Accounting
The 2024 Best Firms for Women: Freedom of choice
There are many different ways Accounting Today’s 2024 Best Firms for Women earned the honor of being among the top 10 most female-forward workplaces, but while the individual policies and programs they employ to effectively recruit, retain and advance women vary by practice, two stand out as critical for the highest-ranked firms: flexibility and mentorship.
Both strategies also empower female employees to make critical choices for their personal and professional success.
“Mentorship is so important — it’s just the be-all, end-all these days,” said April Miller, principal at Laurel, Maryland-based Bormel, Grice & Huyett PA, a Best Firm for Women for the third consecutive year, this year ranking No. 3. “So much more focus is on mentorship and training than ever before. It has a lot to do with retaining people and a lot to do with attracting people. Most people want to grow and advance, and we really want to foster that here. It’s more important than anything else.”
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Bormel, Grice & Huyett offers two types of mentors, Miller explained: “a mentor for learning, your work-side policies, procedures, technical help, as people advance and get more experience in the industry, and also a mentor whose primary focus is on career guidance.”
San Francisco-based Realize CPA, No. 5 among this year’s Best Firms for Women but also the highest ranked midsized firm on the list, shares those priorities, with managing partner Minerva Tottie crediting her female staff’s satisfaction to its strong mentorship program and flexible work culture.
All the Best Firms for Women are chosen from the members of Accounting Today’s annual Best Firms to Work For list, which is based on in-depth employee surveys. The Best Firms for Women, among other criteria, garnered positive survey responses from their female employees.
“Providing flexibility for women,” Tottie identified as one of Realize’s strengths. “We have a really strong mentorship program at Realize. Mentorship and flexibility. We usually get women fresh out of college, super eager and ambitious and ready to work. And then life happens: marriage, kids. Having mentors who can help guide them along the work side of things and different changes of life is really important, and we continue to provide that. We don’t want to get them discouraged. Accounting is a hard profession, with the hour requirements, especially on the tax side.”
The Best Firms for Women recognize that the profession’s current talent shortage makes these two principles more vital than ever. To combat the pipeline problem, they have also adjusted for the needs of younger candidates.
“Based on experience, education, and how they are brought in, we have a dedicated coaching and staff development plan that details expectations at each level,” shared Kayla Perry, firm administrator at Boise, Idaho-based B.A. Harris, No. 2 on this year’s list. “We make it clear to staff. This generation asks for complete clarity. They’re not a gray generation but black and white. We provide as much information as possible; the expectations of the next level up and so on. All expectations are provided to them even at an associate level, to see what it takes for a promotion to senior, to manager.”
At the Best Firms for Women, employees also have a choice in mentors and coaches.
“Good mentors, leaders who are also women, who have also been there, can provide guidance,” explained Tottie. “Oftentimes, myself as a partner, I’ll team up with another woman at a supervisor, manager level just so they can feel comfortable bringing up the types of issues they might not otherwise feel comfortable bringing up with men. Some women don’t care, and can be paired up with men or women. We are sensitive to what people need to get far in their career.”
“Any of the partners are always welcoming,” shared Miller. “Sometimes people don’t want to talk to partners, but have [a talk with] managers, principals or peers. There are different groups with different comfort levels of what they want to speak about.”
Bormel, Grice & Huyett also finds value in connecting female new hires with more senior women in the firm.
“We are respectful of the challenges some women face,” Miller said. “Not all women struggle with work-life balance but that is a thing, responsibility in the office plus family … We try to be respectful of women and men having the work-life balance everyone is talking about. Among new hires, we encourage setting up a meeting with a woman at the firm to talk about their experiences. We’ve found that to be really helpful to put candidates at ease.”
Flexibility at the forefront
Staff at all levels continue to value flexibility, both in work hours and location, and in career paths.
“We try to be very flexible to all staff,” said Megan Sunthimer, partner at No. 4-ranked firm C&D, based in Solvang, California. “We see that a lot with women who have kids, trying to be flexible with needs that parents in general have with young kids.”
All the Best Firms for Women stressed that their flexible work policies apply to men and women, with or without children, to maintain the ever-important work-life balance. But many firm leaders also acknowledge the extra burden that can fall on women.
“From personal experience, for quite a few really great female employees, different life things come up, particularly in the accounting industry, that can be pretty stressful at times with other commitments,” said Sunthimer. “They have decided, based off family dynamics and needs, the accounting industry in general: Is that where I want to be, in public accounting? That’s been a struggle in retention, specifically. Recruiting has been a tough few years with COVID and a lot less people entering the accounting industry.”
“Females are typically the default parent when it comes to children,” said Perry. “Whenever there are sick kids, the ability to work remotely at a moment’s notice, they need everyone to be super understanding. The leadership here is two-thirds women, and it really sets a good example for the rest of the staff, that there’s a place in leadership for women. And I think the partners here really empower women and hear them out. A great maternity leave policy also contributes to the satisfaction for women.”
The Best Firms for Women offer hybrid and remote work options, with C&D and Realize both calling for core hours for staff when everyone must be available, with flexibility outside those time frames.
B.A. Harris has also adjusted its mindset around long hours. “As a firm, over the past two years, we have reduced that expectation of hours worked,” said Perry. “It’s more about workload, the projects assigned to you, if you get them done … We allow everyone to set their own schedule, even during busy season. A lot work more, but that’s their decision. If they come in on a Saturday, we buy lunch, and it’s a casual environment with no dress code.”
B.A. Harris also closes the office on Fridays from May 1 through Labor Day to give staff three-day weekends to look forward to during the longer hours of busy season.
Realize recently “beefed up the head count so there is enough people to spread the work around, which is really helpful,” shared Tottie. “A new woman joined not too long ago, from out of state. She said, ‘That’s the best busy season I’ve ever had.’ It breeds loyalty, when you feel rested and good at work.”
Carving new paths
Employees also value choice in career paths, especially women juggling family commitments.
“Each family dynamic is different, each woman’s responsibilities are different,” said Sunthimer. “They might have kids, might be married, might not have a partner. Those hour commitments sometimes can be overwhelming, stressful. It’s OK to have different tracks available. Sometimes you get into public accounting and envision one track of how to move forward, but start to develop other paths. Maybe you have a staff person that can only work 40 hours a week and can’t do overtime. That doesn’t mean you can’t get to the next level. Have different paths available — do not stick to this is how it has always been done.”
Sunthimer and the female leaders at the other Best Firms for Women all have personal experience with these varied trajectories.
“My goal, ever since starting at C&D, was to eventually become partner,” Sunthimer shared. “When I moved to Indiana, I thought that might permanently derail that; we never had a remote partner before. It was a big step for them to take. They really value the experience I bring to the team. Two other employees, both employees working remotely before COVID, both female, they did want to retain them because they valued them so much. The retention of the other female employees is because the firm values everything they bring to the table. When you work for a firm that shows appreciation and values you, genuinely cares about you, as this firm does, it makes you want to stick around.”
Tottie can also relate, having worked at Realize since 2016.
“I absolutely did have mentors,” she recalled. “I have two kids. At one point [I thought] I don’t think I’m going to be able to do it. They allowed me to scale back my workload for a couple of years, which was hugely beneficial. They also reduced pay, and I’m OK with that if it meant I could stay in the game. When the kids were a little bit older, I came back little by little and was able to stay in it. I’m a partner now, and it’s an amazing career.”
“We’re just in general really focused on giving everyone the right guidance,” Tottie continued. “It’s such a great career if you can have, early on, someone to navigate through the challenges, to allow you to stay in the business, allow you to grow, allow you to have empathy skills for other women coming in and growing through the same challenges.”
One of Tottie’s colleagues benefited directly from Realize’s determination to retain the best talent.
“One woman had a baby and felt very strongly — she’s one of our superstars — that she wanted to take half a year off to be with the baby,” Tottie shared. “She’s so good we said, ‘OK. We’re here, we don’t want you to go anywhere, you’re on the partner track.’ It presents a challenge for us to allow that flexibility, but we know long term it’s the right thing to do, we’re in it for the long haul with them. They know that, and it helps a lot.”
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Cruise operators may yet avoid paying more U.S. corporate taxes despite threats from U.S. Commerce Secretary Howard Lutnick to close favorable loopholes.
Lutnick’s comments on Fox News Wednesday that U.S.-based cruise companies should be paying taxes even on ships registered abroad sent shares lower, though analysts indicated the worry may be overblown.
“We would note this is probably the 10th time in the last 15 years we have seen a politician (or other DC bureaucrat) talk about changing the tax structure of the cruise industry,” Stifel Managing Director Steven Wieczynski wrote in a note to clients. “Each time it was presented, it didn’t get very far.”
Industry shares fell sharply Thursday. Royal Caribbean Cruises Ltd. closed 7.6% lower, the largest drop since September 2022. Peers Carnival Corp. and Norwegian Cruise Line Holdings dropped by at least 4.9%.
All three continued slumping Friday, trading lower by around 1% each.
Cruise companies often operate their ships in international waters and can register those vessels in tax haven countries to avoid some U.S. corporate levies. It’s exactly those sorts of practices with which Lutnick has taken issue.
“You ever see a cruise ship with an American flag on the back?,” Lutnick said during the interview which aired Wednesday evening. “They have flags like Liberia or Panama. None of them pay taxes.”
“This is going to end under Donald Trump and those taxes are going to be paid.” He also called out foreign alcohol producers and the wider cargo shipping industry.
The vessels are embedded in international laws and treaties governing the wider maritime trades, including cargo shipping. Targeting cruise ships would require significant changes to those rule books to collect dues from the pleasure crafts, analysts noted. The cruise industry represents
They also pay significant port fees and could relocate abroad to avoid new additional taxes, according to Wieczynski, who sees the selloff as a buying opportunity.
“Cruise lines pay substantial taxes and fees in the U.S. — to the tune of nearly $2.5 billion, which represents 65% of the total taxes cruise lines pay worldwide, even though only a very small percentage of operations occur in U.S. waters,” CLIA said in an emailed statement.
Should increased taxes come to pass, the maximum impact to profits would be 21% on US earnings, Bernstein senior analyst Richard Clarke wrote in a note. That hit wouldn’t be enough to change their product offerings, though it may discourage future investment. Recently, U.S. cruise companies have
Cruise lines already employ tax mitigation teams that would work to counteract attempts by the U.S. to collect taxes on revenue generated in international waters, wrote Sharon Zackfia, a partner with William Blair.
Royal Caribbean did not respond to requests to comment. Carnival and Norwegian directed Bloomberg News to CLIA’s statement.
Artificial intelligence took the business world by storm in 2024. Content creation companies received powerful new AI-powered tools, allowing them to crank out high-quality images with simple prompts. AI also helped cybersecurity companies filter email for phishing attempts. Any company engaging in online meetings received an ever-ready assistant eager to show up, take notes and highlight the most important talking points.
These and countless other AI-driven tools that emerged during the past year are boosting efficiency in virtually every industry by automating the tasks that most often bog down business processes. Essentially, AI takes on the business world’s day-to-day dirty work, delivering with more accuracy and speed than human workers are capable of providing.
For accounting, AI couldn’t have come at a better time.
As companies struggle to do more with less, AI offers solutions that promise to reshape the accounting world. However, putting AI to work also forces companies to accept some new risks.
“Bias” has become a huge buzzword in the AI arena, forcing companies to consider how the automation tools they bring in to help with processing data may introduce some questionable or even dangerous ideas. There are also ethical issues associated with next-level AI-powered data processing that have some concerned that achieving AI-assisted business efficiency also means risking
To make AI worthwhile as an accounting tool, companies must find ways to balance gains in efficiency with the ethical risks it presents. The following explores the growing role AI can play in business accounting while also pointing out some of the downsides that should be carefully considered.
AI upside: Increased accuracy and efficiency
Accounting isn’t accounting if it isn’t accurate. Miskeyed amounts or misplaced decimal points aren’t acceptable, regardless of the company’s size or the business it is doing. When the numbers are wrong, the decision-making that relies on those numbers suffers.
Consequently, manual accounting typically moves slowly to avoid errors. Business leaders have learned to wait on financial reporting prepared by hand. They’ve also learned that because of processing delays, they may not have the numbers they need to take advantage of unexpected opportunities.
AI changes the equation by improving the speed and accuracy of reporting. AI-powered data entry automatically extracts numbers from invoices and other financial statements, eliminating the need for manual entry and the mistakes that can occur when an accountant is distracted, tired or just having an off day. AI can also detect errors or inconsistencies in incoming documents by comparing invoices and other documents to previous records, providing a second set of eyes for accounts as they ensure companies aren’t being overbilled or under-compensated.
When it comes to increasing the pace of accounting, AI’s capabilities are truly astonishing. As
AI accounting gives business leaders accurate financial data in real time, meaning they have relevant and reliable accounting intel when they need it rather than requiring them to wait until the end of the month to have a report on where their cash flow stands. It also has the potential to give a glimpse into the future by drawing upon historical data to drive predictive analytics. AI can look at what has been unfolding in a business and its industry to plot the path forward that makes the most financial sense. It’s not exactly a crystal ball, but it’s as close as most businesses should expect to get.
AI upside: More time for high-level engagement
As AI began to make inroads in the business world,
The manual work typical of conventional accounting is tedious, tiresome and time-consuming. Doing it well eats up much of the energy accountants could otherwise apply to higher-level activities. By using AI automation for those tasks, accountants gain the resources needed for high-level engagement.
Accountants who partner with AI gain the capacity to shift their role from bookkeeper to financial advisor. Rather than focusing all of their energy on preparing reports, they are freed up to interpret the reports. Delegating data entry and other day-to-day tasks to AI allows accountants to become strategic partners with the businesses they serve, whether as in-house employees or external advisors.
Financial forecasting becomes much more doable when AI is in play. Accountants can develop comprehensive financial models that forecast future revenue and expenses. They can also assess investment opportunities, such as determining the viability of mergers and acquisitions, and help with risk management and mitigation.
Tax planning and optimization will also become more manageable once AI automations have been added to the mix. Automating data extraction and categorization streamlines the process of classifying expenses for tax purposes and identifying expenses that are eligible for deductions. AI automation can also be used for tax form completion, adding speed and a higher level of accuracy to a process that very few accountants look forward to completing manually.
AI downside: Higher data security risks
Accountants are well aware of the dangers of data breaches. Allowing financial data to fall into unauthorized hands can lead to financial loss, operational disruption, reputational damage and regulatory consequences. Shifting to AI accounting can potentially increase the risk of data breaches.
Changing to AI accounting often means concentrating financial and other sensitive data and moving it to interconnected networks. Concentrating data creates a target that is more desirable to bad actors. Shifting it to the cloud or other interconnected networks creates a larger attack surface. Both factors create situations in which higher levels of data security are definitely needed.
Addressing the heightened threat of cyberattacks requires a combination of tech tools and human sensibilities. To keep accounting data safe, encryption, multifactor authentication, and regular testing and update protocols should be used. Training should also help accounting teams understand what an attack looks like and how to respond if they sense one is being carried out.
AI downside: Less process customization
Developing the types of platforms that can safely and reliably drive AI automations is not an easy — nor cheap — undertaking. Consequently, many companies choose the economy of “off-the-shelf” platforms. However, opting for a standardized platform could mean closing the door on customized financial workflows a company has developed.
For example, an off-the-shelf platform may not have the option of accommodating the accounting rules of highly specialized industries. It may have a predefined chart of accounts structure that doesn’t fit the structure a company has traditionally used. It also may be limited in the formats that can be used for financial reporting, which could require business leaders to make peace with reports that don’t fit their personal tastes.
To avoid big problems that can surface after shifting to off-the-shelf solutions, companies should make sure to take their time and seek software that can scale with their plans for growth. Like any other technological innovation, AI is a tool meant to support and not supplant a company’s processes. The process of selecting an AI platform to improve accounting efficiency begins with mapping out a company’s unique process and identifying where AI can boost efficiency. If the platform you are considering can’t deliver, keep looking.
AI best practice: Take it slow and learn as you go
The biggest temptation for companies as they begin to embrace AI will likely be doing too much too fast and with too little oversight. Artificial intelligence is a remarkable tech tool, but still in its infancy. Taking advantage of its capabilities also requires managing some risks.
For example, AI has what some experts describe as an “explainability” problem. Developers know what AI can do but don’t always know how it does it. Companies that feel compelled to provide their clients or stakeholders with a solid explanation of the process behind their AI automations may be limited in how they can put AI to work.
Now is the time to begin integrating AI with your company’s accounting efforts, but take it slow and learn as you go. A solid best practice is to explore what is available, experiment with how it can help your business, and expect to make many adjustments before you arrive at an optimal process. Your accounting efforts will serve you best when they combine human and artificial intelligence.
Ascend, a private-equity backed accounting firm, added a vice president of partnerships to its leadership team.
Maureen Churgovich Dillmore will oversee the expansion of Ascend’s growth platform for regional accounting firms into new U.S. markets, effective Feb. 17. She was previously executive director of the Americas at Prime Global. Prior, she was executive director at DFK International/USA.
“I have dedicated a large part of my career to supporting firms that want to remain independent. The dynamics of achieving success in this area are evolving rapidly, and the Ascend model was created so that firm identity would not be at odds with accessing the community and resources needed to prosper. I am genuinely impressed by Ascend’s ability to assist mid-sized firms in making the necessary strides to stay relevant, sustain growth, and provide their staff and clients with top-tier shared services—all while preserving their unique brand and culture,” Churgovich Dillmore said in a statement.
Ascend has added 14 partner firms across 11 states since the company launched in January 2023.
“So much of association work is theoretical, advising member firms on best practices, and you don’t get to see the end game. What excites me about being on the Ascend team is the opportunity to be a force behind the change, to help enact the change and see where and how it comes in,” Churgovich Dillmore added.
“Maureen’s decision to join Ascend is rooted in her desire to serve the profession in a way that maximizes her impact. We are all excited to welcome someone into our Company who has been an advisor and friend to mid-sized CPA firms for over a decade, and it is all the more rewarding when you realize that the community and resources we are bringing to life will allow Maureen to have conversations with firms that she’s never had before. Her curiosity, commitment, and deep care for others are going to stand out in this role,” Nishaad (Nish) Ruparel, president of Ascend, said in a statement.
Ascend is backed by private equity firm Alpine Investors and works with regional accounting firms with between $15 and $50 million in revenue. It ranked No. 59 on Accounting Today‘s
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