As forecasted by 2025 industry estimates, CPA firms generate a staggering $145.5 billion each year and employ over 1.7 million accountants and auditors. There are thousands of CPA firms of all sizes and descriptions, ranging from lone practitioners to global giants, located across the country. They're not just filling out tax forms; they're offering critical services that keep business in balance, people financially sound, and the economy growing.
Although the number of companies has decreased somewhat due to acquisitions and mergers, industry revenues are at an all-time high, and the demand for professional CPAs increases on a daily basis. The profession as a whole is changing so dramatically, using technology, expanding into consulting services, and being a key player in assisting in establishing the foundation of the sound U.S. economy at all levels.
What Is a CPA Firm?
CPA firm is a professionally educated business entity that hires Certified Public Accountants to work for an array of financial services. The accountants are state licensing exam graduates, possess passed strict education and experience standards, and follow stricter ethical standards.
Some of the major activities CPA firms undertake are:
- Tax planning and business and individual preparation
- Audit and assurance services to provide financial statements
- Bookkeeping and payroll service
- Business advisory and consulting
- Preparation and financial statement analysis
- Forensic accounting and fraud examination
The History of CPA Firms in America
Let us know the history of CPA firms in America:
Early Origins and Expansion
The United States CPA career began around the turn of the 19th century when American business and commerce were still emergent. The majority of CPA firms were small, local accounting firms providing bookkeeping services and general tax preparation at initial stages. With the progression of businesses and laws related to finance, CPA firms diversified and expanded in services provided.
Industry Growth and Mergers
The industry has expanded, mostly over the last ten years. The accounting services industry in 2013 had approximately $100 billion. It is now at $145.5 billion in 2025. Despite the decline in the number of companies with mergers and acquisitions, revenue and size of the CPA companies in total rose. Private equity investment also spurred growth and innovation, especially in major firms.
Currently, CPA firms vary from sole practitioners with local clientele to multinationals employing thousands of people and having offices located everywhere in the world. The variety enables CPA firms to offer the distinctive needs of multiple clients.
Services Offered by CPA Firms
CPA firms offer a highly diverse range of services much larger than tax return preparation. Their services are categorizable into core and specialty services.
Core Services
The majority of the revenue of CPA firms comes from tax planning and tax preparation, contributing between 40% and 50% of firms' revenue. Bookkeeping and accounting services contribute between 15% and 25%, whereas advisory and consulting services contribute between 10% and 15%.
Specialized Services
Besides their core services, most of the CPA firms provide value-added services like forensic accounting, risk consulting, information security consulting, mergers and acquisitions advisory services, and estate and trust planning.
For instance, forensic accounting entails review of imbalance cases and fraud cases in case they will be presented to the court. Cybersecurity consulting helps businesses keep sensitive financial information out of hackers, and advising on mergers and acquisitions counsels participating companies for complex transactions.
The Emergence of Advisory Services and Technology
Below are the technological and advisory advancements in the CPA firms:
Embracing Technology
The accounting world is experiencing a revolution during the technology age. In statistics 2025, 61% of accounting firms utilize artificial intelligence (AI) in one form or another. The majority of them utilize cloud accounting software for facilitating real-time collaboration with clients, as well as enhanced workflow management.
Automation is also transforming the way CPA firms operate. Time-consuming activities like data entry, bank reconciliations, and processing invoices are handled better through automation, freeing up CPAs to engage in more sophisticated advisory services.
Diversification of Advisory Services
Not only compliance but also strategic guidance do clients need. CPA firms are reacting by broadening advisory services that now encompass business growth planning, risk management, cybersecurity, succession planning, and much more.
This is due to the fact that, other than the demand of the clients, diversification of their sources of income compels them to do so within a competitive market. Businesses therefore are spending on employee training and advanced technology so that they can keep up with developments in the industry.
CPA Firm Challenges in 2025
Below are the shortcomings CPA firms may face in 2025:
Talent Shortage
Perhaps the biggest obstacle CPA firms are facing today is that there isn't a surplus of highly skilled professionals. With 75% of existing CPAs ready to retire sooner rather than later, companies are having trouble recruiting top performers and keeping them. To battle this, most are looking overseas for talent pools and work-at-home initiatives.
Regulatory Complexity
The business environment of the CPA firm community is evolving. Tax law, accounting standards, and regulatory developments continue to necessitate ongoing education and training. Education and training must be invested in by firms in order to keep workers at a proficient level.
Fee Pressure
Downward fee pressure is being driven by substitutes in automation and other areas. CPA firms have to prove value by delivering significant expertise and customized service inaccessible at automated substitutes.
Cybersecurity Threats
Client financial information in limbo, CPA companies are presenting a profitable window of opportunity to cyber attacks. Businesses are investing in covering up their IT security under cyber guise with possibilities like employee training, encryption, and safe cloud storage in a bid to protect the clients' information and instill confidence.
How to Select the Optimal CPA Firm
Here are some of the key points to keep in mind:
When choosing a CPA firm, American citizens must consider the following factors:
- Specialization: Is the firm specialized in your company or with your personal financing needs?
- Portrayal: Look for online commentary, recommendations, and professional organisations like the American Institute of Certified Public Accountants (AICPA).
- Technicality: Is the firm using modern accounting technology and secure websites?
- Service Range: Is the firm wide in services provided, or is it specialized in some areas?
- Personal Fit: Does the firm's ethics and communication style match yours?
- Cost: How does the firm bill—hourly, fixed fee, or value-based?
Related Resources
- How to Pick the Best Las Vegas CPA Firms for Your Business in 2025
- How Outsourced Bookkeeping Companies for CPA Firms Help Increase Efficiency
- How to Find the Best CPA Accounting Firms Near Me in 2025
CPA firms are trusted advisors and financial keys to success for millions of Americans. Whether you’re an individual seeking peace of mind at tax time or a business owner navigating growth and regulation, the right CPA firm can make all the difference.
Since the "numbers game" keeps up with society and its changes, and stays ahead of new challenges, one thing is certain: CPA firms are an institution of America's financial landscape, leading progress and prosperity from sea to shining sea. Connect with our experts at The Fino Partners to explore more.
