For years, CPA firms were locked into the billable hour. Track the time, send the invoice, repeat.
It worked, sort of. But it also created headaches. Clients dreaded surprise bills. Firms got bogged down in timekeeping. Then things started to shift as flat fees and value-based pricing entered the picture. Instead of selling hours, firms started selling outcomes. It made billing clearer and relationships better.
Now, a bigger shakeup is underway: subscription pricing. One monthly fee, clear tiers, and ongoing support.
But to understand how we got here, you have to look back at where the industry started, and why the old model no longer works.
The billable hour wasn’t designed for today’s world. It was built for a time when accounting work was more manual and harder to measure any other way. It gave firms a simple formula: More hours = more revenue.
But this method of billing rewarded inefficiency. There was no incentive to automate or wrap things up quickly. And for clients, it felt like a gamble. They never really knew what the final bill would be, or whether the time billed actually moved the needle.
Worse, it put a wall between CPAs and their clients. Every question, call, or email came with a cost. That made clients hesitant to reach out, and kept firms stuck with reacting to problems instead of advising.
The billable hour trained firms to focus on time, not value. And in the process, it put the wrong things at the center of the client relationship.
Then things started to change.
As frustration with the billable hour grew, some CPA firms began to experiment. They moved to flat-fee pricing for things like tax prep or monthly bookkeeping. Others adopted value-based pricing, charging based on results delivered instead of hours logged.
Flat fees gave clients cost certainty. Value pricing shifted the focus to outcomes. Firms could finally talk about what they do for clients, not just how long it takes.
But these models didn’t fix everything.
Flat fees often became a race to the bottom, with firms underpricing themselves just to stay competitive. Value-based pricing, while smarter in theory, proved tough to scale. It’s subjective, time-consuming to scope, and still often tied to one-off projects.
Continuity, simplicity, along with real, ongoing relationships were still missing.
This is why more CPA firms are now turning to subscription pricing, a model built around long-term value, recurring revenue, and proactive services. It takes the best of both worlds and fixes what didn’t work.
Subscription pricing isn’t a gimmick. It’s a response to how both businesses and clients actually work today. Instead of billing by the hour or quoting one-off project fees, firms offer packaged services for a flat monthly rate. Clients know what they’re getting. Firms know what they’re delivering.
For clients, it means no more surprise invoices or debating whether a quick question is worth the cost. They’re paying for access, outcomes, and a real relationship, not just tasks completed.
For firms, it brings steady, predictable income. Instead of chasing time sheets or hustling for seasonal work, they can focus on delivering consistent value, month after month. It also pushes firms to be more proactive, not reactive, because the client relationship doesn’t end with a finished return or audit.
This approach fits how most of us already pay for services, from streaming platforms to software tools.
And it’s already working for firms that have made the switch. Here’s what this looks like in practice.
Example #1: A small CPA firm shifted its solo contractors and startup clients to a monthly subscription. Instead of charging separately for bookkeeping, quarterly reviews, and annual tax filings, they bundled it all into a simple monthly plan. Clients get ongoing support. The firm gets consistent income. Scope creep disappeared, and both sides had a clearer picture of expectations.
Example #2: A mid-sized firm created three different tiers: basic compliance, compliance + advisory, and full-service CFO support. Clients chose the level that matched their stage of growth. It was easier to budget, easier to scale, and easier to have honest conversations about value.
Example #3: Even CPA firms still testing the subscription pricing waters are seeing traction. Many start with a handful of clients who value responsiveness and simplicity over one-off pricing. These early clients typically sign up for essentials like:
For the firm, it’s a low-risk way to learn what works. For the client, it’s about having a financial partner they can actually talk to without watching the clock. Over time, these pilot clients often grow into the core business model.
Moving to a subscription model takes more than just changing how you invoice. It’s a shift in how you work and structure client relationships.
It won’t be without hurdles to overcome. Some clients will still expect to pay per project. Some team members may be unsure how to measure their work without tracking hours. And it takes time to figure out the right pricing and scope.
Still, plenty of firms are making the transition and doing it one step at a time.
Here’s how your firm can get started:
You don’t have to overhaul everything overnight. Just take the first step and build from there.
The billable hour had a long run in accounting, but its limitations are harder to ignore in today’s world. Flat-fee and value-based models were steps forward, but they didn’t solve everything. This is where subscription pricing comes in. It offers a more practical way to deliver ongoing value, smooth out revenue, and build stronger client relationships.
The shift to subscription pricing won’t happen overnight. But the firms willing to rethink how they price and package their work are already seeing the benefits.