Why every accounting firm should think like a CFO
February 6, 2025
For years, accounting firms built their businesses on stability. Tax filings, financial reporting, and audits were the profession’s foundation, predictable as a well-balanced ledger. But stability is starting to look like stagnation.
Clients don’t just want accountants who can close the books. They want strategic partners—advisers who can help them navigate cash flow crunches, improve working capital, and forecast financial risks. The demand is growing fast, and firms that don’t adapt are already feeling the squeeze.
In the last five years, accounting firms have seen a 75% increase in demand for investment and business strategy advice, a 73% rise in forecasting services, and a 70% jump in payroll management, according to Modulr findings.
The message is clear: businesses expect more than just compliance.
Yet too many firms remain stuck in the old model, operating in a space where technology is rapidly devaluing their core services. Bookkeeping is becoming automated. Tax preparation is becoming commoditised. And clients are less willing to pay premium fees for work they see as routine.
When Compliance Becomes a Liability
On the surface, compliance services still look like a stable business. Every company needs to file taxes. Financial statements won’t prepare themselves. But dig deeper, and the cracks start to show.
Automation is advancing at a pace few expected. AI-powered software now reconciles accounts in minutes, flags anomalies before they turn into problems, and generates financial reports faster than any human accountant ever could. The firms that once made their money on these services are watching as clients demand lower prices for work that used to be premium.
And even when clients stay, they’re not staying for the same reasons. A recent survey found that medium-sized firms that offer CFO-level advisory services have an 84% client retention rate. Meanwhile, firms still stuck in compliance are struggling to differentiate themselves—locked in a cycle of competing on price rather than value.
Advisory isn’t a nice-to-have anymore. It’s the business model.
The Great Accounting Pivot
Firms that are thriving aren’t just expanding their services—they’re repositioning themselves entirely. Instead of selling compliance, they’re selling financial intelligence.
A fractional CFO isn’t just an accountant with a new title. It’s a role that turns accountants into problem solvers, forward-thinkers, and decision-makers. It’s about looking beyond the numbers to help clients understand what’s coming next and how to prepare.
The firms making this shift aren’t just seeing client retention improve. They’re seeing new revenue opportunities emerge. A full 40% of firms report significant upselling potential after expanding into CFO-level advisory. And the demand is still climbing—68% of firms expect treasury and payroll services to grow over the next five years.
That’s the real divide in the profession today. It’s not about small firms versus big firms, or boutique agencies versus enterprise giants. It’s about accountants who see the shift happening—and those who don’t.
Breaking Free from the Compliance Trap
So why haven’t more firms made the leap?
For many, the technology problem is real. A third of firms (34%) say outdated financial systems are holding them back. Nearly half (46%) are still spending more than three hours per week reconciling accounts manually—wasting time that could be spent on advisory work.
Then there’s the pricing problem. Most firms still bill by the hour, an approach that works fine for tax preparation but makes no sense for strategic advisory services. The firms that have successfully transitioned to fractional CFO work price based on impact, not hours.
These shifts require new habits, new tools, and a new way of thinking about value. The firms that make them now will be well ahead of the curve. Those that don’t will be playing catch-up in a shrinking, price-sensitive market.
The Future of Accounting: Two Roads, One Choice
The accounting profession is at a crossroads.
On one side, compliance-based work is becoming a commodity—automated, highly competitive, and driven by downward pricing pressure. On the other, advisory services are growing, with firms that provide financial strategy commanding higher fees, longer client relationships, and stronger business growth.
The choice is clear.
Accounting firms that continue doing what they’ve always done will find themselves competing on price—facing the same fate as industries that failed to evolve. Those who pivot to fractional CFO services, financial strategy, and advisory work will control the future of the profession.
Because in a world where clients are looking for insights, not just tax returns, being just an accountant is no longer enough.
[Accountancy Age]
