Why accounting firms are raising their prices

What exactly is compliance work?

Compliance work covers all the routine services that a business needs to stay on the right side of the tax office. This includes preparing and lodging BAS statements, submitting income tax returns, and ensuring that financial records are accurate and up to date.

Traditionally, compliance has been the bread and butter of accounting firms. Sole traders and small businesses often turn to accountants for exactly this type of work, expecting a relatively straightforward service at a predictable cost. But the economics are changing.

The numbers tell the story

Ignition’s report shows a sharp increase in the number of firms charging premium rates for basic compliance services. For example:

• Individual tax returns are increasingly billed at more than $300.
• Company returns are now often priced above $3,000.

Between 2024 and 2025, the proportion of firms moving into these higher brackets has jumped dramatically. Even more telling, 80% of firms surveyed indicated that they plan to raise their fees again this year.

For small businesses already facing rising costs in areas such as rent, utilities, and wages, this additional pressure can’t be ignored.

‍

Why are prices rising?

There are several reasons driving the upward trend in accounting fees:

1. Labour costs are increasing
   Compliance work is time-intensive. As wages rise, firms must pass these costs onto clients in order to maintain profitability.
2. Complexity of regulations
   The tax system isn’t getting simpler. Every year brings new rules, reporting standards, and compliance requirements, which means more hours are needed to get the work done accurately.
3. Shift towards advisory services
   According to Spotlight Reporting, a record 49% of firms now split their workload between compliance and advisory services. Advisory work — essentially financial coaching, forecasting, and strategic advice — is seen as higher value and more profitable. As a result, firms are placing less emphasis on compliance, and those who continue to offer it are charging more to make it worthwhile.
4. Perceived value of compliance
   Compliance is increasingly seen by accountants as a low-value service. If an accountant can generate significantly more revenue by helping a client grow their business, why devote time to tax returns and bookkeeping unless the fees reflect the effort?

What this means for small businesses

The short version is simple: getting your taxes done by an accountant is becoming more expensive, and compliance work is becoming less attractive to accounting firms. For sole traders and small businesses, that means:

• Higher fees for tax returns and BAS lodgements
• Less access to affordable accountants willing to handle compliance only
• Pressure to consider whether traditional accountants are the right solution

For many business owners, this trend highlights the importance of taking control of their financial admin. Relying entirely on an external accountant for basic compliance is not only costly but also risky, as firms may shift away from offering these services altogether.

‍

How technology is changing the game

The good news is that technology is providing alternatives. Automated accounting tools now make it possible to manage compliance work in-house, at a fraction of the cost of traditional firms.

Platforms like Thriday use AI to automate bookkeeping, track GST, generate tax-ready reports, and even lodge BAS on your behalf. This doesn’t eliminate the need for professional accountants altogether — especially for complex businesses — but it does reduce the reliance on them for routine compliance.

By using automated accounting, small businesses can:

• Save money on expensive compliance fees.
• Keep financial records up to date in real time.
• Reduce the stress of deadlines and reporting.
• Reserve accountants for higher-value advisory work, where they add the most benefit.

How Thriday keeps prices cost effective

One of the main reasons accounting firms are increasing their fees is the amount of manual work involved in compliance. Every BAS, every tax return, and every reconciliation takes hours of an accountant’s time. As wages rise, those hours simply cost more.

Thriday approaches the problem differently. The platform relies on AI and automation to handle the bulk of repetitive financial admin. This means:

• For business owners – everyday tasks like categorising expenses, tracking GST, and preparing reports are done automatically in the background. There’s no need to spend hours on spreadsheets or paper receipts.
• For Thriday’s expert accounting team – when professional input is required, they’re working with clean, pre-processed data. This dramatically reduces the time needed to review, check, and finalise compliance tasks.

By removing manual effort at both ends, Thriday can pass the savings back to customers. Instead of paying inflated fees that reflect rising labour costs, small businesses get access to efficient, streamlined services at a much more affordable price point.

The result is simple: you get compliance handled accurately and on time, without the rising costs that are now common across traditional accounting firms.

‍

Final thoughts

Accounting firms are raising their prices because labour is more expensive, compliance is more complex, and advisory services are more profitable. From a business perspective, this makes sense. But for small businesses, it means higher costs and fewer options.

The best response is to embrace technology that reduces reliance on compliance-only accountants. By automating routine accounting and tax tasks, small businesses can save money, stay compliant with the ATO, and focus on growth — without being at the mercy of rising accounting fees.