CPA Practices

The 50,885 CPA practices in the US provide accounting, tax preparation, and auditing services to businesses, non-profit organizations, and individuals. Tax preparation and tax planning work for organizations and individuals comprise about one-third of overall CPA client fees, but are typically over half of client fees for smaller firms. Tax work is about evenly split between individuals and organizations. An additional 33,850 solo accountants operate with no employees and generate $2.4 billion in annual revenue. CPAs are licensed by their State Board of Accountancy.

Liability Exposure

Difficult economic times can cause business owners to blame their advisors for financial difficulties.

Changing Tax Laws and Accounting Standards

Keeping up with changes in complex tax laws and accounting rules is a major challenge for CPA practices, particularly smaller ones.

Jul 31, 2026 - Private Equity Investing Heavily In the CPA Industry

• Private equity firms are continuing to invest heavily in accounting firms, betting that a fragmented industry with recurring revenue offers plenty of room for growth. The pace of deals has accelerated over the past few years as investors target regional and midsize firms, providing capital for acquisitions, technology upgrades, and expansion into higher-margin advisory services. According to PitchBook, accounting services has remained one of the most active segments for private equity-backed acquisitions, while the American Institute of Certified Public Accountants estimates that more than 100 CPA firms have now accepted private equity investment. Supporters say the funding helps firms modernize and compete for talent in a tight labor market. Critics worry the new ownership model could increase pressure to improve profitability and alter the traditional partnership structure that has defined the profession for decades.
• For many CPA firms, the fastest-growing part of the business is no longer tax preparation or auditing - it's helping advise clients to make better macro business decisions. Demand is rising for outsourced chief financial officer services, succession planning, cash flow forecasting, cybersecurity, and year-round tax strategy as companies seek ongoing financial guidance instead of once-a-year compliance work. A recent AICPA and CPA.com Client Advisory Services Benchmark Survey found that firms with advisory practices reported median annual growth of 17%, while firms offering higher-value chief financial officer and business advisory services generated more than 30% higher recurring monthly revenue. Advisory work has also become a much larger share of firm revenue over time, climbing from 22.1% in 2008 to 32.2% in 2025, according to CPA Trendlines, as firms increasingly build long-term client relationships around strategic advice rather than tax returns and audits alone.
• The CPA remains one of the accounting profession's most valuable credentials, but its payoff increasingly depends on career goals. While AI is automating routine accounting tasks, demand remains strong for professionals who can provide judgment, regulatory expertise, and financial oversight. Earning a CPA requires a significant investment of time, money, and ongoing continuing education, but it can open the door to higher salaries, leadership roles, and greater job security in fields such as audit, tax, corporate finance, and public accounting. For professionals interested in startups, analytics, fintech, or other business roles, however, technical skills or alternative credentials may offer a better return. The broader takeaway is that the CPA is no longer a one-size-fits-all credential. It remains a powerful career accelerator for traditional accounting paths, but its value depends on how well it aligns with an individual's long-term ambitions.
• As states continue to address the accounting profession's talent shortage, state lawmakers are making it easier to qualify for Certified Public Accountant (CPA) licensure without requiring a fifth year of college. Vermont, Missouri, and Louisiana recently passed legislation creating an alternative "bachelor's plus two" pathway that allows candidates to earn a CPA license with a bachelor's degree, two years of professional experience, and a passing CPA exam, rather than the traditional 150 college credit hours. The changes, which still require governors' signatures, bring the number of states adopting similar licensing reforms to about 43, according to the Minnesota Society of Certified Public Accountants. The alternative pathway aims to reduce barriers to entry, as well as reducing tuition costs for students, while still maintaining professional standards.

Industry size & Structure

The average CPA practice has about 11 employees and generates $2.9 million in annual revenue.

• There are about 50,885 CPA firms in the US employing 572,995 people and generating about $151 billion in annual revenue.
• Any accountant filing a report with the SEC is required to be a Certified Public Accountant (CPA).
• About 86% of firms have less than 10 employees.
• An additional 33,850 establishments are owner-operated with no employees. These solo accountants generate $2.4 billion in annual revenue.
• CPAs are licensed by their State Board of Accountancy. All states require passage of the Uniform CPA Examination prepared by the American Institute of Certified Public Accountants (AICPA) for licensing. Less than half of candidates pass all four parts of the exam on their first try.
• Nearly all states require CPAs to complete a specific number of continuing education hours before their license can be renewed.