Findings Reveal How U.S. Businesses Choose, Evaluate, and Pay Their Accountants

NEW YORK, Aug. 19, 2025 /PRNewswire/ -- TaxDome, today announced the release of its 2025 Niche Business Accounting Report, the first industry study to bypass accountants entirely and instead survey 350 U.S. businesses on how they find, select, and retain their accounting partners.

While most industry research focuses on the accountant's perspective, this study goes straight to the source: the decision-makers writing the checks. Respondents represented a range of industries and revenue bands ($1M–$100M), offering a rare look at how clients truly perceive and value accounting services.

Key findings include:

• Referrals dominate: 57% of businesses found their current accountant through a peer referral, while only 3% chose an accountant via advertising.
• Specialization creates loyalty: Once businesses hire a niche accountant, they rarely switch back to generalists. 98% of businesses that left a specialist moved to another specialist.
• Premium services drive higher fees: Businesses are willing to pay up to 25% more for specific offerings, with preferences varying by industry.
• The $1M+ revenue tipping point: Companies generating over $1M annually are 2× more likely to hire niche specialists. Among those paying $10K+ per year, 83% say a firm's use of technology is a key factor in their decision.
• Why niche firms lose clients: The top reasons for switching firms are poor responsiveness and lack of industry insight. Highlighting the critical need for strong client service and deep expertise.

"This report flips the script on how our industry thinks about client retention," said Ilya Radzinsky, Co-founder and CPO at TaxDome. "By asking businesses directly, we've uncovered what truly drives their decisions and what makes them leave. These insights give accountants a clear roadmap to stay competitive, win more of the right clients, and keep them for the long haul."

The full 2025 Niche Business Accounting Report is now available for download at https://taxdome.com/niche-report-2025.

To learn why more than 10,000 firms trust TaxDome, visit https://taxdome.com.

About TaxDome

Born out of a deep understanding of the tax, bookkeeping and accounting industry, TaxDome launched in 2017 and now serves over 30,000 professionals worldwide. TaxDome is the proud winner of seven categories in the 2025 CPA Practice Advisor Readers' Choice Awards, including Comprehensive Firm Workflow Solutions, Practice Management Systems, and Time & Billing Systems. 

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SOURCE TaxDome