The public accounting firms that succeed this year will be the clearest: clear on who they serve, how they deliver value, and where they are investing. Here are 10 predictions of what will define the accounting landscape this year.
Talent pressures, evolving client expectations, advancing technology, and sustained consolidation continue to reshape how accounting firms operate, compete, and grow. While many of these forces have been building for years, 2026 is likely to be the year they become fully embedded into firm strategy and day-to-day decision-making. Firms that remain reactive will struggle to keep pace; those that act intentionally will gain a meaningful advantage.
Here are my 10 predictions of what will define the public accounting landscape in the year ahead.
Advisory Services Outpace Traditional Compliance
Tax and audit will remain foundational, but advisory services will continue to drive firm growth and profitability. Clients increasingly expect proactive insights – forecasting, scenario planning, transaction support, and strategic guidance – rather than purely reactive compliance work. Firms that develop structured advisory offerings with repeatable deliverables will outperform those relying on informal, partner-driven consulting. Over time, deeper advisory relationships will also support stronger client retention, higher margins, and increased firm valuation.
AI Becomes Embedded in Workflows
In 2026, artificial intelligence (AI) will no longer be treated as a pilot initiative or innovation experiment. Firms will integrate AI into core workflows, including document management, audit planning, tax preparation support, tax advisory and planning, tax research, proposal development, and marketing execution. Competitive advantages will shift from adoption to governance, training, and thoughtful oversight of AI-enabled processes. Firms that invest early in controls and education will reduce risk while increasing efficiency.
Pricing Models Shift Away from Hourly Billing
Hourly billing will not disappear entirely, but more firms will adopt hybrid and value-based pricing models, particularly for advisory, CAS, and recurring services. Clients want fee predictability, and firms desire profit stability. Engagement letters will increasingly define scope, service tiers, and change-order processes that firms are prepared to enforce. Firms that clearly communicate value and outcomes will face less downward pressure and fewer scope disputes.
The Talent Model Becomes More Flexible
The CPA pipeline challenge will persist, but firms will respond by redesigning work rather than waiting for more candidates. Expect greater use of non-CPA professionals, expanded outsourcing and nearshoring, and increased investment in project managers, data specialists, and client service roles. Retention strategies – flexibility, leadership development, and burnout reduction – will become just as critical as recruiting, especially for midlevel professionals who often feel the most significant strain.
M&A and Private Equity Remains Strong, But More Selective
Consolidation will continue in 2026, though buyers will be increasingly disciplined. Firms with a strong advisory mix, scalable infrastructure, documented processes, and leadership depth beyond founding partners will command premium valuations. Firms lacking operational maturity or succession planning will face more contingent pricing and earn-out structures. Cultural alignment, integration readiness, and partner expectations will increasingly influence transaction decisions.
Specialization Becomes a Necessity
Generalists will feel increasingly outdated. Clients want advisers who understand their regulatory environment, operational challenges, and growth pressures. In 2026, firms will sharpen their industry focus – such as in health care, real estate, construction, manufacturing, financial services, or emerging markets – and align their advisory offerings, marketing efforts, and talent strategies around those niches. Specialization will support stronger differentiation, deeper client trust, and improved pricing power.
Marketing Shifts Toward Measurable Growth Outcomes
Firm marketing in 2026 will be more data-driven and accountable. Leadership will expect marketing investments to support lead generation, cross-selling, recruiting, and brand positioning with clear metrics tied to firm goals. Thought leadership, webinars, niche content, and targeted campaigns will replace broad, unfocused messaging. Marketing and business development teams will collaborate more closely with partners to support pipeline development and long-term growth initiatives.
Client Experience Becomes a Formalized Strategy
Firms will increasingly view client experience as a strategic differentiator rather than an afterthought. Streamlined onboarding, consistent communication, improved portals, and proactive touchpoints will become standard expectations. Firms that formalize client experience processes will see stronger retention, higher wallet share, and increased referrals. Structured feedback loops, client surveys, and relationship reviews will become more common.
Governance and Leadership Development Gains Urgency
As firms grow, merge, or prepare for succession, governance structures will face greater scrutiny. In 2026, more firms will invest in leadership development, clarify decision-making authority, and address partner alignment issues before they become barriers to growth. Clear accountability, role clarity, and succession planning will support faster, more confident decision-making across leadership teams.
Firms Will Increasingly “Run Like Businesses”
The most defining shift in 2026 will be cultural. More firms will operate with a scalable business mindset – tracking key performance indicators (KPIs), managing capacity, standardizing delivery, and aligning strategy with execution. Firms that embrace this shift will be better positioned to grow, adapt, and remain independent if they choose, while improving accountability, decision-making speed, and long-term financial performance across the organization.
Looking Ahead
The public accounting firms that succeed this year will not necessarily be the largest, but they will be the clearest. Clear on who they serve, how they deliver value, and where they are investing for the future. For firm leaders, the question is no longer whether change is coming, but whether your firm is intentionally shaping it.
Joseph A. Tarasco is CEO and senior consultant with Accountants Advisory Group LLC in Bradenton, Fla. He can be reached at joe@accountantsadvisory.com.
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Statements of fact and opinion are the author's responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.
