The Tennessee State Board of Accountancy, established in 1913, regulates certified public accountants and registered accounting firms throughout the state. As of January 1, 2026, the Less is More Act of 2025 introduced a second pathway to CPA licensure: candidates with a bachelor’s degree in accounting and 120 credit hours can now qualify with two years of supervised experience, alongside the traditional route requiring 150 credit hours and one year of experience. Both pathways require passing all four sections of the Uniform CPA Examination and scoring 90 or above on the AICPA Professional Ethics Comprehensive Course. Licensed Tennessee CPAs must complete 80 hours of continuing professional education every two years, with at least 40 hours in technical subjects and two hours in a Board-approved state-specific ethics course.
Tennessee’s tax environment presents a distinct set of considerations for businesses and individuals. The state imposes no personal income tax on wages and salaries, a feature that attracts both residents and businesses but does not eliminate the need for professional tax guidance. Corporations and certain business entities remain subject to the Tennessee franchise and excise tax, which applies a 6.5% excise tax on net earnings and a franchise tax based on net worth or the book value of property owned in Tennessee (though legislation signed in 2024 phases out the property measure component). Federal tax obligations, multi-state filing requirements for businesses operating beyond Tennessee’s borders, and the interplay between Tennessee’s business taxes and federal deductions create planning opportunities that a qualified accounting firm can identify and leverage.
The accounting landscape in Tennessee varies by market size. Nashville supports a concentration of mid-size and regional firms alongside national players, reflecting the city’s growth as a healthcare, technology, and entertainment hub. Knoxville anchors East Tennessee’s professional services market with firms serving manufacturing, real estate, and university-linked industries. Memphis firms frequently specialize in logistics, distribution, and nonprofit accounting, driven by the city’s role as a transportation center. Smaller markets like Chattanooga, Murfreesboro, and the Tri-Cities region support local practices that handle tax preparation, bookkeeping, and small business consulting.
Selecting an accounting firm starts with matching the firm’s specialties to your needs, whether that means individual tax preparation, small business bookkeeping, audit services, or strategic tax planning. Verify that the firm’s CPAs hold active Tennessee licenses through the Tennessee State Board of Accountancy’s online license verification tool. Ask about the firm’s experience with Tennessee-specific tax issues, including franchise and excise tax filings, sales tax compliance, and any industry-specific regulations that apply to your business. Firms that assign a dedicated CPA or team to your account, rather than cycling through staff, tend to provide more consistent service and catch planning opportunities that require familiarity with your financial history.
Top Accounting Firm Providers in Tennessee
1. TriStar Tax and Business Solutions
- Address: 1300 Clinton St Ste 204, Nashville, TN 37203
- Phone: (615) 537-0314
- Website: https://tristarteam.tax
- Rating: 4.9/5 (114 reviews)
- Services: tax preparation (individual and business), tax planning and advisory, bookkeeping, payroll services, financial planning, IRS problem resolution, business consulting, quarterly tax advisory
- Description: TriStar Tax and Business Solutions is a locally owned, family-operated firm established in 2014 with offices in Nashville, Hendersonville, Brentwood, Murfreesboro, and the Germantown and Collierville areas of Memphis. The firm has been named Best Accounting Firm in Sumner County by Main Street Media seven times between 2018 and 2025. Its team includes CPAs and tax associates who specialize in tax compliance, planning, and advisory services for small businesses, self-employed individuals, and nonprofit organizations.
2. Amelse & Edmonds CPAs
- Address: 10160 Parkside Dr #200, Knoxville, TN 37922
- Phone: (865) 288-2200
- Website: https://amelsecpa.com
- Rating: 4.9/5 (42 reviews)
- Services: tax preparation (individual and business), tax planning, accounting and financial reporting, bookkeeping, payroll services, QuickBooks setup and training, business consulting, not-for-profit accounting
- Description: Amelse and Edmonds CPAs brings over 50 years of combined experience serving businesses and individuals in the Knoxville area. The firm was voted Knoxville’s number one CPA firm in City View Magazine’s Best of the Best for 2024, earning that recognition for the fourth consecutive year. The team includes CPAs, accountants, tax managers, and bookkeepers who work with clients ranging from large corporations to individual filers.
3. Baker Sullivan Hoover
- Address: 35 Peabody St, Suite 310, Nashville, TN 37210
- Phone: (615) 255-6143
- Website: https://bsh-cpa.com
- Rating: 5.0/5 (11 reviews)
- Services: tax preparation (individual and business), tax planning, financial planning, retirement planning, business consulting, annual budgeting, cash flow management, accounting
- Description: Baker Sullivan Hoover is a Nashville-based CPA firm that has served small businesses and individuals since 1979. The firm holds a BBB A+ rating and provides year-round accounting, tax, and financial planning services with a focus on building long-term client partnerships. Its team includes CPAs and a Certified Financial Planner who advise on strategies spanning tax reduction, retirement preparation, and business growth.
Frequently Asked Questions About Accounting Firm in Tennessee
Q: How much does it cost to hire an accounting firm for tax preparation in Tennessee?
Individual tax return preparation in Tennessee typically ranges from $200 to $500 for a straightforward filing, while returns involving self-employment income, rental properties, or itemized deductions can run $500 to $1,500 or more depending on complexity. Small business tax returns (partnerships, S-corporations, C-corporations) generally start around $800 and can exceed $2,500 for entities with multi-state filings or complex deduction strategies. Monthly bookkeeping and payroll services are usually billed separately, with rates varying by transaction volume and the number of employees on payroll.
Q: Does Tennessee have a state income tax that affects how an accounting firm handles my taxes?
Tennessee does not impose a personal income tax on wages, salaries, or most other forms of earned income. The state’s Hall Income Tax, which previously taxed interest and dividend income, was fully repealed effective January 1, 2021. However, businesses operating in Tennessee are subject to the franchise and excise tax, and Tennessee’s 7% state sales tax rate (among the highest nationally) requires careful compliance for retail and service businesses. A Tennessee-based accounting firm can help navigate these state-specific obligations alongside federal filing requirements.
Q: What should I look for when choosing an accounting firm in Tennessee?
Confirm that the firm’s CPAs hold active licenses with the Tennessee State Board of Accountancy by checking the Board’s online verification tool. Ask whether the firm has experience with Tennessee franchise and excise tax filings, as these state-specific taxes carry their own rules around nexus, apportionment, and available credits. Evaluate whether the firm assigns a consistent point of contact for your account and whether it provides year-round advisory services beyond annual tax filing. Industry-specific experience is also valuable, particularly for healthcare, real estate, or nonprofit organizations that face unique reporting requirements in Tennessee.
Q: What is the new Less is More Act pathway for CPA licensure in Tennessee?
Effective January 1, 2026, the Less is More Act of 2025 allows CPA candidates in Tennessee to qualify for licensure with a bachelor’s degree, 120 college credit hours (including required accounting and business coursework), and two years of qualifying work experience, rather than the traditional 150-hour requirement paired with one year of experience. Both pathways still require passing all four sections of the Uniform CPA Examination and the AICPA ethics exam with a score of 90 or above. This new option is intended to reduce barriers to entering the profession at a time when the accounting industry nationwide faces a shortage of qualified candidates.
Q: When is the deadline for filing business taxes in Tennessee?
Tennessee franchise and excise tax returns are due on the 15th day of the fourth month following the close of the tax year, which falls on April 15 for businesses operating on a calendar year. Extensions are available and generally align with the federal extension timeline, granting an additional six months to file. However, estimated tax payments are still due quarterly, and penalties may apply for underpayment. Tennessee sales tax returns follow a separate filing schedule, with most businesses filing monthly by the 20th of the following month. An accounting firm familiar with Tennessee’s filing calendar can help ensure all deadlines are met and penalties avoided.