494 Firms Took the Modern Firm Assessment—So You Could Benchmark Yours
Here’s a question that might keep you up at night: Where does your firm really stand in the race toward modernization?
I’m not talking about whether you have a website or use QuickBooks. I’m talking about the deeper stuff. The technology infrastructure, security posture, and strategic planning that separates more modern firms, to the tune of 23% more revenue per employee.
The truth is, most firm leaders think they know where they stand. But over the past two decades, we’ve found that their perception of their firm’s modernization efforts often differs significantly from reality.
That’s why Rightworks took a different approach to its 2025 Accounting Firm Technology Survey. We built a framework that allows firms to benchmark themselves against nearly 500 participating firms nationwide—and gain a clear understanding of where they fall within the 5 Stages of Modern Firm Development.
What Is The Modern Firm Assessment?
It’s essentially a diagnostic tool for your firm. Answer questions about your current practices, and our system—which is based on real data from 494 firms we surveyed—tells you where you fall on The 5 Stages of Modern Firm Development. Think of it like a maturity model. You’ll see which stage you’re in, how you compare to firms nationwide, and what gaps to address to level up. It gives you both validation for what you’re doing right and can point you in the right direction when it comes to future optimizations.
How to Take The Modern Firm Assessment
Go to The Modern Firm Assessment and just walk through the survey to answer all the questions to the best of your knowledge. Although comprehensive, most firm leaders are able to complete the assessment in just 5 minutes.
Take the assessment to uncover:
- Your firm’s current development stage and modernization score.
- How your technology investment compares to top-performing peers.
- Your position on critical areas like technology, IT and security, and firm management.
- Specific gaps that may hold your firm back.
Think of it as a health check for your practice. No judgment—just honest insights into where you are today.
Turn Your Assessment Results into Action
Once you complete the 5-minute assessment, you’ll receive an overall percentage score immediately. This score indicates your position on the 5 Stages of Modern Firm Development. You’ll also see detailed scores for our three areas of focus: Technology and Workflows, IT Administration and Security, and Firm Management.
All of your scores are benchmarked against national averages from our study, so you can see exactly how your firm compares to your peers. And, you can use your assessment data to create an action plan tailored to your firm’s goals and client needs. Here are three ways to get started:
- Start with your lowest-scoring area: Focus where you have the most room to grow.
- Take a security-first approach: Prioritize safeguards that protect your firm, clients, and reputation.
- Launch quick wins: Add a password manager or create a marketing plan to energize your team and build early momentum.
Overview of The 5 Stages of Modern Firm Development
The 5 stages are a progressive framework that accounting firms advance through toward complete modernization. You’ll receive a percentage score based on weighted criteria from The Modern Firm Assessment. The most critical factors carry greater influence in the calculation.
The stages run from bottom to top, starting with Stage 1 firms at the foundation level, which we call ‘Pathfinding.’ These are firms just beginning their modernization journey.
As firms develop and their scores increase, they advance through the stages, ultimately reaching Stage 5 at the top—also known as ‘Future-Proof’ firms. This framework will give you a clear understanding of your firm’s position. It will also provide a benchmark you can refer to as you achieve new levels of advancement.
Of course, knowing your score is one thing. Understanding what the top performers are doing differently, and what it means for your firm, is where things get really interesting.
Research Behind The Modern Firm Assessment
The assessment you just read about? It’s built on data from nearly 500 accounting firms we surveyed for our 2025 Accounting Firm Technology Survey, and the findings are pretty revealing. For instance, I’ve mentioned that the most modern firms are generating 23% more revenue per employee. But get this—they’re doing it while spending the same percentage on technology. That’s right, the same 6% of revenue that everyone else invests. So what’s their secret?
It turns out modernization isn’t just about buying the latest software or moving to the cloud. (Although half of all firms have migrated at least 75% of their operations already). It’s about how strategically you implement technology, manage your security, and run your business.
Modernization isn’t just about buying the latest software or moving to the cloud. It’s about how strategically you implement technology, manage your security, and run your business.
We categorized firms surveyed into five distinct stages of modern development, ranging from Stage 1 “Pathfinding” practices building their foundation to Stage 5 “Future Proof” firms leading the profession. The data revealed significant insights about where the profession stands today and where it’s headed.
Here’s what stood out:
1. The Cloud Confidence Gap
Just over half (53%) of the most advanced firms feel comfortable going all-in on cloud migration, while only 15% of early-stage practices share that confidence.
2. From In-House IT to Hybrid
A majority of Stage 4 and 5 firms (74%) have moved to a hybrid IT management approach, combining internal resources with external expertise, while half of Stage 1 firms still go it alone.
3. The Risks and Rewards of AI Adoption
A whopping 96% of firms acknowledge the benefits of AI, but only 51% are actually using it—find out what’s holding the other half back from implementation.
Read Becoming a Modern Firm: The 5 Stages of Development
For all the details, review the full report. You’ll discover the specific practices that distinguish top-performing firms, see detailed benchmarks across technology, security, and firm management, and identify the gaps that could be impacting your firm’s development trajectory.