In 2025, small businesses and corporations across the United States are grappling with a new financial reality: accounting services are becoming significantly more expensive. According to the latest U.S. Accounting and Tax Pricing Benchmark report, over 57% of firms plan to raise fees across all services, with many targeting 5–10% increases. While inflation and labor shortages are familiar culprits, a less obvious but increasingly influential factor is the growing complexity of tariff-related financial reporting.
Tariffs once considered the domain of trade lawyers and customs officials have become a central concern for accountants. As global trade tensions escalate and regulatory frameworks evolve, accounting firms are being forced to invest more time, talent, and technology into helping clients navigate the financial implications. This article explores why accounting prices are rising now, how tariffs are contributing to the surge, and what it means for small businesses trying to stay afloat.
Why Accounting Firms Are Raising Prices in 2025
1. Inflation and Rising Operational Costs
Accounting firms are not immune to the broader economic pressures affecting all service industries. From rent and insurance to software subscriptions and cybersecurity, the cost of running a firm has increased dramatically. Many firms held off on price hikes during the pandemic years, but now they’re playing catch-up.
2. Labor Market Pressures
The accounting profession is facing a talent crunch. With fewer graduates entering the field and experienced professionals demanding higher salaries, firms are paying more to attract and retain staff. These costs are inevitably passed on to clients.
3. Technology Investments
To meet client expectations for speed, accuracy, and digital convenience, firms are investing heavily in automation tools, cloud platforms, and client portals. While these upgrades improve service, they also come with steep upfront costs.
4. Shift to Value-Based Pricing
Many firms are moving away from hourly billing toward fixed-fee and value-based models. This shift reflects the outcomes delivered rather than the time spent, often resulting in higher fees for high-impact services like tax planning and CFO advisory.
The Tariff Effect: A Hidden Driver of Complexity and Cost
Tariffs have become a major disruptor in financial reporting and compliance. As trade policies shift, especially under the current administration, businesses importing goods face new layers of complexity that accountants must untangle. Here’s how tariffs are directly impacting accounting firms:
1. Time-Intensive Compliance Work
Accountants now spend more time interpreting and applying tariff rules across jurisdictions. This includes recalculating inventory costs, adjusting financial statements, and ensuring compliance with evolving trade laws.
2. Specialized Expertise
Tariff-related accounting requires knowledge of international trade, tax law, and financial reporting standards. Firms are hiring specialists or training staff, both of which increase overhead.
3. Internal Controls Overhaul
Tariffs introduce new financial risks, prompting firms to reassess and redesign internal controls over financial reporting (ICFR). This adds layers of complexity to routine accounting processes.
4. Contract and Pricing Adjustments
Tariff-related costs often lead to renegotiated contracts and pricing structures. Accountants must evaluate whether these changes trigger revenue recognition adjustments or disclosures.
5. Increased Disclosure Obligations
Companies must now disclose tariff impacts on financials, including cost capitalization, asset impairments, and tax liabilities. Preparing these disclosures demands more time and precision.
Real-Life Examples of Tariff-Driven Price Hikes
Here are ten concrete examples of how accounting firms are raising prices due to tariff complexity:
- KPMG’s Tariff Pulse Survey
Found that 83% of companies expect to raise prices due to tariff-related margin pressure. Accounting firms are billing more for customs valuation and origin determination services. - Mid-Sized CPA Firms in Ohio & Michigan
Raised prices by 8–12% for manufacturing clients affected by tariffs on imported machinery. The added workload includes cost allocation and asset impairment analysis. - Big Four Advisory Services (Deloitte, EY, PwC, KPMG)
Expanded tariff advisory offerings with premium fees for transfer pricing adjustments and risk modeling. - Global Tax Network & Ryan LLC
Boutique firms specializing in international tax raised prices due to increased demand for cross-border compliance and tariff planning. - Retail Chain Accountants
Firms serving electronics and apparel retailers raised fees to handle inventory revaluation and revised cost-of-goods-sold calculations. - Greg Shugar’s Beau Ties of Vermont
Faced backlash over a proposed tariff surcharge. Instead, raised prices and restructured payroll requiring more advisory hours from his accountant. - Agriculture & Food Distribution Firms
Accountants recalculated depreciation schedules and tax credits due to tariffs on imported ingredients and equipment. - Tech Startups
Firms raised prices for hardware startups needing help with cost capitalization and R&D tax credits affected by tariffs. - Construction & Real Estate Accounting Firms
Tariffs on steel and aluminum disrupted project budgets, leading to higher fees for cost reforecasting and financial statement disclosures. - Forensic Audit Firms
Increased hourly rates and expanded audit scopes due to tariff-related financial risk assessments.
Impact on Small Businesses
For small businesses, these price hikes are more than a nuisance they’re a strategic threat. Many operate on tight margins and rely heavily on affordable accounting services for compliance, tax planning, and financial strategy. Here’s how they’re being affected:
- Unexpected Budget Disruptions: A 10% fee increase can throw off annual budgets and force cuts elsewhere.
- Reduced Access to Advisory Services: Higher fees mean fewer small businesses can afford strategic financial advice.
- DIY Temptation: Some owners are trying to manage finances themselves, risking costly errors.
- Forced Re-evaluation: Businesses are shopping around for cheaper providers or switching to automated platforms.
What this all adds up to:
The rising cost of accounting services in the U.S. is not just a reflection of inflation or labor shortages it’s a symptom of deeper structural shifts in the global economy. Tariffs have added layers of complexity to financial reporting, forcing firms to invest more in expertise, technology, and compliance. These investments are necessary, but they come at a price one that small businesses are increasingly struggling to pay.
As we move deeper into 2025, the accounting landscape will continue to evolve. Firms that adapt with transparency, efficiency, and client-focused pricing models will thrive. And for businesses navigating this new terrain, the key will be finding partners who offer not just services, but strategic value.