How accountancy firms can move beyond price competition and increase profitability

Many firms have seen the scope of their work increase significantly over recent years, yet fee levels have often remained unchanged. Client expectations continue to grow, compliance requirements are becoming more complex, and accountants are spending more time providing advice, answering queries and supporting clients through increasingly challenging situations.

Speaking at the ICAS Practice Conference 2026, Will Farnell, founder of TC Farnell Clarke challenged firms to rethink how they price their services and, more importantly, how they communicate their value. 

His message was simple: if clients see accountants as interchangeable, price becomes the deciding factor. 

The problem with competing on price 

According to Farnell, firms have two choices. They can be the cheapest, or they can be different. Most firms would agree they don't want to be the cheapest. Yet many continue to market themselves in exactly the same way as their competitors. 

"We do accounts." 

"We do tax returns." 

"We run payroll." 

The problem is that every other accountancy firm says much the same thing. When services are presented as commodities, clients naturally compare providers on cost. That creates a race to the bottom that few firms can afford to win. 

Instead, Farnell argued that firms need to focus on what makes them different and why clients should choose them over another provider. 

A lesson learned the hard way 

Farnell shared his own experience of getting pricing badly wrong. 

When he launched his practice in 2007, he adopted fixed-fee pricing because he wanted clients to have certainty over costs. It sounded like a sensible approach. The problem was that he bundled almost everything into the monthly fee. 

As client businesses grew, the work grew too. One client that started as a small business eventually employed 34 staff and generated £1.6 million in turnover. Yet the monthly fee remained just £125, with prices barely changing for years. At the same time, expectations increased and workloads expanded. Eventually the firm reached a point where something had to give. 

Like many practitioners, Farnell found himself trapped in a familiar cycle. He felt the service wasn't good enough to justify a fee increase, but without increasing fees he couldn't invest in the people and resources needed to improve the service. 

Breaking that cycle required a difficult decision: raising prices first. 

What clients are really buying 

One of the most thought-provoking parts of the session focused on a simple question. What do clients actually buy from their accountant? The obvious answer might be accounts, tax returns or payroll services. But Farnell suggested that these are only the outputs. The real value lies elsewhere. 

A client might say they value having someone they can call when they have a problem. Ask why that's important and the answer may be peace of mind. Ask why that matters and the conversation often leads to something much bigger, whether that's growing a business, protecting a livelihood or achieving personal goals. 

The further you dig, the clearer it becomes that clients aren't paying for compliance. They're paying for confidence, clarity and better decisions. Those are far harder to compare on price. 

Understanding your firm's purpose 

Farnell also encouraged firms to spend time thinking about their "why", "what" and "how". 

• Why does the firm exist? 
• What impact does it have on clients? 
• How does it deliver that value? 

These questions might sound abstract, but they play an important role in helping firms stand out. When businesses understand their purpose and communicate it clearly, they create a stronger connection with clients. They move away from selling services and start talking about outcomes. 

That shift can transform pricing conversations. 

Why differentiation matters more than ever 

The rise of AI and automation was never far from the discussion. 

Technology will continue to make certain tasks faster and more efficient. In some areas, it may also put downward pressure on prices. That makes differentiation even more important. 

If firms continue to define themselves solely by compliance work, they risk being viewed as interchangeable providers of a service that becomes increasingly automated. The firms that thrive will be those that focus on the expertise, judgement and insight that technology cannot easily replicate. 

Building a more profitable future 

Profitability isn't simply about charging more. It's about creating a business that clearly communicates its value and delivers an experience clients are willing to pay for. 

That starts with understanding what clients truly value, moving beyond commodity services and having the confidence to price accordingly. In a profession facing rapid technological change, increasing competition and growing client expectations, that may be one of the most important strategic decisions a firm can make. 

As Farnell reminded delegates, every firm has a choice. 

Be the cheapest or be different. 

This article reflects the discussion and opinions shared during the ICAS Practice Conference 2026. The views expressed do not necessarily reflect those of ICAS.