10 Predictions for the Public Accounting Industry in 2026
By Joe Tarasco, CEO and Senior Consultant at Accountants Advisory Group
As public accounting firms move into 2026, the pace of change shows no signs of slowing. Talent pressures, evolving client expectations, advancing technology, and sustained consolidation are reshaping how 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 decision-making. Below are ten predictions that will define the public accounting landscape in the year ahead.
1. Advisory services will outpace traditional compliance growth
Tax and audit will remain essential, but advisory services will remain the primary driver of firm growth and profitability. Clients increasingly expect proactive insight—forecasting, scenario planning, transaction support, and strategic guidance—rather than reactive compliance work. Firms that build structured advisory offerings with repeatable deliverables will outperform those relying on informal, partner-driven consulting.
2. AI will move from experimentation to embedded workflows
In 2026, artificial intelligence will no longer be treated as a pilot initiative. Firms will integrate AI directly into core workflows such as document management, audit planning, tax preparation support, internal research, proposal development, and marketing execution. The firms that succeed will focus less on tools and more on governance, training, and quality control.
3. Pricing models will continue shifting away from hourly billing
While hourly billing will not disappear, more firms will adopt hybrid and value-based pricing models, particularly for advisory, CAS, and recurring services. Clients want predictability, and firms want margin stability. Engagement letters will increasingly define scope, tiers, and change-order processes that firms are prepared to enforce.
4. The talent model will become more flexible and multidisciplinary
The CPA pipeline challenge will persist, but firms will respond by redesigning the work rather than waiting for more candidates. Expect greater use of non-CPA professionals, expanded outsourcing and nearshoring for standardized tasks, 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.
5. M&A and private equity activity will remain strong—but more selective
Consolidation will continue in 2026, though buyers will be more disciplined. Firms with a strong advisory mix, scalable infrastructure, documented processes, and depth beyond the founding partners will command premium valuations. Firms lacking operational maturity or succession planning will face more contingent pricing and earn-out structures.
6. Industry specialization will become a competitive necessity
Generalist positioning will feel increasingly outdated. Clients want advisors who understand their regulatory environment, operational challenges, and growth pressures. In 2026, firms will sharpen industry focus—such as healthcare, real estate, construction, manufacturing, financial services, or emerging markets—and align advisory offerings, marketing, and talent around those niches.
7. Marketing will shift from awareness to 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.
8. Client experience will become a formalized strategy
Firms will increasingly view client experience as a differentiator, not 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 more referrals.
9. Governance and leadership development will gain 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. Firms that delay these conversations will feel increasing strain.
10. Firms will increasingly “run like businesses,” not just practices
Perhaps the most defining shift in 2026 will be cultural. More firms will operate with a scalable business mindset —tracking 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.
Looking Ahead
The public accounting firms that succeed in 2026 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.
Contact Joe Tarasco, with any questions or to schedule a meeting.