Accounting marketing
What a new client
is worth to a practice.
Work it out from what a client is worth over the years they stay, not from a percentage. In QuickBooks' 2024 survey of Australian firms, median annual revenue per client was $3,500, ranging from $750 in Tasmania to $5,000 in South Australia. The best-known spend benchmark comes from a US association's study: in the AAM study, high-growth firms spent 2.1% of revenue on marketing and others 1%, not counting staff. Use your own fees, margin and retention to set the ceiling.
What the
benchmarks say.
Search 'how much should an accounting firm spend on marketing' and you'll mostly find US figures. The most quoted comes from the Association for Accounting Marketing and Hinge. Its 2025-26 study of 87 firms found high-growth firms spent 2.1% of revenue on marketing and the rest 1%, excluding staff costs. Those 87 firms had combined revenue of more than $16 billion. They are not a four-person practice in Wyong.
One detail is worth keeping. The high-growth firms put 29.6% of their budget into conferences and in-person events, more than the slower firms did. Even at that size, relationships carry a lot of the marketing.
I couldn't find an Australian study of practice marketing spend that I'd trust. If someone quotes you an Australian percentage, ask for the source.
What a client
pays a year.
The QuickBooks Australia study, run by Agile Market Intelligence in May and June 2024 with 443 responses, mostly from firms of one to nine staff, gives the one Australian per-client figure I'd use. It's a vendor survey, so treat it as a check on your guesses, not a target.
| Measure (QuickBooks, 2024) | Figure |
|---|---|
| Median annual revenue per client, Australia | $3,500 |
| Highest state median (South Australia) | $5,000 |
| Lowest state median (Tasmania) | $750 |
| Firms using cost-plus rather than value pricing | 58% |
| Firms paid consistently within their terms | About 1 in 3 |
Fees aren't
profit.
What you can spend comes from margin, not fees. Syft, which makes practice reporting software, says a net profit margin of at least 25% is often targeted by accounting firms, and that the bottom quarter of Australian firms in its data struggled to stay profitable in mid-2024. If your margin is thin, a new client adds work faster than profit, and the right budget may be smaller than you'd like.
Use gross margin in the calculator: the fee left after the direct cost of doing the work, which is mostly staff time. That's the money a new client actually adds.
Work out
your ceiling.
Put in your own numbers, by client type if you can. The fee starts at the QuickBooks median as a placeholder; the other starting numbers are made up.
Client value
What can you spend
to win a client?
Use your own numbers, by client type if you can. The fee starts at the QuickBooks 2024 median as a placeholder; the other starting numbers are made up.
Most you could spend to win one client
-
- Gross profit in year one-
- Lifetime gross profit, with referrals-
- Most you could spend per enquiry-
- Months of gross profit to earn that back-
Referrals are counted one step only. Gross margin here is what's left of the fee after the direct cost of the work, mostly staff time.
Why the years
matter most.
Accounting is one of the few small business services where clients pay again every year without being sold to again. The same study found three in four firms bill quarterly, monthly or by project. A bookkeeping client on monthly fees in Charlestown can be worth far more over five years than their first invoice suggests.
That cuts both ways. Spending a year's gross profit to win a client who stays six years can be a good deal. Spending it on a tax-time one-off who goes back to doing it themselves next year isn't. Know which kind your ads bring in, and use the Google Ads page to filter out searches from people doing their own return.
Spend to the
capacity you have.
The calculator gives the most you could spend, not what you should. Most practices run out of staff hours before they run out of money. If the team is full until March, more spend now just builds a waiting list, and people on waiting lists go elsewhere. The tax time page has a capacity planner.
When you do raise spend, do it in steps and watch cost per new client who stays, not cost per click. Every channel reaches a point where the next dollar brings back less. Finding that point is what my Spend Curve method is for.
What I see most often
What I'd check first
before a practice sets a budget.
- 1
Every client valued the same
One average fee used for everyone, so a campaign bringing in one-off individual returns looks as good as one bringing in monthly bookkeeping clients.
- 2
Cost per lead as the target
Ads judged on cheap enquiries rather than on clients who stay, which rewards the wrong searches.
- 3
No source on new clients
New clients entered in the practice software with no record of how they found the firm, so nobody can tell which spend worked.
The honest bit. If your best clients all come by referral and you're close to capacity, the right paid ad budget may be close to zero. Spend on making referrals easier and on a clear fee page instead. Ads are for filling capacity you have, not for proving you're growing.
Questions
people ask.
How much should an accounting firm spend on marketing?
There's no reliable Australian benchmark. A US study found the fastest-growing firms spent about twice the share of revenue the others did, excluding staff. Better to work from what a client is worth over the years they stay, your margin and your spare capacity.
What is the average accounting fee per client in Australia?
In QuickBooks' 2024 survey of Australian firms, the median was $3,500 a client a year, from $750 in Tasmania to $5,000 in South Australia. It's a vendor survey, and fees vary widely by client type.
How do I work out a client's lifetime value?
Annual fee, times gross margin, times the years a typical client stays, plus the value of anyone they refer. The calculator on this page does the sum with your own numbers.
Is it worth paying for leads as an accountant?
Only if you know what share of those leads become clients who stay. Work out the most you can spend per new client first, then multiply by the share of enquiries that become clients. That's the most you can pay per enquiry.
Should bookkeepers budget differently from accountants?
The maths is the same, but monthly fees often make a bookkeeping client worth more over time than their first invoice suggests. Put the monthly fee times 12 into the calculator, and be honest about the hours each client takes.
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