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Accounting firm leaders have a lot on their plates.

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When asked to identify the biggest issues they see facing the accounting profession, senior executives from Accounting Today‘s 2026 Top 100 Firms named a wide range of issues, from private equity’s catalytic effect on dealmaking activity and the subsequent wave of consolidation spreading across the profession, to the speed of technological advancements and adoption, such as artificial intelligence and automation. And, unsurprisingly, many addressed staffing — the ongoing shortage of CPAs, the struggle to recruit, retain and develop that talent, and succession planning. 

But that’s just the start.

“The profession is evolving rapidly, and firms must scale expertise to meet demand for advanced advisory and technology services while adjusting to the impact AI and automation have on how we deliver our services,” said Kurt Gresens, CEO of Wisconsin-based Wipfli Advisory. “This isn’t just about hiring — it’s about building a workforce that can adapt to new technologies, deliver strategic insights, and maintain the high standards clients expect. Upskilling, retention, and creating a culture that attracts top talent are critical.”

None of these issues exist in a vacuum, and in order to remain competitive, firms must evolve accordingly to meet the challenges of a rapidly changing economy and profession. 

Regulation and tax laws 

Firm leaders across the board identified economic uncertainty, geopolitical instability, and changing regulation and tax laws as major concerns.

“2025 underscored how quickly the regulatory landscape continues to evolve, with new tax laws, financial reporting standards, and compliance requirements emerging regularly,” said Louis Grassi, CEO of New York-based Grassi. “Firms must invest in continuous learning and ensure their professionals are equipped to communicate their implications clearly to clients.”

“Regulators such as the Public Company Accounting Oversight Board and the AICPA are emphasizing not only audit results but also the underlying culture, leadership tone, and quality‐management systems, making weak internal controls or inconsistent oversight a major liability risk for firms,” said Gerland Gagne, president and CEO of Boston-based Wolf & Co. “Compounding these pressures is growing regulatory and legislative complexity, particularly with new Tax Code changes and evolving compliance expectations, which create greater unpredictability for firms and increase demand for higher‐level advisory support to help clients navigate uncertain rules and filing‐season risks.”

Tim Walsh, chair and CEO of Big Four Firm KPMG, added, “Firms must operate amid persistent uncertainty and structural shifts in the global economy that affect costs, investment decisions and client demand. Strategic agility is essential to manage risk while continuing to invest for growth.”

Organic growth

Leaders said organic growth has slowed in the past year amid shrinking margins, the rising cost of labor and technology, the commoditization of compliance work, and global shifts in the economy.

“Organic growth has become a deliberate strategic priority rather than something that happens naturally,” said Michelle Thompson, CEO of North Carolina-based Cherry Bekaert Advisory. “Firms of our size are experiencing slower traditional growth channels while competition increases from both private-equity-backed firms and national players. Growth now requires focused investment in specialized service lines, targeted market expansion, digital lead generation, and deeper client relationships.”

“Costs continue to rise in areas such as talent, technology, compliance, and marketing,” she continued. “Meanwhile, clients expect more value without an increase in fees. This pressure forces firms to rethink pricing strategies, streamline operations, and innovate how services are delivered. The firms that succeed will use data to optimize processes and balance commodity compliance work with higher-value advisory services.”

Nathen McEown, CEO of Whitley Penn in Texas, commented, “Sustaining organic growth depends on keeping our partners actively engaged in the market, fostering strong client relationships and driving new business opportunities.”

Private equity 

Nearly all firm executives highlighted private equity and its continued impact on the profession as a major issue. Since its entrance, PE has enabled rapid rates of profitability and growth. While some leaders view private equity as a golden opportunity, others are more wary of its long-term impact. Nonetheless, it has undeniably increased competition and forced firms adopt change faster.

“To grow, you either need to find new clients and hire new talent to serve them, or you need to add clients and talent via acquisition,” said David Wurtzbacher, founder and CEO of Virginia-based Ascend. “There are inherent advantages to scale. Most ‘independent’ firms don’t realize that their opportunity for scaling is vanishing right before their eyes. Private equity is modernizing the economic rewards young people can play for and putting big money on the table to complete strategic acquisitions.”

Virginia-based Ascend is a platform that was launched only three years ago by private equity firm Alpine Investors. 

(Read more: “PE in accounting: The end of the beginning.“)

David Kessler, CEO of New York-based CohnReznick, which received an investment from Apax Partners early last year, noted, “We’re using this momentum to more closely align our partners, newly integrated firms, and people around a more sophisticated, high‑leverage delivery model rooted in uncompromising quality and consistency. This alignment is essential as consolidation accelerates and expectations rise across service lines and sectors. In this environment, firms that clearly articulate their value and brand promise — and demonstrate it through disciplined integration and high‑quality delivery — will be the ones that retain market confidence through ongoing disruption.”

Meanwhile, some firms are committed to remaining “fiercely independent” — and see a competitive advantage in doing so.

Jeff Call, CEO and managing partner at Georgia’s Bennett Thrasher, said, “Staying independent allows us to remain focused on client service, culture and long-term growth, rather than short-term financial pressures, which we believe is a meaningful competitive advantage.”

Other firms are taking a slightly different approach — leveraging employee stock ownership plans to attract top talent. Indianapolis-based Katz, Sapper & Miller, for instance, has operated under an ESOP for more than 20 years and is confident in its course. 

Jamie Ellis, the firm’s chief operating officer, said that while private equity throws “big money at firms to innovate, we feel our ESOP structure is well-suited to grow organically and by acquiring other firms, thus competing with PE-backed firms.”

Whether firms decide to take outside investment or not, everyone must admit that private equity is a significant force reshaping the industry, said Josh Damiano, CEO and managing partner of New Jersey-based Sax Advisory Group, which is backed by private equity firm Cobepa.

“PE investment has accelerated consolidation, allowing firms to expand geographically, broaden specialized services, and invest in technology and talent,” he explained. “At the same time, this influx of capital has introduced new pressures, including heightened growth expectations, more centralized decision-making, and a greater focus on near-term financial performance. These shifts can challenge traditional partnership cultures, strain talent retention, and, in some cases, affect the client experience. As a result, firms are increasingly navigating the balance between scale and efficiency on one hand, and autonomy, culture, and long-term client relationships on the other.”

Pipeline problem

The talent shortage is an ongoing challenge, as insufficient numbers of students study accounting in college, fewer still go on to become CPAs, and even fewer stay long enough to make partner. The profession as a whole has made nationwide efforts to make accounting more appealing and accessible to young professionals, which has resulted in a slight uptick in new enrollments. In recent years, for instance, states have been adopting legislation to create alternative pathways to licensure beyond the 150 credit-hour rule. Still, firms must compete — not just with other accounting firms, but with other financial services providers and the technology sector — to recruit, retain and develop talent.

Top 100 Firm HoganTaylor CEO Randy Nail identified one of the profession’s top issues as “capacity constraints driven by persistent talent shortages and declining accounting graduates — even as firms expect to hire at similar or higher levels — creating structural pressure on delivery models.”

KPMG’s Walsh added, “The profession faces a tightening talent market alongside changing expectations around flexibility, purpose and well-being. Upskilling, fostering human connection, trust, inclusion and belonging, and expanding alternative pathways to CPA licensure are critical to building a resilient workforce.”

Jeremy Harris

Tim Brackney, CEO of Springline Advisory Group, said his firm has tackled this issue by “building a national talent acquisition function, embracing hybrid and remote work, and building learning and development for up-and-coming talent that is a gateway to equity.”

Tech and AI

“Over the last couple years, a lot of industry thought leaders have casually and ambiguously predicted the automation of compliance work,” Ascend’s Wurtzbacher said. “I don’t think most people realize this isn’t something that is going to happen in the future; it has already happened at the most advanced firms. To be competitive for clients and talent, you have to be on the leading edge of these trends.”

Chris Carlberg, chief strategy officer at California-based Armanino, describes what he called the “Innovator’s Dilemma.”

“Long-standing systems, processes, and business models that once drove success can become barriers to change if not actively challenged,” he explained. “Firms that fail to adapt risk being overtaken by more agile, AI-native competitors with fundamentally different operating models. Put differently, there is a risk that non-traditional companies, new AI-enabled startups, push into the market with far deeper penetration than we could imagine, creating real risk for even larger firms.”

Springline’s CEO Brackney similarly commented, “This has compounded because many firms delayed technology investments, often running on legacy systems that don’t integrate well. They’re now caught between expensive modernization costs and the competitive disadvantage of outdated tools. Cloud accounting, AI-driven automation, data analytics, and client portals are table stakes, but implementing them requires capital, training, and workflow disruption.”

What’s more, reaping the full value of AI goes beyond implementation — there is the human element as well.

“Firms must invest in upskilling, thoughtful change management, and new role design while also developing leaders who can guide teams through ambiguity and transformation,” said Paul Bailey, chief growth officer at CLA. “As routine work is automated, roles and leadership expectations must evolve toward judgment, advisory, and relationship stewardship. The challenge is scaling AI in a way that strengthens culture, accelerates leadership capability, and reinforces trust.”

Chris Pascuzzi, chief financial officer of Pittsburgh-based Schneider Downs, highlighted one critical concern: “Leveraging technology to improve client and employee experience, while managing the level of investment with expected return.”

Security and governance 

Along with technology implementation comes governance. Cybersecurity threats have become more innovative and sophisticated with the development of AI, which increases firms’ exposure to risk. Those threats can include deepfakes impersonating clients, AI manipulating audit evidence, or AI leaking sensitive information.

“AI and automation are reshaping professional services more rapidly than at any point in decades,” said KPMG’s Walsh. “Firms must balance innovation with risk and modernize their business models while maintaining trust.”

“The challenge is not simply implementing new tools,” said Cherry Bekaert’s Thompson. “It is doing so while safeguarding cybersecurity, maintaining data integrity, upskilling our teams, and balancing automation with high-touch client service. Firms that hesitate will fall behind, while firms that adopt technology without structure risk operational strain.”

Risk is an inevitable byproduct of growth and complexity, and managing it effectively is imperative, according to Chad Anschuetz, CEO of Michigan-based Doeren Mayhew Advisors. 

“Sustainable growth requires disciplined execution, standardized processes and the right technology foundation,” Anschuetz said. “By formalizing policies and procedures across the organization, we create consistency without sacrificing quality.”

Reyes Florez, CEO of Platform Accounting Group, stressed the importance of data hygiene. “As we add more clients and services and continue to grow quickly, we know that the integrity of our data and the quality of our systems and integration will be key to providing crucial insights,” he said. 

Scaling

As firms grow and scale, whether organically or through inorganic means, they inevitably become more complex, introducing challenges in maintaining consistent and high-quality service, retaining firm culture, preventing employee burnout and more. 

“Complexity can quietly slow decision-making, dilute accountability, and strain the operating model,” said CLA’s Bailey. “At the same time, client expectations are rising and competition is intensifying. The challenge is to scale without bureaucracy, balancing local autonomy with enterprise alignment, and speed with discipline. Firms must differentiate through deep industry expertise, integrated digital platforms, and consistently impeccable client service, while maintaining governance structures that enable fast, informed decisions. Those that anticipate client needs, leverage data for insight, and empower leaders closest to the client will protect margins, strengthen loyalty, and sustain momentum in a highly competitive market.”

Lisa Hillmer-Poole, senior vice president of brand strategy and integration at Crete Professionals Alliance, said that one of the issues is scaling without burning out talent. 

“Growth increases complexity, and without the right structure, it strains people,” she said. “Crete Professionals Alliance addresses this by centralizing support, standardizing workflows, and investing in leadership development — ensuring growth creates opportunity, not exhaustion.”

As firms expand geographically and operate with increasingly distributed teams, maintaining a consistent, relationship-oriented experience for clients also becomes more complex, according to Ryan Cook, managing shareholder at Nebraska’s Lutz.

“The issue is not flexibility or remote work itself, but ensuring clear ownership of client relationships, strong accountability, and meaningful engagement as scale increases,” he said.

Colin Kendall, chief marketing officer at Maryland-based SC&H Group, added, “As firms grow, it becomes harder to preserve the responsiveness, consistency, and trust that fueled early success. Scaling systems and processes without losing the human element is an ongoing challenge.”

Complex client needs

Leaders identified clients’ increasingly complex and integrated needs as yet another top issue.

“Clients no longer experience tax, legal, operational, and financial challenges in isolation,” said Richard Kopelman, CEO of Georgia-based Aprio. “Firms must move beyond siloed services to deliver coordinated, multidisciplinary guidance that reflects how businesses actually operate.”

“Our industry’s old models will not keep up with what they need, so we must change our models,” said Jim Peko, CEO of Grant Thornton Advisors. “This means rethinking service-delivery approaches; it means investing even more in people; and it means adopting powerful new technology with pace.”

Differentiating

While clients have more choices and higher expectations than ever, firms must take measures to remain competitive and clearly define their brands. 

“Firms must clearly articulate what sets them apart and consistently deliver on that positioning across markets and service lines,” said Kevin Keane, CEO of New York-based PKF O’Connor Davies. “Differentiation is established through execution and experience over time. Taken together, talent, scale management and differentiation will shape the opportunities firms can create for their people and the clients they serve through the next phase of the profession’s evolution.”

Platform Accounting Group’s Florez said that his firm’s strategy is “expanding services in a way that feels connected to clients. Next-gen accounting means solving the fragmentation burden clients feel from their disconnected network of service providers.”

Firms also need to “sharpen our positioning and identify specific niches where we excel,” according to Nick Lew Ton, chief growth officer at California’s Sensiba. “We need a clear, differentiated value proposition rather than trying to serve all markets.”

CohnReznick’s Kessler summed it up: “As the market moves toward value‑driven billing and tighter pricing dynamics, we are also navigating rising client expectations for integrated solutions amid evolving standards and ongoing market shifts. Sustaining our competitive advantage in this environment — particularly given the volatility of the global macro landscape — requires that we remain agile, resilient, and firmly committed to excellence.”

Pricing

Pricing is another critical issue as the profession shifts its focus from compliance to advisory, and thus transitions from hourly to fixed-price billing. 

“One of the most significant challenges is pricing pressure driven by low-quality, low-cost providers that commoditize services without fully understanding the rigor, judgment and accountability required in our profession,” said Avani Desai, CEO of Florida-based Schellman. 

“As we evolve how client work is delivered, it is essential to offer the right mix of services to meet client needs and create a seamless, full-service experience,” said Jim Wallace, CEO of California’s BPM. “The challenge lies in balancing premium offerings with pricing that remains responsive to the market.”

Resistance to change

Kerry Roe, president of Ohio-based Clark, Schaefer, Hackett & Co., identified a poignant, widespread issue of the profession at large: its resistance to change.

Accounting is an inherently risk-averse, conservative ecosystem. It makes sense — maintaining public trust and upholding quality requires caution. But if firms want to remain relevant, competitive and efficient, change is inevitable. 

Josh Tyree, CEO of Sorren, warned that firms must be “intentional and strategic with change, rather than reactive.”