Two-thirds of partners at private equity-backed accounting firms say they’re satisfied with their arrangements. But ask the staff actually doing the work, and you’ll hear a different story. Over half are dissatisfied, with one director calling the situation “a dumpster fire.”
This stark disconnect emerged from an Accounting Today survey discussed on The Accounting Podcast by hosts Blake Oliver and David Leary. The episode also revealed a disconnect in pricing. Tax preparers charge an average of just $280 for a basic 1040 (CPAs) or $228 (enrolled agents). These numbers had David asking incredulously, “Where are these people? I’ve never been quoted this low of a price.”
The Private Equity “Dumpster Fire”
The numbers from Accounting Today’s survey reveal a profession divided. Among partners and owners at PE-backed firms, 67% report satisfaction (40% very satisfied and 27% somewhat satisfied). But look at staff responses and it’s almost a perfect mirror image: 52% are either somewhat dissatisfied or very dissatisfied.
The anonymous comments from survey respondents paint an even bleaker picture. “It is a dumpster fire,” said one director at a large firm. “Low morale, people leaving, bonuses cut, pay raises eliminated or lowered.”
Another director at a very large firm agreed. “It’s horrible and dysfunctional. Losing clients, staff leaving, and partners pay more attention to their bank account than taking care of staff. Most partners are counting the days until they can leave with their money in hand.”
Perhaps most concerning for the profession’s future, 64% of respondents believe private equity will have a negative impact on the integrity and independence of public accounting firms. Another 56% think clients will suffer negative consequences.
“The industry will take a hit and the clients will take a hit,” David noted. “That’s not going to bode well for everybody else.”
It’s worth noting that fewer than 400 of the 44,000 US CPA firms have taken private equity investment, so less than 1%. But these tend to be larger, high-performing practices, and the trend only started accelerating around 2022.
Tax Preparers Leave Money on the Table
While PE-backed firms wrestle with cultural upheaval, smaller practitioners face a different challenge: chronic underpricing. The National Association of Tax Professionals’ 2025 survey reveals CPAs charge an average of just $280 for a basic 1040. Enrolled agents charge even less at $228, while non-credentialed preparers average $185.
These numbers shocked David. “Since I stopped doing my own taxes and pay an accounting firm to do them, it’s $1,200 to $1,300 a return. I’ve never been quoted this low of a price.”
Still, the survey contained some encouraging news. When preparers raise fees, clients rarely leave. Melissa Bowman, an EA in Ohio, increased prices 12-20% across the board twice since 2020, and “not one client left because of pricing.”
“If not one client leaves after you implement a substantial price increase like that, you’re still underpriced,” Blake pointed out.
One particularly surprising finding is that 18% of preparers don’t charge extra for state returns. “TurboTax has trained 45 million taxpayers over the last 30 years that you have to pay extra to get your state return done,” David noted. “The fact that almost 20% don’t charge for doing the state return seems crazy to me.”
Billion-Dollar Audit Relationships Raise Independence Questions
The independence concerns raised by private equity pale next to the decades-long, billion-dollar relationships between the Big Four and their largest clients. Deloitte has audited Microsoft since 1986, collecting $78 million in 2025 alone.
“This is like a $2 billion relationship between Deloitte and Microsoft over the last 40 years,” David calculated. “With that much money involved, the motivations just can’t be aligned with the public.”
The situation gets more complex when you consider that these firms also sell consulting services. “Doesn’t Deloitte sell Microsoft consulting type services and they implement Microsoft Copilot AI type things, but they also audit Microsoft?” David asked.
Blake acknowledged the concern. “These firms are audit firms, but they’re also consulting firms. And consulting teams are some of the biggest resellers now of the technology their clients develop.”
Change may be coming whether firms want it or not. With Microsoft cutting 15,000 jobs in 2025, David predicts inevitable pressure on audit fees. “They’ll go back to their auditor and say, ‘we don’t want to pay this much for our audit. We want you to use AI,’” David predicts.
What’s Next for the Profession?
The AICPA is seeking comments on ethics rules updates for alternative practice structures—the arrangements that enable private equity investment. But there’s a catch. Despite announcing the comment period weeks ago, the actual exposure draft won’t be available until December 29.
“Today is the 23rd,” David pointed out. “If it’s not done today, when are they doing this? Christmas Eve, Christmas Day?”
David predicted the process could drag on. “This could take a decade,” he suggested.
The accounting profession is under pressure from private equity reshaping firm culture, chronic underpricing in tax prep, and billion-dollar audit relationships raising independence questions. For practitioners, there is a clear need to raise prices and watch the PE developments carefully.
For the complete discussion, including a story about a Scottish police officer’s heroic retrieval of evidence from a toilet and concerns about IRS readiness for tax season, listen to the full episode of The Accounting Podcast.