A new study has bypassed accountants and instead went directly to the businesses they represent, surveying 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.
The 2025 Niche Business Accounting Report, commissioned by TaxDome, included small and mid-sized businesses from a range of industries and revenue bands ($1M–$100M), offering a rare look at how clients truly perceive and value accounting services. TaxDome is a cloud-based practice management software designed specifically for tax, bookkeeping, and accounting firms.
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.
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