Many CPA firms struggle to raise pricing and remove problematic clients. It may get brushed off as “no big deal,” but ignoring pricing and client mix harms the firm in significant ways: less revenue equals less growth and lower ability to pay staff well, lower profits for partners or capital to reinvest in the business, and unwieldy clients who burn out staff and partners alike for a paltry financial return.

After helping many firms in this area during strategic planning and retreats, here’s what I’ve seen the successful ones do.

Don’t shock the system

When we talk about increasing prices, many partners imagine an abrupt, across-the-board 20% fee increase and clients pouring out the doors as a result. I’ve seen firms be very successful using an incremental and client-specific approach. Segment your client list by service line and total fees. Consider the 80/20 rule: how many clients do you need to generate 80% of your revenue? It’s likely not as many as you think. Then have each partner recommend appropriate pricing adjustments for each client. If there’s a big gap between current fees and market rates, it may take a few years to get there (unless you’re OK with the possibility of losing them, which sometimes is advisable). Some clients may need only a 5% bump to get to market; some may need 150%. Do what makes sense for each client and total firm revenue.

Communication is the key

Often, partners relax once they grasp the reasons why pricing or client acceptance criteria need to improve: staffing crisis, wage increases, tech costs going up, inflation, undercharged for years, not enough hours to serve all the clients well, etc. Pull a Wall Street Journal article on any given day about the accounting industry, and you’ll have another reason your firm needs to evolve. Then explain that to your clients with empathy and sincerity. Almost all of them will understand.

You can keep some personal favorite clients

Many partners get skittish about changing pricing and client acceptance because they have a stable of long-time clients who have been way under market for years but have strong sentimental value. Whoever they are for you, you are allowed to keep them on one condition: accept that they may not be 20% (or some other meaningful amount) of your total book of business. I have great hope for the accounting industry because of the great care I’ve seen partners take of their clients. We don’t want to diminish that. We do want to run a sustainable business.

You’re worth it and so is your staff

Firms have reported gleeful results when they let their staff give input on clients. The staff know who the ungrateful, late, messy clients are. They also know the appreciative, clean, fun-to-work-with clients. It’s uncanny how some of the lowest-profit clients often fall into the first category. Economics aside, when you protect your staff from problematic clients through higher pricing (enough budget to do quality work) or firing clients who can’t work well with the firm, you send a strong message that you care. The same goes for partners. Firms that have a lot of A and B clients and aren’t afraid to shape up or ship out their lowest clients seem to have much higher enjoyment and peace of mind at work. Your team works hard for your clients, and the reciprocity of fair fees and behavior from them is only right.

If you want to join the firms that are finding success in fees and client mix, here are four ways to start:

1. Grade your clients: Rank them A through F, based on criteria like total fees, realization, growth potential, and how fun or hard it is to work with them.

2. Segment the list: Analyze your now graded client list. Who needs more attention? Who needs to get off the bus?

3. Make an action plan that is specific to each client: Granularity is your friend. By partner, by client, make next steps to improve fees or client behavior to meet current standards.

4. Keep meeting about it regularly: This is the most important step! Just making a list doesn’t count. Partners who regularly meet and act on their lists make big progress.

I know the journey can be uncomfortable, but firms on the other side prove it’s well worth it. Good luck!

Senate Majority Leader John Thune said Republicans in his chamber expect to deliver on President Donald Trump’s campaign promises to exempt tips, overtime pay, Social Security and auto loan interest from taxes.

“I think that the president as you know campaigned hard on no tax on tips, no tax on overtime, Social Security, interest on car loans — those were all things that are priorities for the administration and they were addressed in the House bill and I expect they will be in the Senate as well,” Thune told reporters.

The House bill, in lieu of a direct tax cut on Social Security, which would violate Senate budget rules, provided a $4,000 bonus deduction for per taxpayer age 65 and older with incomes up to $75,000 for individuals and $150,000 for married couples. The House provisions on tips, overtime, the elderly and car loans would all expire in 2029.

Thune’s comments come as Senate negotiators tweak the House-passed version of Trump’s giant tax package ahead of a self-imposed deadline to pass the measure before the July 4th holiday, with Thune saying Tuesday the Senate is very close to finishing its draft of the legislation. 

Earlier Tuesday, House Ways and Means Chair Jason Smith, whose committee is responsible for tax legislation, warned that any Senate version of the tax package that doesn’t include the tips and overtime breaks would be “dead on arrival” in the House.

Several Republican senators including Thom Tillis of North Carolina and Lindsey Graham of South Carolina have expressed skepticism about the cost and economic wisdom of including the tax exemptions on tips and overtime pay. Senators have instead called for funds to be used to make temporary business tax breaks permanent.

Such a change would be a “no go” for House Republicans, Smith told Bloomberg TV. 

The Senate is now considering the massive tax and spending package after it passed the House by a single vote last month. If the Senate changes the legislation, the House must approve the revised version.

Senator Josh Hawley, a populist Republican, said Trump told him Tuesday morning that tax-exempt tips and overtime, as well as a tax cut for the elderly, are the most important provisions in the bill. 

House Speaker Mike Johnson also has urged senators not to remove or scale back provisions in the legislation that exempt tips and overtime pay from income tax through 2028.

“This is an important promise for us to keep,” Johnson told reporters earlier Tuesday.

The deal expands Sax’s presence in Monmouth County and strengthens its real estate and private client service capabilities by adding founders Charlie Anastasia and Steven Sewald.

Steven Sewald & Co. merged with Charles Anastasia to form Sewald & Anastasia in 2023.  After nearly two years of growing their firm in South New Jersey, the two lifelong tax professionals and softball teammates saw the opportunity of joining Sax. For 30 years, they have served small to medium-sized businesses in markets such as construction, trucking, health care, and retail. This acquisition will bolster Sax’s capabilities in these vital sectors.

Anastasia, who has been managing partner of Sewald and Anastasia, will join Sax as a partner, helping to strengthen Sax’s real estate practice. Sewald will be joining Sax’s private client services practice as a director. 

“This acquisition is strategic, as both Sax and Sewald & Anastasia are equally aligned in our service philosophies and our dedication to continued growth to best serve our clients,” said Sax managing partner Joseph Damiano in a statement. “We are excited to welcome Charlie and his team to Sax.  This partnership is a significant milestone for Sax, as our firm looks forward to leveraging this partnership to deliver enhanced value and innovative solutions to its clients across the region.”

As a result of the deal, Sax is now a 62-partner firm with 367 total employees and now has five offices between New Jersey, New York, and Mumbai, India, and a remote team spanning 22 U.S. states.  Will Walsh of 1LifeConsulting, LLC consulted on the transaction.

Financial terms of the deal were not disclosed. Sax ranked No. 66 on Accounting Today‘s 2025 list of the Top 100 Firms, with $109 million in annual revenue.

“I am thrilled to join Sax and contribute to the firm’s already impressive legacy,” Anastasia said in a statement. “This acquisition represents a unique opportunity to combine our strengths and deepen our commitment to delivering exceptional service to our clients. I look forward to working with Sax’s real estate practice and helping our clients navigate the complexities of the industry with innovative solutions and personalized guidance.”

In 2023, Sax merged in Schall & Ashenfarb CPAs, a firm based in New York. In 2022, Sax acquired David Weiss CPA, also in New York.