Accounting

Boomer’s Blueprint: Implementing ‘staff on demand’ at accounting firms

Published

9 hours ago

March 25, 2025

CPA firms face increasing pressure to deliver high-value advisory and consulting services as the accounting profession transforms. Traditional talent development models rely on in-house staff and struggle to keep pace with this shift.

Enter “staff on demand,” a hallmark of exponential organizations that offers a scalable, flexible solution to increase capacity, drive innovation, and accelerate service delivery. This approach addresses staffing challenges and empowers firms to develop talent capable of delivering higher-value services.

This option isn’t new, as firms have been outsourcing since the early 2000s. What is new are the mindsets, skill sets, and toolsets needed to succeed. The convergence of multiple technologies, clients’ wants and needs and artificial intelligence helps firms meet the challenges and take advantage of their best opportunities.

Why firms need staff on demand

Staff on demand is a strategy where organizations leverage external resources, freelance talent and part-time experts to meet fluctuating business needs. This model provides agility and helps firms closely align resources with client demands without the overhead and inflexibility of full-time hires. More importantly, firms build teams with the required skill sets and technology (toolsets).

This concept goes beyond temporary staffing in an accounting firm. It involves creating an ecosystem of professionals who contribute niche expertise, specialized skills, or extra capacity during peak seasons.

Now, we’ll examine why the staff-on-demand model is the path forward.

Talent gap and specialized skills. The profession faces a talent shortage exacerbated by increased demand for advisory and consulting services. Traditional hiring pipelines often fail to deliver the specialized skills needed for areas like financial forecasting, tax strategy and digital transformation advisory. The staff-on-demand model provides access to a global talent pool so firms can bridge gaps in expertise without lengthy recruitment processes.
Seasonal peaks and workload fluctuations. Tax season and other busy periods strain internal resources, leading to burnout or missed opportunities. By adopting this model, firms can scale up quickly during peak times and downshift during slower periods. Improved resource utilization supports employee well-being.
Cost efficiency. Full-time staff come with significant overhead costs like salaries, benefits, training and workspace needs. Staff on demand is a cost-effective alternative, allowing firms to allocate resources to client-centric investments and technology upgrades.

This isn’t temporary staffing; it’s a strategic approach to cultivating talent capable of driving advisory and consulting services. Here’s how:

Exposure to new skills and perspectives. Integrating external professionals into projects exposes internal teams to diverse approaches and cutting-edge expertise. This cross-pollination of ideas fosters innovation and accelerates skill development within the core team.
Mentorship and knowledge transfer. Senior-level external consultants can serve as mentors for junior staff. They can train internal teams in niche areas like AI implementation, business analytics, or blockchain accounting. This blueprint allows internal teams to learn from experienced professionals in real time.
Risk mitigation in talent investments. Hiring full-time staff for emerging service lines is risky, especially in uncertain markets. Staff on demand lets firms test and refine advisory services with minimal commitment, reducing the financial risks associated with building out capabilities.

Implementing staff on demand

Below are actionable steps for firms to integrate the new model effectively:

Step 1: Redefine talent needs. Identify the specific skills and expertise required to expand your advisory and consulting services. Develop a framework to categorize these needs into short-term, long-term and specialized projects. For example, if you’re exploring sustainability consulting, you may need environmental accounting or carbon reporting experts.
Step 2: Build a talent network. Develop a pool of vetted professionals, including freelancers, boutique firms and consultants. Consider establishing formal partnerships with universities and professional organizations to access upcoming talent.
Step 3: Integrate technology. Leverage technology to streamline hiring, onboarding and collaboration. Platforms like Bamboo for HR, MS Teams for communication, and project management tools like Asana help manage remote or freelance workers.
Step 4: Establish a culture of collaboration. Firms must foster a collaborative culture for staff on-demand to thrive. Clearly define roles, expectations, and integration points between full-time staff and external professionals. Transparency and alignment build trust and help maintain quality.
Step 5: Focus on knowledge retention. Capture the insights and expertise from on-demand professionals and share them with your internal team. Use collaboration tools, project after-action reviews and learning management systems to institutionalize this knowledge.
Step 6: Prioritize compliance and risk management. When working with external staff, have contractual agreements covering confidentiality, data security and intellectual property rights. Complying with industry regulations like Public Company Accounting Oversight Board and Internal Revenue Service standards is a priority.

Real-life applications

Next, let’s look at some examples of how firms use and benefit from the staff on demand model.

Tax season scaling. A midsized firm leveraged staff on demand to meet tax season demands. By hiring freelance tax preparers and reviewers, they reduced the workload for full-time staff, maintained quality and avoided burnout.
Niche advisory services. A firm exploring digital transformation advisory services brought in an on-demand consultant to conduct initial assessments for clients. This external expertise delivered immediate client value and trained the firm’s staff to replicate the process internally.
Technology implementation. A firm engaged on-demand IT consultants to implement AI-driven tools for audit automation. The consultants trained internal staff, helping them build long-term capability in audit innovation.

Overcoming challenges

Here are a few common challenges for firms implementing staff on demand and how to overcome them to start reaping the benefits:

Problem 1: Maintaining quality and consistency. Solution: Develop standardized workflows to ensure external staff meet firm quality standards.
Problem 2: Protecting firm culture. Solution: Include external professionals in team-building activities. Communicate the firm’s mission, vision and values to maintain cultural alignment.
Problem 3: Managing client perception. Solution: Be transparent with clients about the use of external expertise. Frame it as a service enhancement rather than a substitute for internal talent.

Advisory and consulting services are the fastest-growing areas for CPA firms, but traditional staffing models can’t keep up with the demands of flexibility, specialization and innovation. Staff on demand is a pathway to overcome these challenges while fostering a culture of learning and adaptability.

Take proactive steps to embrace this model and align it with your vision for growth, talent development, and client success. Then you can unlock new opportunities for innovation, scalability and impact.

Think — plan — grow!

Accounting

AICPA suggests changes in SECURE 2.0 proposed regulations

Published

3 hours ago

March 25, 2025

Business Finance News

The American Institute of CPAs is asking the Treasury Department and the Internal Revenue Service for greater clarity on their proposed regulations for the SECURE 2.0 Act of 2022.

SECURE 2.0, like the original SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019 includes a wide range of provisions related to retirement planning and tax-favored 401(k) and 403(b) plans. SECURE 2.0 generally requires newly created 401(k) and 403(b) plans to automatically enroll eligible employees starting with the 2025 plan year.

The Treasury and the IRS issued the proposed regulations on auto enrollment and Roth IRA catchup contributions in January during the waning days of the Biden administration. Unless an employee opts out, a plan is required to automatically enroll the employee at an initial contribution rate of at least 3% of their pay and automatically increase that contribution rate by 1% each year until it reaches at least 10% of an employee’s pay.

The requirement generally applies to 401(k) and 403(b) plans established after Dec. 29, 2022, which is the date when the SECURE 2.0 Act became law, but there are some exceptions for new and small businesses, church plans, and governmental plans.

Based on the recent proposed regulations, the AICPA made several recommendations in its comment letter, including that the Treasury and the IRS issue final regulations clarifying that the investment requirements for trustee-directed plans in Section 1.414A-1(c)(4) of the proposed regs would not apply to plans that don’t adopt participant direction of investment.

In determining the employee count for small businesses, the AICPA recommended that the Treasury and the IRS issue final regulations stating that only employees of the plan sponsor are included in the count for purposes of determining status as a small business under Section 414A.

The AICPA also had a comment on the definition of “predecessor employer,” suggesting that the Treasury and the IRS issue final regulations that define the term by reference to Treas. Reg. Section 1.415(f)-1(c)(2) for purposes of Section 414A(c)(4)(A).

“The purpose for our letter is to provide input to Treasury and the IRS in order to further clarify the rules and provide recommendations to help with the implementation of the auto-enrollment provision of the law,” said Kristin Esposito, AICPA director of tax policy and advocacy, in a statement Tuesday.

Accounting

PCAOB sanctions James Pai for audit failures

Published

3 hours ago

March 25, 2025

Business Finance News

The Public Company Accounting Oversight Board sanctioned James PAI CPA and its sole owner and partner Yu-Ching James Pai for audit failures.

The PCAOB found that Pai and his firm violated multiple PCAOB rules and standards in connection with two audits of one issuer client, that the firm violated quality control standards, and that Pai directly and substantially contributed to those violations. In the audits, the firm and Pai failed to perform risk assessments and obtain sufficient audit evidence in multiple areas, including revenue and related party transactions.

“Performing appropriate risk assessments and obtaining sufficient evidence are fundamental to an audit, and failure to meet these most basic requirements puts investors at risk,” PCAOB chair Erica Williams said in a statement.

The PCAOB also found that, in the audits, the firm failed to perform engagement quality reviews, obtain written representations from management, comply with requirements concerning critical audit matters and audit committee communications and documentation, and establish a system of quality control.

“Issuing an audit report stating that the audit was performed in accordance with PCAOB standards is a solemn commitment to the investing public, and serious consequences can follow when an auditor fails to meet that commitment,” Robert Rice, director of the PCAOB’s Division of Enforcement and Investigations said in a statement.

Without admitting or denying the findings, Pai and the firm consented to the PCAOB’s order, which:

Censures Pai and the firm and imposes a $40,000 civil money penalty, jointly and severally, against them;
Revokes the firm’s PCAOB registration with a right to reapply after three years;
Bars Pai from being an associated person of a PCAOB-registered firm, with a right to petition the Board to terminate his bar after three years;
Requires the firm to undertake remedial actions to improve its system of quality control and procedures before reapplying for registration; and,
Requires Pai to complete 40 CPE hours before seeking to terminate his bar.

Accounting

Dalio warns GOP of ‘dire’ debt as lawmakers weigh tax cuts

Published

4 hours ago

March 25, 2025

Business Finance News

Bridgewater Associates founder Ray Dalio warned House Republicans of the dangers of rising U.S. deficits and urged them to cut the budget deficit to just 3% of gross domestic product or risk debt service costs squeezing government spending.

Dalio’s message of austerity comes as House and Senate Republicans battle over the size of spending cuts to be paired with a giant tax cut coming later this year. The U.S. budget deficit was 6.6% of GDP in 2024, according to the Congressional Budget Office.

“There was a good understanding of the choices and the possibilities to manage this dire situation over time,” Dalio said in a statement after the meeting. “I look forward to staying in touch about these issues and having similar discussions with others so that there are realistic assessments of the issues and what might be done to deal with them.”

The House has drafted a $4.5 trillion tax cut blueprint paired with $2 trillion in spending cuts over ten years, which would add about $3 trillion to deficits over the decade. Senate Republicans want to deploy a budget gimmick to allow them to add trillions more in tax cuts without more spending cuts. House and Senate GOP leaders will work to resolve their differences in a meeting with Treasury Secretary Scott Bessent later Tuesday.

After the Dalio meeting, House Budget Chairman Jodey Arrington said he’s resolved to block any Senate tax plan that lacks sufficient spending cuts, saying it would be dead on arrival in the House. But Arrington also acknowledged that the House’s own budget blueprint fails to meet Dalio’s 3% GDP target.

“This is not something you accomplish in one bill,” he said. “We need to begin exercising the spending cut muscles.”not supported.

Representative David Schweikert, an Arizona Republican, said Dalio’s message means Congress must pass spending cuts to pay for their plans to make President Donald Trump’s expiring 2017 tax cuts permanent as well as any new tax cuts.

Dalio has been warning for some time that the U.S.’s growing debt burden threatens the country’s financial stability, an argument he advances in a forthcoming book: How Countries Go Broke: The Big Cycle.

“We are at a precarious time in what I call the Big Cycle, where there is a confluence of major forces playing out in a way that is similar to many times in history,” Dalio said in a statement released in advance of the meeting.

Dalio, 75, stepped down as co-CEO of Bridgewater in 2017 and retired from the hedge fund in 2022. He has a net worth of more than $16 billion, ranking 132nd in the Bloomberg Billionaires Index.