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Bennett Thrasher makes plans for changes in 2026

Published

9 months ago

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Bennett Thrasher CEO Jeff Call is making plans for his Top 75 Firm next year as it ramps up the use of artificial intelligence and helps clients adjust to changes from the One Big Beautiful Bill Act.

“From my perspective, I think we’re going to continue to see continued change,” Call told Accounting Today. “Obviously, there’s a lot of moving parts of what’s going on in the industry. There’s consolidation and a pretty substantial use of technology, AI, automation, as well as continued use of offshore resources, another element that we see is a pretty regular occurrence for the Top 100 Firms.”

His Atlanta-based firm is working hard to adjust to all those elements and make sure to integrate them into its strategy, which includes staying independent from private equity funding. 

“We do believe we are in our best position as an independent firm,” said Call. “We have resisted private equity. We’re continuing to invest in our people, continuing to build out additional resources, bringing in high-quality lateral talent, and continuing to innovate and deliver five-star client service to our clients on a regular basis.”

He believes that staying independent helps his firm provide higher-quality service. “A number of firms, as they’re going through private equity and other transactions, are getting distracted by other things that maybe become top of mind for their new ownership,” said Call. “We believe that if we continue to thrive on the client service side, take great care of our people and take great care of our clients, that will continue to let us be a differentiated firm that will have continued strong growth.”

M&A deals

Bennett Thrasher has not been doing many mergers and acquisitions in recent years, unlike PE-funded firms that seem to make M&A deals an intrinsic part of their growth strategy.

“We have looked at some smaller transactions,” said Call. “That is still something that we would like to do, but it’s not a massive part of our strategy. Most of our strategy is based on organic growth. All of our partners and our growth team are very focused on growing the firm organically. We have brought in some lateral partners. Maybe you’d call that an ‘aqui-hire’ opportunity, where you bring in a talented person at the partner level, and they are able to try and bring in clients that they have relationships with. We would like to do full-scale acquisitions, but they have not been a major part of our strategy. We don’t expect that is likely to be the case, partly just because of some of the forces at play with private equity.”

M&A transactions at Bennett Thrasher have differed from the practices at many PE-funded firms. “Our transactions have traditionally some upfront cash, some earnout, and then participation as equity in Bennett Thrasher, whereas the private equity firm transactions are very heavily cash oriented on the front end,” said Call. “Unless we wanted to leverage our balance sheet, we wouldn’t have the kind of cash to do those transactions, so we’ve generally been more focused on lateral integrations and building the talent organically.”

He expects to see more of his clients doing M&A deals of their own, however. “We’ve continued to see pretty strong growth in the mergers and acquisitions space,” said Call. “Our transaction advisory services practice is one of the fastest-growing areas in our firm, growing more than 30% a year. They primarily operate in the middle market, but the middle market activity has still been strong. There hasn’t been much pause in that space from what we’ve seen, at least with our client base, so we anticipate that may improve even more as interest rates go down. A lot of these transactions are private equity or private credit type transactions, and as interest rates are lower, that allows them to be more willing to use leverage and keep that market in a strong position.”

Tariff and shutdown effects

The firm has been helping clients who are concerned about tariffs affecting their business. “There was a little bit of disruption from that, probably in the earlier part of this year,” said Call. “I do feel like business centers don’t like uncertainty, so as it appeared that the tariff numbers were starting to move around, those things do cause some clients that have international operations to pause big investment decisions and things of that nature. We’ve seen that stabilize a little bit more recently, so I think business centers have started making decisions and moving forward with whatever they thought the rules were going to be. Certainly it would be helpful if there was complete clarity and some of the legal Supreme Court decisions, etc., still put some of these elements into question as to which way the tariff action will be going.”

However, he pointed out that businesses can’t wait until the Supreme Court hands down a decision in the tariff case before they start moving forward. 

Clients also had to weather the recent government shutdown, which was still ongoing when Call was interviewed last month. 

“We have seen some disruption from the IRS in dealing on some matters,” said Call. “Some aspects of the IRS have reduced staff, or some of the groups aren’t available to be a resource, so that has slowed down some interactions with the IRS. I think all the filing activities still continue, because for the most part, that’s all done electronically. But if you need to interact with a real person at the IRS with respect to an audit or other notice issues or other payment issues that you’re dealing with, trying to get a live person on the phone is more challenging in today’s environment.”

OBBBA impact

He is hopeful about the future of his firm and his clients next year after passage of the One Big Beautiful Bill Act last July. “We do expect in 2026 we will see some pretty good growth potential across our clients’ businesses,” said Call. “Obviously some aspects of the OBBBA are going to encourage investment, and we will see clients making more substantial investments with some of the bonus depreciation and other elements that may have reduced some of the regulations in certain areas to make it certain tax-advantaged investments. We do a lot of work in the technology, construction and entertainment [sectors], and I’ve definitely seen strong activity there, especially in technology. I think the R&D credit getting clarified was a big aspect to that, so we do expect that will probably be a nice improvement for the technology-based companies to have clarity on that [Section] 174 area that was previously being hampered by reducing the benefit of R&D expenditures.”

He expects more clients to invest in research and development now. “It’s more tax advantaged to make that investment today than it was,” said Call. “We had a couple years there where they paused some of the benefits of R&D expenditures. I do anticipate that will be more positive for that industry.”

AI and automation

In the meantime, his own firm has been investing more heavily in technology such as artificial intelligence for automation. “Continued use and leaning into AI and automation is a big trend,” said Call. “We’re investing in tools that are trying to help us automate certain tasks that might be more elementary, that maybe our staff people don’t enjoy doing, and allow them to be more advisory oriented and able to take on more of a consulting and advisory role at an earlier point in their career. Using those AI and automation tools should allow them to be able to be more business advisors to our clients and less focused on the elementary or lower-level compliance tasks that maybe are less desirable. We’re spending more time training and upskilling our people to help elevate them to that trusted advisor status at a quicker pace than maybe they would have in the past.”

Bennett Thrasher recently held a partner retreat where a researcher talked about some of the trends in the accounting profession. “There’s a continued push toward advisory in the space, in general,” said Call. “For us, our advisory practice probably makes up 25 or 30% of our entire business, so that has been a practice that we’ve continued to be investing in and launching new services. I anticipate that will continue to be the case. I think advisory practices are anticipated to grow at faster rates than traditional audit and tax compliance areas.”

Bennett Thrasher intends to continue to invest in its traditional audit and tax compliance practices as well, but Call anticipates the growth levels there might be a little more subdued than from its traditional tax consulting and other advisory-oriented practices. 

“Forensic accounting, transaction advisory services, technology consulting, outsourced accounting are going to have more robust growth rates because people are looking for advisory-oriented solutions that they believe are going to add more value to their business,” he added, “and so we are putting more continued emphasis on that area.”

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Accounting

SEC’s Semiannual Reporting Proposal Faces Investor Pushback: What CFOs Need to Know

Published

1 week ago

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August 25, 2026

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U.S. Securities and Exchange Commission (SEC)

A proposal from the U.S. Securities and Exchange Commission to potentially shift some public companies away from quarterly financial reporting toward a semiannual model is drawing significant pushback from investors, even as it continues moving through the regulatory process. The debate has direct implications for corporate finance teams, auditors, and the broader transparency of U.S. capital markets.

What the SEC Proposed

According to a summary published by accounting advisory firm Cohen & Co., the SEC issued a proposed rule on May 19, 2026, aimed at simplifying financial reporting requirements for many U.S. public companies. The proposal would potentially reduce the frequency of certain mandatory disclosures from quarterly to semiannual, a structural change that has not been made to core U.S. reporting requirements in decades.

The proposal follows an extended debate within U.S. policy circles, with proponents arguing that reduced reporting frequency could lower compliance costs and free up management time for longer-term strategic planning rather than quarter-to-quarter results management.

Why Investors Are Pushing Back

Comment letters submitted in response to the proposal have been extensive, and according to Cohen & Co.’s review of the public record, investors “appear to be largely opposed” to the shift, viewing frequent interim reporting as a core benefit of U.S. capital markets relative to other jurisdictions.

Accounting and law firms have taken a more measured position, generally urging any changes to remain aligned with the Financial Accounting Standards Board (FASB), whose existing disclosure requirements and guidance are built around a quarterly reporting cadence. A shift to semiannual reporting without corresponding changes to FASB guidance could create friction between SEC filing requirements and GAAP-based disclosure expectations.

Lessons From the U.K. Experience

The debate is not without precedent. The United Kingdom moved away from mandatory quarterly reporting for listed companies in 2014, returning to a semiannual disclosure requirement. According to Cohen & Co.’s analysis, that experience offers a cautionary data point: there was no measurable increase in capital expenditure or R&D investment following the change, while analyst coverage of affected companies declined as reliable interim information became less available — a particular risk for smaller and newly public companies that rely on analyst coverage to maintain investor visibility.

Practical Implications for Finance Teams

Beyond the debate over disclosure philosophy, the proposal carries practical complications. Many companies have debt covenants and credit agreements structured around quarterly financial delivery; a shift to semiannual reporting could require renegotiating those terms. Reduced reporting frequency would also extend the “window of market silence” between disclosures, a factor that governance and investor-relations teams would need to manage carefully to avoid information asymmetry.

Separately, and unrelated to the reporting-frequency debate, the SEC and FASB have continued finalizing more routine updates this year. New Accounting Standards Updates are taking effect for December 31, 2026, fiscal year-ends covering income tax disclosures, credit loss measurement, induced debt conversions, and stock compensation, according to Eide Bailly’s review of 2026 ASU activity. Additional guidance on paid-in-kind dividends and environmental credits is also on the near-term horizon.

What to Watch Next

The semiannual reporting proposal remains in the comment and review phase, and no final rule has been adopted as of this writing. Finance leaders should monitor the SEC’s regulatory agenda for further movement, while treating the current quarterly reporting requirement as the operative standard until any final rule is issued and an effective date is set.

Given the extent of investor opposition documented in the comment file, a full shift to mandatory semiannual reporting appears more likely to result in either a scaled-back compromise or continued study rather than swift adoption — though the SEC’s ultimate direction remains uncertain.

 

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Accounting

AI-Driven Automation and Continuous Accounting Frameworks

Published

3 weeks ago

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August 15, 2026

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The accounting profession is undergoing a fundamental structural transition as enterprise finance departments shift from periodic month-end closes toward automated continuous accounting models. By integrating specialized machine learning algorithms directly into enterprise resource planning (ERP) platforms, chief accounting officers are transforming financial reporting from a retrospective exercise into a real-time operational asset.

The Shift from Periodic Close to Continuous Financial Reporting
Traditional accounting workflows heavily relied on manual data reconciliation, spreadsheet calculations, and multi-week closing cycles at the end of each fiscal period. In contrast, continuous accounting frameworks utilize automated software agents to process, validate, and post transactional data in real time as business activities occur.

Automated bank reconciliation tools cross-reference incoming bank feeds, invoice records, and purchase orders automatically. By resolving transactional variances instantly throughout the month, corporate accounting teams eliminate the traditional workload spikes associated with quarterly and annual closes.

Machine Learning in Audit Trails and Anomaly Detection
Advanced natural language processing (NLP) and machine learning tools are redefining internal audit and financial control environments. Automated systems analyze 100% of general ledger entries, identifying anomalous transactions, duplicate payments, and unauthorized journal entries in real time.

Rather than relying on random statistical sampling, corporate internal auditors can focus their attention on high-risk flags automatically surfaced by algorithmic monitoring platforms. This continuous risk assessment strengthens internal controls over financial reporting (ICFR) and significantly reduces fraud risk.

Evolving Roles for Accounting Professionals
As routine data entry and manual reconciliation tasks become fully automated, the skill set required for accounting professionals is shifting toward data analysis, system design, and strategic business advisory.
– Systems Governance: Accountants are increasingly responsible for monitoring algorithmic accuracy and managing data integration pipelines.
– Business Partnership: Finance professionals leverage real-time financial dashboards to advise operational leaders on margin management and working capital allocation.
– Regulatory Compliance Management: Accounting teams utilize automated platforms to ensure compliance with dynamic tax codes and international accounting standards.

Core Implementation Recommendations
1. Deploy Automated Reconciliation Tools: Integrate continuous transaction processing modules into existing enterprise ERP architectures.
2. Establish Algorithmic Governance Controls: Implement strict internal testing protocols to ensure automated accounting rules comply with GAAP/IFRS standards.
3. Reskill Accounting Teams: Invest in training finance staff on data analytics, workflow automation, and predictive financial modeling.

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Accounting

Global ESG Reporting Standards and Double Materiality Compliance

Published

4 weeks ago

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August 9, 2026

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Corporate accounting departments face expanding reporting expectations as international sustainability disclosure standards achieve regulatory enforcement across major global jurisdictions. Chief Accounting Officers (CAOs) and corporate controllers are establishing rigorous internal accounting controls to treat Environmental, Social, and Governance (ESG) metrics with the same data precision, auditability, and governance as traditional financial statements.

Regulatory Harmonization Under Global Sustainability Frameworks
The implementation of standardized sustainability reporting frameworks—notably rules established by international sustainability accounting boards—has created unified expectations for public and large private enterprises. Corporations must report standardized metrics covering greenhouse gas emissions (Scope 1, 2, and material Scope 3), energy utilization, workforce demographics, and supply chain governance.

In Europe and other participating international jurisdictions, double materiality principles are mandatory. Under double materiality, organizations must report both how external sustainability risks impact corporate financial performance, and how internal corporate operations affect surrounding environmental and social structures.

Integrating Sustainability Metrics into Core ERP Systems
To provide auditable non-financial data, enterprise organizations are integrating specialized carbon accounting and ESG management platforms directly into core ERP systems. Automated data collectors capture energy utility invoices, logistics fuel consumption metrics, and vendor compliance records in real time.

Establishing automated, traceable data pipelines ensures that non-financial reporting is supported by clear audit trails. This structured approach allows external financial auditors to provide reasonable assurance on sustainability disclosures during annual corporate reporting cycles.

Financial Impacts and Capital Market Disclosure
Accurate ESG reporting directly influences corporate cost of capital and institutional credit ratings. Commercial lenders and institutional asset managers systematically incorporate sustainability metrics into risk pricing models. Companies that demonstrate transparent, verifiable progress in operational energy efficiency and climate risk mitigation benefit from expanded access to green bond markets and lower debt pricing.

Action Steps for Accounting Leadership
1. Implement Double Materiality Frameworks: Conduct comprehensive assessments to identify material financial and operational sustainability metrics.
2. Build Auditable Non-Financial Data Pipelines: Automate ESG data collection within core accounting software to ensure data integrity.
3. Align Sustainability with Annual Financial Filings: Prepare non-financial disclosures concurrently with financial statements to satisfy regulatory audit expectations.

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