Where can small firms find the benchmarking information they need for strategic decision-making? The recently released results of the 2025 National Management of an Accounting Practice (MAP) Survey provide a wealth of insights and data geared to specific firm needs. In addition to overall findings, the survey’s dynamic platform breaks down data by firm size and region, so it’s easy to compare your firm against your peers — based on state, region, number of partners, firm revenue, or service line, for example — and understand how to better manage your business.
This year’s results paint a picture of a profession continuing to transform and taking steps that will enhance both daily operations and long-term sustainability. Here are some key survey findings:
Demand for CPA services remains strong. The need for trusted advisers has never been greater. Clients are seeking insights and information in addition to traditional tax and accounting services. Tax complexity, regulatory changes, and advancing technology present new opportunities for firms in tax planning, advisory, and assurance services. All these factors combined have contributed to the overall median 6.7% year-over-year growth rate of firms that participated in the survey.
Firms are getting more competitive on compensation. People are a firm’s greatest asset, and higher salaries can enhance access to talented professionals who can serve clients and sustain the firm’s future. Strengthened pay structures signal that firms value their people; this can help attract qualified candidates, improve retention, and build loyalty. Although the profession has fallen behind other careers and majors in entry-level salaries, we are encouraged to see the results of this year’s survey. The survey showed that overall salaries for new hires with master’s degrees rose roughly 17% in the two years since the last survey, to a median $67,750. Pay for recruits with bachelor’s degrees rose 11% over those two years to $60,834. The percentage increases were even higher for firms with under $5 million in revenue. Though these changes should put firms in a better position to hire and keep talented professionals, we need to continue to keep our eyes on salaries.
Firms are addressing underpricing. CPAs have traditionally billed by the hour and undervalued their services. When their fees don’t reflect the value they provide, they limit their ability to offer competitive compensation and benefits, adopt new technologies, or meet client expectations. Focusing on value rather than price can mean stronger client relationships, higher returns, and more flexibility to reinvest in their teams and infrastructure.
The survey also found that fewer firms were engaged in shedding clients that don’t suit the firm, which may mean that previous efforts to narrow their focus on the most attractive clients have succeeded. That means that firms have a great opportunity to think strategically about growth and to accept or decline the right clients. By continually evaluating their client mix, they can better manage capacity, improve profitability, and create space for more advisory and higher-value work.
Firms are moving cautiously on new technologies. Roughly 86% of all firms with less than $1.5 million in net client fees are confident in or not concerned about their ability to adopt AI or automation, compared with a median 88% for all firms. When asked to describe their mindset on these technologies, the largest percentages of small firms said they were observing developments and planning to adopt AI and automation in the future.
Although a measured approach makes sense, small firm practitioners should keep in mind that AI and automation have tremendous potential to enhance efficiency and capacity, deepen the insights firms offer, and improve client experience. It can also make the firm more attractive to young professionals who expect technology-enabled environments. Although larger firms may have more resources with which to experiment and invest, they do not appear to be significantly ahead in their mindsets or in their implementation strategies compared to smaller firms.
The bottom line
It’s clear that small firms continue to adapt and find new opportunities. Practitioners can achieve their strategic growth goals by being intentional and adopting a business model that focuses on identifying the right clients and services offered and by leveraging technology. By investing in their people, small firms can create an environment where professionals can grow and feel valued, leading to long-term success and sustainability. Firms can also drive stronger margins and client loyalty by positioning themselves as year-round trusted advisers.
Small firms should feel confident about the future. The survey shows that small firms are in a position to thrive, not just survive, in a changing environment. This column highlights some key takeaways from the survey, but I urge you to review the findings yourself so that you can home in on the key metrics and data that are most important to your firm.
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Stephanie Otero, CPA, is the Association’s vice president — Small Firm Advocate. Have questions for Stephanie? Contact her directly at stephanie.otero@aicpa-cima.com. Currently, Stephanie hosts two valuable webcasts: Small Firm Updates, which provides a general overview of the current financial climate for firms; and the new Small Firm Issues series, which examines hot topics like CPA Firm Top Issues, MAP Survey information, and key recent events. CPE is available for Small Firm Issues webcasts; AICPA members receive a discount, with an additional 20% off for PCPS members.