iscoverVery few accountants explicitly ask their clientele to refer their practices to others, despite word of mouth being the primary driver bringing accountants and businesses together, new research shows.
Most SMBs find accountants through word of mouth
01 September 2025
•
9 minute read
Market research agency Agile Market Intelligence has provided Accountants Daily with data from its SMB Navigator Report 2025, based on quantitative research conducted between December 2024 and January 2025. The research, commissioned by Intuit QuickBooks, sought and received responses from 506 Australian small businesses and 404 practising accountants.
Referrals lead the way
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
According to the research, seven in 10 SMBs found their current accountant through referrals or word of mouth. Among businesses still seeking accountants, three in five (58 per cent) would turn to referrals, and 46 per cent to search engines.
Almost all (over nine in 10) accounting firms say that they rely on word of mouth as the primary channel used to attract clients to their practice.
Digital channels, such as social media and websites, are used only by 29-32 per cent of firms.
Businesses trust personal recommendations above advertising or digital channels, Agile reported, and accountants lean heavily on this pathway to secure new clients.
“The risk is that practices without a complementary online presence may be invisible to prospects who search beyond their immediate network,” the agency said.
“Word of mouth has always been the bedrock of accounting practice growth, but it cannot be the only strategy,” Agile Market Intelligence research director Michael Johnson said.
“Firms that combine trusted referrals with a visible digital presence will capture the widest pool of opportunities.”
Accountants aren’t asking
The research showed that just two in five (38 per cent) of accounting firms explicitly ask most of their clients to refer them to peers, and only six per cent of firms report asking all their clients for referrals.
Larger firms (20 or more staff), Agile are more upfront in asking for referrals compared to small practices and microadvisers. 47 per cent of moderate-to-large firms say they ask a ‘majority’ of their clients, and 40 per cent ask ‘some’ of their clients. For small practices, 32 per cent of accountants reported not asking any clients at all.
In the last year, just one in five (22 per cent) of businesses have referred their accountant to peers, 11 per cent of which have only done it once.
On the side of businesses working with accountants, the vast majority (78 per cent) said they have not referred their accountants in the past year or at all, Agile continued.
“Only 11 per cent have referred their accountants multiple times in the past year. While accountants depend on word of mouth to grow, most are reluctant to ask. This hesitation means practices risk leaving new business on the table, relying on chance rather than deliberate client advocacy,” the agency noted.
“Chances are, firms assume that good service alone will generate referrals, but proactively asking clients, particularly after positive interactions, is what turns satisfaction into growth,” Johnson said.
Firms optimistic about client growth
Elsewhere, one in two (53 per cent) of accounting firms surveyed are planning to expand their client base in the next 12 months, and 14 per cent say they plan to “significantly” expand their clientele.
This optimistic growth outlook will see firms target moderate growth, while one-third of those surveyed expect to take a more conservative approach, expressing contentment with their existing client base.
“Expansion is on the agenda, though not universal. While many firms see growth opportunities ahead, others are choosing stability,” Johnson said.
“The decisive factor will be how effectively firms translate intent into action through structured referral and marketing strategies.”
The findings follow other recent findings from Agile Market Intelligence, including that most accountants are tech enablers for their clients; accounting professionals choose tech “by credibility and community”; half of accounting firms have not adopted new tech in the last five years; that once annual revenue reaches $100,000, businesses are much more likely to engage with external accountants; and that accountants are not seen as strategic partners by SMBs.
You need to be a member to post comments. Become a member for free today!
