Why Advisory Services Are the Future of Accounting
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Accounting Today has just released its 2025 Accounting Today Advisory Services Editorial Report, based on a nationwide survey of accounting firms across the United States. The report explores how accounting firms are shifting from traditional compliance work, like tax returns and financial statements, toward advisory services that help clients make better business and financial decisions.
This study provides a clear snapshot of where the profession is headed and what’s holding many firms back.
What Are Advisory Services?
Advisory services go beyond the numbers to include business planning, tax strategy, virtual CFO support, wealth management, and consulting. It's about becoming a long-term partner in your client's success, not just someone who files their taxes.
Key Findings of the Report
28% of firm revenue already comes from advisory work, mostly tied to tax prep and compliance.
85% of firms plan to grow their advisory offerings in the next two years, and 25% expect that growth to be significant.
Most firms base new service decisions on internal expertise, while less are driven by client demand.
Only 32% of clients use more than two services from their accountant, showing a big opportunity to increase value and loyalty through cross-selling.
50% of firms say lack of staffing or capacity is the top reason they don’t offer more advisory services.
31% of firms currently don’t offer any advisory services, though nearly half of those are considering it.
Popular Services Firms Are Exploring
Firms looking to expand are focusing on:
Tax planning and strategy
Personal financial planning
Fractional CFO services
Business valuation
Family office support
Payroll advisory
Forensic and litigation consulting.
Challenges to Growth
Lack of time and people is the top challenge for most firms.
Many firms struggle to explain the value of advisory services to clients or to price them correctly.
Some small practices, especially those close to retirement, say they’re not motivated to change their current model.
The Real Opportunity
Firms that succeed with advisory services tend to have a clear plan, dedicated staff, and strong cross-selling strategies. The goal is to move from just being a tax preparer to being a trusted advisor. One of the best indicators of growth? Getting clients to buy three or more services.
Final Thought
This report shows that advisory work is getting less optional as it’s where the profession is headed. Firms that start now, build the right skills, and position themselves as problem-solvers rather than just compliance officers will be better prepared for the future.
