Accounting
Franchising offers alternative to partnership route
One statistic really jumped out at me from the annual CPA Career Satisfaction survey co-authored by my friend
From my podcasts and speaking engagements, I’d have to agree that many talented and highly motivated professionals are wondering whether the traditional partner track is still worth it considering the time, stress and strain on personal relationships (and health) it requires. Fortunately, more alternatives are emerging that can offer CPAs a great lifestyle and substantial financial upside.
Take
Instead of sacrificing relationships with family, friends and spouses to garner one of your firm’s coveted partner slots, you can become a principal at firms like Dark Horse through the Accelerator Program. This can be especially intriguing to managers or senior managers at a traditional firm who are deciding whether to stick it out and try for becoming a partner.
The Dark Horse Principal Accelerator Program was created for entrepreneurially minded CPAs who want to build a scalable book of business without the personal and financial sacrifices required of starting a firm from scratch. Accelerators go through a training program that acclimates them to the firm’s tech stack, followed by sales training and one-on-one coaching. After completing the training, principals begin building their book of business by fielding inquiries from potential Dark Horse clients. To facilitate their growth, Accelerators have full-time and fractional professional personnel support at their disposal. After successful completion of the program, participants can become equity principals of the firm.
It’s an investment on Dark Horse’s part as well, “requiring four to nine months of intensive ‘X’s and O’s’ training and coaching,” said Birky.At the end of the training program, Birky said participants typically have a book of business worth $200,000 and they’re eligible to become principals. “It’s similar to being a partner at a traditional firm,” said Birky. But, since Dark Horse is a C corp, its principals are W-2 employees who also have equity in the form of stock options, plus bonus potential based on the profitability of their book of business.
Not your typical one-third/one-third/one-third
Like Birky, I believe this approach is very different from the one-third/one-third/one-third model of a traditional firm. That’s when one-third of revenue goes out as partner compensation, one-third goes out for staffing, and one-third goes out in overhead. By contrast, Dark Horse runs specific P&Ls every day for each book of business so it can calculate how much of each principal’s profit goes into the profit split with the firm. That way, it always knows how much in direct expenses is being allocated to each principal. As a result of its leaner and more horizontal structure, Birky said Dark Horse principals are typically bringing home 40% to 50% of their revenue as compensation vs. 33% that’s more common in the industry. In essence, Dark Horse is accelerating each principal’s earning potential and eliminating the frustration of having to share staff. Likewise, team members don’t get frustrated by having eight different bosses making demands of them at the same time.
I can relate to that situation. When I was in the client accounting services practice of a large firm, I was a manager overseeing a team of a dozen people. I felt like I had nine or 10 bosses making requests of me at the same time, and my team was getting pulled in every direction. This kind of stress definitely took a toll on my team and I know it affected many of their marriages and relationships.
While I don’t have scientific research to back this up, I can tell you anecdotally there are a lot more second, third and fourth marriages at accounting firms than in the general population. I’ve also noticed a higher percentage of never-married employees in their 40s and 50s at larger firms than in the general U.S. population.
Fortunately, more firms are creating alternative paths for employees who want to excel, but who don’t want to “sell their soul to the firm” in order to make partner. Dark Horse’s Accelerator Program is one way for talented managers in our profession to retain some work-life balance. They want to make more money now; they don’t want to wait another five or ten years to make partner at a traditional firm.
CPA firm as C corp
Next, you may be wondering if there are any issues running a CPA firm as a C corp, the way Dark Horse does. In California, where Dark Horse was formed, it’s considered an accountancy corp, so it can be either a C corp or an S corp. Birky said Dark Horse originally went with the S corp to make things simpler, but it eventually converted to an C corp, so it can someday take outside investment. Birky said outside investors tend not to like S corps. Also, Dark Horse is a play for volume and scale, so it won’t be that far in the future when it will exceed the 100-shareholder limit for S corps.
Birky said Dark Horse offers stock options to staff members once they become principals, and then annual grants thereafter. But the firm also has ways for equity to get down to the staff level. When Dark Horse gives a grant to a principal, the firm might tell him or her: “Hey, you earned 20,000 shares. Would you like any of this share grant allocated to your team?”
If they say, “Yes, $5,000 should go to my accounting manager,” then they can allocate those shares as a restricted stock award. The employee gets taxed on the award, but they don’t have to pay to exercise it, Birky explained. Further, Dark Horse allows employees to sell up to 20% of their vested shares back to the firm, and the firm will buy those shares at the attractive 409(a) price because it is also issuing options at the same price. (Note: I cover partner model alternatives in more detail in my new book “
Clearly the accounting industry is evolving beyond the traditional partnership model. Firms like Dark Horse CPAs are offering lucrative alternatives that provide better work-life balance, increased earning potential and equity opportunities. These new models intentionally address burnout, retain talent and create more flexible career paths in the accounting profession. What’s not to like?
The irony of accounting training runs deep: While we master complex regulations and ever-changing standards, this very expertise can create resistance to growth. Our profession’s focus on precision and compliance often breeds a fixed mindset — one that values being right over being adaptable.
Think about your last team meeting. Did anyone challenge the status quo? Suggest a new approach? Or did everyone nod along, staying safely within the lines of “how we’ve always done it”?
This fixed mindset carries a steep price tag. While technical expertise remains critical, it’s no longer enough. Today’s landscape demands innovation, adaptability and creative problem-solving — qualities that wither under rigid thinking.
fran_kie – stock.adobe.com
Consider how many opportunities your firm might be missing. Are you still doing things manually that could be automated? Are your client conversations focused solely on compliance rather than strategic guidance? These are symptoms of fixed thinking limiting your firm’s potential.
When team members operate from a fixed mindset, they:
- Avoid challenges for fear of failure;
- See effort as fruitless;
- Ignore useful feedback; and,
- Feel threatened by others’ success.
The result? Stagnant growth, missed opportunities and a
Watch for these warning signals in your practice that your growth mindset needs a reset:
- Team members who respond to new tech with, “That won’t work here.”
- Staff who hide mistakes rather than learn from them.
- Knowledge hoarding instead of sharing.
- Client relationships that haven’t evolved beyond compliance work.
- Resistance to training outside direct job responsibilities.
Steps to foster growth mindset
Transforming your firm’s culture starts with small, intentional changes that challenge fixed thinking patterns. Here’s how to begin:
1. Reframe challenges as learning labs. Create designated “experiment zones” where teams can test new approaches without fear of failure. This might mean setting aside time for process improvement, brainstorming or creating pilot programs for new service offerings. For example, dedicate the first hour of each week for teams to explore process improvements or automate repetitive tasks.
2. Build safe-to-fail environments. Implement a “learning from mistakes” ritual in team meetings where leaders share their own missteps and the insights gained. When mistakes are viewed as data points rather than disasters, innovation flourishes. Consider creating a “Lessons Learned” channel in your communication platform where team members can safely share their experiences. The key is making these sharing sessions solution-focused rather than blame-oriented.
3. Design effective feedback loops. Move beyond annual reviews to create regular touchpoints for growth-oriented feedback. Focus on effort, strategy and progress, rather than just outcomes. Ask questions like “What did you learn?” before “What did you achieve?” Structure these conversations around three simple prompts: What’s working? What could be better? What support do you need? This approach keeps feedback constructive and forward-looking.
4. Celebrate growth moments. Recognize and reward learning initiatives, not just billable achievements. This might mean highlighting team members who master new skills, implement innovative solutions, or help others grow. Create a monthly spotlight program that showcases different types of growth — whether it’s someone teaching themselves a new software, improving a client interaction, or finding an innovative solution to a recurring problem.
5. Lead as a ‘Connected Leader.’
6. Embrace vulnerability. Share your own learning journey openly. When leaders acknowledge their challenges and growth areas, it creates psychological safety for others to do the same. This might look like:
- Starting team meetings by sharing a current learning challenge.
- Being transparent about your own professional development goals.
- Openly discussing situations where you needed to pivot or adapt.
- Asking for feedback on your leadership style.
7. Support continuous development. Invest in diverse learning opportunities beyond technical training. Consider programs in emotional intelligence, client communication or emerging technologies.
- Creating learning partnerships across different experience levels.
- Rotating team members through different types of client engagements.
- Supporting certification in emerging areas like data analytics or advisory services.
- Implementing cross-training programs that build versatility.
8. Create mentorship momentum. Establish mentorship programs that cross generational and departmental lines. Fresh perspectives emerge when different viewpoints and experiences collide. Consider:
- Reverse mentoring programs where younger staff teach technology skills.
- Cross-functional mentoring that pairs tax and audit professionals.
- Group mentoring sessions that foster collaborative learning.
- Regular mentor training to ensure effective guidance.
9. Measure success beyond the numbers. Traditional metrics tell only part of the story. To track your firm’s growth mindset evolution, think about these new growth indicators:
- Number of new processes or approaches tested;
- Cross-training participation rates;
- Client service expansion metrics; and,
- Team member skill development progress.
You should also pay attention to these cultural transformation signs:
- Increased question-asking in meetings;
- More collaborative problem-solving;
- Voluntary knowledge-sharing initiatives; and,
- Reduced resistance to change.
And you can judge the long-term impact by:
- Improved staff retention;
- Expanded service offerings;
- Deeper client relationships; and,
- Enhanced firm adaptability.
Creating a growth mindset culture adds adaptability and innovation to your firm’s core strengths. When teams feel empowered to learn, experiment and grow, they naturally deliver better results for clients and the firm.
Start small, stay consistent, and watch your team transform from task-completers to innovative problem-solvers.
Where will you begin? Perhaps it’s time to schedule that team meeting — not to present solutions, but to ask questions and invite new possibilities.
Amazon and Intuit have announced a multiyear strategic partnership to integrate QuickBooks into
Why this is important for your firm and clients: For starters, there exists third-party software that already does this. Also, many e-commerce platforms like Shopify and Magento have deep integration with QuickBooks and other tools. So this isn’t ground-breaking. But Amazon entering into a formal partnership with Intuit, the maker of QuickBooks, could be a better option for many small merchants.
Enjoy complimentary access to top ideas and insights — selected by our editors.
The Internal Revenue Service ended 2024 by debuting regulations on reporting cryptocurrency transactions, amendments for outdated provisions, updates for standard mileage rates and more. And as President-elect Donald Trump gets ready for his second term in office, professionals are looking ahead to what the 2026 tax landscape will look like.
Trump was vocal throughout his campaign about working to extend many of the provisions of his landmark Tax Cuts and Jobs Act of 2017 that are set to expire at the end of this year. Recently, he
Representative Nick LaLota, R-N.Y., said in an interview with Bloomberg that he and a small group of four other representatives are working to push forward a bill to “reasonably adjust” the current $10,000 cap on SALT deductions.
“There are five very salty Republicans — I would expect that somebody in his position would appreciate that dynamic and would want to provide an accommodation to get the bill passed,” he said. “The five of us have the opportunity to effectuate an even more beautiful, big bill.”
Read more:
Most of the current regulations will be in place for the majority of the 2025 tax season, with the steadily gaining pace of regulatory proposals making planning ahead for 2026 one of the key priorities for tax professionals.
Randy Hughes, CEO of Atlanta-based Counting Pennies and co-founder of Seven Figure Profits, said in an interview with Accounting Today that Trump’s return is a likely signal that the current tax landscape would be renewed into next year with some additional provisions.
“The most significant changes include potential new regulations around cryptocurrency transactions, increased IRS scrutiny on high earners and adjustments to clean energy credits,” Hughes said. “Most changes will not be changes to tax law, but the implementation of laws that are already in place … so being familiar with this implementation is important.”
Read more:
Learn more about the IRS’s new rules on crypto reporting, accounting methodology changes and more below.
Yorgos Karahalis/Bloomberg
New rules from IRS on DeFi tax reporting cross the finish line
The IRS released
The new requirements take effect for DeFi companies starting Jan. 1, 2027, after responses gathered in the initial stages of the regulations led the IRS and the Treasury to push back the deadline by two years. Individual cryptocurrency brokers, traders, banks and more are subject to the updated rules as of Jan. 1.
“Although the applicability date proposed by the proposed regulations applied to gross proceeds reporting for sales of digital assets effected on or after Jan. 1, 2025, the Treasury Department and the IRS agree that a delay is warranted for trading frontend service providers treated as brokers (DeFi brokers) under these final regulations,” the regulation states.
Read more:
New crypto rules from IRS will create an information avalanche
Following the Jan.1 effective date of the IRS’s new 1099-DA and finalized regulations for reporting decentralized finance transactions, accountants across the profession worry that many brokers and taxpayers will struggle to quickly adapt to the changes.
“The fact that the IRS is now going to get information about the transactions, and how inaccurate the information will be, is really underappreciated at this point,” James Creech, a director in the tax advocacy and controversy practice of Top 10 Firm Baker Tilly, said in an interview with Accounting Today’s
He further mentioned that the utility of the information gathered through Form 1099-DA reportings will vary in accuracy for the first few years as all eligible parties become familiar with the requirements and standards.
Read more:
Stefani Reynolds/Photographer: Stefani Reynolds/B
IRS expands waiver of eligibility for accounting method changes
The IRS’s newly debuted
Expanded rules include those in Section 5.01(1)(d) and (f) of Rev. Proc. 2015-13 to accounting method changes described in Section 7.01 of Rev. Proc. 2024-23 that are made for any taxable year beginning in 2022, 2023 or 2024.
Read more:
IRS proposal seeks to add tech competency for tax professionals
Last month, the IRS and Treasury Department released
The proposed changes are limited to affect only those who practice before the IRS, and include the following updates, among others:
- Eliminating provisions related to registered tax preparers;
- Classifying the use of certain contingent fee arrangements by practitioners as disreputable conduct;
- Establishing new standards for appraisals and the disqualification of appraisers; and
- Providing rules related to appraisers, including the standards for disqualification.
Read more:
IRS increases standard mileage rate for 2025
The tax service increased its optional standard mileage rate for 2025 by three cents for vehicles driven for business purposes, while other rates remain unchanged since last year.
The rates applicable to cars, vans, pickups or panel trucks, including fully electric and hybrid vehicles, are as follow s:
- 70 cents per mile
driven for business use , up three cents from 2024; - 21 cents per mile driven for medical purposes, the same as in 2024;
- 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year; and,
- 14 cents per mile driven in service of charitable organizations, equal to the rate in 2024.
Read more:
Developing a growth mindset culture in your accounting firm
QB on Amazon, and other tech stories you may have missed
CPI inflation December 2024:
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
The Essential Practice of Bank and Credit Card Statement Reconciliation
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