Accounting
How tax departments can avoid 2017’s mistakes ahead of the 2025 TCJA sunset
As the expiration of key Tax Cuts and Jobs Act provisions looms, tax professionals are preparing for what could be another period of upheaval.
In 2017, when the TCJA was first enacted, tax departments struggled to keep pace with new regulations and guidance. According to our
The coming year could bring more of the same. Eight in 10 respondents are moderately or very concerned about the potential impact of these changes. Yet many rely on outdated, manual processes that make adjusting quickly to major legislative changes difficult.
With the benefit of hindsight, tax professionals have a unique opportunity to apply the lessons of 2017 and invest in automation now to avoid repeating the same costly mistakes.
Manual processes still dominate tax departments
One of the most striking findings from our survey is that many tax professionals continue to rely on manual workflows despite the increasing complexity of tax compliance. Seventy-six percent of respondents said they still use Excel for tax calculations, and 63% manually gather data from enterprise risk management and general ledger systems to perform tax calculations.
These outdated processes create inefficiencies and make it harder for tax teams to respond quickly to legislative changes.
In its time, the TCJA was the most sweeping tax code overhaul in decades. It required tax departments to significantly modify or even replace their workpapers to reflect the changes.
While 62% of survey respondents believe they can update their existing workpapers without major difficulty, one in four anticipate significant challenges, and 10% will need to create entirely new workpapers.
This manual burden could put firms at a disadvantage when deadlines are tight and compliance requirements shift rapidly.
Scenario modeling is challenging yet critical
When big changes are on the horizon, running multiple tax planning scenarios helps organizations make decisions and manage risk. Automated tax solutions streamline this process by allowing tax teams to evaluate different legislative outcomes and come up with strategies to address them.
Firms that lack automation in their tax workflows may have a tough time keeping up with the pace of change — especially if Congress waits until the eleventh hour to pass legislation, as was the case in 2017.
Eighty-eight percent of respondents reported it is moderately or very difficult to conduct scenario modeling for TCJA changes, and only half have started the process. One respondent noted, “We need as much lead time as possible to make changes to our models, and significant changes take even more time to incorporate. Running multiple scenarios is a very manual and difficult process.”
Quantifying the cost of inaction
Failing to invest in automation before a substantial tax law change can be a costly mistake.
Among respondents, 71% who experienced the enactment of TCJA in 2017 reported wishing they had invested earlier in tax technology to better manage the complexity of compliance updates. Manual processes not only slow response times but also drive costs, as nearly 40% of respondents anticipate a $100,000 or higher increase in consulting budgets if significant TCJA-related changes occur.
By leveraging tax automation tools and centralized tax-focused software, firms can optimize how they engage with external consultants. Automation allows tax departments to take ownership of routine processes, such as calculations and compliance adjustments, reducing reliance on consultants for these tasks. Instead, consultants can be utilized more effectively on high-impact projects that drive strategic value, such as tax planning, risk management or navigating complex regulatory changes. This shift enables firms to streamline compliance while ensuring external expertise is directed toward creating lasting organizational benefits.
Preparation now means greater confidence going into 2026
The data is clear: firms investing in automation today will be better positioned to handle the upcoming tax changes confidently. Here’s how to get ahead:
- Integrate tax technology. Replace manual calculations in Excel with automated tax workpapers that integrate with source data and automate data gathering and calculation processes.
- Adopt scenario modeling tools. Invest in software that allows for real-time legislative modeling so you can analyze multiple potential outcomes before changes take effect.
- Reduce reliance on external consultants. Implement in-house tax software to keep control over your data, reduce consulting budgets and respond quickly to regulatory shifts.
With less than a year until TCJA provisions are set to expire, the time to act is now. Taking proactive steps to automate and modernize your workflows will put you in a far stronger position than companies that wait until the last minute.
Major tax law changes can be disruptive, but with the right technology, you don’t have to relive the turmoil of 2017. Embrace tax-focused automation to remain agile, efficient and ready to navigate whatever changes come next.
The Tennessee General Assembly passed legislation backed by the Tennessee Society of CPAs adding an extra pathway to a CPA license, as more states make efforts to alleviate the shortage of new accountants.
SB 1316/HB 1330, introduced by Senate Majority Leader Jack Johnson and House Majority Leader William Lamberth on behalf of the administration, was filed for introduction on Feb. 6. The legislation aligns with Tennessee Governor Bill Lee’s goal to streamline state boards and simplify licensing. Members of the Tennessee Society of CPAs
The legislation offers two pathways to licensure for prospective CPAs starting Jan. 1, 2026. Applicants can either:
- Ccomplete the traditional path of at least 150 semester hours of college education including a bachelor’s degree plus one year of accounting experience; or,
- Complete at least 120 semester hours of college education including a bachelor’s degree plus two years of accounting experience.
For both options, the coursework needs to include an accounting concentration as determined by Tennessee State Board of Accountancy rule.
In addition, the legislation includes CPA practice mobility provisions so CPAs can still practice across state lines. Current and future CPAs who don’t have a principal place of business in Tennessee will be able to practice in the state if they hold a valid CPA license in good standing from another state and if, at the time of licensure, they showed evidence of having passed the Uniform CPA Exam. They need to consent to the jurisdiction and disciplinary authority of the TSBOA, comply with the applicable statute and board rules of the state, and cease offering services in Tennessee if their license in the state of issuance is deemed to be no longer valid. These changes will take effect July 1, 2025.
(Read more: See
“This legislation is a key step in ensuring that the demand for skilled accounting professionals, specifically licensed CPAs, can be met now and in the future,” said TSCPA president and CEO Kara Fitzgerald in a statement Monday. “Tennessee was a leader in advocating for the 150-hour rule in the 1990s, and as the needs of the profession change, Tennessee will continue to lead in evolving our licensure model to make sure we meet those needs.”
The bill will now be sent to Gov. Lee and, once he signs it, will become effective on the dates stated above.
Other states besides Tennessee have been
Baker Tilly and Moss Adams have made their merger official, combining to form what promises to be the sixth largest CPA firm in the U.S.
Rumors of the
Baker Tilly, based in Chicago, ranked No. 11 on Accounting Today‘s 2025 list of the
Baker Tilly CEO Jeff Ferro will be CEO of the combined firm through his retirement, while Eric Miles, who is currently Moss Adams’ chairman and CEO, has been named CEO-elect. Miles will assume the role of CEO on January 1, 2026, with Ferro remaining a director on Baker Tilly’s board thereafter.
“Moss Adams is a great strategic fit with Baker Tilly,” Ferro said in a statement Monday. “We’ve long respected the firm, its people and its industry-focused approach. By bringing together our strengths, we are expanding our ability to serve middle-market businesses with greater expertise, resources and insights.”
“The resources, geographic reach and go-to-market strength of the combined firm magnifies opportunities for our people to grow, collaborate and innovate,” Miles stated. “We are proud to offer our clients these expanded resources to deliver even greater value and set a new standard for advisory services in the middle market.”
As part of the deal, private equity firm Hellman & Friedman, an existing investor in Baker Tilly, will make an additional strategic investment in the business, with existing shareholder Valeas Capital Partners also increasing its investment.
The deal is expected to close in early June of this year. Once the deal closes, Moss Adams and Baker Tilly’s audit business will combine as Baker Tilly US, LLP and the firms’ business advisory, tax and other services will combine under Baker Tilly Advisory Group, LP. Both entities will remain partnerships, with all principals holding equity alongside H&F and Valeas in BTAG.
“Since we invested in Baker Tilly, we have been focused on building a differentiated firm with the ambition to change the game in the middle-market accounting industry,” said H&F partner Blake Kleinman in a statement. “This landmark merger between Baker Tilly and Moss Adams is an important step in creating a firm that will be the destination of choice for the industry’s best talent and for firms considering their strategic options in a rapidly evolving sector.”
Former AICPA president and CEO Barry Melancon
Simpson Thacher & Bartlett LLP and Vedder Price PC served as legal advisors to Baker Tilly. Deutsche Bank Securities Inc. served as financial advisor and Dechert LLP as legal advisor to Moss Adams.
Baker Tilly is part of the Baker Tilly International network, based in London, which reported $5.6 billion in worldwide revenue in 2024. Baker Tilly has done several acquisitions since receiving
Last May, it merged in
Moss Adams does not do M&A deals as often, but last December, it entered the Salesforce.com consulting market by acquiring
International accounting and consulting firm KNAV Advisory added U.K.-based firm Aventus Partners, effective April 4.
The deal strengthens KNAV’s operations in the U.K. and continues its international expansion strategy. Last year, it integrated Natarajan & Swaminathan in Singapore and HLG Netherlands.
“This is a major milestone for KNAV’s UK operations,” KNAV CEO Nishta Sharma said in a statement. “It reinforces our commitment to a unified, integrated model that delivers exceptional value to global clients.”
KNAV reported $21.5 million in revenue in 2024 and has three offices, 12 partners and 202 employees. It was one of the
Aventus, with $5.3 million in revenue, provides audit and assurance, tax advisory, financial reporting and outsourced finance team services. The deal adds four partners and 27 employees to KNAV.
Both firms are members of Allinial Global, a global association of independent accounting and consulting firms.
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