THE SHORT ANSWER
Value the actual accounting practice and supported earnings, not a promised retention percentage or generic revenue rule. Separate completed collected fees, receivables and work in progress; cost the partner duties a buyer must continue. The historical national sold sample below is mixed accounting/CPA/tax work and owner discretionary earnings, not a current local appraisal, isolated assurance sample or managed EBITDA multiple.
Use the sold sample within its actual scope
BizBuySell reports these owner discretionary earnings multiples for national completed accounting/CPA/tax-practice sales from 2021 through 2025. The mixed service sample can include bookkeeping, payroll and consulting, mostly independent operations with franchises possible.
(BizBuySell: accounting, CPA and tax-practice sold benchmarks)| National sold sample, 2021–2025 | Lower quartile | Median | Upper quartile |
|---|---|---|---|
| Accounting / CPA / tax practice | 1.61× | 2.04× | 2.66× |
Seek actual completed comparables matching service mix, scale, geography, client/partner dependence, date, earnings definition, included assets and retention/payment terms. Record unknown fields. A reported transaction multiple does not reveal every deferred payment, liability or buyer cost.
Separate cash receipts, earned fees and uncollected work
Reconcile completed engagements, invoices, credits and cash by a consistent client/work cohort. Work in progress, receivables and client advances need their own schedules; they are not all immediately usable cash. Identify which balances and collection duties the transaction includes.
| Invented same-cohort reconciliation | Assumption/result |
|---|---|
| Gross completed-work invoices assumed | $80,000 |
| Distinct specified credits | −$5,000 |
| After specified credits | $75,000 |
| Cash collected against that same cohort | −$60,000 |
| Remaining unpaid balance | $15,000 |
Review aging, disputed work and collection evidence with the accountant. Do not combine total practice cash with an unrelated invoice cohort or assume every unbilled hour becomes a collectible fee.
Cost the permanent partner and team roles
Identify actual technical work, review/signing, client management, supervision, billing and administration using the coverage worksheet. Confirm required qualifications and available coverage with the practice advisers. Model ongoing people, software, premises, insurance and administration costs after seller support.
Use the earnings bridge to support adjustments. Owner-operator SDE is separate from earnings after permanent partner replacement. Do not add back unpaid partner effort as a recorded expense, remove every owner salary, double deduct existing payroll or treat recurring software and improvements as universally discretionary. The proper metric follows the operating role, not a universal earnings-size switch.
Price conditional fees and protect transaction scope
Define any retention arrangement by actual cohort, eligible collections, period, exclusions, buyer obligations, reporting, disputes and payment/security terms with counsel. Show closing cash and conditional payments separately; a 100% retention clause does not guarantee clients or funds.
The IRS Section 7216 center addresses conditional tax-preparer disclosure/use and distinguishes diligence disclosure from transfer.
(IRS: Section 7216 information center)Have responsible advisers assess actual client-file permissions, disclosure purpose, consents/exceptions, custody/retention and software migration. Review practice ownership and credentials, engagement and vendor rights through the consent register. Allocate unfinished work, advances, refunds and receivables through the delivery guide. Do not separately add client goodwill or included software/equipment already reflected in a going-concern comparison. The calculator explores stated assumptions; it does not certify an appraisal.
Owner questions
What does the accounting valuation table measure?
Historical national 2021–2025 completed-sale owner discretionary earnings multiples in a mixed accounting/CPA/tax-practice sample.
Are receivables and work in progress equivalent to closing cash?
No. Reconcile earned work, credits, collections, aging and included balances separately with the accountant and transaction advisers.
Should every partner salary be added back?
Support actual adjustments and distinguish working-owner benefit from permanent qualified coverage without duplicating costs.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- BizBuySell: accounting, CPA and tax-practice sold benchmarks
Actual labeled national completed-sale owner discretionary earnings table, 2021–2025: lower quartile 1.61, median 2.04, upper quartile 2.66. Mixed CPA, tax, bookkeeping, payroll and consulting, mostly independent with franchises possible. Not an isolated assurance sample, managed EBITDA, current local appraisal or asking-price range.
- IRS: Section 7216 information center
Actual October 10, 2026 read of agency overview and historic regulation pointers. Tax-return preparer disclosure/use and consent conditions; diligence disclosure is distinct from transfer. Not complete current transaction law, a universal consent requirement or NDA clearance.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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