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2024 was a significant year across the accounting profession, with a host of pressing issues such as the worsening talent shortage, moves by top firms like PwC and RSM US restructuring their operations, the effect of President-elect Donald Trump’s return on the tax landscape, and more.
With that in mind, here are our most-read stories from the past 12 months, highlighting some of the developments that caught our readers’ attention.
The talent shortage facing the accounting profession is well known at this point, as graduates with accounting majors are deterred by uncompetitive wages and a lack of education on career paths — while existing accountants leave the field entirely. Amid this identity crisis, firms are starting to look inwards for solutions.
Data from the most recent ADP National Employment Report published in October showed that the service-providing sector added 101,000 jobs in September, 20,000 of which were for roles in professional and business services like accounting and tax preparation. The month before, according to the U.S. Bureau of Labor Statistics, 1,500 new postings were described as accounting-related openings.
But many in the field say the hurdles to becoming a licensed CPA, including the test itself, are simply not worth the payoff.
A federal appeals court has reversed itself, reinstating an injunction on beneficial ownership information reporting by businesses only days after lifting it.
On Dec. 23, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of a preliminary injunction by a federal district court in Texas that had temporarily paused a requirement for filing BOI reports with the Treasury Department’s Financial Crimes Enforcement Network under the Corporate Transparency Act of 2019 in the case of Texas Top Cop Shop Inc. v. Garland.
The plaintiffs petitioned the full appeals court for an en banc rehearing to consider additional issues in the case. They argued that the panel’s decision conflicted with a 2012 Supreme Court decision in the case of National Federation of Independent Businesses v. Sebelius, ignored potential violations of the First and Fourth Amendments, and improperly discounted serious harms that the plaintiffs and the public would suffer. They also argued that the decision to reinstate the Jan. 1 reporting deadline, which was only a few days away, disregarded the interests of millions of entities subject to the CTA, which aims to deter criminals from using shell companies for illicit purposes such as money laundering and terrorism financing.
For much of its modern history, the public accounting profession has relied on the pyramid — at least metaphorically — in building both the ownership and management structures of CPA firms, and it has proven a remarkably enduring model, to the point where it was effectively the only model from the 1930s up until the late 1990s, and remained overwhelmingly the most common model for the first two decades of the 21st century.
But while the pyramids of Giza look likely to last far into the future, the pyramid model of accounting firms is facing serious challenges, specifically over the last four years, as more and more firms experiment with a host of new or newly popular models for how firms can be owned and managed.
The shortage of accounting talent continues to plague the profession and appears to be getting worse. As the pipeline dries up, 83% of senior leaders report a talent shortage this year, up from 70% in 2022, with 10% this year saying it’s worsening, according to a CFO Pulse report released on Aug. 6 by accounting solutions provider Personiv.
More than 300,000 accountants and auditors left the accounting profession between 2020 and 2022, a 17% decline, according to The Wall Street Journal.
As outsourcing gains wider use, the report found 90% of surveyed CFOs outsource some of their accounting functions, and 90% of those respondents said they can easily find qualified accountants when they need them. That enables them to leverage specialized talent to maintain efficiency and focus on strategic goals.
After a presidential campaign that saw a steady stream of tax proposals aimed at a wide range of constituents, Donald Trump will return to the White House next January, when he can begin trying to deliver on those promises.
One of the most significant areas of focus will be on the expiring provisions of the former and future president’s 2017 Tax Cuts and Jobs Act, which was a signature achievement of his first term. Republicans have taken control of the Senate, but control of the House remains in question as votes continue to be counted.
Extending all the provisions could cost as much as $4.6 trillion, according to Rochelle Hodes, Washington National Tax Office principal at Top 25 Firm Crowe.
We’ve been hearing it for years, but especially in 2023 as generative AI rocked the world: Automation and artificial intelligence are here and they’re coming for all the routine, mundane, repeatable tasks that have traditionally been accountants’ bread and butter.
However, allowing machines to do this frees up human accountants for higher-value, strategically oriented tasks that will help firms do more with less in the face of a diminishing talent pipeline and outside disruption. Professionals will be able to work on the things that are really interesting to them and discard all the drudge work that no one ever wanted to do anyway.
Of course, regardless of whether or not anyone necessarily wants to do these things, there are still people whose job it is to do them — at least for now. Because as technology improves, the range of tasks that can be automated will only grow wider, increasing the risk for disruption. This, over time, will greatly alter the shape of the profession and the behavior of firms, which itself will alter career paths and force many out of their comfort zone with little choice but to adapt to these changing circumstances.
Having a second child wasn’t even in the cards for Erica Goode until she knew she was going to quit her accounting job.
Goode started her career at the Big Four before moving to corporate accounting. Instead of a busy tax season, she had a busy audit season, so when she got pregnant with her first kid she requested a part-time schedule for when she returned from maternity leave.
“I can do the math,” she said. “I realized that my kid was going to spend more of their waking hours with their daycare provider than they would with me, and I just wasn’t OK with that.”
The 150-hour rule for obtaining a CPA license is getting blamed in many quarters lately for the shortage of accountants, but another culprit may be the proliferation of complicated accounting standards, according to a recent academic study.
The study, released last December, examined the role that accounting rules from the Financial Accounting Standards Board, especially the restrictiveness of U.S. GAAP, has played in the declining supply of accountants.
“The study looks at how growing regulation within accounting and the increase in accounting rules issued by the FASB have changed the accounting profession and the role of the accountant,” said Anthony Le, a Ph.D candidate in accounting at Columbia University, who carried out the study.
PricewaterhouseCoopers US is realigning its organizational structure across three lines of service — Assurance, Tax and Advisory — starting in July, only about three years after it restructured into two sides: Trust Solutions and Consulting Solutions. PwC US is also adding a new operating committee to run the firm.
A spokesperson said the new structure would better serve client needs, their buying patterns and the market. It takes effect July 1. The new operating committee includes assurance leader Deanna Byrne and tax leader Krishnan Chandrasekhar.
PwC US’s incoming senior partner, Paul Griggs, announced the changes in April via a LinkedIn post.
Top 10 Firm RSM US laid off 5% of its consulting workforce, as well as an unspecified number of employees in assurance, on Sept. 20.
Employees in the consulting practice were notified in a virtual meeting with the practice leader and a human resources representative on Sept. 20, a source inside the firm who was impacted by the layoffs told Accounting Today.
Approximately 240 employees across the consulting practice were affected, and those employees will finish their projects by early next week, according to an email sent after the meeting. The firm said that it planned no further reductions.
President Donald Trump called on members of his party to unite behind his economic agenda in Congress, putting pressure on factions of lawmakers who are calling for last-minute changes to the legislation to drop their demands.
“We don’t need ‘GRANDSTANDERS’ in the Republican Party,” Trump said in a social media post on Friday. “STOP TALKING, AND GET IT DONE! It is time to fix the MESS that Biden and the Democrats gave us. Thank you for your attention to this matter!”
Trump sent the post from Air Force One after departing the Middle East as the House Budget Committee was meeting to approve the legislation, one of the final steps before the bill can move to the House floor for a vote.
House Speaker Mike Johnson has set a goal to pass the bill next week before the House recesses for its Memorial Day break.
However, the the bill failed the initial committee vote — typically a routine, procedural step — with members of the party still sparring over the scope of the cuts to Medicaid benefits and how much to raise the limit on the state and local tax deduction.
Narrow majorities in the House mean that a small group of Republicans can block the bill. Factions pushing for steeper Medicaid cuts and for an increase to the SALT write-off have both threatened to defeat the bill unless their demands are met.
“No one group gets to decide all this stuff in either direction,” Representative Chip Roy, an ultraconservative Texas Republican advocating for bigger spending cuts, said in a brief interview on Friday. “There are key issues that we think have this budget falling short.”
Trump’s social media muscle and calls to lawmakers have previously been crucial to advancing his priorities and come as competing constituencies have threatened to tank the measure.
But shortly after Trump’s Friday post, Roy and fellow hardliner Ralph Norman of South Carolina appeared unmoved — at least for the moment. Both men urged continued negotiations and significant changes to the bill that could in turn jeopardize support among moderates.
“I’m a hard no until we get this ironed out,” Norman said. “I think we can. We’ve made progress but it just takes time”
While CPA firms far and wide have made major technology investments over the years, the vast majority of accountants say they’re not being used to their full potential.
This finding comes from a recent survey undertaken by CPA.com and payment solutions provider Bill. The 400-person poll found that nearly all respondents, 97%, say they use technology inefficiently and that additional training is needed to maximize return on investment. Further illustrating the point, 43% of respondents said that technology is making them do more manual work, not less, something. Becky Munson, an Eisner Amper partner specializing in outsourced accounting services, believes this reflects a failure of training and change management, as she has seen many who disliked a technology change develop manual workarounds specifically to avoid using the new solutions.
“We see employees make workarounds with tech stacks, which makes headaches that I think align with this 43%. We train people on new things, we ask them to use them, and they keep doing what they were doing before and only use the technology as much as they have to [in order to] move things along while you have people well trained on the software keeping up,” she said in a webcast on Thursday about the survey.
Ariege Misherghi—senior vice president and general manager of accounts payable, accounts receivable and the accountant channel—said the issue isn’t just because of firms but also vendors that don’t provide enough support, and may not necessarily understand the profession in the first place.
“Too often I think tools aren’t fully aligned with the workflows they’re meant to support. In SaaS they talk about product-market fit, but in this profession it’s not just that but also product-firm fit, and maybe product-profession fit. Not every tool marketed to accountants was built by people who truly understand how this profession works: the rhythms, the regulations, the stakes, the relationships, all of that. And even the greatest tools can fall short if they’re not implemented with a deep understanding of how firms really operate,” she said.
And sometimes the inefficiencies come from both sides at once: the survey found that only 37% of firms require clients to use their tech stack, something that Munson said “breaks my heart” as “it is so low.” A streamlined, established tech stack is needed to achieve true economies of scale, but to get there firms need to standardize their data, and to do that firms need to make sure their clients’ data is also standardized, which usually means integrated tech stacks.
“If you have all these different clients with all these different technologies, even if your own tech stack is standardized the systems they use is different, so the kind of data you will get will be different, and the work you need to do to make it work with your data is different, and your team spends a lot of time spinning their wheels,” she said. “Once you get standardized, where everything back and forth from clients is the same, you get to see how well the teams can do their work.”
One source of inefficiencies is a rushed implementation. Munson said that, too many times, firms are so eager to get a solution working that they don’t pay attention to all its capacities, just the ones they need right now, but once the basics are down firms still don’t circle back on the rest of the features and how they can be used to drive efficiency.
“Most of us have been through an implementation, either in the practice or with a client, where you’re just like ‘anything to get it working. Forget about all the fancy things it does. We just needed to do the basics right,’ and then we never circle back on those better, more efficient processes. We get to sort of minimal viable, and then we forget to come back and give it an extra polish. And so what we see there is the processes get written for that basic piece, and we never update,” she said.
But this is part of what both speakers believed was the larger problem of firms getting lost in the details of their tech stacks and not taking a broader, more holistic approach, which would enable more efficiencies. The key component to managing technology effectively, Munson said, is looking not at individual solutions here and there but thinking of the system as a whole.
“Often, what happens is something’s wrong or something is troublesome in some way. And so [we say] what can we do to fix that one thing? And we don’t think about it holistically and get all the right folks in there so that we’re solving for the right pain points,” she said.
Misherghi agreed, and added that this holistic extends not only to the technology a firm already has but the solutions they plan to purchase in the future. When evaluating what technology they need, she said leaders need to think not in terms of specific point solutions to particular problems but things that can support the entire workflow—plus, the onboarding, training and ongoing support from the vendor.
“Don’t just look for features, right? Look for solutions that support your workflows from providers that understand you. For firms, onboarding and training and optimization can’t be an afterthought. They’re essential to realizing value. I think this is where vendor partnerships matter. Firms seeking the strongest results aren’t just using software, they’re collaborating with their providers, they’re staying educated, they’re making sure their tools evolve alongside their needs. The best outcomes happen when your technology partner acts like part of your team, not just part of your toolkit,” she said.
Misherghi said that the more successful firms she’s seen think less in terms of performing particular tasks but designing an entire system that, through automation, can do those tasks for them. It is less about plugging holes and more about developing a full infrastructure. The survey found that 74% of participants have a detailed plan to add new services in the next 12 month; Misherghi noted that, among these firms, 86% have a detailed technology roadmap, which is “a wonderful mark on the evolution of the profession we’re seeing.”
She said a good tech roadmap is more like a service design blueprint versus a shopping list. Successful firms, she said, are not just chasing features but designing intentional workflows and systems capable of scalable service delivery. Similarly, she stressed that the provider should be more than just a vendor but a strategic co-architect that can help with growing pains.
Misherghi said this approach will become especially relevant as AI becomes more common, as integrations will be key to their effective use, which means thinking in terms of the whole system to understand where those integrations should take place. Right now, she said, people think of AI in terms of analyzing data or extracting fields, but with the rise of AI agents will require firms to focus more on coordinating between them.
“I think the next big leap is when those systems don’t just talk to each other, they act on each other’s behalf. I think the next big inflection point will be moving from automated steps to autonomous workflows, where AI agents aren’t just analyzing data or extracting fields but actually orchestrating tasks across tools based on firm policies and context and that will change the role of the accounting profession: its less time doing the work and more time designing the system for how everything works together. So the firms that will be thriving are those who are building strong infrastructure now because that is what AI needs to deliver on its core value,” she said.
A key House committee on Friday failed to advance House Republicans’ massive tax-and-spending bill after hard-line conservatives bucked President Donald Trump and blocked the bill over cost concerns.
The House Budget Committee rejected the bill 21-16, with Republican Reps. Chip Roy, Ralph Norman, Josh Brecheen, and Andrew Clyde joining Democrats to vote against it. The four hardliners demanded deeper cuts to Medicaid and other government programs.
It’s incredibly rare for bills to fail at this step in the process, with the committee vote typically serving as a rubber-stamp to the bill before it moves to the House floor.
Rep. Chip Roy
Stefani Reynolds/Photographer: Stefani Reynolds/B
The setback could be temporary and the panel can still approve the bill once the GOP differences are resolved.
Republican Lloyd Smucker, who switched his vote to “no” to allow the committee to bring it up again, told reporters the committee will hold another vote on Monday.
Trump, whose social media muscle and calls to lawmakers have previously been crucial to advancing his priorities, inserted himself in the debate less than two hours before the vote, berating dissidents and urging them to fall into line.
“We don’t need ‘GRANDSTANDERS’ in the Republican Party,” Trump said in a social media post on Friday. “STOP TALKING, AND GET IT DONE! It is time to fix the MESS that Biden and the Democrats gave us. Thank you for your attention to this matter!”
The bill’s failure exposes the power a small group of lawmakers can wield as Republicans seek to push Trump’s “one big, beautiful bill” through the House with very narrow margins. GOP infighting threatens to kill the bill, or at least significantly delay Republicans’ plans to pass the bill next week.
Republican holdouts spelled out their demands during Friday’s committee meeting, including accelerating new work requirements for able-bodied adults on Medicaid to take effect immediately rather the 2029 deadline set in the legislation. The ultraconservatives also want a faster phase-out of clean energy tax credits.
It wasn’t immediately clear how House Republicans will re-group to address the divisions and advance the bill.
“I’ll let you know this weekend if we’re going to return first thing Monday. That’s the goal at this point,” Budget Chairman Jodey Arrington said after the vote.
House Majority Leader Steve Scalise, who is helping to broker a deal among Republicans, said party leaders are in touch with the Trump administration to address some of the changes demanded by hardliners.
“We are all in agreement on the reforms we want to make,” Scalise said. “We want to have work requirements. We want to phase out a lot of these green subsidies. How quickly can you get it done?”
House Speaker Mike Johnson on Thursday pledged he would work through the weekend to broker a compromise between moderates, who are seeking an increase in state and local tax deductions, and ultra-conservatives, who say they won’t support it without more spending cuts.
Members from both factions — the SALT Republicans representing high-tax districts and the fiscal hawks who want steeper budget reductions — have threatened to block the bill if House leaders don’t acquiesce to their demands.
“No one group gets to decide all this stuff in either direction,” Roy, an ultraconservative Texas Republican advocating for bigger spending cuts, said in a brief interview on Friday. “There are key issues that we think have this budget falling short.”
Both Roy and Norman urged continued negotiations and significant changes to the bill that could in turn jeopardize support among moderates.
“I’m a hard no until we get this ironed out,” Norman said. “I think we can. We’ve made progress but it just takes time.”
If the legislation passes the House, it would then head to the Senate where it would likely undergo significant changes. Several members, including Senator Josh Hawley of Missouri, have stated opposition to the Medicaid cuts in the House bill.