Allinial Global president and CEO Mark Koziel has been tapped as the next president and CEO of the Association of International Certified Professional Accountants, succeeding longtime chief Barry Melancon, who is retiring at the end of this year.

Koziel has extensive experience at the AICPA, having worked in various roles there for over 14 years, most recently as executive vice president of firm services. He left for Allinial Global in 2020 to head the association of independent accounting and advisory firms but had long been seen as a potential successor to Melancon. Melancon announced his retirement in May at the spring meeting of the AICPA’s governing Council and a search process began for the next head of the AICPA & CIMA. Koziel will step into the role in January after a handover period.

“I am excited and honored to be appointed CEO of the world’s largest accounting membership body,” Koziel said in a statement Wednesday. “I look forward to playing a key role in leading the organization and the profession to new heights. The profession is well positioned to expand and continue to evolve the value it brings serving the public interest and addressing the challenges faced by economies, business, and society. I cannot wait to start working closely with members, candidates, volunteers, and staff to do just that and drive our great profession forward.”

Koziel began his accounting career in 1991 at the firm Lumsden McCormick in Buffalo, New York, later joining Dopkins & Co. and Joe Slade White & Co., two other firms in the area. 

Melancon has been leading the American Institute of CPAs since 1995 and spearheaded its expansion into the Association of International Certified Professional Accountants, the AICPA & CIMA, after a deal with the U.K.’s Chartered Institute of Management Accountants in 2017. He has long been ranked by his fellow accountants as the most influential person in the accounting profession.

“Serving the profession over the last 30 years has been a great honor, and I have been fortunate to have played a part in its transformation,” Melancon stated. “I am thrilled to see Mark appointed to the role, knowing his passion and vision for the profession and AICPA & CIMA. Mark will do a fantastic job.”

The board of directors of the AICPA & CIMA announced Koziel’s selection Wednesday after an extensive search process.

“We are delighted to announce Mark as our new CEO for the Association,” said Simon Bittlestone, CIMA president and chair of the Association, in a statement. “The appointment follows an open and extensive global search that attracted a strong pool of candidates from around the world. Mark is a dynamic, values-led leader with extensive experience and knowledge of our profession. The board looks forward to working with him in leading our members, candidates, and the profession into the 2030s and beyond. I would like to thank Barry Melancon ahead of his retirement for his leadership of AICPA & CIMA and lifelong commitment to advancing the accounting and finance profession — a remarkable 30 years of dedication.”

AICPA chair and co-chair of the Association Carla McCall, added, “In a strong field of applicants, Mark was the standout candidate because of his knowledge, understanding, experience, and vision for the profession and the organization. These are transformative times for our profession. I look forward to working with Mark to seize the opportunities in front of us.”

For my entire 20-year career, the CPA profession has warned of the coming technological disruption. The need for digital transformation has been a topic at every conference I have attended and regularly finds its way to the cover of accounting publications. While we’ve come a long way from the paperless initiatives of the early 2000s, many of the core systems supporting firms today look very similar to what they did when I entered the workforce. 

While other industries rapidly adopt data-driven solutions like artificial intelligence, many CPA firms still rely on spreadsheets and processes that merely digitize the traditional paper-based approach. These legacy systems haven’t prevented success and avoid the risks of retooling and reskilling employees, but staying in the past fails to capitalize on the incredible software available today.

That’s not to say firms haven’t tried or don’t understand the opportunities available to them. The historical reality is that the current systems work, change is hard, and many of the traditional approaches to digital transformation require a complete system overhaul all at once. However, those realities have changed dramatically in the last couple of years with new tools that simplify adoption, allow for small iterative enhancements, and create real threats to leave you behind if you ignore them. 

It starts with culture

The technology available to support digital work today is nothing short of breathtaking as many of the promises of cloud technology are being realized. We’ve experienced a true renaissance with tools that are inexpensive, easy to adopt, and sometimes make you feel like a wizard. 

However, the tools aren’t actual magic. We are still waiting for the technological discovery that overcomes poorly designed processes, and we continue to be grounded in the traditional rules and logic that require new skills and organizational alignment. Success requires changes to be embraced and celebrated across the firm, from support staff to partners in corner offices.

The shift in mindset is the most significant hill to climb, but it doesn’t have to be painful or even hard. When you show people a better way to work and an opportunity to be more effective, it’s easier to rally support. The conversation needs to be about more than higher margins and fear of being left behind — the real magic of a digitally driven professional services firm is that it empowers people to help clients and reduce stress. 

Take inventory and find small opportunities

The initial challenge is recognizing the opportunity to expand technology use for everyday tasks and understanding where to begin. Numerous small, seemingly insignificant gains can collectively lead to a substantial shift in how we serve clients, enabling easier monitoring, asynchronous work and more accurate deliverables, among many other benefits. 

These sorts of iterative and continuous changes can be hard, but being intentional about the systems you adopt and the types of experiments you conduct becomes your biggest asset. 

Here are a few vital steps to help you get started as you adopt new technology in your firm:

• Address fears and challenges: Examine why your firm hasn’t embraced the innovations we’ve seen in the compliance space. Common barriers include fear of change, adoption costs and required knowledge, all of which can be overcome with the right approach and mindset.
• Start small: Begin by integrating the tools you’re already using, so they communicate with each other, and you can ensure data security at every transfer point. As you gain confidence, identify your firm’s biggest pain points and brainstorm the best ways to tackle them.
• Thoughtfully consider budget: While the cost of implementing new tools can be a deterrent, many modern solutions are more affordable than expected. With the tremendous software available and marketplaces offering consultants to help you get started, the barriers to entry are lower than ever.

Analyze the best tools for your compliance firm

Think holistically about your tech stack and how tools work together, from your email to the systems you use for research, documentation, and client collaboration. The number of tools available is vast, and while many do similar things, each typically has some nuance. It’s essential to know what you need and thoroughly research to find the right fit. 

The best part is that most of these tools offer free trials and live demos, so you can see the product and ask questions, learn more, and try them out before investing time and money. For those who don’t feel comfortable implementing tools themselves, many great IT consultants can lead you through the selection process and potentially help you onboard and integrate new tools. 

If you want to build the tools and knowledge internally and fully tailor your firm’s digital programs from scratch, AI can help significantly as you learn to write and debug code. If you have zero coding experience, that is no longer an issue with low-code and no-code platforms that do the tough programming part for you, allowing you to personalize and design tools specifically for your firm’s needs.

Implement technology smoothly

Adopting new tools and changing processes can be challenging, particularly for employees. 

Here are some tips for smooth implementation:

• Introduce tools gradually: Avoid overwhelming your team with too many new tools at once. Be intentional and roll them out at a comfortable pace with clear instructions, expectations and documentation. 
• Provide comprehensive training: Offer high-level group training followed by individual sessions with subject matter experts to address specific questions. 
• Foster a supportive culture: Some team members may initially resist new tools, preferring traditional methods. Be patient because, over time, they will recognize the benefits and time savings, allowing them to focus on more interesting and valuable tasks. 
• Document and iterate: Create clear documentation for new processes and be open to feedback and adjustments as your team adapts and finds new ways of working.

The journey to a truly digitally driven firm requires curiosity, patience and a willingness to embrace change. Be open to continuous learning opportunities, and as technology evolves, so should your firm. This transformation won’t happen overnight. It’s a gradual process that involves overcoming initial fears, making informed decisions, and fostering a strong culture that supports innovation.

By taking these steps, you’ll position your firm for gains in efficiency and long-term success. Embrace the journey, trust the process, and watch as your firm becomes more dynamic, innovative, and client-focused. The future of compliance is digital, and the time to start is now.

Tax cuts and Mickey’s slice; avoiding FBARs; COLA wars; and other highlights from our favorite tax bloggers.

Through the roof

• Tax Vox (https://www.taxpolicycenter.org/taxvox): Kamala Harris has released an ambitious economic agenda that includes expanding family credits, an exemption for tip income and a commitment not to raise taxes on those earning less than $400,000. Can she pay for all that?
• MeyersBrothersKalicka (https://www.mbkcpa.com/insights): Insurance is generally headed through the roof (in no small part because so many roofs are blowing off), so your biz clients might find the coverage they need too expensive. What to consider in a captive insurance company, including the tax benefits.
• HBK (https://hbkcpa.com/insights/): Businesses can and should be appraised regularly. “Qualified appraisals” (as defined under the Internal Revenue Code) are commonly sought by higher-income taxpayers and estates. And it might not come as a surprise that some of the IRS’s favorite items to audit are private business and valuations of closely held entities. A recent U.S. Tax Court case highlights the importance of keeping these facts top-of-mind. 
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Several states are getting an early start at writing new tax policy. West Virginia has agreed on an additional tax cut; Louisiana may soon follow suit. Meanwhile, one Florida county may be on the hook for millions in refunds to Disney for taxes that a court says were improperly collected.

It couldn’t hurt

• Tax Notes (https://www.taxnotes.com/procedurally-taxing): In prior posts regarding attorney’s fees and the federal tax lien, attorneys won; that streak continues in the recent Jason A. Imes v. Fox Rothschild LLP et al. Not mentioned in the caption of the case, the taxpayer — a non-party in the lien priority case — nevertheless deserves some attention.
• TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): The state corporate income tax may be a flawed instrument, but here’s why calls to eliminate it should be reconsidered.
• Virginia – U.S. Tax Talk (https://us-tax.org/about-this-us-tax-blog/): One possible method to avoid FBAR filings.
• Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): The Un-Cola Dept.: A deeper look into the latest (and grumble-igniting) Social Security cost-of-living-adjustment bump.
• Tax Foundation (https://taxfoundation.org/blog): Though energy prices have declined from their recent peak, Spain is one of the few European countries  continuing to rely on windfall profits taxes to fund relief measures for consumers. Will that become permanent?

Independent thinking