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Let’s make accounting great again

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In recent years, there’s been growing concern about the future of accounting. Discussions around AI replacing accountants, overworked staff and the ongoing talent shortage have all contributed to a less-than-ideal perception of the profession.

But I believe in the future of accounting, and I also believe that it’s up to us, as accountants, to make it great again.

The question is: Where do we begin? The first and most important thing is to start sharing the amazing opportunities that this career has to offer. 

Because, after all, accounting is more than just numbers. 

Accounting builds a foundation for flexibility and success

Far too often, accountants get put into a box, and people assume this is a single-path career. But that is far from reality. 

In fact, some of the most recognizable and successful names in business, like Arthur Blank (Home Depot), Phil Knight (Nike) and John D. Rockefeller, all began their careers as accountants. 

Today, they are among the most respected business leaders in the world.

Undoubtedly, their accounting skills helped pave the way for their success. 

After all, accounting is more than just number crunching — it’s understanding the language of business. As you pursue an accounting degree, you develop skills and expertise that open the door to a wide range of career opportunities, many of which can be quite lucrative. 

We need to start sharing how:

  • Accounting teaches valuable skills, such as financial literacy, attention to detail and problem-solving. These are in-demand skills that are crucial for any career.
  • Accounting equips you with the tools and knowledge you need to succeed, whether you want to continue working as a public accountant, transition to an executive role or launch your own business. Your ability to develop creative solutions to tough problems and your meticulous nature will serve you well in any field or in the pursuit of your own entrepreneurial venture.
  • Accounting can serve as an entrepreneurial springboard, allowing you to pivot into a variety of industries or launch your own operation. After all, accounting helps you understand some of the most important financial aspects of running a business, like cash flow and managing finances, to drive business growth. An estimated 82% of businesses fail because of cash flow problems, so your accounting skills will give you a significant advantage.
  • Accounting pays well. I just read a post from Dave Ramsey on the top careers of millionaires. Accountant (CPA) ranked number two on this list. Yet, we don’t see many people talking about this. 

Even if your goal is to stay in public accounting, it’s important to remember that large firms aren’t the only path to a successful career. There are countless other firms that offer the work-life balance you crave. At my firm, for example, we encourage our team to take vacations, pursue hobbies and achieve personal goals.

And as technology continues to evolve, more firms will offer a better work-life balance as mundane tasks become automated. 

Accounting can open the door to so many opportunities, but as an industry, we have a serious messaging problem when it comes to the future of our profession. 

Contrary to what you’ve heard, accounting is not extinct

It’s a common misconception that accounting is becoming obsolete. Yes, there’s a talent shortage. Yes, technology is rapidly evolving. But neither of these things will render the accounting profession obsolete.

The reality is that demand for accountants is on the rise, and as the profession continues to evolve, demand will continue to rise.

Let’s put a few things into perspective.

  • Many accountants are approaching retirement age. While this contributes to the talent shortage, it also creates massive opportunities for anyone entering this profession right now. Projections show that the accounting profession could have a deficit of over 3.5 million accountants by 2025.
  • Technology is rapidly evolving, but it’s not replacing accountants. Technology is helping accountants pivot their focus to more meaningful and rewarding work. Successful firms are leveraging technology to elevate the value they provide to their clients. Only 8% of firms are using AI right now, and they are using it primarily to streamline mundane tasks — nothing more.

Far too many would-be accountants are being turned away from this career path because they believe it’s on the path to extinction. But a shift in perspective allows you to see the true potential of this career and the wealth of opportunities it provides.

So, where do we go from here?

To make accounting great again, we must come together as professionals and spread the word about the vast opportunities that accounting offers. Whether you prefer to stay in public accounting or use your knowledge to springboard into new industries, there are so many pathways to build the life you want and dream of with an accounting degree.

But how do we spread the word and shift the perspective on the future of accounting?

  • We must become a voice for the future and promote the great things that can come from this profession — both online and offline.
  • We must shed light on the firms that are doing incredible things for those who want to stay in this profession. Yes, there are still firms that have toxic work cultures, but not all firms are like this. Those that offer great work-life balance can help attract more professionals to this field.
  • We must remind aspiring accountants that there are other avenues they can explore outside of accounting, including the entrepreneurial route. 

As accounting professionals, we have a responsibility to shift the message and show aspiring accountants that this career path offers virtually unlimited growth in almost any field you can imagine.

The future of accounting is bright

The accounting profession is far from extinction. In fact, it’s an industry that offers flexibility and limitless opportunities, whether you want to become a partner at a firm, pivot into a new industry or even start your own business. The knowledge and skills you gain as an accountant will equip you with the tools you need to succeed wherever life takes you.

Let’s make accounting great again by embracing its true potential and sharing it with others. I am committed to this goal, and I hope you’ll join me.

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Accounting

Trump win may threaten IRS funding

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The Internal Revenue Service may be facing steep cuts in its budget with the win on Tuesday night of President-elect Donald Trump.

Funding for the IRS has become a political issue, with Republicans successfully pushing to cut the extra $80 billion funding from the Inflation Reduction Act of 2022 already during battles over the debt limit.

“I think IRS funding is at significant risk right now, both the annual appropriation funding as well as the remaining IRA funding,” said Washington National Tax Office principal Rochelle Hodes at the Top 25 Firm Crowe LLP. 

Donald Trump during an election night event in West Palm Beach, Florida
Donald Trump during an election night event in West Palm Beach, Florida

Win McNamee/Getty Images

So far, Republicans have mainly called for cuts in the IRS’s enforcement budget. The increase in enforcement is supposed to be used to pay for the cost of the IRA, but the funding increase is also supposed to be used for taxpayer service and technology improvements.

“The only question for me on funding is, will any portion of the funding remain available for taxpayer service-related improvements at the IRS?” said Hodes.

The Direct File free tax prep program that the IRA funded could also be targeted, even as the IRS makes plans to expand it beyond the original 12 pilot states this year to 24 next tax season.

“I don’t think that will be in the sight line, but the IRA money is part of what’s being used for that,” said Hodes. “As we’ve seen in appropriations bills, there could be language directed at that, that no money can be spent on that initiative.”

A more important priority will be the extension of the expiring provisions of the Tax Cuts and Jobs Act of 2017. “Getting TCJA resolved is going to be the first priority,” said Hodes. “The second question is, how will the cost of that endeavor be determined. If the view that is held by several Senate Republicans wins the day, then the cost of extending the expiring provisions will not be counted under those particular budget rules that are created dealing with extending current policy. If, however, that view is not adopted, then there is a high cost just to TCJA, and so any other provisions with cost will sort of stretch the boundaries of what many in Congress would be comfortable with. I think it will be necessary to see how the scoring goes for extending TCJA provisions.”

Trump has also called for exempting various forms of income, such as tip income, Social Security income and overtime from taxes.

“I also am not sure which of the ideas that were put forward on the campaign trail, other than extending TCJA, are provisions that have true champions who will want to pursue those,” said Hodes. 

That may depend on who ends up in Congress, with several important races in the House yet to be decided.

“Although the House remains undecided, the Republicans’ control of the Senate makes it much more likely that Republicans will be able to implement many of Trump’s proposed tax policies, such as making parts of the expiring 2017 TCJA provisions permanent,” said John Gimigliano, principal in charge of the Federal Legislative & Regulatory Services group within KPMG’s Washington National Tax practice, in a statement. “The pressing question now is how the Administration and Congress will fund such an ambitious agenda and what additional measures they might introduce, such as eliminating taxes on tips and overtime. These items will only add to the hefty $4+ trillion price tag they face. Until then, taxpayers should continue to stay apprised of developments and scenario plan for the different outcomes to get ahead.” 

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Accounting

Firms plan to raise fees next year

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Over half of accounting and tax firms plan to increase fees across all services in 2025, according to a new survey.

The survey, released Wednesday by practice management technology company Ignition, found that the majority (around 58%) cited rising business costs as the main motivator for their fee increases, while only 5% are raising prices to increase revenue. Most of the nearly 350 firms surveyed intend to increase fees across services by 5% or 10%.

Some 57% of the respondents plan to increase fees across all services. With regard to tax preparation specifically, 90% of the survey respondents plan to increase fees for individual tax returns, and 87% plan to increase fees for business tax returns. In addition, 70% plan to increase fees for tax planning and advisory services;. 85% plan to increase fees for bookkeeping and accounting services; and 76% plan to increase fees for CFO and controller services.

“While accounting firm owners are embracing price increases in 2025, the report shows that the majority (around 58%) cite rising business costs as the main motivator,” said Ignition global president Greg Strickland in a statement. “Only 5% are raising prices to increase revenue, which indicates an opportunity for firms to leverage pricing as a strategic tool to unlock revenue growth.”

The report found a shift from hourly billing to fixed-fee and value-based pricing, with 79% of the survey respondents indicating they use fixed-fee or value-based pricing for bookkeeping and accounting services. Over half (54%) use fixed-fee or value-based pricing for tax preparation services, 67% use fixed-fee or value-based pricing for tax planning and advisory services, and 75% use fixed-fee or value-based pricing for CFO and controller services.

The report benchmarked current fees for tax, accounting and advisory services, which varied based on firms’ annual revenue range. The biggest variation in pricing was for tax planning and advisory services in particular. For firms with revenue of as much as $250,000, approximately 23% said they charge less than $500 for these services, while a nearly equal number (around 21%) indicated they charge more than $2000.

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Accounting

Millionaire tax backed by Illinois voters in threat to Chicago

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Illinois voters approved a nonbinding proposal to add an extra 3% levy on annual incomes of more than $1 million, which could fuel a new effort to raise taxes on the state’s highest earners.

The ballot measure – which was an advisory question – won 60% of support, according to the Associated Press. About 90% of the votes have been counted.

“The vote is a gigantic step in the right direction,” said former Governor Pat Quinn, a supporter of the measure. 

quinn-pat-bl020212-357.jpg
Pat Quinn

Daniel Acker/Bloomberg

While the proposal has no legal effect, the vote opens the door to a new debate over ramping up taxes on the rich even as Illinois and Chicago, its biggest city, contend with population declines and a string of departures by major companies and wealthy residents. In 2020, voters rejected a separate measure backed by Governor JB Pritzker to replace the state’s flat tax on incomes with a graduated system that would raise rates on higher-earners.  

The Pritzker plan drew staunch opposition from billionaire financier Ken Griffin, who donated about $50 million to help torpedo the initiative. Griffin then left Chicago for Miami in 2022, moving the headquarters of his Citadel empire there as well. Companies from Caterpillar Inc. to Boeing Co. have also departed amid rising concerns over public safety, regulation and taxes. 

This year’s referendum asked voters if the Illinois Constitution should be amended to create the additional tax on income over $1 million. It called for using the proceeds to ease the state’s notoriously high property levies. 

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