I hope you’re having a productive fall so far. As we move further into 2025, I want to highlight two important developments shaping our industry:
1. CPA Firms Report Steady Growth
According to a recent AICPA-CIMA benchmarking survey, CPA firms saw a median 6.7% increase in net client fees this past year. While growth has slowed compared to prior years, the trend remains positive across firms of all sizes.
Why it matters:
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Growth is still happening - it’s just evolving.
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Benchmarking your firm against these averages can reveal pricing and service opportunities.
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Firms leaning into value-added services and more strategic fee models are best positioned to sustain momentum.
2. IRS Issues New Guidance on R&E Deductions
In August 2025, the IRS released Rev. Proc. 2025-28, clarifying how firms and their clients can deduct research and experimental (R&E) expenses under the One Big Beautiful Bill Act. The new guidance allows domestic R&E costs to be deducted immediately rather than amortized over multiple years, and provides streamlined options for amending prior returns.
Why it matters:
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Accelerated deductions can significantly improve client cash flow and reduce taxable income.
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This change creates opportunities for firms to deliver higher-value tax planning and advisory services.
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Proactively identifying which clients qualify strengthens relationships and positions your firm as a trusted strategic advisor.
The message is clear: firms that adapt quickly by fine-tuning pricing strategies, investing in technology, and staying ahead of regulatory changes will thrive. Whether you’re focused on growth, preparing for succession, or simply strengthening your foundation, staying informed and proactive is the key.
As always, we’re here to help you navigate these shifts with clarity and confidence.
- Justin Farmer, Esq., CBI
President & Founder of Private Practice Transitions
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