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Title: Accounting in 2025: Five Top Concerns for CPAs in the Near Future

In a lively gathering, Forbes' CEO Mike Federle moderated an enlightening discussion centering around AI, private equity, and taxes, drawing a sizeable crowd of CPAs at Forbes' inaugural national recognition event for accounting professionals.

Title: The Uncensored Assistant: Embracing the Unbound and Unfiltered
Title: The Uncensored Assistant: Embracing the Unbound and Unfiltered

Title: Accounting in 2025: Five Top Concerns for CPAs in the Near Future

As the start of tax season looms, with the IRS gearing up to accept tax returns, it's an opportune time to discuss the significant challenges facing the accounting profession. A renowned panel discussion involving notable CPAs tackled these issues last year, with participants including Tony Argiz, South Florida Managing Principal at BDO USA; Steven Harris, Managing Partner at RubinBrown; and Lexy Kessler, Mid-Atlantic Regional Leader at Aprio. The discussion, hosted by former Our Website CEO Mike Federle, offered valuable insights for the upcoming year.

[During this tax season, Our Website will be recognizing the Top CPAs in each state. Nominations are now open until the end of January. Click here to submit your nomination.]

Artificial Intelligence (AI)

Mike Federle: Given the principle topic of the day—AI—how do you see it impacting the accounting profession, and what reasons support its increasing importance for CPAs to understand?

Lexy Kessler, CPA: There's no denying that it's significantly changing how we work and the tasks we tackle. Within our company, we've incorporated AI in various ways, saving our staff 41 minutes daily on average. This is critical, especially considering the potential increase in new CPAs who will need tools to maintain productivity.

However, we must also remain cautious, as AI comes with potential risks. In fact, we're implementing an AI ethics and compliance policy to protect our firm from unknown dangers.

Tony Argiz, CPA: This transformation will affect every aspect of the profession. Experts predict a 25%-30% reduction in accounting jobs due to AI within the next five years. With an estimated 135,000 annual accounting job openings and only 45,000-47,000 graduates, private companies in India and elsewhere may fill the gap.

Moreover, AI can revolutionize various sectors: audit and risk assessment, valuation, litigation and consulting, and tax structuring. It can also streamline compliance on tax returns and fine-tune complex tax structures with its data analysis capabilities.

Steven Harris, CPA: AI presents an exciting opportunity for attracting young talent to our profession. By embracing these modern technologies, our work becomes more appealing, stimulating, and engaging for younger generations.

Private Equity

Mike Federle: Can you speak to the influence of private equity firms on public accounting, especially given recent trends of striking deals?

Tony Argiz, CPA: I can't predict the future, but private equity firms see the potential in our industry due to its steady nature, resilience during recessions, and the demand for skilled talent. They understand the value of AI investment and anticipate that accounting firms could gain a competitive edge by leveraging the technology.

Taxes

Mike Federle: Financial decisions often hinge on taxes. How can accounting firms cope with the constantly evolving tax laws and their interpretation controversies?

Steven Harris: Embrace change! Stay informed of new tax laws to optimize benefits for clients and provide them with advisory and consulting services to help them navigate the complexities.

Public Company Accounting Oversight Board (PCAOB)

Mike Federle: The PCAOB has imposed steep fines for violations, leading to a pushback from accounting firms. How is this affecting the industry overall?

Lexy Kessler: The PCAOB is intent on reinforcing these strict regulations and has no plans to pause or reverse its approach. This puts pressure on accounting firms to consider their levels of risk and adjust their strategies accordingly. Insurance costs may rise as a consequence.

Steven Harris: The current environment is causing distress among senior partners, who worry about making errors and damaging their firms' reputations. Some have opted to retire early, leaving a potential talent void within the industry.

The Pipeline of New CPAs

Mike Federle: Given the high retirement rates among CPAs last year, what solutions can account for the staffing shortages?

Steven Harris: To attract talent, accountants can consider outsourcing to countries with lower labor costs and stronger educational backgrounds. Additionally, broader recruitment efforts, targeting non-accounting majors, can help attract competent individuals.

Lexy Kessler: The National Pipeline Advisory Group's report highlights the six key challenges that we might be facing. These include the need to improve the employee experience, remedy the disparity in starting salaries with other professions, and challenge the widespread stereotype that accounting is a profession for individuals willing to put in excessive hours.

In essence, the integration of AI within the accounting field is reshaping the industry by automating routine tasks, enhancing efficiency, and focusing CPAs on more strategic responsibilities. With the right approach, accounting firms can navigate this period of transformation by embracing change, addressing regulatory challenges, and attracting and retaining new talent.

The upcoming ForbesCEO honorees for top CPAs will undoubtedly discuss the role of Artificial Intelligence in accounting, showcasing how their firms have integrated AI to improve efficiency and productivity, while also addressing ethical concerns.

The panel of accounting luminaries and honorees, including Tony Argiz, Steven Harris, and Lexy Kessler, will likely touch on the increasing importance of AI in accounting during their discussions at this year's esteemed event.

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