Accounting firms lose ground on growth

The average growth rate for accounting and financial services firms has fallen from an all-time high of 13% to less than 10% today, the lowest point in five years, according to a new study.

The study, released Friday by Hinge Marketing, surveyed 133 accounting and financial services firms, classifying them as high-growth, average growth and no-growth. The median annual growth rate for high-growth accounting and financial services firms has reached 33.4%, giving them a big advantage over the rest of the market. While average-growth firms grew a modest 9.6%, the no-growth group contracted by 10.0%.

All three groups are slightly outperforming the 2025 growth metrics this year. The top performers also happened to be the most efficient firms, with profitability of 37.7%. High-growth firms tended to grow 3.5 times faster and be 22% more profitable than their counterparts. 

Visualization created with AI assistance based on original reporting.

Referrals were the No. 1 source of leads for all the accounting and financial services firms surveyed, but the high-growth group of firms relies on them 34% less than their no-growth peers. The vast majority of the marketing activity associated with faster growth involves interpersonal interactions, such as networking at events and on social media, direct outreach and providing free consultations.

While most firms in the industry budget approximately 5% of their revenue on marketing, high-growth firms are investing 9.0% — nearly double the percentage of no-growth firms. These firms are also deploying their capital strategically. They've made thought leadership one of their top marketing priorities for this year. They actively support the subject matter experts at their firms, supplying them with the resources they need to speak, write and engage with the market at large. 

Over 90% of high-growth firms are using artificial intelligence tools to accelerate content creation, automate workflows and conduct market research. Many high-growth firms are now looking beyond generative AI at more advanced AI products and features that deliver stronger efficiencies and capabilities.

Accounting firms are making use of social media to market their services, especially LinkedIn.

"The vast majority of firms across all growth categories use LinkedIn," said the study. "As the social media platform designed for business, this finding should come as no surprise. A smaller but still significant proportion of High Growth and No Growth firms use Facebook, Instagram, YouTube and X (formerly Twitter). High Growth firms, however, are much more likely to use TikTok and online forums such as Reddit, Quora, and Discord. Less than 6% of firms do not use any social media."

Earlier this month, Accounting Today released its list of the 26 fastest-growing firms drawn from its annual list of the Top 100 Firms and found much of the growth was tied to private equity funding. Among all the firms in the Accounting Today report, 41% reported double-digit growth. That was down somewhat from 47% in last year's report, but 42 of the Top 100 Firms reported growth above 20%.