Accounting
Election 2024 and the ‘unpredictable landscape’ of accounting
Forecasting the future for accountants has rarely been more difficult, according to American Institute of CPAs president and CEO Barry Melancon.
“The profession today is in a very unpredictable landscape. Young people have never known anything but this environment,” he told attendees of the AICPA Executive Roundtable, a gathering of technology executives held in New York City last week. “For most people alive today, they’ve never experienced a world with as much unpredictability and uncertainty as today.”
The upcoming presidential elections are a perfect illustration, with a huge range of possible outcomes on the tax issues that are of key concern to accountants.
“If you assume a Republican Senate and a Democratic house and just say either a Democratic or a Republican White House, what happens from a tax perspective is totally different from what happens if you have a clean sweep of either party,” he said.
What’s more, the likelihood of closely divided government — with the most common current predictions calling for the Republicans to have narrow control of the Senate and the Democrats to have narrow control of the House — makes resolving the large number of what Melancon called “dicey tax issues” even more difficult.
“This is a danger point for our country,” he said. “We live in a world where the difference in who controls the House or the Senate will be a very narrow margin. … That makes managing government very difficult. Our government is based on compromise, and there isn’t a lot of room for compromise now in Washington.”
Because of that division, Melancon and the AICPA tax team don’t think there’s a very high prospect of major tax legislation; instead, there will be more restrained activity based on the priorities of the party with more power.
He noted, for instance, that a clean sweep by the Democrats would lead to a focus on the state and local tax deduction, and that corporate taxes would go up. It would also likely lead to stricter regulators. “There’s certainly a lot of concern in the profession about the regulatory environment with the Public Company Accounting Oversight Board,” which has been extraordinarily active over the past two years.
On the other hand, if the Republicans were to make a clean sweep, Melancon suggested that they might look at the SALT deduction (though to a lesser extent than the Democrats), but that their main priority would be extending the expiring provisions of the Tax Cuts and Jobs Act, and particularly the R&E credit.
Outside of tax, Melanon did see one area where divided government might not matter as much: artificial intelligence.
“AI legislation is probably one of the most bipartisan issues in D.C.,” he said. “It’s likely we’ll see something in that space. What it is will depend on who’s in office.”
Despite the bipartisan interest, however, he is skeptical about the effectiveness of governments in regulating AI, given the international scope of the technology and the speed with which bad actors can advance it.
A changing profession
Changes to tax laws are only one small portion of the disruption that accountants face, according to Melancon.
“There is a lot of true innovation and transformation of what accounting’s all about,” he said. “The profession’s footprint has changed from accounting, audit and tax to a much broader notion of a business information set, and of who the stakeholders are. That group is much broader today — it’s investors and entrepreneurs, to be sure, but also employees and regulators and society at large.”
“What an accounting firm is is changing, as is what is the finance function in corporate accounting,” he added.
The ever-quicker pace of technological transformation — with AI in particular — is having a major impact.
“Technology and AI will affect jobs; I’ll be honest about that,” he said. “It’s going to move people around. It’s going to affect entry-level positions and how we get people into higher positions quicker.”
Also having a major impact is the pipeline crisis, with not enough young people choosing to work in accounting.
“Where is the next generation of professionals going to come from?” he asked. “Some of the capacity will come from technology, but the biggest number of young people is in the continent of Africa as a whole, and in Saudi Arabia — it’s a smaller center, but it’s the youngest population center of any part of the world.”
Hard demographic trends like those, and the constant evolution of technology, require flexibility and proactivity on the part of the profession.
“You have to look at efficiency, automation and growth, because that’s what you can manage and change,” Melancon advised. “You can’t change the other factors.”
Even with all those pressures on it, however, the profession has plenty going for it.
“The past four years have been the best run for accounting firms in a long while, no question,” Melancon said. “If I randomly brought in 10 CEOs or managing partners, nine out of 10 would say that their most profitable year was either 2022 or 2023. And for the others, it’s still some of their best years ever.”
Much of that is due to the circumstances of the pandemic and the economic changes surrounding it, but credit must also go to the values of the profession.
“The value of lifelong learning and competency and integrity and leadership skills and all those things – they remain valuable,” he explained. “This is what the profession is all about.”
“In upturns, the trusted advisor is critical; in downturns the trusted advisor is critical,” he concluded. “The reason why we’re trusted and why the profession is successful is because we help people get through the challenges that they face.”
Jody Padar, an author and speaker known as “The Radical CPA,” and Katie Tolin, a growth strategist for CPAs, together launched a training and technology platform called XcelLabs.
XcelLabs provides solutions to help accountants use artificial technology fluently and strategically. The Pennsylvania Institute of CPAs and CPA Crossings joined with Padar and Tolin as strategic partners and investors.
“To reinvent the profession, we must start by training the professional who can then transform their firms,” Padar said in a statement. “By equipping people with data and insights that help them see things differently, they can provide better advice to their clients and firm.”
The platform includes XcelLabs Academy, a series of educational online courses on the basics of AI, being a better advisor, leadership and practice management; Navi, a proprietary tool that uses AI to help accountants turn unstructured data like emails, phone calls and meetings into insights; and training and consulting services. These offerings are currently in beta testing.
“Accountants know they need to be more advisory, but not everyone can figure out how to do it,” Tolin said in a statement. “Couple that with the fact that AI will be doing a lot of the lower-level work accountants do today, and we need to create that next level advisor now. By showing accountants how to unlock patterns in their actions and turn client conversations into emotionally intelligent advice, we can create the accounting professional of the future.”
“AI is transforming how CPAs work, and XcelLabs is focused on helping the profession evolve with it,” PICPA CEO Jennifer Cryder said in a statement. “At PICPA, we’re proud to support a mission that aligns so closely with ours: empowering firms to use AI not just for efficiency, but to drive growth, value and long-term relevance.”
The accountant the world urgently needs has evolved far beyond the traditional role we recognized just a few years ago.
The transformation of the accounting profession is not merely an anticipated change; it is a pressing reality that is currently shaping business decisions, academic programs and the expected contributions of professionals. Yet, in many areas, accounting education stubbornly clings to outdated, overly technical models that fail to connect with the actual demands of the market. We must confront a critical question: If we continue to train accountants solely to file tax reports, are we truly equipping them for the challenges of today’s world?
This shift in mindset extends beyond individual countries or educational systems; it is a global movement. The recent announcement of the
The CIMA/CGMA proposal for 2026 is not just a curriculum update; it is a powerful manifesto. This new program positions analytical thinking, strategic business partnering and technology application at the core of accounting education. It unequivocally highlights sustainability, aligning with IFRS S1 and S2, and expands the accountant’s responsibilities beyond mere numbers to encompass conscious leadership, environmental impact and corporate governance.
The current changes in the accounting profession underscore an urgent shift in expectations from both educators and employers. Today, companies of all sizes and industries demand accountants who can do far more than interpret balance sheets. They expect professionals who grasp the deeper context behind the numbers, identify inconsistencies, anticipate potential issues before they escalate into losses, and act decisively as a bridge between data and decision making.
To meet these expectations, a radical mindset shift is essential. There are firms still operating on autopilot, mindlessly repeating tasks with minimal critical analysis. Likewise, many academic programs continue to treat accounting as purely a technical discipline, disregarding the vital elements of reflection, strategy and behavioral insight. This outdated approach creates a significant mismatch. While the world forges ahead, parts of the accounting profession remain stuck in the past.
The consequences of this shift are already becoming evident. The demand for compliance, transparency and sustainability now applies not only to large corporations but also to small and mid-sized businesses. Many of these organizations rely on professionals ill-equipped to drive the necessary changes, putting both business performance and the reputation of the profession at risk.
The positive news is that accountants who are ready to thrive in this new era do not necessarily need additional degrees. What they truly need is a commitment to awareness, a dedication to continuous learning, and the courage to step beyond their comfort zones. The future of accounting is here, and it is firmly rooted in analytical, strategic and human-oriented perspectives. The 2026 curriculum is a clear indication of the changes underway. Those who fail to think critically and holistically will be left behind.
In contrast, accountants who see the big picture, understand the ripple effects of their decisions, and actively contribute to the financial and ethical health of organizations will undeniably remain indispensable, anywhere in the world.
Congressional Republicans are siding with Donald Trump in the messy divorce between the president and Elon Musk, an optimistic sign for eventual passage of a tax cut bill at the root of the two billionaires’ public feud.
Lawmakers are largely taking their cues from Trump and sticking by the $3 trillion bill at the center of the White House’s economic agenda. Musk, the biggest political donor of the 2024 cycle, has threatened to help primary anyone who votes for the legislation, but lawmakers are betting that staying in the president’s good graces is the safer path to political survival.
“The tax bill is not in jeopardy. We are going to deliver on that,” House Speaker Mike Johnson told reporters on Friday.
“I’ll tell you what — do not doubt, don’t second guess and do not challenge the President of the United States Donald Trump,” he added. “He is the leader of the party. He’s the most consequential political figure of our time.”
A fight between Trump and Musk exploded into public view this week. The sparring started with the tech titan calling the president’s tax bill a “disgusting abomination,” but quickly escalated to more personal attacks and Trump threatening to cancel all federal contracts and subsidies to Musk’s companies, such as Tesla Inc. and SpaceX which have benefitted from government ties.
Republicans on Capitol Hill, who had — until recently — publicly embraced Musk, said they weren’t swayed by the billionaire’s criticism that the bill cost too much. Lawmakers have refuted official estimates of the package, saying that the tax cuts for households, small businesses and politically important groups — including hospitality and hourly workers — will generate enough economic growth to offset the price tag.
“I don’t tell my friend Elon, I don’t argue with him about how to build rockets, and I wish he wouldn’t argue with me about how to craft legislation and pass it,” Johnson told CNBC earlier Friday.
House Budget Committee Chair Jodey Arrington told reporters that House lawmakers are focused on working with the Senate as it revises the bill to make sure the legislation has the political support in both chambers to make it to Trump’s desk for his signature.
“We move past the drama and we get the substance of what is needed to make the modest improvements that can be made,” he said.
House fiscal hawks said that they hadn’t changed their prior positions on the legislation based on Musk’s statements. They also said they agree with GOP leaders that there will be other chances to make further spending cuts outside the tax bill.
Representative Tom McClintock, a fiscal conservative, said “the bill will pass because it has to pass,” adding that both Musk and Trump needed to calm down. “They both need to take a nap,” he said.
Even some of the House bill’s most vociferous critics appeared resigned to its passage. Kentucky Representative Thomas Massie, who voted against the House version, predicted that despite Musk’s objections, the Senate will make only small changes.
“The speaker is right about one thing. This barely passed the House. If they muck with it too much in the Senate, it may not pass the House again,” he said.
Trump is pressuring lawmakers to move at breakneck speed to pass the tax-cut bill, demanding they vote on the bill before the July 4 holiday. The president has been quick to blast critics of the bill — including calling Senator Rand Paul
As the legislation worked its way through the House last month, Trump took to social media to criticize holdouts and invited undecided members to the White House to compel them to support the package. It passed by one vote.
Senate Majority Leader John Thune — who is planning to unveil his chamber’s version of the bill as soon as next week — said his timeline is unmoved by Musk.
“We are already pretty far down the trail,” he said.
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