as a potential template for other states, particularly in those areas in which energy and environmental concerns are priorities. At the same time, proposals targeting include expanded corporate tax disclosures, CEO compensation surcharges, and enhanced reporting on apportionment and group filing methods.

What companies should consider 鈥� Large companies operating over multiple states should consider making an inventory of their credits and incentives by jurisdiction, including looking at sunset dates and political risk indicators.

Companies should also build forward鈥憀ooking models that show how any sales tax base expansion would interact with their supply chain and their procurement of digital and professional services.

New exposure for tech, marketing & data

Bipartisan legislators in several states are continuing to expand on digital economies as a revenue and policy target. For example, Maryland continues to lead with its digital advertising tax; while Washington state鈥檚 expansion of its sales tax to include certain digital and IT services and Chicago鈥檚 social media taxes illustrate the variety of approaches that state and local jurisdictions are exploring to expand their tax base and raise revenue.

Data and 鈥渄igital resource鈥� taxes 鈥� Proposals in states such as New York would tax companies that derive income from resident data, treating data as a natural resource. While no state has fully implemented a comprehensive data tax, however, large platforms and data鈥慸riven enterprises are monitoring these bills closely.

AI鈥憆elated SALT rules 鈥� Many states still classify AI solutions under existing Software as a Service (SaaS) or data鈥憄rocessing categories, but some 鈥� including New York 鈥� are exploring surcharges tied to AI鈥慸riven workforce reductions. And at least two states are explicitly taxing AI, similarly to the way software is taxed.

For corporate tax leaders, some practical next steps should include mapping those areas in which your group has digital ad spending, user bases, data monetization, or AI deployments. Then, overlaying that with current and pending digital tax proposals. In parallel, it is increasingly critical for the tax team to partner with IT and marketing teams to understand how contracts, invoicing structures, and platform design will affect nexus, tax base definition, and sourcing.

Federal shifts magnify multistate complexity

The OBBBA made permanent several of , while expanding SALT relief on the individual side and creating new interactions for multinational groups. Because most states start from federal taxable income 鈥� either on a rolling, static, or selective conformity basis 鈥� OBBBA changes reverberate across state corporate income tax bases, especially in those states that have decoupled themselves from interest limits, R&D expensing, or new production鈥憆elated incentives.

Corporate tax departments must now juggle different conformity dates and selective decoupling rules across rolling and static states, including jurisdictions that automatically decouple when a federal change exceeds a revenue impact threshold. This requires more granular state鈥慴y鈥憇tate modeling of OBBBA impacts on apportionable income, deferred tax balances, and cash tax forecasts. It also heightens the risk that political disputes 鈥� such as 鈥� produce mid鈥慶ycle changes that complicate provision and compliance processes.

Penny elimination 鈥� With federal , states now are moving toward symmetrical rounding for cash transactions, rounding the final tax鈥慽nclusive total to the nearest five cents while attempting not to alter the underlying tax computation. For retailers and consumer鈥慺acing enterprises, this shifts the focus to point of sale (POS) configuration, consumer鈥憄rotection exposure, and class鈥慳ction risk if rounding is implemented incorrectly.

Tariffs and refunds 鈥� The U.S. Supreme Court鈥檚 Learning Resources, Inc. v. Trump decision under the International Emergency Economic Powers Act in February leaves open how more than $100 billion in and what that means for prior sales & use tax treatment. Streamlined guidance generally treats tariffs embedded in product prices as part of the taxable sales price but excludes tariffs paid directly by a consumer鈥慽mporter from the tax base, raising complex questions if tariff refunds reduce costs or sales prices retroactively.

For indirect tax department teams, the confluency of the 2026 SALT changes 鈥� including the impacts around everything from data center credits to the recent Supreme Court tariff decision 鈥� the need to rely on internal partners across the business has never been stronger. Combining that with a greater reliance on technologies, including dedicated research tools to stay abreast of state-by-state tax changes, may be the best way for corporate tax teams to keep up with compliance requirements and avoid penalties.

You can download a full copy of here

Key highlights:

• • • Universities face pressure over pedagogy鈥� Academic institutions are adopting AI as a reputational marker that鈥檚 driven by market pressure rather than educational need, creating a risk for students who can work with AI but not independently of it.

    • Entry-level roles under threat鈥� AI is being deployed most heavily to automate the grunt work of entry-level positions in which foundational professional skills are traditionally built through struggle and feedback.

    • K-shaped cognitive economy emerging鈥� Experienced professionals with existing expertise are gaining efficiency from AI, while entry-level workers are losing access to skill-building experiences.

According to Harvard University’s Professional & Executive Development division, innovation is defined as a 鈥減rocess that guides businesses through developing products or services that deliver value to customers in new and novel ways.鈥� Along this journey, professional judgement in decision-making is used numerous times to determine next steps at key stages.

Notably, the word technology is nowhere to be found in this definition 鈥� an absence , Assistant Professor of Learning Technologies at the University of Minnesota, has long found revealing. Instead, innovation is framed as creative problem-solving, contextual intelligence, and the ability to work across perspectives. Interestingly, Dr. Heinsfeld adds, none of these require constant automation. In fact, many of them are undermined by it.

However, AI adoption has the real potential to automate away the very experiences that build these capabilities from university lecture halls to corporate offices. With notable data already suggesting that , the risk that the current approaches to AI use in universities and companies are engineering away innovation and professional judgement skills is real, notes , Group Leader in AI Research at Harvard and NTT Research.

Indeed, some observers view AI as the largest unregulated cognitive engineering experiment in human history. Yet, unlike medical drugs that require years of approval and testing, AI systems are reshaping how millions of students think, learn, and make decisions without a comparable approval process or a shared framework for discussing any potential 鈥渟ide effects,鈥� as Dr. Heinsfeld pointed out.

Most worrisome is that AI is being deployed most heavily to automate precisely the entry-level roles where foundational professional skills are built.

So, what happens when an entire generation of future employees learn to delegate judgment before they develop it? And what actions do universities and companies need to take now to avoid this reality?

Risks of universities adopting AI under pressure

For universities, AI 鈥渉as become a reputational marker, and not adopting AI is framed as institutional risk, regardless of whether an educational case has been made or not,鈥� says Dr. Heinsfeld, adding that this is being driven, in part, by market pressure rather than pedagogical need.

Already, companies can greatly influence universities as employers of new graduates; and as such, AI systems are currently being optimized for speed, agreeability, and accessibility to stimulate ongoing use. However, as Dr. Heinsfeld contends, as universities race to earn the label AI ready without a careful, cautious and detailed understanding of how it may impact students鈥� cognitive processes, they run the risk of damage to their reputations of pedagogical integrity.

In addition, the “data as truth” paradigm is a complicating factor, she says. Drawing on her research, Dr. Heinsfeld explains how data 鈥渋s often framed as the idea of being a single source of truth based on the assumption that when collected and analyzed, it can reveal objective, indisputable facts about the world.鈥� Indeed, this ubiquitous mindset across universities and corporations treats data 鈥� such as that used to train large and small language models 鈥� as objective and indisputable.

Yet this obscures critical decisions about what gets measured, whose perspectives are included, and what forms of knowledge are systematically excluded from AI systems. As Dr. Heinsfeld warns, when data becomes synonymous with truth, “knowledge is what is measurable and optimizable.鈥� This narrows professional judgment to efficiency metrics rather than the interpretive depth, ethical reasoning, and cultural context that are essential for sound decision-making.

Judgment gap widens in workforce downstream

Under the current AI adoption approach, students could leave universities able to work聽with聽AI but not independently聽of聽it, a distinction emphasized by Dr. Heinsfeld. Like calculators, AI works as a tool only when foundational skills for its use exist first. Without this, graduates enter the workforce with a critical judgment gap that compounds from their lives as students at college campuses to becoming employees working in corporations.

AI adoption has the real potential to automate away the very experiences that build these capabilities from university lecture halls to corporate offices.

Most worrisome is that AI is being deployed most heavily to automate precisely the entry-level roles where foundational professional skills are built, warns Dr. Tanaka. Indeed, this is exactly the type of grunt work that teaches judgment through struggle and feedback. Over time, overuse of AI will result in quality being sacrificed because critical evaluation skills have atrophied.

Looking into the future, Dr. Tanaka foresees a K-shaped economy of cognitive capacity. Experienced professionals with existing expertise and contextual judgment built through years of experience will gain increasing efficiency from AI. Entry-level workers, however, will lose access to the valuable experiences that build professional judgement. This gap widens between professionals who can independently accelerate their workflows using AI and those whose traditional tasks are merely displaced by it.

Intervention may be able to break the cycle

The pattern is not inevitable, as both Dr. Tanaka and Dr. Heinsfeld explain. Drawing on Dr. Heinsfeld鈥檚 emphasis on institutional agency, meaningful intervention will depend on conscious, intentional choices made at every level. Both experts share their guidance for how different organizations can manage this:

Academic institutions 鈥� Universities must first recognize that AI adoption is a decision rather than an inevitability and make educational need the North Star for decision-making around AI. In her analysis, Dr. Heinsfeld emphasizes that when vendors set defaults, they quietly redefine academic practice. Defaults shape what is made visible or invisible and what becomes normalized. In AI-driven environments, universities often lose control over how models are trained and updated, what data shapes outputs, how knowledge is filtered and ranked, and how student and faculty data circulate beyond institutional boundaries 鈥� especially if decision-making is left to vendors. As a result, the intellectual byproducts of teaching and learning increasingly become inputs into external systems that universities do not govern.

Private entities 鈥� For organizations, Dr. Tanaka calls for feedback loops and other mechanisms that will promote more open discussion about AI use without stigma. In addition, companies need to proactively redesign entry-level roles聽to ensure these positions continue to cultivate judgment and foundational skills in an AI-driven environment. Likewise, Dr. Tanaka suggests that companies explicitly provide feedback about cognitive trade-offs to employees, fostering an understanding of possible skill entrophy.

Employees 鈥� Similarly, individuals working for organizations bear much of the responsibility for making sure critical thinking is enhanced by AI. Indeed, strategic decisions about when to use AI while seeking to preserve cognitive capacity and professional judgement are key.

Looking ahead

In today鈥檚 increasingly AI-driven environment, a new paradigm is needed to combat the current operating assumption that optimization from AI is the sole path to progress. And because the current trajectory sacrifices human development for efficiency, the need for universities and companies to choose a different path is urgent 鈥� while they still have the judgment capacity to do so.

You can find out more about how organizations are managing their talent and training issues here

Key takeaways:

• • • Ways of achieving growth has changed 鈥� Sustainable growth now depends less on raw revenue and more on improving income per partner through smarter leverage, intentional service mix, and disciplined pricing.

    • Proactive firms will be better positioned 鈥� Firms that adopt data-driven pricing, bundled offerings, and subscription models will be better positioned to communicate value, raise fees confidently, and protect margins.

    • Differentiators are shifting 鈥� Leadership depth, culture, and succession planning are emerging as decisive differentiators as demographics shift, private equity reshapes the tax market, and next-generation partners step into control.

Tax, audit & accounting firms are still growing, but not all that growth is reaching the bottom line 鈥� indeed, 2026 is shaping up as a separate or be separated moment for many tax firm leaders. To sustain income per partner while the market shifts, firm leaders need to be far more intentional about how they grow, price, staff, and position their tax practices.

Here are five important ways that tax firm leaders can ensure their bottom-line growth keep pace with their top-line revenue:

1. Be deliberate about how you grow

Revenue is rising, but margins are under pressure. For example, for firms with revenue of more than $2 million, revenue grew 7.9%, yet income per equity partner (IPP) increased only 3.2%. This may imply that although firms are bringing in more money, the remaining profits available to distribute to equity partners isn鈥檛 growing at the same rate. This could mean that it鈥檚 costing firms more to generate more revenue possibly because expenses are eating into margins.

Meanwhile, 13.9% of total growth for firms whose revenue is more than $2 million now comes from mergers, and for firms with revenue of more than $20 million, more than one-fifth of growth is merger-driven.

For growth strategy, leaders should clarify their organic growth plans in light of this robust M&A drive, deciding when acquisitions are truly about capacity, specialization, or geography and when they are merely propping up lagging organic growth.

Leaders need to protect IPP metrics by focusing relentlessly on revenue per partner and revenue per person as primary levers, rather than chasing top-line growth for its own sake. Leaders also need to build optionality 鈥� with private equity, mega-firm consolidators, and independents all active, factors such as succession, capital, and ownership design have become core strategic decisions that can no longer be left to chance.

2. Treat pricing as a growth discipline

In the 成人VR视频 Institute’s pricing report for tax, audit & accounting firms, 64% of decision-makers said their firms saw revenue increases, but only 45% reported increased profits 鈥� a clear indication of margin compression. Further, just about 1-in-5 professionals said they feel 鈥渉ighly confident鈥� that their firm鈥檚 current pricing reflects the expertise of its professionals.

To be sure, key pricing work now involves moving beyond what the market will bear. While hourly billing still dominates (according to the report firms said over 40% of client engagements are billed on an hourly basis) 鈥� value-aligned methods such as fixed fees, subscriptions, and bundled packages are strongly associated with higher pricing confidence and a firm’s greater ability to raise fees.

To excel in this area, tax firm leaders need to use data rather than their gut. Although only 30% of respondents said their firm regularly benchmark their pricing against competitors, leaders overwhelmingly say better market intelligence would increase pricing confidence. Also, firms should expand subscription and bundle pricing options, since respondents form subscription-billing firms report significantly higher confidence that their pricing reflects value. Indeed, many firms using bundled packages have raised prices 10% to 24% or more over the past two years.

3. Build a capacity model that scales

The Rosenberg data is blunt: The fastest path to higher income per partner is not logging more partner hours 鈥� it is using smart leverage and stronger rates. Elite tax firms (those with IPP above $800,000) generate roughly $3.9 million in revenue per equity partner and maintain staff-to-partner ratios of around 17:1.

Several capacity dynamics matter in practice. Leverage drives profitability, for example, and those firms that have staff-to-partner ratios above 10 report IPP roughly double that of firms with ratios below 3, even though they may carry higher salary percentages.

Further, outsourcing has become mainstream. More than 4-in-10 firms (42%) with more than $2 million in revenue now outsource full-time equivalent (FTEs) employees, a figure that rises to 63% among firms with more than $ 20 million dollars. Interestingly, turnover has eased to about 11%, the lowest for the industry in years, but expectations have shifted as firms intentionally reduce average billable hours per staff member to prioritize sustainable workloads.

In fact, the key growth question is no longer Can we find the work? but rather Can we design a capacity model 鈥� onshore, offshore, AI-enabled 鈥� that supports higher rates without burning out our people?

4. Formalize strategy, marketing & service mix

Firms with written strategic plans earn about 4.5% more IPP than those without, according to the data, and firms with a formal marketing plan enjoy about 9% higher IPP. The most profitable firms are also more intentional about service mix, tilting toward advisory and financial services.

Growth-enabling practices start with written strategic and marketing plans. Firms that document these plans consistently outperform their peers, particularly when navigating private equity interest, AI adoption, and succession decisions. Many leading tax firms are deliberately shifting from compliance to advisory, reducing their reliance on commodity tax compliance and expanding into higher-value advisory work to drive stronger profitability. These firms are also packaging and communicating value more effectively by bundling compliance and advisory services into tiered packages, which in turn gives them greater ability to raise fees and justify premium positioning in the market.

5. Invest in leadership, culture & succession

Growth without leadership depth is fragile, especially in the tax profession in which the average partner age has remained high. Most recently, however, the average partner age has dipped slightly to about 52 years old as more retirements occur. And female partners now account for roughly one-quarter of partner groups overall, showing progress but also a persistent equity gap.

For many firms, succession remains a primary concern, and leadership-related growth priorities begin with treating succession as strategy, not an HR project. More firms are revisiting buy-in levels, which average around $133,000, and are experimenting with non-equity roles and alternative practice structures to create more flexible pathways to ownership. At the same time, leaders must protect and modernize their firm culture, recognizing that poorly managed PE transactions, rigid return-to-office policies, and underinvestment in technology-forward talent can quickly erode the very engines of growth they depend on.

Additionally, firms are elevating the managing partner role. In larger practices, managing partners鈥� chargeable hours are now meaningfully lower, reflecting an intentional shift toward having that role work on the business 鈥� strategy, talent, pricing, and M&A 鈥� rather than in it.

For tax firm leaders, these five considerations form a practical checklist for 2026 planning. Grounding each strategic initiative in data and taking visible action can help ensure that the next wave of growth shows up not just in revenue, but in sustainable, rising income per partner.

You can download a copy of the 成人VR视频 Institute’s pricing report for tax, audit & accounting firms, here

Key takeaways:

• • • Data is your foundation, not AI 鈥� Before investing in AI tools, corporate tax departments are finding they need to centralize and automate their data across multiple ERP systems because clean, accessible data often determines whether technology implementations succeed or create additional problems.

    • Compliance is becoming commoditized 鈥� Specialization creates differentiation, and tax firms are discovering they can no longer differentiate themselves through basic compliance work that technology can complete in seconds. That means that successful practices are going deep into emerging fields like crypto, providing strategic insights that generic practices can’t match.

    • Learning to tell the story behind the numbers 鈥� A valuable skill for in-house tax professionals is becoming data fluent enough to analyze outputs and communicate tax implications to non-tax stakeholders. This ability to translate complexity into actionable business advice can transform your tax department from a cost center into a strategic partner.

If you’re spending most of your week on manual data entry and routine compliance work, you’ve likely noticed the ground shifting beneath the tax, audit & accounting profession. The work that defines value in tax is changing and has been for a while, and now more and more tax professionals are grappling with what that means for their careers.

What’s becoming clear for both corporate tax departments and tax firms is that 2026 represents a pivotal year 鈥� not because of arbitrary deadlines, but because the gap between traditional approaches and emerging practices is widening.

The corporate tax department: From compliance factory to strategic engine

For those in corporate tax departments, strategic work is increasingly becoming non-optional. Supply chain decisions, tariff implications, global compliance complexity 鈥� these are landing on the desks of in-house tax team members as core responsibilities rather than occasional advisory projects.

What’s emerging in leading tax departments? Three patterns: intelligence, automation, and agility.

The data challenge comes first 鈥� Many departments are discovering that before implementing AI strategies or automation roadmaps, they need to address their data infrastructure. Data often lives across multiple enterprise resource planning (ERP) systems, requires manual transfers between systems, and needs hours of reconciliation before it’s usable.

This foundational issue frequently determines whether technology implementations succeed or fail. Data dictates what’s possible with any technology, especially AI. For most organizations, it remains a vulnerability despite being a critical component of modern tax departments.

Supply chain decisions, tariff implications, global compliance complexity 鈥� these are landing on the desks of in-house tax team members as core responsibilities rather than occasional advisory projects.

Getting data centralized, automated, and accessible 鈥� and ideally aligned with the broader corporate finance department 鈥� may not make for exciting presentations to leadership, but it’s often the difference between technology that transforms a department and technology that creates additional work.

Technology decisions benefit from intentionality 鈥� AI is being marketed as a universal solution, but experienced professionals are finding it works best when applied to clearly defined problems. Before purchasing another platform or piloting another tool, successful tax departments are asking what they’re actually trying to accomplish with the technology. Which processes should be automated first? Does AI make sense for this particular challenge?

Productive conversations with organizations鈥� IT departments, understanding current technology stack capabilities, and mapping problems before seeking solutions 鈥� these approaches tend to matter more than the sophistication of the acquired tools themselves.

Certain skills are becoming increasingly valuable 鈥� You don’t necessarily need to become a data scientist, but technological and AI fluency is proving to be an essential skill. Think of it as learning another language 鈥� you need enough of a command of it to communicate effectively and understand what you’re looking at.

The ability to analyze data outputs, spot patterns, and tell the story of what the data means is separating strategic tax professionals from those who are focused primarily on compliance. Being able to communicate tax information to non-tax professionals and then translate complex implications into actionable business advice will position you and your department as a strategic partner rather than a cost center.

As the complexity of tax regulations continues to expand, both globally and locally, many in-house tax departments are finding they need to automate routine work and leverage technology not just for compliance, but to predict outcomes and advise the business strategically.

The tax firm: When compliance becomes commoditized

For tax and accounting firms, the current tech-driven shift is particularly urgent. Compliance work is becoming more and more commoditized, and technology can now complete basic compliance in seconds. Indeed, some financial institutions are offering it for free to attract clients.

Tax professionals still spend roughly 60% of their time on manual, repetitive work, but this model is under pressure. Regulatory authorities are using technology to demand information faster, and clients expect more. Further, competition is intensifying from private equity-backed firms, mergers, and tech-enabled competitors who can deliver compliance work at significantly lower costs.

Several factors that weren’t present before 鈥� such as PE investment, consolidation, technology democratization, and more 鈥� are creating unprecedented competitive pressure and fundamentally changing what distinguishes one tax firm from another.

Automation is becoming table stakes 鈥� Successful tax firms are systematizing and automating compliance work and developing customer relationship management (CRM) strategies for managing client data. This isn’t about eliminating jobs; rather, it’s about eliminating tasks. As mentioned, regulatory authorities are already demanding information faster using their own technology, and firms are finding they need to keep pace.

Several factors that weren’t present before 鈥� such as PE investment, consolidation, technology democratization, and more 鈥� are creating unprecedented competitive pressure and fundamentally changing what distinguishes one tax firm from another.

Specialization is creating differentiation, and as a result, the general tax, audit & accounting practice model is facing challenges. Clients increasingly need professionals who know their industry deeply, understand their specific challenges, and can provide insights beyond generic compliance work.

This often means making choices about where to develop deep expertise. Which industries will you focus on? What emerging areas would be best in which to position yourself? And the growing complexity and expansion of tax regulations actually creates opportunities for professionals who can think strategically about emerging fields.

Cryptocurrency is one example. Cross-border commerce, specific regulatory niches, particular industry verticals 鈥� these are areas in which specialization can create meaningful differentiation for a firm.

The advisor relationship looks different 鈥� Providing value in the tax profession is shifting away from form completion and to analyzing client data and providing deep, insightful guidance. This requires a different kind of client relationship 鈥� one that goes deeper into their operations, understands their business intimately, and positions yourself as a partner in decision-making rather than a vendor handling annual filings.

Again, you don’t need to know how to code but being able to analyze client data points and translate them into strategic insights is proving increasingly valuable.

The bottom line: 2026 is a pivotal year

The tax profession 鈥� on both the corporate and the outside firm sides 鈥� appears to be splitting. Some professionals are automating routine work, developing deep expertise, and positioning themselves as strategic advisors. Others are continuing with manual work and hoping that technology can increasingly make them better and faster.

For many, 2026 is about specialization and using technology to enable it. Yet, it’s also about reflection: If you’re no longer firm or in-house function is no longer primarily a compliance machine, what distinguishes them when compliance becomes commoditized?

Further, the complexity of tax regulations is expanding, and this complexity creates demand for expertise. The professionals and firms that can navigate that complexity, provide genuine insights, and communicate clearly may find themselves more valuable than ever.

This shift is already underway. Many professionals are asking themselves whether they’re positioning themselves for where the profession is heading and how they can best offer their strategic expertise to create value for their clients or organizations.

You can download a full copy of the 2025 State of Tax Professionals Report from the 成人VR视频 Institute here

Key insights:

• • • Advisory is becoming the strategic core of tax practices 鈥� Tax firms are no longer treating advisory services as an add-on to compliance work but rather as a fundamental driver of business strategy, client relationships, and sustainable revenue growth.

    • Frequent client engagement drives measurably better outcomes 鈥� Professionals from firms that meet with clients quarterly or more frequently report significantly higher satisfaction across every dimension.

    • Technology and capacity are the keys to breaking through barriers 鈥� Firms are rapidly adopting automation to free up their professionals for advisory work, while addressing staff skills gaps through training and strategic hires.

For decades, tax firms built their practices around the predictable calendar of the annual compliance cycle, punctuated by occasional client requests for advice. Over the past five or more years, however, there’s been a seismic shift. Tax advisory services are emerging as the defining strategic function within successful firms, and it鈥檚 being driven mostly by an unprecedented convergence of regulatory complexity, technology capabilities, and evolving client expectations.

Jump to 鈫�

2026 Tax Firm Advisory Services Report

As a result, many firm leaders are fundamentally rethinking their business models, reimagining what a tax practice can be as they move from being transactional service providers to becoming more strategic advisors that can guide clients through complex financial decisions year-round.

To delve into this deeper, the 成人VR视频 Institute has published the 2026 Tax Firm Advisory Services Report, that clearly shows that as regulatory complexity and client expectations mount, firms that systematically invest in building advisory capabilities are outperforming their peers by significant margins 鈥� and the performance gap is widening.

From compliance shop to strategic advisor

For tax firm leaders, this transformation represents both validation and opportunity. The numbers tell a compelling story, especially for firms that are proactively leading the strategic elevation of their advisory capabilities. Among surveyed respondents from firms experiencing revenue growth, 88% report that advisory revenue is growing faster than compliance revenue and that advisory services now represent an average of 31% of total firm revenue.

Not surprisingly, many forward-thinking firms are backing this shift with concrete plans. Nearly 9-in-10 respondents say their firms are planning to expand their advisory services within the next year.

The engagement advantage

What’s driving this transformation? According to the report, the quality and frequency of client relationships have fundamentally recast what’s possible in tax advisory services. Firms that meet with clients quarterly or more frequently see dramatically different outcomes than those meeting clients just once or twice a year.

Tax professionals from firms with quarterly touchpoints rated their own satisfaction significantly higher across every dimension measured, such as knowledge of the client’s business, understanding the client’s industry sector, the overall strength of the client relationship, and the range of services the client uses. Even more compelling, almost 90% of respondents from firms with more frequent client engagement report that advisory revenue growth is outpacing compliance growth compared to just 65% of respondents from firms with less frequent client contact.

As the report underscores: This message is unmistakable 鈥� relationship depth directly drives revenue growth. Firms that use quarterly or more touchpoints with clients are more successfully converting compliance-only relationships into comprehensive advisory partnerships at substantially higher rates than their less-engaged competitors.

The challenging landscape

Despite the opportunities that abound in advisory services, many firms face real obstacles in expansion, the report shows. More than half (52%) of respondents cite staff skills gaps among their colleagues as their biggest challenge, followed closely by client resistance to paying for advice (47%).

These challenges create a reinforcement loop that can trap firms in their current state: Staff lack advisory skills, so they focus on compliance work, leaving no time to develop advisory capabilities or engage clients proactively. Then, clients don’t see the value of advisory services because they haven’t experienced them, and the cycle continues.

Breaking this loop requires intentional strategy and systematic execution 鈥� which is exactly what leading firms are doing differently, the report shows.

How strategic priorities are reshaping the profession

The ripple effects from this advisory transformation have dramatically reshaped strategic priorities for tax firms beyond routine concerns about service expansion. These new priorities represent fundamental shifts in how firm leadership view the purpose of their firm, its client relationships, and competitive positioning.

Interestingly, while revenue objectives dominate the top priorities, 13% of firm leaders cite developing more intellectually stimulating work for their teams as a key objective, the report shows. This speaks to a deeper strategic consideration 鈥� that advisory work itself offers the kind of challenging, engaging work that attracts and retains top talent in an increasingly competitive labor market.

Today, the opportunity is here for tax firms to capitalize on this momentum and operationalize their advisory services offerings through formalized processes, systematic client engagement, technology leverage, and value-based pricing that creates enduring competitive advantages.

As the report shows, tax advisory today is moving beyond simply offering occasional consulting services alongside compliance work. And with the strategic elevation of tax advisory services already underway, it鈥檚 those firms that move quickly enough to capture the opportunity that will flourish.

You can download

a full copy of the 成人VR视频 Institute’s “2026 Tax Firm Advisory Services Report” by filling out the form below:

Key findings:

• • • • Strategic blind spots remain 鈥� Despite widespread awareness, many tax firms have yet to fully assess the operational or financial impact of the reform, highlighting the need for more proactive planning as changes approach.

      • Technology investment leads the way 鈥� Firms are prioritizing technology and now are beginning to complement these efforts with increased attention to staff training and client support, aiming for a more balanced and complete transition.

      • Client guidance is gaining momentum 鈥� While clients will be among the most affected, professionals are recognizing the urgency of providing clearer communication and tailored support to help clients navigate the reform more confidently.

Brazil鈥檚 tax, audit & accounting sector is on the verge of a historic transformation. The country鈥檚 new tax reform, approved by the National Congress, will gradually unify several existing taxes into a dual value-added tax (VAT) system. The reform aims to simplify compliance, promote transparency, and help citizens better understand how public resources are allocated.

Jump to 鈫�

Brazil Tax Reform for Tax Firm Professionals 2025

So how prepared are Brazil鈥檚 tax & accounting professionals for this upcoming shift? A new report from the 成人VR视频 Institute reveals a gap between awareness and action. While most professionals understand the reform and its implications, only a minority have moved into active preparation. Only a small group of firms have established internal teams or concrete plans; however, many others are now beginning to shift from passive monitoring to more decisive steps.

Definitions: Incipient: I am aware of the Tax Reform, but I am not keeping up with the changes. Beginner: I am following updates through the press and reports to evaluate information that fits the firm鈥檚 and customers鈥� profile. Preparatory: I have an internal working group and/or a developing plan. Advanced: I have allocated resources and a transition project in progress. Leader: I have the structure prepared for the transition and I am working with my team and external providers to anticipate our adaptation.

The reform is expected to impact core areas of tax, audit & accounting work 鈥� including tax calculation, pricing strategies, and advisory services. Professionals widely acknowledge these areas will be disrupted and are starting to take steps to assess and prepare for the changes. Technology investment is accelerating, with many firms upgrading systems and digital infrastructure to meet new requirements. At the same time, there is growing recognition that staff training and client education must advance in parallel to ensure a successful transition.

Many professionals have expressed a need for more resources and structured plans to help them guide clients through the reform, especially as they face changes in tax burdens, pricing structures, and compliance requirements. Encouragingly, firms are beginning to respond 鈥� developing communication strategies and training programs to better support both their teams and their clients.

You can download a full copy of the 成人VR视频 Institute’s “Brazil Tax Reform for Tax Firm Professionals 2025” in Portuguese here

One major area still evolving is the financial planning around the reform. Despite the potential for significant operational changes, most organizations have yet to estimate the cost of adaptation. As new requirements take effect, understanding and preparing for these costs will be essential to avoiding unexpected disruptions.

Opinions on the reform鈥檚 complexity remain divided. Some professionals expect simplification, while others anticipate greater difficulty in tax and accounting practices. This uncertainty only reinforces the importance of ongoing monitoring and the development of flexible strategies.

While technology remains a central focus, the sector is now beginning to align its efforts 鈥� recognizing that human capabilities and client engagement are equally essential. The transition is no longer just about systems and infrastructure, but also about empowering their professionals and building trust. Firms are taking steps to ensure that their teams are prepared and their clients are supported, thereby laying the groundwork for a more complete and resilient transformation.

You can download

a full copy of the English-language version of the 成人VR视频 Institute’s “Brazil Tax Reform for Tax Firm Professionals 2025” by filling out the form below:

Key insights:

• • • AI can address the tax industry鈥檚 talent crunch 鈥� AI and GenAI can help tax firms automate routine tasks, increase workflow efficiency, and potentially operate with fewer staff without sacrificing client service.
    • Strategic AI adoption can drive ROI and competitive advantage 鈥� Firms that strategically adopt AI by starting small, focusing on high-impact use cases, and are continually improving are already seeing significant ROI, with those firms with visible AI strategies being more than three times as likely to see ROI compared to those without.
    • Humans-in-the-loop and upskilling remain key 鈥� Despite AI鈥檚 rise, human judgment and critical thinking are still essential, especially in today鈥檚 complex and rapidly changing regulatory environment.

Today, the tax, audit and accounting industry is in the middle of a perfect storm, especially when it comes to talent. First, the industry continues to see a talent shortage with fewer new professionals entering the talent pipeline. Couple that with a significant demographic shift that is seeing a generation of CPAs retiring, and the result is that many tax firms are feeling this talent pinch, and it is only likely to get worse.

Further, this is happening at a time when there is no shortage of work. The industry is continuing to see a growing number of increasingly complex matters, especially with all the tax codes and regulatory changes that are happening. Not surprisingly, many firms already are turning to new technologies and automation 鈥� which is being supercharged by agentic and generative AI 鈥� to help them address this talent crisis.

All of this is fundamentally transforming how tax, audit and accounting firms operate. More than three-quarters (79%) of tax professionals surveyed are telling us they see AI having a high or transformational impact within the next five years within their firms, according to the recently published 2025 Future of Professionals report from 成人VR视频. And, more importantly, professionals say they recognize that AI offers their best chance to tackle these complex challenges, the regulatory changes, and the talent shortages.

Addressing the talent crunch

The shortage of skilled professionals in the industry is not a new challenge, but it is becoming more acute. With Baby Boomers and Gen Xers retiring and fewer new entrants joining the profession, firms are struggling to maintain service levels and manage growing workloads. At the same time, the complexity of tax codes and regulatory environments continues to escalate, placing even greater demands on existing staff.

Today, the tax, audit and accounting industry is in the middle of a perfect storm, especially when it comes to talent.

AI offers a compelling solution. By automating routine, time-consuming tasks 鈥� such as data entry, reconciliation, and basic compliance work 鈥� AI enables tax firms to operate efficiently with a lower headcount. This doesn鈥檛 mean sacrificing client service; rather, it allows professionals to focus on higher-value advisory work, where human judgment and expertise are irreplaceable.

However, firm leaders need to understand that the adoption of AI is not just about technology for its own sake 鈥� it鈥檚 about fundamentally changing how firms operate, manage talent, and deliver value to clients. Firms that embrace AI can handle greater client volumes, manage the explosion in data, and keep pace with regulatory changes, all while alleviating the pressure caused by labor shortages.

How AI adoption can drive ROI

While the potential benefits of AI are clear, realizing them requires a strategic approach. Firms that start small, focus on high-impact use cases, and iterate their AI strategies are already seeing significant returns on investment (ROI). Indeed, more than half (54%) of respondents to Future of Professionals say their firms already have reported positive ROI from AI initiatives 鈥� and more importantly, are able to free up their professionals鈥� time for more meaningful work, which can also improve the bottom line.

Our research shows conclusively that having a visible AI strategy is a key differentiator. Firms with clear, actionable AI plans are more than three times as likely to see ROI compared to those without. Yet only 14% of firms have such formal AI strategies in place, according to respondents.

The best approach we鈥檝e seen is for firms to start small by identifying specific pain points, piloting targeted use cases that demonstrate key value, and building on early successes. This approach allows firms and their professionals to learn quickly, adapt to changing needs, and make continual improvements.

Clearly, the competitive landscape is shifting in the tax industry, making it increasingly difficult for firms without AI strategies to attract and retain top talent because the best professionals will want to work with cutting-edge tools and efficient processes, not outdated systems. This creates a virtuous cycle that can lead to better margins, more interesting work, and the ability to attract the industry’s best talent.

Leveraging the human element

Despite the impactful potential of AI, the human element remains central to the success of firms. While technology is a powerful tool, it is tax professionals who will drive AI success, simply because human judgment, critical thinking, and the ability to assess AI outputs are essential, especially in today鈥檚 complex and rapidly changing environment.

More than half of tax industry respondents say they see skill gaps, particularly in technology, data literacy, and critical thinking among their teams.

Clearly, the industry must invest in ongoing training and upskilling of its professionals. More than half (53%) of tax industry respondents say they see skill gaps, particularly in technology, data literacy, and critical thinking among their teams. As the generational shift accelerates 鈥� with digital natives such as Millennials and Gen Zers entering the workforce 鈥� firms have an opportunity to build a culture that embraces digital tools and rapid change. These digital natives are more comfortable with technology, but they still need support to develop the skills required for effective AI adoption.

Indeed, building an AI-ready culture starts at the top. Leaders must encourage experimentation, foster a mindset of continuous learning, and ensure that professionals understand both the capabilities and limitations of AI. Success requires a strategic approach to upskilling, with targeted training programs that address the specific needs of each firm.

Of course, it鈥檚 easy to be overwhelmed with this. For firm leaders, however, the message is clear: AI is not a panacea, but rather a powerful tool for addressing the talent challenges facing the industry. The key is to act fast, learn fast, and take a strategic approach.

The future of the tax, audit and accounting profession will be human-led and AI-enabled. And those firms that embrace AI also will be better positioned to manage complexity, attract top talent, and deliver superior client service going forward.

You can download a full copy of the Future of Professionals Report 2025: Actionable insights for tax, audit & accounting firm leaders here

Key takeaways:

• • • Technology leads the way 鈥� Companies are prioritizing system upgrades and digital tax management tools to meet new compliance demands under the 2025 reform.

    • Strategic planning is key 鈥� Early adopters are integrating reform into their business strategies, while others risk disruption by delaying action.

    • Talent development follows infrastructure 鈥� Workforce training is expected to grow as organizations solidify their systems and prepare for long-term success.

Corporate tax departments in Brazil are responding to the country鈥檚 sweeping tax reform in myriad ways, upgrading their abilities in both talent and infrastructure, according to a new report from the 成人VR视频 Institute. This reform, approved by Brazil鈥檚 National Congress in late-2023, marks a significant departure from the country鈥檚 historically fragmented tax system and aims to simplify compliance and improve efficiency across federal, state, and local levels.

Jump to 鈫�

Brazil Tax Reform for Corporate Professionals 2025

At the heart of the reform is the introduction of a dual Value-Added Tax (VAT) structure 鈥� comprising the Goods and Services Tax (IBS) and the Contribution on Goods and Services (CBS) 鈥� alongside a new excise tax (IS) targeting products with health or environmental implications. These changes are expected to reshape how companies manage tax obligations, credits, and incentives, particularly as the reform phases in between 2026 and 2032.

This new report draws on survey responses from professionals in corporate tax departments across Brazil, offering a snapshot of how organizations are preparing for the transition. While some companies remain in early planning stages, others have already begun adapting their systems and strategies. The report鈥檚 findings suggest a growing awareness of the reform鈥檚 potential impact and a shift from passive observation to active preparation.

Corporate response in motion

One of the most consistent themes across the report is the prioritization of technology. As Brazilian companies prepare for new tax structures and digital compliance requirements, many are investing in system upgrades and modern tax management solutions. These efforts include refining enterprise resource planning (ERP) systems and their ensuring infrastructure can accommodate new electronic tax documentation formats. The report shows that technology is not just a support function 鈥� it鈥檚 emerging as the backbone of reform readiness.

Also, the report highlights a clear divide between organizations that are proactively preparing and those that are still waiting for greater regulatory clarity. Early movers are integrating reform considerations into their strategic planning and positioning themselves to turn regulatory change into competitive advantage. Meanwhile, companies that delay action may face higher costs, operational disruption, and even legal risks as deadlines approach.

You can access a full copy of the 成人VR视频 Institute’s “Brazil Tax Reform for Corporate Professionals 2025” in Portuguese here

While talent development is acknowledged as important, it currently trails behind technology and strategy in most organizations鈥� reform plans. Companies appear to be focusing first on system upgrades and compliance frameworks, suggesting workforce training is expected to follow once foundational changes are in place. However, there is growing recognition that skilled personnel will be essential for sustaining success under the new tax regime. The report suggests that nurturing in-house talent 鈥� rather than relying solely on external hires 鈥� will be key to the long-term resilience of corporate tax functions and their organizations.

Preparing for transition

Brazil鈥檚 sweeping tax reform is reshaping the priorities and operations of the country鈥檚 companies and their corporate tax departments. As organizations prepare for the transition, tax professionals across the industry are focusing on strategies that combine regulatory awareness, technological modernization, and strategic investment.

As departments seek to upgrade their tax systems, refine financial planning, and gradually expand their talent development initiatives, they are positioning themselves to navigate the reform with confidence. By aligning internal capabilities with external expertise and embracing automation, our research shows that many corporate tax teams are taking a structured, forward-looking approach that will be essential to ensure compliance, minimize disruption, and unlock long-term efficiencies in Brazil鈥檚 evolving tax landscape.

You can download

a full copy of the English-language version of the 成人VR视频 Institute’s “Brazil Tax Reform for Corporate Professionals 2025” by filling out the form below:

Key takeaways:

• • • Strategic focus is crucial 鈥� Firms with a clear, written strategy and marketing plan are out-earning peers, and vague ambition is no longer sufficient in today’s competitive tax industry landscape.

    • Advisory services drive growth 鈥� Advisory service lines, particularly investment advisory and proactive tax planning, are expanding faster than traditional compliance work, and firms must blend recurring compliance jobs with scalable advisory to smooth revenue cyclicality and deepen client relationships.

    • Technology and leadership are keys to success 鈥� Firms must harness the power of AI, automation, and private equity to drive growth, and prioritize leadership systems, professionalization of leadership, and culture by design to endure the next decade.

If the last few years felt like standing at a crossroads for tax, audit & accounting firms, 2025 is the turn itself. Consolidation, private equity, AI, and evolving workforce expectations have tipped the profession from gradual change into a full paradigm shift. The illuminates the state of the profession. The annual report on the tax industry shows that those firms that win from here won鈥檛 simply be competent 鈥� they鈥檒l be intentional, strategically focused, and relentless about converting capacity into higher-value client impact. For tax firm leaders, the mandate is clear: Make bold, data-informed choices now or wait and watch competitors outpaced you.

What the numbers are really saying

While revenue growth has cooled from the post-pandemic highs, settling near high single digits across the market, a striking share of that growth now is being powered by mergers and acquisitions, while organic expansion is proving harder to sustain. Meanwhile, income per equity partner has still edged upward, although profit growth lags revenue as costs, partner counts, and investment outlays rise.

The standout tax firms 鈥� especially those with higher billing rates and strong staff-to-partner ratios 鈥� are combing scale, leverage, and premium pricing to widen the gap between them and competitors. The message is clear: Profitable growth now depends less on squeezing more hours and more on getting the business model right.

Indeed, the report noted several areas in which tax firms leaders need to pay special attention.

Talent: Retention is better 鈥� but capacity isn鈥檛 the same as productivity

The report reveals turnover among tax professionals has fallen to its lowest level in years, which is a positive development. Yet billable hours per professional have declined, and many teams are logging less than 1,400 hours annually.

In response, some firms are hiring to build capacity, but revenue per full-time equivalent (FTE) employees slipped for the first time in five years 鈥� a signal that headcount without redesign is a blunt instrument. Offshoring and outsourcing remain in the toolkit, especially for larger firms, but as retention improves, the hiring mix is shifting from emergency capacity to structured, strategic resourcing. The imperative is smarter workload orchestration, not more bodies.

Strategy is no longer optional

Firms with a clear, written strategy and marketing plan are out-earning their peers, the report showed. That鈥檚 not correlation by accident 鈥� it鈥檚 the compounding effect of decisive prioritization. When leaders articulate where the firm will play and how it will win, then firm investments align with strategy, pricing reflects value, and teams understand how to move the needle. Having vague ambitions is expensive, precision pays much better.

Advisory is the growth flywheel

Advisory service lines 鈥� particularly investment advisory and proactive tax planning 鈥� are expanding faster than traditional compliance. The most resilient firms are shaping portfolios that blend recurring compliance jobs with scalable advisory roles, thus smoothing revenue cyclicality and deepening client relationships. Technology is central here because it doesn鈥檛 just compress the cost of compliance work, it liberates capacity that can be redeployed into offering advice for which clients will happily pay a premium.

Private equity & technology: Forces to harness, not fear

Private equity (PE) is no longer an outlier, it鈥檚 reshaping governance, accelerating M&A, and boosting tech investment across the top end of the market. Whether you choose to partner with PE firms or compete against PE-backed platforms, you must operate with PE-grade rigor 鈥� and that means sharper KPIs, faster decision cycles, and a clearer capital allocation model.

On the tech front, AI and automation clearly are transforming tax preparation, workpaper assembly, and research 鈥� often eliminating 50% to 80% of the manual steps in defined use cases. And the top performing firms don鈥檛 just use AI just to cut costs, they turn their teams鈥� freed-up hours into advisory projects, client education, and proactive planning conversations that can fortify loyalty and margins.

Leadership & succession: Redesigned for durability

Today, partner demographics are shifting quickly. There are more younger partners, more women advancing, and more diverse paths into leadership. Non鈥慹quity roles and flexible buy鈥慽n models are becoming standard, while mandatory retirement policies are moderating to support smoother succession.

Compensation and buyout systems are maturing as committees and transparent formulas replacing opaque, personality鈥慸riven decisions. The firms that will thrive over the next decade already are professionalizing leadership the same way they professionalize client service.

The bottom line

Finally, there are several actions that smart tax firm leaders are already abandoning and others that they are strongly focusing on.

What to stop doing

• • • Managing to utilization alone 鈥� Leaders need to shift their thinking to revenue per FTE, realization, and cycle time to reflect true performance.
    • Treating offshore resources as a plug鈥慳nd鈥憄lay fix 鈥� Integrate these resources into your firm鈥檚 standard processes with clear ownership and quality assurance.
    • Waiting for 鈥減ost鈥憈ax鈥憇eason鈥� to improve systems 鈥擨mprovement is a year鈥憆ound muscle that needs to be exercised. Schedule and track system improvement it like any client deliverable.

What to double down on

• • • Focusing on client segmentation and ideal鈥慶lient fit 鈥� Politely winnow misaligned work or burdensome clients and reinvest those hours into high鈥憄otential relationships.
    • Promoting manager leverage 鈥� Equip managers with the ability to own scoping, pricing, and coaching so partners can drive market鈥慺acing growth.
    • Encouraging culture by design 鈥� Flexible work is table stakes in today鈥檚 environment. Promote what differentiates your firm, especially its clarity of mission, feedback cadence, and recognition systems.

The tax, audit & accounting profession鈥檚 fundamentals remain strong, but the rulebook has been rewritten, as the Rosenberg Report illustrates. Firm growth will increasingly come from strategy, not inertia; from advisory impact, not additional hours; and from leadership systems, not individual heroics.

Smart tax firm leaders need to treat 2026 as a pivot year for their firms. Publish the plan, price to value, operationalize AI, and convert freed-up capacity into advice offerings your clients can鈥檛 imagine running their businesses without.

Those tax firms that move first, while measuring what matters, will define the next decade of tax leadership.

For more on the current state of tax, audit & accounting firms, check out the recent 2025 State of Tax Professionals Report from the 成人VR视频 Institute here

Key takeaways:

• • • Subscriptions are a high-value option 鈥� Subscription-led pricing correlates with the highest value confidence and steadier revenue compared to hourly or fixed-fee models.

    • Three pricing packages evolve 鈥� Three tier packages (basic, standard & premium) create a clear value ladder and enable increased customization through modular add-ons.

    • Regular billing cycles help 鈥� Monthly or quarterly billing cadences improve transparency, client trust, and firm cash flow.

Tax, audit & accounting firms are in the middle of a pricing reckoning. Clients want clarity, firm leaders want confidence, and teams want to escape the treadmill of selling hours. The firms pulling ahead aren鈥檛 just raising rates, they鈥檙e re-engineering how they define and deliver value. Packaging, bundling, and especially subscription-based pricing are allowing firms to price with conviction, increase margins, and deepen client loyalty. The shift is not cosmetic, rather it鈥檚 a strategic reset from billing for hours to being paid for outcomes instead.

The confidence advantage of subscriptions

According to the recent 成人VR视频 Instiitute鈥檚 2025 Tax Firm Pricing Report, firms that have adopted subscription billing for most clients, tax professionals鈥� confidence in the value they鈥檙e providing is materially higher than when hourly or fixed-fee pricing models are used. Indeed, nearly one-third of tax professionals in subscription-first firms say they are highly confident that their pricing aligns with the value delivered, compared to less than 20% of those professionals in firms that use in hourly pricing.

Why the gap? Subscription pricing models reframe the client relationship around results, not individual tasks. These models anchor expectations, create continuity, and prompt ongoing conversations about progress and outcomes. They also bring predictability 鈥� steady revenue for the firm and transparent costs for the client.

Conversely, hourly and even traditional fixed-fee pricing models struggle to tell that story. They describe inputs and deliverables, while subscriptions describe impact.

Despite the benefits, firm adoption of subscription pricing is still in its early stages. Only a small portion of client engagements are currently based on subscriptions, although that share is growing rapidly. This gap is an opportunity for many tax, audit & accounting firms and their leaders. Indeed, the invitation is clear: Firm leaderss should identify those offered services in which outcomes compound over time 鈥� such as tax planning, strategy, compliance along with advisory 鈥� and transition those into ongoing, subscription-based relationships with clients.

Design services like products: The 3-tiered architecture

Modern pricing gains power from clarity. That鈥檚 why the most effective firms are organizing their services offering catalog into three simple tiers 鈥� basic, standard, and premium 鈥� which then allows for additional customization through modular add-ons.

This architecture does three things well: First, it creates a value ladder that allows firms to guide their clients to the right entry point while giving them a clear path to upgrade; second, it standardizes delivery, improving margins and team efficiency; and third, it enables customization without chaos.

Rather than reinventing a customized scope for each client, firms use defined add-ons 鈥� education planning, entity structuring, succession planning, and more 鈥� to tailor engagements to the client while maintaining operational consistency across all services.

Earning (and keeping) your fee increases

The best-performing firms aren鈥檛 timid about fees. They鈥檙e raising prices 鈥� and keeping clients 鈥� because they鈥檝e reframed the value conversation. Instead of talking about more hours or complexity, they instead talk about the kind of outcomes that clients actually care about: peace of mind, risk reduction, strategic clarity, and measurable savings. The tax professionals bring real examples, case studies, and ROI to the table, and they benchmark. They review pricing annually or even quarterly, and they communicate changes to their clients in a way that feels transparent, justified, and aligned with client goals.

This is a pivotal shift for many tax, audit & accounting firms. The professionals at these firms have learned that when clients understand the outcome, the price makes sense; and when they don鈥檛, the conversation reverts to cost. Packaging and subscriptions make this communication repeatable. In this environment, tiers create contrast, add-ons create choice, and benchmarks create external validation. Together, these factors shift the dialogue with clients from How much? to What鈥檚 the impact? 鈥� and that鈥檚 a win for firms.

Predictability is a service

If trust is the currency of advisory work, predictability is the interest it earns. Monthly or quarterly billing rhythms can reduce friction, improve cash flow on both sides, and transform tax from a once-a-year scramble into an ongoing partnership. Sending out clear, consistent invoices mapped to packages and add-ons can reinforce the story of value delivery. Internally, predictable revenue can smooth seasonality within a firm, supporting hiring and capacity planning, and reducing the temptation to discount prices under pressure.

Customization at scale

Clients want to feel known, and your tax team needs to stay sane. The answer isn鈥檛 to create bespoke products for everything, rather it鈥檚 to encourage segment-smart design. Build packages for common client profiles by industry, entity type, size, or lifecycle stage, then equip your team with modular upgrades that align to clear outcomes. This allows tax advisors to make confident recommendations, identify retention risks early, and adjust scope based on profitability and feedback 鈥� all without blowing up workflows.

Think like a product organization: Define standard features, articulate premium benefits, and maintain a disciplined roadmap of add-ons. Then enable your tax advisors with a playbook 鈥� which clients get what, when, and why 鈥� so the client experience feels personal while the back office remains efficient.

A practical path to transition

If you鈥檙e ready to move from hours to outcomes, you should start with focus and speed. Here are several steps that can help:

• • • Choose the right beachhead 鈥� Identify one or two services that are ideally suited for ongoing value, such as monthly accounting plus tax, annual planning with quarterly check-ins, or entity support and then package those services into clear tiers.
    • Build the narrative 鈥� For each tier, translate features into outcomes. Replace X reconciliations and Y reports with real-time visibility, faster decisions, and fewer surprises. Back this effort with case studies and quantified savings wherever possible.
    • Set billing cadence and service-level agreements 鈥� Decide what services can be billed monthly compared to quarterly, define response times and access levels per tier, and codify communication rhythms. Make service levels visible, because again, clients value clarity.
    • Pilot, then expand 鈥� Roll out your initial offerings to a defined client segment or cohort. Collect feedback, refine scope, and test pricing elasticity. Use early wins to train your team and inform a broader rollout.
    • Institutionalize benchmarking and reviews 鈥� Compare your pricing against peers and alternative service providers at least annually. Review client outcomes quarterly and then adjust tiers, add-ons, and messaging based on what you learn.
    • Equip your team 鈥� Give your tax advisors scripts, ROI calculators, and objection-handling guidelines. Realize that confidence is contagious, both internally and externally.

Shifting from selling time to selling outcomes requires more than a new price list. It asks firm leaders to design services intentionally, measure impact consistently, and coach their teams to speak the language of results. It also asks firms to treat pricing as strategy, not administration. Firms should be explicit about what clients they serve, what they promise, and what it鈥檚 worth.

The firms that make this shift will do more than improve margins. They鈥檒l build sturdier client relationships, reduce scope creep, and cultivate a culture in which the team understands 鈥� and can articulate 鈥� the value they create. In a world in which talent is tight and client expectations are rising, that kind of intentional clarity can be a strong competitive advantage.

You can download a full copy of the 成人VR视频 Institute鈥檚 recent report on tax firm pricing,聽Steps for increased confidence in pricing, here