Firms of all sizes are culling clients

In the face of staffing shortages and capacity crunches, accounting firms of all sizes are culling their client work, according to a recent report.

An average of 4.38% of clients were culled in 2022, according to Inovautus Consulting's "2023 Growth Outlook for CPA Firms," with smaller firms dropping more than that, and larger firms culling a lower percentage.

Based on a survey of a representative sample of accounting firms from across the country, the report includes information on:

• Projected growth rates;
• Fee breakdowns from tax, audit & accounting, CAS, and advisory & consulting services;
• Marketing budgets and strategies;
• Major growth challenges; and,
• Pricing trends.

"The last few years have forced a ton of transformation," said Sarah Dobek, founder and president of Inovautus Consulting, in a statement. "Accounting firms are navigating a changing landscape. This report will help them better understand what their peers are doing to succeed and identify new opportunities to increase efficiency and maximize growth potential."
The Growth Outlook is available for download on Inovautus' website.