Is the "1 times revenue" rule still accurate for accounting practices?

As a rough midpoint for small practices, yes. Current sources put most small practices between about 0.8x and 1.4x revenue. But larger firms with a management team are priced on EBITDA, and owners who apply the old 1x rule at that size can undersell.

Do tax practices sell for less than accounting practices?

Usually. Practices whose revenue is concentrated in tax season tend to sit at the low end of the range, while firms with year-round recurring work such as monthly bookkeeping, outsourced CFO and advisory services command higher multiples.

What is a good client retention rate for selling a CPA firm?

Buyers reward high retention. Sources describing premium practices point to 95% or higher client retention, and many sale agreements tie part of the price to how many clients stay after closing.

How Much Do Accounting Practices Sell For?

The short answer: about one times revenue, with a wide spread

There’s no single price for an accounting practice. But the market has a well-established starting point: small practices sell for roughly their annual revenue, give or take a few tenths, and larger firms with management teams are priced on EBITDA.

What three market sources say

We compared current published ranges from three firms that track accounting practice sales. They don’t use identical size bands, but they broadly agree.

Practice type	CT Acquisitions (2026)	Accounting Firm Sold (2026)	Ashley Kincaid (2026, $1M–$10M firms)
Solo / small, under $500K revenue	0.9×–1.3× revenue	0.8×–1.2× recurring revenue (traditional tax, accounting and bookkeeping)	—
$500K–$2M revenue	1.0×–1.4× revenue	Above 1.2× for firms with high-net-worth clients, advisory work, strong margins and modern systems	1.0×–1.2× revenue for average solid practices
Premium practices	Top of range	Above 1.2×	1.3×–1.5×+ revenue
Management-run firms (EBITDA basis)	5.5×–8.5× adjusted EBITDA ($2M–$10M revenue)	—	3.0×–7.0× (3.5×–4.5× most common for quality firms)
Large platform deals (private equity)	10×–15× adjusted EBITDA (above $10M EBITDA)	—	—

Sources linked below. CT Acquisitions’ report draws on Poe Group Advisors, Accounting Practice Sales, the Rosenberg Survey and PitchBook. “Recurring revenue” in Accounting Firm Sold’s range refers to repeat annual fees.

The consensus: a typical small practice sells for around 0.8× to 1.4× revenue, and a strong one can reach 1.5×.

What puts a firm at the top or bottom of the range

Factor	Pushes the price up	Pushes the price down
Revenue mix	Monthly bookkeeping, outsourced CFO, advisory retainers	Revenue concentrated in tax season
Client retention	95%+ year over year	Frequent turnover
Client concentration	No client above roughly 15–20% of fees	One client above 25% of fees
Owner dependence	Clients work with your team	You review every return and own every relationship
Margins	Adjusted margins of 20%+	Thin margins or unclear numbers
Systems	Cloud tax, workpapers and client portals	Legacy desktop software
Client base	High-net-worth clients, niche specialization	—

CT Acquisitions puts the effect of revenue mix plainly: at the EBITDA level, firms built on recurring monthly accounting, outsourced CFO and advisory work trade around 6–7×, while tax-season-concentrated practices trade around 4–5×.

A worked example

Two practices, each billing $1,200,000 a year:

	Practice A	Practice B
Revenue mix	70% tax season	60% recurring monthly and advisory
Client retention	85%	96%
Largest client	22% of fees	6% of fees
Likely range	About 0.85×–1.0× → $1.02M–$1.2M	About 1.2×–1.4× → $1.44M–$1.68M

Same revenue, but a difference of roughly $400,000 or more in price, driven entirely by quality of revenue. Illustrative, using the published ranges above.

To place your own firm, try the free accounting practice valuation calculator.

Why the headline price isn’t what you take home

The multiple is only half the story. Terms vary widely by buyer:

Peer firms often pay 70–80% at closing and tie 20–30% to client retention over two to three years.
Individual CPAs using SBA financing can pay most of the price at closing, with a smaller holdback.
Some CPA-to-CPA succession deals are paid mostly over time, with as little as 20–40% at closing and the rest over five to seven years.
Private equity platforms mix cash, rollover equity and earnouts.

Two offers at the same multiple can be worth very different amounts once you account for timing, retention risk and tax. See how to sell an accounting practice for how these structures work, and capital gains tax on the sale of a business for the tax side.

How to raise your multiple before you sell

Convert seasonal clients to recurring engagements: monthly bookkeeping, quarterly planning, annual advisory retainers.
Shift client relationships to your team so buyers aren’t pricing in your departure.
Reduce concentration if one client is a large share of fees.
Track retention and be ready to show it by year.
Modernize systems so the practice runs without you.
Start early. These changes need time to show up in the numbers buyers review.