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Beyond the balance sheet: Priorities for CFOs in 2025

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2024 was quite a year for finance teams. From the uncertainty of an election year and a tumultuous market to the ongoing accountant shortage and the growing interest in AI, there was plenty to keep CFOs up at night.

With the start of the new year, financial leaders are looking forward to the new opportunities that 2025 will bring, while also keeping an eye on potential risks that may carry over from 2024.

The evolution of the Office of Finance continues

The responsibilities of the Office of Finance have been evolving, and this trend will continue into 2025. I believe we will see a shift from traditional, heads-down tactical accounting to a more strategic, heads-up approach. CFOs will need to broaden their perspective, linking financial metrics with overall business operations to assist their executive teams in determining and reporting progress against strategic goals.

A recent study by the Visual Lease Data Institute predicts that lease portfolios will be a key focus for finance leaders in 2025 and beyond, helping to drive business strategy. Today, 100% of surveyed finance executives are concerned with maintaining control over their lease portfolios, including the ability to maintain compliance with ESG reporting requirements (52%, compared to 44% in 2023), maintaining data accuracy and completeness (49%, compared to 48% in 2023) and reacting to unforeseen circumstances (49%, compared to 46% in 2023). These concerns stem from real consequences, with 99% of real estate executives reporting negative outcomes from inadequate lease controls, including overpaying rent or expenses (36%), the inability to respond to changing circumstances (36%), or missing an opportunity to update unfavorable or unwanted terms (31%).Given the range of risks and opportunities associated with lease portfolios, CFOs are already making decisions to support lease portfolio management — with 61% saying their companies have hired new personnel to support lease management and 58% report outsourcing related work to third-party specialists. 

The result of investing in the dedicated tools and technology needed for lease management can be significant cost savings, ensuring compliance, and positioning enterprises to capitalize on emerging opportunities. Moreover, I see the ability to engage in financial storytelling — communicating insights derived from complex data sets such as lease data — as paramount in 2025 and beyond. The ability to do so will depend on how well finance leaders work with their counterparts in other critical departments, including real estate, IT, sustainability, operations and legal.

New ways of tackling the accounting shortage emerge

The industry-wide accountant shortage is not a new issue; it has persisted throughout 2024. This shortage is driven by several factors, including stringent CPA requirements, an aging workforce and burnout leading some professionals to leave the field. As we approach 2025, various solutions are being proposed to address this shortage. For instance, some states are considering allowing prospective accountants to bypass the fifth year of education traditionally required for CPA licensure.

While it’s essential to maintain high qualification standards, practical experience is equally important. Offering new CPAs an additional year of real-world business experience, rather than additional schooling, could enhance their readiness and reduce barriers to entry into the profession. This experiential learning bridges the gap between theory and practice, providing new candidates with a deeper understanding of their roles and responsibilities, thereby better preparing them for their careers.

Like many CFOs, I am keen to see how these changes unfold. While enhancing efficiency within finance and accounting roles is paramount, leveraging technology is a key component in achieving this. 

While interested in AI, finance professionals are concerned about its impact

I anticipate that CFOs and the Office of Finance will increasingly assume a strategic role in areas traditionally managed by other departments, such as technology adoption.

The recent VLDI report indicates that all surveyed finance executives (100%) agree on the benefits of AI for the Office of Finance, particularly in automating manual tasks and processes. However, it’s noteworthy that 48% of these executives also identify the lack of a strategic approach to utilizing AI for efficiency improvements as a major concern in the finance industry today.

By implementing advanced tools such as AI and automation, finance teams can streamline processes, reduce manual workloads and improve accuracy. These technologies not only help with managing routine tasks but also enable finance professionals to focus on more strategic activities, driving overall business performance. As we navigate these changes, it is essential to adopt a strategic approach to technology integration, ensuring that it aligns with our goals of efficiency and effectiveness.

I recommend organizations look to first apply AI to low-risk tasks/areas within their business to really understand the intricacies and limitations of the technology. There’s no reason why finance leaders need to do this alone — by leveraging other agents of change within their organization, they’ll be more likely to anticipate the common pitfalls that come with rolling out new technology. A collaborative approach will empower these leaders to understand how to leverage AI within finance for maximum impact and minimum risk — such as automated data extraction.

For entry-level finance professionals, it’s important to remember that while embracing new technology is essential, mastering the fundamentals of finance and accounting is equally crucial. The true value of AI emerges when foundational knowledge is combined with technological advancements.

Striking the balance in 2025

As we look ahead to 2025, finance leaders will face a mix of familiar and evolving challenges. Concerns about the longevity of operations will persist, especially when it comes to managing costs and driving revenue growth.

With the changing landscape of capital access and a heightened focus on cost efficiency, CFOs will need to play a more active role in strategic decision-making. This underscores the importance of collaboration across different teams within the organization.

Striking a balance between innovation and a solid understanding of the fundamentals will be key to achieving sustainable growth and success in the coming year and beyond.

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Accounting

A great time to cheat on your taxes

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I didn’t want to say this before tax season ended, but my guess is this has to be the best time in all the history of the income tax and the Internal Revenue Service to cheat on your taxes.

(Not that anyone should cheat, of course. They definitely shouldn’t; taxes are the price we pay for living in a civilized society, and all that.)

But think about it: The IRS, already weakened by a decade or more of budget cuts that saw their top talent bleeding away through attrition, has lost a tenth of its workforce in just the past few months, and now that tax season is over, all the fired employees who were held over until April 15 will actually be leaving. Its leadership is in shambles, with five commissioners in as many months, and the confirmation hearings for the man who is supposed to take on the job full-time only happening this week, as well as a number of senior leaders resigning over policy differences with the Trump administration and its Department of Government Efficiency.

(Again, I’m not saying that you should cheat on your taxes — you definitely shouldn’t — but if you wanted to, purely hypothetically speaking, you could hardly pick a better time to do it.)

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Audit rates, which were already ridiculously low, can only drop as experienced staff retire or are driven out, leaving no one to train new employees, which is fine because many of those new employees were themselves driven out right at the start of the current purge. Unless you fill out your return in human blood or ask for your refund to be direct-deposited to a numbered Swiss account, the likelihood of your being audited is almost negligible.

(Still, you totally should not cheat on your taxes.)

Now hypothetically, you might be worried that, even though there aren’t enough human staff to come after you, the IRS might be use technology to catch you, but all those staff cuts are hampering the agency’s IT projects too, and much of the money they were supposed to get from the Inflation Reduction Act to help improve their tech has been clawed back, so I wouldn’t worry too much about it.

(Seriously, though, please don’t cheat on your taxes.)

It’s just that it really does seem like a once-in-a-lifetime opportunity to cheat. The one agency that can stop you — also the one that delivers almost all of the government’s revenue — has been hobbled so comprehensively that if you were actually planning to create an environment for tax evasion, you could hardly do better. It’s OK to talk about this now, of course, because tax season is over and it’s not like any of the people on extension would want to cheat, or like anyone would try to cheat on their quarterly estimates or on the payroll taxes their company is supposed to hand over because they thought the IRS was so weak it wouldn’t catch them.

No one would do that, right?

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Accounting

Tariffs collide with taxes in Trump bill

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The tax reconciliation bill making its way through Congress is expected to add trillions of dollars to the national debt, but the Trump administration hopes to offset the cost through income from tariffs. Accountants are helping worried companies deal with the possible fallout.

“Obviously, tariffs create a lot of uncertainty,” said Tom Alongi, a partner and U.S. national manufacturing practice leader at UHY, a Top 50 Firm based in Farmington Hills, Michigan. “But with uncertainty for U.S. manufacturers, it creates a lot of opportunity. And for those that are contract manufacturers that use a lot of offshoring, it creates a tremendous amount of angst, especially among the auto industry that really over the last three decades has turned into a global supply chain as we’ve been in a race to the bottom to reduce costs.”

UHY has been helping CFOs deal with the changing tariff policies coming out of the White House. “A lot of companies don’t even realize how deep some of their supply chain and where some of their raw material and purchased components ultimately originate,” said Alongi. 

That involves quantifying the impact, understanding the origin of components and raw materials, and where that fits in the Harmonized System that’s administered by the International Trade Administration, making sure everything is classified correctly. 

The Trump administration hopes to convince more companies to relocate their manufacturing operations to the U.S. But companies are also looking at changing their sourcing to other countries if they’ve been relying too heavily on Chinese-made supplies amid the ever-changing tariff pronouncements.

“That uncertainty does create challenges within our clients of allocation of capital,” said Alongi. “Do I make big bets to transition if I have a huge amount of risk that is isolated in a certain country? What do we potentially do to mitigate that risk?”

Auto manufacturers need to look at the proposed changes to tax credits in the tax bill, including reductions in electric vehicle tax credits and other tax incentives for renewable energy.

“I always knew that it is a great alternative source that fits certain consumers, but I never believed that it was going to take over the world,” said Alongi, who has been driving an EV for over seven years. “The tax credits create a behavior, and they incentivize people to drive electric.” 

The shortcomings in the national infrastructure for charging EV batteries disincentivize broader takeup, and the disappearance of the tax credits would make the vehicles even less affordable.

CBIZ, a Top 10 Firm based in Cleveland, launched an Integrated Tariff Solutions program earlier this month for its clients nationwide, offering support across finance, operations, supply chain strategy, tax and compliance. 

“Like so many other middle-market companies, certainly the larger companies, in this environment, there’s more demand for advice on mitigating exposure,” said Mark Baran, managing director of CBIZ’s National Tax Office. “Tariffs have been relatively low for a long time, and now the supply chain, pricing, vendor relationships and locations of where goods are manufactured need a fresh look.”

Different industries are looking for help, including manufacturing, construction and import. “They’re really looking at how to mitigate these costs, which don’t appear to be slowing down,” said Baran. “It could be temporary, but it’s not right now. So we have developed a number of different avenues to assist our clients, whether it’s evaluating inventory and how to properly account for inventory, whether it’s seeking to help them find locations in the U.S. if they want to bring their manufacturing back to the U.S. and do that in a tax efficient manner. We’re looking at intercompany transactions and layering transfer pricing concepts onto customs, seeing if we could help with savings in that regard. Depending upon what a client does and their structure, there’s probably a number of ways you can tackle tariffs and get ahead of it. “

Customs valuations are important. “It’s really ensuring that you have an accurate customs valuation, and oftentimes that wasn’t looked at accurately, and there are savings that can result from that,” said Baran. “These are considered an intercompany framework, oftentimes on the businesses that are most impacted by this. Looking at that structure is another way of doing this, not just not just transfer pricing, but location-based analysis. It’s taking what has been decades of international tax knowledge and layering on customs, and that’s providing a framework that’s been tested and works and is valuable.”

Baran has also been keeping a close eye on developments with the overall tax legislation. House Republicans have come under pressure from President Trump to finalize the bill this week, but that won’t be the end of the story. “What’s waiting for them at the Senate tells me that this bill may not look the same because there’s already opposition from the Senate, and the Senate has a lot of rules that they need to follow,” said Baran. “The Senate has concerns, and the Senate instructions in the budget reconciliation concurrent resolution are very different than the House, so you may have a House and a Senate that’s producing two completely different bills. While it’s nice to report and discuss all of the changes that are coming out of the House, I think people should just keep in mind that the Senate is next, and do not assume that they will follow suit. So the ultimate bill that’s eventually produced is going to look a lot different than it does now.”

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Accounting

Fastest-growing accounting firms spend double on marketing

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The fastest-growing accounting firms spend twice as much on their marketing budget than all other firms, according to a new study.

The Association for Accounting Marketing, in collaboration with the Hinge Research Institute, surveyed over 87 firms — representing 1,037 offices and 66,000 employees — about the drivers behind the marketing performance of the fastest-growing firms. 

High-growth firms invest two-thirds more in employer branding and recruiting, and they budget more for conferences and events, the data found. 

AAM logo

When it comes to marketing budgets, the fastest-growing firms spent 2.1% of their revenue versus low-growth firms, which spent 1%. Some of that money is invested in marketing teams. High-growth firms have a higher ratio of marketing staff to full-time equivalents (1:49) compared to other firms (1:57). However, the average salary of a high-growth firm team member is 27% less than at the slowest-growing firms. 

“When it comes to marketing, the accounting industry tends to be risk averse and invests less than most other professional services industries,” Liz Harr, managing partner at Hinge, said in a statement. “But the data shows that those that spend more on marketing are getting superior results.”

High-growth firms also spend 66% more on recruiting talent and developing their employer brands — the reputation, culture, employee experiences and marketing that entices potential hires to choose their firm over another — than low-growth firms. 

(Read more: “The 2025 Fastest-Growing Firms”)

Finally, the fastest-growing firms spend 21% more of their marketing budget on conferences and other in-person events than their peers, with high-growth firms allocating 30% of their budget versus low-growth firms allocating 25%. 

“Today’s high-performing accounting firms are taking a somewhat more balanced approach to marketing,” AAM president Laura Metz said in a statement. “Digital and content marketing budgets are on the rise, but perhaps more than anything, high-growth firms are focused on nurturing relationships in person, whether at industry conferences or their own client appreciation events. These gatherings aren’t just line items, they’re growth strategies where the strongest connections, best leads and boldest brand moments take shape.”

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