CPA Evolution 2025: The Total Roadmap to Success in the New Era by BFAG
Boston Financial Advisory Group
A one-stop-shop solution for all your accounting and financial reporting needs.
1. Increased Technology Involvement
The American Institute of Certified Public Accountants (AICPA) is introducing mandatory technology competency assessments for Certified Public Accountants (CPAs) starting January 2025, a major shift in the skill requirements of the profession.
Principal Areas of Emphasis:
Data analytics and visualization
Robotic Process Automation (RPA)
Artificial Intelligence and Machine Learning in Accounting
Blockchain technology and its applications
BFAG Recommendation: Invest in up-skilling programs that focus on these areas.
1. Sustainability Accounting Standards
New climate disclosure rules that the SEC is going to finalize in mid-2025 are going to cause much more influence on current reporting financial practices.
Some of the new features are:
Mandatory disclosure of climate-related risks and opportunities
Quantification and reporting of greenhouse gas emissions.
Integration of sustainability metrics into financial statements
BFAG Insight: Start preparing your clients for the extensive sustainability reporting requirements.
Conduct sustainability materiality assessments
Develop frameworks for collecting and verifying sustainability data
Incorporate sustainability considerations into financial planning and risk management
3. Changes in Tax Legislation
A major tax code overhaul is expected in 2025, with a focus on digital economy taxation and global minimum tax implementation.
The main elements of tax reform:
New tax rules for digital services and e-commerce
International agreement to tax base implementation
Improved transfer pricing provisions
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Expansion of tax incentives for green technologies.
BFAG Advice Be alert to proposed changes and their potential impact on your clients' tax strategies.
Make use of our AI-driven tax impact assessment.
Develop tax planning strategies based on scenarios.
3. Cybersecurity and Data Protection in Accounting
Greater digitization of financial data points means greater cybersecurity concerns for the profession and for CPAs.
Major Developments:
The AICPA has introduced new cybersecurity attestation standards
Increased emphasis on data privacy in auditing procedures.
Mandatory cybersecurity risk assessments for public companies
BFAG Advice: Improve portfolio of services to include cybersecurity advisory.
Design a cybersecurity audit methodology tailored to accountancy firms.
Provide cybersecurity risk assessments as a value-added service to clients.
4. Auditing through Artificial Intelligence
Artificial intelligence will, for sure revolutionize the auditing process and create novel opportunities for increased efficiency and insight.
AI Applications in Auditing
Automated risk assessment and anomaly detection
Predictive analytics for fraud detection
Natural Language Processing for contract analyses
5. Important dates, CPE requirements:
June 30, 2025: The date when all CPAs will be required to complete the new technology and ethics CPE
September 15, 2025: Date for new cybersecurity protocols to be put in place according to AICPA guidelines Transition to New Sustainability Reporting Standards for 2025
31st December, 2025 Transition date Ongoing: Quarterly updates to the CPA exam, reflecting evolving technology and regulatory landscape. BFAG Reminder: Plan your CPE schedule now in compliance with newly implemented requirements. Let BFAG be your change partner, enabling you to become the CPA of the future.