Why Some CPA Firms Struggle to Grow (And How to Fix It)

Many CPA firm owners start their practice with big ambitions—building a profitable business, serving high-value clients, and achieving work-life balance. Yet, after a few years, they find themselves stuck.

Revenue has plateaued. Workload is overwhelming. Growth feels impossible.

If this sounds familiar, you’re not alone. Many CPA firms struggle to grow—not because there isn’t demand, but because their business model, pricing strategy, or operations are holding them back.

The good news? These roadblocks can be fixed. Below, we’ll cover the most common reasons CPA firms struggle to grow—and how to fix them so you can scale your firm profitably without working more hours.

1. They Rely Too Much on Hourly Billing

One of the biggest reasons CPA firms hit a growth ceiling is billing by the hour. When revenue is tied directly to hours worked, the only way to grow is by working more hours—which isn’t scalable.

The Fix: Shift to Value-Based or Subscription Pricing

✔ Value-based pricing means charging based on the impact and results you provide, not just time spent.

✔ Subscription models offer predictable revenue, helping firms scale without needing new clients every month.

✔ Tiered pricing packages let clients choose the level of service they need while increasing firm profitability.

Example:

Instead of charging $250 per hour for tax planning, offer a $1,500/month CFO service with cash flow forecasting, financial reviews, and strategy meetings.

🚀 Growth Impact: Your firm’s revenue is no longer limited by the number of hours you work.

2. They Attract the Wrong Clients (Low-Paying & High-Maintenance)

Many CPA firms take on any client who walks through the door, leading to low-paying, high-maintenance clients who demand too much time and don’t value your expertise.

The Fix: Define Your Ideal Client and Specialize

✔ Niche Down: Specializing in one industry (e.g., school districts, nonprofits, real estate investors) allows you to charge higher fees and become a go-to expert.

✔ Set a Minimum Fee: Clients who expect premium service should pay premium prices.

✔ Pre-Screen Clients: Have an intake process that filters out clients who aren’t a good fit.

Example:

A firm that specializes in nonprofit audits can charge higher fees than a generalist CPA because they offer expertise in a specific area.

🚀 Growth Impact: You work with fewer, higher-value clients, increasing revenue without adding hours.

3. They Lack Scalable Systems and Processes

If your firm relies too much on manual processes, emails, and spreadsheets, you’re wasting time on tasks that should be automated or standardized.

The Fix: Implement Scalable Systems & Automate Repetitive Tasks

✔ Use workflow automation tools like Karbon, Canopy, or Jetpack Workflow to track engagements and deadlines.

✔ Standardize client onboarding with automated document requests.

✔ Implement a client portal (e.g., Suralink or Canopy) to reduce email back-and-forth.

Example:

Instead of manually following up on missing tax documents, use Canopy to send automated reminders until the client submits everything.

🚀 Growth Impact: Eliminates hours of manual work, allowing your firm to handle more clients efficiently.

4. The Owner Tries to Do Everything Themselves

Many CPA firm owners get stuck in day-to-day client work instead of focusing on firm growth, marketing, and strategy. If you’re doing everything yourself, you’ll eventually burn out—and your firm will stay small.

The Fix: Delegate & Build a Self-Sufficient Team

✔ Hire a virtual assistant to handle scheduling, emails, and admin work.

✔ Outsource bookkeeping or tax prep to free up your time for high-value advisory work.

✔ Train staff to take over routine tasks, so you can focus on growing the firm.

Example:

A CPA who spends 20 hours a week on bookkeeping could hire a $25/hour bookkeeper, allowing them to focus on $300/hour advisory work instead.

🚀 Growth Impact: Your firm can serve more clients without adding more work to your plate.

5. They Don’t Market Their Firm Effectively

Many CPAs rely only on word-of-mouth referrals to bring in business. While referrals are great, they’re unpredictable—and without a solid marketing plan, growth will stall.

The Fix: Implement a Simple, Scalable Marketing Strategy

✔ Improve Your Website & SEO – Make sure potential clients can find you on Google.

✔ Leverage LinkedIn & Content Marketing – Share educational content to establish authority.

✔ Use Email Marketing – Send a monthly newsletter to stay top-of-mind with leads and clients.

Example:

Instead of waiting for referrals, create a lead magnet to attract niche clients and build an email list.

🚀 Growth Impact: A steady flow of high-quality leads, reducing dependency on referrals.

6. They Price Too Low and Undervalue Their Services

Many CPA firms struggle with growth simply because they aren’t charging enough. If you’re competing on price instead of value, you’ll always feel overworked and underpaid.

The Fix: Raise Your Prices & Package Services Strategically

✔ Audit your pricing annually and adjust for inflation and expertise.

✔ Position your firm as a premium service provider (instead of competing with discount accountants).

✔ Offer packaged services instead of one-off work.

Example:

A firm that charges $5,000 per audit instead of $2,500 for the same work doubles revenue without doubling clients.

🚀 Growth Impact: Higher profits, fewer clients, and less stress.

How to Break Through CPA Firm Growth Barriers and Avoid Being a CPA Firm that Struggles to Grow

If your CPA firm has hit a growth ceiling, the solution isn’t working more hours—it’s about fixing inefficiencies, pricing correctly, and focusing on high-value clients and services.

Key Takeaways:

✔ Ditch hourly billing – Shift to value-based pricing for scalable revenue.

✔ Work with higher-value clients – Set minimum fees and specialize in a niche.

✔ Automate processes – Use tools to eliminate manual tasks and increase efficiency.

✔ Delegate tasks – Free up your time by outsourcing bookkeeping and admin work.

✔ Market your firm consistently – Stop relying only on referrals.

✔ Charge what you're worth – Raising prices improves profitability and reduces burnout.

By implementing these changes, you’ll unlock scalable growth, increase profits, and build a firm that thrives without working longer hours.

Which of these fixes will you implement first?