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AI and the move to holistic client services

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Artificial intelligence is here to stay. It’s the new era of accounting. And while some may fear it, it’s the answer to transitioning your firm to a holistic client services approach. 

OK, yes, traditional compliance work like tax and financial statements are still core services. The problem is that, alone, they no longer meet the needs of today’s modern clients. The ones demanding more of your time … the ones who desperately need advisory services.

Saying it and doing it are two very different things. I get that, which is why I break down how to get started with the transition, the role AI plays, the need for value pricing, and the value (to both your firm and your clients) of moving to the holistic services model. Get ready to join and rejoice in the new era of accounting.

Why a holistic service approach?

Historically, firms have served as the backbone of financial compliance and taxation. Navigating complex tax laws and accounting standards are invaluable for businesses and individuals. They not only ensure legal and financial accuracy, but also provide clients with a sense of security about their financial status. 

So, despite the emergence of new service models, these offerings are still fundamental. They still offer a sense of precision and reliability in financial reporting and compliance. The goal is to get to a place where you successfully merge the traditional with the “trending.”

The transition to a holistic service model is a significant one for accounting pros. It extends beyond the conventional scope to incorporate financial advisory, strategic planning and consultative services. This is the way of the future. It’s what clients want and what firms need to offer to thrive.

Holistic accounting requires a deeper understanding of a client’s full financial landscape, however — including long-term goals and the unique challenges they face. With this level of knowledge, your firm is better positioned to offer custom advice on wealth management, business growth strategies, risk assessment and even technology ecosystem.

I won’t sugarcoat it. This isn’t a fast or easy transition. It requires you to develop new skills and knowledge areas — from business consulting to advanced data analysis. Firms must also invest in training and technology to support expanded services. 

But fear not, the benefits far outweigh the work required to make the transition. A holistic approach enables firms to provide greater value to clients, foster deeper relationships and provide solutions that support clients’ year-round advisory needs. It positions firms not just as compliance experts, but as essential partners in their clients’ long-term financial and business success.

The role of AI in modern firms

AI is revolutionizing the accounting profession. It serves as a powerful tool for analyzing data, providing insights and automating routine tasks. For example, advanced AI algorithms can analyze financial data to identify trends, anomalies and predictive insights — allowing firms to provide strategic advice that helps clients prepare for future financial challenges and opportunities. 

AI tools also reduce repetitive, mind-numbing work by automating tasks such as data entry, invoice processing and some aspects of tax preparation. This frees up valuable time that can be rerouted to supporting higher-value advisory work.

Further, AI allows firms to create personalized client interactions with tailored recommendations based on specific client data. At this point, I hope you are seeing how AI is not just an efficiency booster. Rather, it empowers firms to offer higher-value, proactive advisory services that clients both need and want. 

The integration of AI into traditional accounting services marks a significant advancement in how the profession has always done things. For compliance and tax services, AI can enhance accuracy and speed, reducing the likelihood of human error. It simplifies complex tax regulations and compliance requirements, making it easier for firms to stay updated with the latest changes. 

For clients, the value of AI integration is realized via elevated, efficient service delivery. It also provides them with insights drawn from deeper data analysis.

Broadly, AI’s role in automating routine tasks allows accountants to reallocate their time to strategic, consultative functions. It empowers them to focus on interpreting data and advising clients, rather than being bogged down by time-consuming manual processes. 

Incorporate value-based pricing 

I would be remiss if I didn’t mention value pricing as part of the holistic model. The fact is that advisory services are based on value, not the billable hour. So, to successfully make the transition, value-based pricing is a must.

Remember, this is about perceived client value, not the number of hours worked. As such, be sure to set your fees at a level that supports the value you’re offering (AI can help you here as well). Proactive advice and predictive insights have a tangible impact on a client’s business and personal financial health … so know your worth and set your fees accordingly.

The future is bright

As the accounting profession evolves, firm owners must adapt to stay competitive and relevant. Embracing a holistic service model, augmented by the capabilities of AI, offers a pathway to enhanced client service and business growth. 

AI is not just an efficiency-bolstering tool. It’s a catalyst for firm transformation — allowing you to provide comprehensive, proactive and personalized advisory services. By integrating AI with traditional accounting services, firms can meet the complex needs of today’s clients while positioning themselves at the forefront of industry innovation. The future of accounting lies in this balanced approach.

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Accounting

IAASB tweaks standards on working with outside experts

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The International Auditing and Assurance Standards Board is proposing to tailor some of its standards to align with recent additions to the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants when it comes to using the work of an external expert.

The proposed narrow-scope amendments involve minor changes to several IAASB standards:

  • ISA 620, Using the Work of an Auditor’s Expert;
  • ISRE 2400 (Revised), Engagements to Review Historical Financial Statements;
  • ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information;
  • ISRS 4400 (Revised), Agreed-upon Procedures Engagements.

The IAASB is asking for comments via a digital response template that can be found on the IAASB website by July 24, 2025.

In December 2023, the IESBA approved an exposure draft for proposed revisions to the IESBA’s Code of Ethics related to using the work of an external expert. The proposals included three new sections to the Code of Ethics, including provisions for professional accountants in public practice; professional accountants in business and sustainability assurance practitioners. The IESBA approved the provisions on using the work of an external expert at its December 2024 meeting, establishing an ethical framework to guide accountants and sustainability assurance practitioners in evaluating whether an external expert has the necessary competence, capabilities and objectivity to use their work, as well as provisions on applying the Ethics Code’s conceptual framework when using the work of an outside expert.  

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Accounting

Tariffs will hit low-income Americans harder than richest, report says

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President Donald Trump’s tariffs would effectively cause a tax increase for low-income families that is more than three times higher than what wealthier Americans would pay, according to an analysis from the Institute on Taxation and Economic Policy.

The report from the progressive think tank outlined the outcomes for Americans of all backgrounds if the tariffs currently in effect remain in place next year. Those making $28,600 or less would have to spend 6.2% more of their income due to higher prices, while the richest Americans with income of at least $914,900 are expected to spend 1.7% more. Middle-income families making between $55,100 and $94,100 would pay 5% more of their earnings. 

Trump has imposed the steepest U.S. duties in more than a century, including a 145% tariff on many products from China, a 25% rate on most imports from Canada and Mexico, duties on some sectors such as steel and aluminum and a baseline 10% tariff on the rest of the country’s trading partners. He suspended higher, customized tariffs on most countries for 90 days.

Economists have warned that costs from tariff increases would ultimately be passed on to U.S. consumers. And while prices will rise for everyone, lower-income families are expected to lose a larger portion of their budgets because they tend to spend more of their earnings on goods, including food and other necessities, compared to wealthier individuals.

Food prices could rise by 2.6% in the short run due to tariffs, according to an estimate from the Yale Budget Lab. Among all goods impacted, consumers are expected to face the steepest price hikes for clothing at 64%, the report showed. 

The Yale Budget Lab projected that the tariffs would result in a loss of $4,700 a year on average for American households.

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Accounting

At Schellman, AI reshapes a firm’s staffing needs

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Artificial intelligence is just getting started in the accounting world, but it is already helping firms like technology specialist Schellman do more things with fewer people, allowing the firm to scale back hiring and reduce headcount in certain areas through natural attrition. 

Schellman CEO Avani Desai said there have definitely been some shifts in headcount at the Top 100 Firm, though she stressed it was nothing dramatic, as it mostly reflects natural attrition combined with being more selective with hiring. She said the firm has already made an internal decision to not reduce headcount in force, as that just indicates they didn’t hire properly the first time. 

“It hasn’t been about reducing roles but evolving how we do work, so there wasn’t one specific date where we ‘started’ the reduction. It’s been more case by case. We’ve held back on refilling certain roles when we saw opportunities to streamline, especially with the use of new technologies like AI,” she said. 

One area where the firm has found such opportunities has been in the testing of certain cybersecurity controls, particularly within the SOC framework. The firm examined all the controls it tests on the service side and asked which ones require human judgment or deep expertise. The answer was a lot of them. But for the ones that don’t, AI algorithms have been able to significantly lighten the load. 

“[If] we don’t refill a role, it’s because the need actually has changed, or the process has improved so significantly [that] the workload is lighter or shared across the smarter system. So that’s what’s happening,” said Desai. 

Outside of client services like SOC control testing and reporting, the firm has found efficiencies in administrative functions as well as certain internal operational processes. On the latter point, Desai noted that Schellman’s engineers, including the chief information officer, have been using AI to help develop code, which means they’re not relying as much on outside expertise on the internal service delivery side of things. There are still people in the development process, but their roles are changing: They’re writing less code, and doing more reviewing of code before it gets pushed into production, saving time and creating efficiencies. 

“The best way for me to say this is, to us, this has been intentional. We paused hiring in a few areas where we saw overlaps, where technology was really working,” said Desai.

However, even in an age awash with AI, Schellman acknowledges there are certain jobs that need a human, at least for now. For example, the firm does assessments for the FedRAMP program, which is needed for cloud service providers to contract with certain government agencies. These assessments, even in the most stable of times, can be long and complex engagements, to say nothing of the less predictable nature of the current government. As such, it does not make as much sense to reduce human staff in this area. 

“The way it is right now for us to do FedRAMP engagements, it’s a very manual process. There’s a lot of back and forth between us and a third party, the government, and we don’t see a lot of overall application or technology help… We’re in the federal space and you can imagine, [with] what’s going on right now, there’s a big changing market condition for clients and their pricing pressure,” said Desai. 

As Schellman reduces staff levels in some places, it is increasing them in others. Desai said the firm is actively hiring in certain areas. In particular, it’s adding staff in technical cybersecurity (e.g., penetration testers), the aforementioned FedRAMP engagements, AI assessment (in line with recently becoming an ISO 42001 certification body) and in some client-facing roles like marketing and sales. 

“So, to me, this isn’t about doing more with less … It’s about doing more of the right things with the right people,” said Desai. 

While these moves have resulted in savings, she said that was never really the point, so whatever the firm has saved from staffing efficiencies it has reinvested in its tech stack to build its service line further. When asked for an example, she said the firm would like to focus more on penetration testing by building a SaaS tool for it. While Schellman has a proof of concept developed, she noted it would take a lot of money and time to deploy a full solution — both of which the firm now has more of because of its efficiency moves. 

“What is the ‘why’ behind these decisions? The ‘why’ for us isn’t what I think you traditionally see, which is ‘We need to get profitability high. We need to have less people do more things.’ That’s not what it is like,” said Desai. “I want to be able to focus on quality. And the only way I think I can focus on quality is if my people are not focusing on things that don’t matter … I feel like I’m in a much better place because the smart people that I’ve hired are working on the riskiest and most complicated things.”

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