Accounting
Art of Accounting: ISGTSIO | Accounting Today
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“I’m so glad tax season is over!” This is oft heard from some accountants. I cannot imagine why anyone would say this. If they feel that way, they should stop doing individual tax returns or limit their tax practice to business clients, try to eliminate some of the reasons that make it terrible for them or leave public accounting.
I loved tax season and cannot understand why any partner or owner did not like it. We make a lot of money, see and interact with a lot of clients, have opportunities to train and grow staff quickly, have a concentration of work that facilitates quick changes in our systems to gather and process information and we acquire value-laden intelligence about our clients’ long-term goals that enable us to generate added revenues while helping them achieve their goals.
One reason I liked tax season is because I had staff doing most of the work the way I wanted them to do it using checklists and following the procedures and processes I set up and trained them on. I also worked hard to train my staff to reduce errors. I also did a lot of other things to ensure the quality of the work, add value to our clients and satisfaction to the staff, have fun and make more money. Pretty good way to run a business or a segment of a business.
We did tax returns of all sizes, from clients’ kids and their retired parents to clients with over 100 K-1s and 1,000-page tax returns. Every return we did was treated with the same care and importance the client ascribed to it. No return or client was too small. Smaller returns were a good introduction and training for our new staff. I always had a few returns set aside for that. I never thought much about this until one day when one of our longer-term staff people remarked to a newbie that he did that person’s return when he started with us five years earlier. And then I realized the value of those returns.
I have been doing tax returns for some clients for over 50 years, and we’ve grown old together. We get a chance once a year to update each other on what is going on with our lives and families. These are nice relationships. Some clients had simple returns when we met that are still simple, but in between they referred some significant clients. You never know where a new client will come from. Also, some of the clients that started with us with larger returns are now large estate tax planning clients, financial planning clients or we manage their investments. The family tree of our clients has grown significantly from individual tax clients.
We did not take every tax client that came our way. I am very proud of recommending over 30 prospective clients to H&R Block in one specific year. We explained the reasons why H&R Block would be more cost effective for them, and circumstances when they should use us. We also told them about other services we provide, and they were welcome to call us with any financial questions, at no charge, plus we would put them on our mailing list as a way to keep in touch with them. While not much happened with most of these clients, some grew into tax preparation clients, some referred some very large business or special project clients to us, and some became friends. Not too shabby.
Tax season is a breeding ground for staff growth and nurturing referral sources, as well as a cash-generating business. Instead of being glad it is over, perhaps you should regret its end, or in any event be grateful for the great tax season you just completed.
Do not hesitate to contact me at
The Tennessee General Assembly passed legislation backed by the Tennessee Society of CPAs adding an extra pathway to a CPA license, as more states make efforts to alleviate the shortage of new accountants.
SB 1316/HB 1330, introduced by Senate Majority Leader Jack Johnson and House Majority Leader William Lamberth on behalf of the administration, was filed for introduction on Feb. 6. The legislation aligns with Tennessee Governor Bill Lee’s goal to streamline state boards and simplify licensing. Members of the Tennessee Society of CPAs
The legislation offers two pathways to licensure for prospective CPAs starting Jan. 1, 2026. Applicants can either:
- Ccomplete the traditional path of at least 150 semester hours of college education including a bachelor’s degree plus one year of accounting experience; or,
- Complete at least 120 semester hours of college education including a bachelor’s degree plus two years of accounting experience.
For both options, the coursework needs to include an accounting concentration as determined by Tennessee State Board of Accountancy rule.
In addition, the legislation includes CPA practice mobility provisions so CPAs can still practice across state lines. Current and future CPAs who don’t have a principal place of business in Tennessee will be able to practice in the state if they hold a valid CPA license in good standing from another state and if, at the time of licensure, they showed evidence of having passed the Uniform CPA Exam. They need to consent to the jurisdiction and disciplinary authority of the TSBOA, comply with the applicable statute and board rules of the state, and cease offering services in Tennessee if their license in the state of issuance is deemed to be no longer valid. These changes will take effect July 1, 2025.
(Read more: See
“This legislation is a key step in ensuring that the demand for skilled accounting professionals, specifically licensed CPAs, can be met now and in the future,” said TSCPA president and CEO Kara Fitzgerald in a statement Monday. “Tennessee was a leader in advocating for the 150-hour rule in the 1990s, and as the needs of the profession change, Tennessee will continue to lead in evolving our licensure model to make sure we meet those needs.”
The bill will now be sent to Gov. Lee and, once he signs it, will become effective on the dates stated above.
Other states besides Tennessee have been
Baker Tilly and Moss Adams have made their merger official, combining to form what promises to be the sixth largest CPA firm in the U.S.
Rumors of the
Baker Tilly, based in Chicago, ranked No. 11 on Accounting Today‘s 2025 list of the
Baker Tilly CEO Jeff Ferro will be CEO of the combined firm through his retirement, while Eric Miles, who is currently Moss Adams’ chairman and CEO, has been named CEO-elect. Miles will assume the role of CEO on January 1, 2026, with Ferro remaining a director on Baker Tilly’s board thereafter.
“Moss Adams is a great strategic fit with Baker Tilly,” Ferro said in a statement Monday. “We’ve long respected the firm, its people and its industry-focused approach. By bringing together our strengths, we are expanding our ability to serve middle-market businesses with greater expertise, resources and insights.”
“The resources, geographic reach and go-to-market strength of the combined firm magnifies opportunities for our people to grow, collaborate and innovate,” Miles stated. “We are proud to offer our clients these expanded resources to deliver even greater value and set a new standard for advisory services in the middle market.”
As part of the deal, private equity firm Hellman & Friedman, an existing investor in Baker Tilly, will make an additional strategic investment in the business, with existing shareholder Valeas Capital Partners also increasing its investment.
The deal is expected to close in early June of this year. Once the deal closes, Moss Adams and Baker Tilly’s audit business will combine as Baker Tilly US, LLP and the firms’ business advisory, tax and other services will combine under Baker Tilly Advisory Group, LP. Both entities will remain partnerships, with all principals holding equity alongside H&F and Valeas in BTAG.
“Since we invested in Baker Tilly, we have been focused on building a differentiated firm with the ambition to change the game in the middle-market accounting industry,” said H&F partner Blake Kleinman in a statement. “This landmark merger between Baker Tilly and Moss Adams is an important step in creating a firm that will be the destination of choice for the industry’s best talent and for firms considering their strategic options in a rapidly evolving sector.”
Former AICPA president and CEO Barry Melancon
Simpson Thacher & Bartlett LLP and Vedder Price PC served as legal advisors to Baker Tilly. Deutsche Bank Securities Inc. served as financial advisor and Dechert LLP as legal advisor to Moss Adams.
Baker Tilly is part of the Baker Tilly International network, based in London, which reported $5.6 billion in worldwide revenue in 2024. Baker Tilly has done several acquisitions since receiving
Last May, it merged in
Moss Adams does not do M&A deals as often, but last December, it entered the Salesforce.com consulting market by acquiring
International accounting and consulting firm KNAV Advisory added U.K.-based firm Aventus Partners, effective April 4.
The deal strengthens KNAV’s operations in the U.K. and continues its international expansion strategy. Last year, it integrated Natarajan & Swaminathan in Singapore and HLG Netherlands.
“This is a major milestone for KNAV’s UK operations,” KNAV CEO Nishta Sharma said in a statement. “It reinforces our commitment to a unified, integrated model that delivers exceptional value to global clients.”
KNAV reported $21.5 million in revenue in 2024 and has three offices, 12 partners and 202 employees. It was one of the
Aventus, with $5.3 million in revenue, provides audit and assurance, tax advisory, financial reporting and outsourced finance team services. The deal adds four partners and 27 employees to KNAV.
Both firms are members of Allinial Global, a global association of independent accounting and consulting firms.
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