Tax Pro Roundup: May Edition
SurePrep, part of Thomson Reuters
SurePrep integrates with leading tax software to streamline the 1040 process for tax pros and taxpayers.
CPA Practice Advisor
[4/23] Some surveys suggest that the cost associated with obtaining credits is a significant bottleneck in the CPA pipeline. So, the Ryder University CPA Apprenticeship Program is combatting that by enabling accounting students to obtain credits at a reduced cost.
"'Our new program is a novel and powerful tool to bridge the gap between academic learning and real-world accounting experience,' said Evelyn A. McDowell, the university’s chair for the accounting department."
Pittsburgh Post-Gazette
[4/16] Starting in summer 2025, BDO USA will move its Pittsburgh office from the Heinz 57 Center at Sixth Avenue and Smithfield Street to the 18th floor of the FNB Financial Center. BDO USA isn’t the first to sign a lease at the new 26-story office tower. They will join First National Bank, the Cohen Seglias Pallas Greenhall & Furman law firm, and GH Advertising.
"It is believed that BDO now occupies about 67,000 square feet in Heinz 57 Center. It will be taking about 16,500 square feet at its new location. That represents a significant downsizing, which has been a trend among office users post-pandemic. According to a recent report by the Jones Lang LaSalle real estate firm, many companies making moves are upgrading their space but shrinking their footprint."
The Wall Street Journal
[4/5] Growing capital needs and the struggle to recruit enough skilled workers has some large accounting firms rethinking their ownership structures. The Big Four and others are exploring ways to drive growth and career paths. Some are rebranding, combining business units, or selling stake to private-equity firms.
"While EY last year gave up on a plan to split its advisory and audit arms into separate businesses, two of the bigger players outside of the Big Four, Grant Thornton and BDO, are pursuing new models that accounting and consulting professionals are closely watching. Here’s a look at changes three firms recently made—or tried to make."
Accounting Today
[4/2] The IRS is experiencing the final push of individual tax return filings and direct deposit refunds. Cumulative statistics via IRS data can be seen through the week ending March 22.
"With tax season entering its final two weeks, the average direct deposit refund amount has reached $3,152, up 5.4% on the same period in 2023."
The Economist
[3/27] Though accountancy offers a stable, promising career path to young professionals, the industry has had well-documented struggles with youth outreach in recent years. Some industry leaders, including AICPA, are leveraging TikTok to give the profession an image makeover.
"AICPA … has a TikTok feed laden with career tips and young accountants (the real sort) living their best professional lives. It has 27,000 followers—and its work cut out."
CPA Practice Advisor
[3/26] Wonder how your payroll stacks up against the rest of the industry? Here were the salary ranges for accounting roles in 2023 along with projections for 2024 provided by staffing agency Randstad USA.
"'Recent years have seen a talent market dominated by rising salaries, candidate scarcity, and the vast majority of power sitting with the candidates themselves, rather than employers. That’s starting to change—albeit slowly,' Randstad said in the salary guide."
The CFO
[4/18] Labor and graduation statistics suggest that the accountant shortage is getting worse. What can you do to prevent it from becoming a reality for your firm? There are several steps that CFOs can take to attract, retain, and maximize the utility of quality tax professionals.
"Furthermore, CFOs must cultivate a positive work culture that values work-life balance, promotes diversity and inclusion, and offers flexibility in work arrangements. By creating an environment that nurtures talent and fosters a sense of belonging, companies can improve their ability to … retain skilled accountants."
Marketplace
[4/12] In light of the tax and accounting industry's growing staffing shortage, AICPA and educators are looking to address the problem at the root. Here's a look at the scholarships, mentorship programs, and new messaging that industry leaders are deploying to regenerate interest in accounting.
"With so many accountant baby boomers retiring, Michael Decker with the American Institute of CPAs is looking at younger generations. 'We were trying to change the messaging around accounting,” he said. CPA: not certified public accountant, but more like: coolest profession around.'"
Entrepreneur
[4/1] The accountant shortage is now directly being cited as a reason for reporting delays. Tupperware delayed its 2023 annual report due to staffing challenges in its accounting department, sharing the details in a regulatory filing.
"The storage container manufacturer is the latest on a growing list of companies that have delayed their annual reports for a host of reasons. About 70 companies have postponed annual reports this year, up 40% from last year, research company Intelligize tallied last month."
Inside Public Accounting
[4/16] Rightworks hosted a survey to assess the state of accounting firm technology in 2024. While they found that most firms were pleased with the transformative impact of newly implemented solutions, skepticism about AI and satisfaction with adoption still linger.
"'Overall, the accounting profession is optimistic about new technology but is now more than ever at a crossroads as the talent pipeline continues to shrink and client expectations grow,' said Joel Hughes, CEO of Rightworks."
Yahoo Finance
[4/6] The Big Four accounting firms employ about 1.3 million people worldwide. Business Insider analyzed US Office of Foreign Labor Certification's 2023 disclosure data to determine what Deloitte, EY, KPMG, and PwC paid U.S.-based employees in entry-level to executive roles.
"An entry-level consultant who just graduated from business school can make over $200,000 a year at the four firms when you include base salary, bonuses, and relocation expenses. Several of these firms have faced layoffs and implemented hiring freezes over the past year as demand for consulting services has waned. Still, they're a good bet for anyone looking to land a six-figure job straight out of school."
The Philadelphia Inquirer
[4/15] Accounting firms are facing a dilemma. Many fresh-faced accountants aren't willing to accept the long, arduous work schedules that companies expect from them. The factors contributing to high turnover are examined along with what firms are doing to address it.
"Molly Kowal said some firms are also advertising this externally, often using a '55-hour rule' during busy season as a way to draw in candidates. Grace Kowal said this seems to be a decrease from years ago, when people might bill 60 to 70 hours a week, or more."
Journal of Accountancy
[4/12] Well-being initiatives do good things for employees and for bottom lines. But any efforts to promote well-being should be determined by what can make a legitimate difference in employees’ lives. Overall, a winning strategy that serves employees also serves HR’s retention efforts.
"While 82% of 1,306 U.S. employees surveyed said their organization is committed to their well-being, 62% said their well-being is the same or worse than six months ago. A lot is at stake for leaders to shift that sentiment: Another recent workforce survey found that two of three U.S. employees would change jobs for better benefits."
CPA Practice Advisor
[4/9] With phishing and malware attacks on the rise, it's more important than ever to have the right cybersecurity protocols in place. You can implement some best practices to protect client data and safeguard your firm's reputation.
"If an email or message seems suspicious, even if it appears to be from a known contact, approach it with caution. Be sure to verify the sender’s identity before opening any attachments or clicking on any links."
The Home Stretch: Strategies & insights for today’s tax professionals as their busy season concludes
Thomson Reuters
[3/27] The flurry of approaching deadlines is another reminder that busy season is nearly over. Some tax and accounting firms have been able to mitigate the time crunch of busy season by adopting advanced technologies to drive efficiency, according to the Thomson Reuters Institute’s 2023 State of the Tax Professional Report.
"Automation and software solutions can significantly reduce manual tasks, allowing professionals to focus on more complex aspects of their work, which is a huge boon for tax & accounting firms."
Rightworks
[3/13] If your tech stack has become too unwieldy to manage, you might be overspending on applications or even exposing your firm to cybersecurity threats. It may be helpful to apply some tips from Darren Root on consolidating solutions and optimizing your technology spend.
"Not only will your platform have your firm’s curated tech stack, but each user will also have a specific profile that gives them access to all the clients and apps they need. There’s no friction; everything you need is in one space."
The Home Stretch: Strategies & insights for today’s tax professionals as their busy season concludes
Thomson Reuters
[3/27] With the tax season deadline closing in, firms around the industry looked for ways to drive busy season success. Setting your firm up for success in 2025 might be easier than you think.
"In general, most US businesses outsource some part of their overall operations, and according to a survey cited by TeamStage, 57% of them said doing so allowed them to focus more on core business, improve service quality, and solve capacity issues."
CNET
[4/11] Ten days ahead of the April 15 deadline, IRS refunds have begun to pick up steam. While the total number of refunds still lags slightly behind the 2023 tax season, the average refund size is up 4.8% from last year.
"Of the 90.3 million returns received so far, just over 87.3 million of those were filed electronically, the IRS said -- 46.3 million from professional tax preparers and another 41 million from self-preparers."
Accounting Today
[4/2] Year-over-year numbers are available from the IRS. Here are some metrics tracking their filing, refunds, and web traffic.
"With tax season entering its final two weeks, the average direct deposit refund amount has reached $3,152, up 5.4% on the same period in 2023. This amount has remained steady at just over $3,000 for the past six weeks after a slow start to the year, when refunds were averaging well below $2,000, 25% smaller than at the same point in the previous tax season."
Bloomberg Law
[4/9] For the first time ever, new requirements from the International Accounting Standards Board are set to define measures, such as operating profit and company requirements to reconcile unofficial accounting info with audited financial data.
"Under the changes, the IFRS accounting standard tells companies what items to classify as investing and financing. Everything else, except for taxation and discontinued operations, will go into operating profit."
PwC
[4/5] Pillar Two tax legislation, which requires large multinational enterprises to pay a minimum tax rate of 15%, is now applicable in more than 35 countries. PwC provides an in-depth look at the legislation with answers to several frequently asked questions.
"This global minimum tax brings significant complexity in determining impacts on the income tax provision for interim and annual financial reporting in calendar year 2024 for many multinational reporting entities."
Thomson Reuters
[4/24] The transformative technology of generative artificial intelligence (GenAI) can be deployed in many ways by tax and accounting professionals. There are three things to remember when seeking to maximize the technology.
"One important area where tax and accounting industry professionals can use generative AI is data entry automation. Generative AI systems can automate data entry tasks by extracting information from various documents, which can reduce manual effort and minimize errors. Document generation and summarization is another area where Generative AI models have the potential to help."
Forbes
[4/25] Cyberattacks create a lot of questions. What type of economic damage has been done? Do financial operations need to be restored? How can the next cyberattack be prevented? Whenever cyberattacks happen, accounting experts need to be consulted in the aftermath—and there are seven ways they can help out.
"Unfortunately, businesses of all types and sizes are vulnerable to attacks, putting clients and customers—and their own existence—in jeopardy. With the average cost of a data breach reaching $4.45 million and the number of these attacks growing each year, ensuring the accounting team is looped in immediately after a cyber incident will mitigate a business's financial damage and get it back on track as soon as possible."
领英推荐
CPA Practice Advisor
[4/25] Thomson Reuters is expanding GenAI access with its addition of CoCounsel to Checkpoint Edge. Built on Amazon Web Services (AWS), CoCounsel is a GenAI assistant that enables tax professionals to be more efficient with their complex research needs.
"The introduction of Checkpoint Edge with CoCounsel gives tax professionals the ability to leverage the transformative capabilities of AI-Assisted Research. Through dialogue with a GenAI assistant, tax professionals can simply ask a question in everyday language. The solution will provide a relevant answer with links to trusted Checkpoint Edge editorial content and source materials in moments."
UCLA Anderson Review
[3/27] The accountant shortage may be more nuanced than initially thought. It’s possible that new accounting technology is pushing students away from the industry, especially if they perceive their roles being replaced by cutting-edge software.
"In the case of accountants, the researchers argue that, at first, demand for accounting labor declined as software made accountants redundant. Students who may have been considering accounting majors switched to related majors such as finance in numbers large enough to contribute to the current shortage."
Thomson Reuters
[4/23] Client data is spread across so many different sources that your firm may not have the time and resources to compile it. Thomson Reuters examines how firms can leverage technology to enhance data gathering and gain actionable insights.
"Unlike platform-specific analytics, accrual-based accounting data provides a holistic view of a business’s financial performance. It reconciles revenues with actual bank deposits, adjusts for pending orders, accounts for expenses and chargebacks, and recognizes liabilities like sales tax payable."
Forbes
[4/22] The Big Four are believers in the potential of artificial intelligence (AI). Forbes offers insights on how Deloitte, EY, and KPMG are investing in AI.
"By automating routine tasks, Deloitte's professionals are free to focus on more complex and judgment-intensive tasks and activities. This shift allows them to offer deeper insights and more strategic advice, turning accountants into business advisors."
CPA Practice Advisor
[4/15] Natural language processing (NLP) brings insights and opportunities to accountants, especially due to its applications with data. From automated bookkeeping to expense management solutions, NLP is minimizing errors and increasing productivity. Data-driven decision-making may be one of NLP’s biggest assets for accountants as they advise clients.
"To fill the void between human and machine intelligence, NLP must become a cornerstone of modern accountancy. NLP can drive the future of accounting by allowing accountants to provide unprecedented value to clients and stakeholders."
Accounting Today
[4/12] DataSnipper revealed two new product suites for extraction and cloud collaboration, Auditoria.AI added a "small language model" to its automation platform, and insightsoftware launched Power On’s Budget Planner. Article features a variety of accounting technology news.
"Top 25 firm CohnReznick has established a new digital advisory practice that will help businesses navigate technology and data-related opportunities and leverage digital innovation to streamline operations, manage cost and risk, and accelerate growth."
Accounting Today
[4/5] Nominal announced the launch of its AI-driven enterprise resource planning (ERP) system, Prophix debuted its financial automation platform, LeaseCrunch LLC is joining the Aprio Firm Alliance Affiliate Relationship Program, and Weintegrate has its new Shopify Payouts integration in beta.?Article features a variety of accounting technology news.
"Bloomberg Tax and Accounting announced the launch of its next generation suite of integrated solutions for the corporate tax process, from data collection to tax calculations that power key deliverables. The suite includes Bloomberg Tax Provision and Bloomberg Tax Fixed Assets, linked together via the recently launched Bloomberg Tax Workpapers."
Journal of Accountancy
[4/1] Microsoft is making Copilot available across its portfolio of applications. By weaving AI-powered features into popular software like Word, Excel, and PowerPoint, Microsoft is making Copilot’s benefits more accessible to users and easier to explore new ways to apply it.
"Microsoft has built other forms of AI into its apps for years, but Copilot differs because it is based on the same technology that powers ChatGPT, greatly improving its ability to understand natural language and respond appropriately."
Journal of Accountancy
[4/2] GenAI has significant potential, but unlocking that potential may hinge upon the ability of GenAI users to write effective prompts. Ashley Francis, CPA, owner of The Francis Group PLLC, has started using GenAI to automate her tax and estate planning practice, and she sees asking GenAI software better questions producing better output.
"The difference is not just about technical knowhow. Writing a great prompt doesn’t require programming skills or a deep understanding of neural networks. Instead, it’s often about the user’s clarity, specificity, imagination, and experimentation. So, with seemingly infinite possibilities, how do you ensure your prompt is just right? This article provides 10 tips for crafting effective GenAI prompts."
PYMNTS
[3/26] A Series B funding will support AI startup Fieldguide’s launch of new AI capabilities, expand its market reach, and grow its team. Fieldguide’s solutions aim to help audit and advisory firms navigate the practitioner shortage.
"'Paired with the CPA profession’s profound talent shortage is a surge in demand for advisory and audit services, setting the stage for a perfect storm,' Fieldguide CEO Jin Chang wrote in a company blog post. 'Faced with this challenging climate of limited human capacity, audit and advisory firms are turning to technology solutions to bridge the growing capacity crunch.'"
Accounting Today
[3/29] FloQast launched AI-driven automation features and additional API integrations, Settle added automatic three-way matching for purchase orders, and Modern Treasury introduced a Professional Services offering for enterprises. Article features a variety of accounting technology news.
"Accounting and finance operations platform FloQast added several new capabilities, including AI-enhanced automation and additional API integrations for FloQast Reconciliation Management. New features include automated bank integrated cash reconciliations, which bring cash account transaction details into FloQast. Real-time subledger integration automates data feeds that connect ERP and third-party solutions and uses AutoRec Matching to provide balance tie-outs for transaction matching. Automated rules-based sign-offs…"
The Block
[4/25] Investment banking firm Benchmark estimates that MicroStrategy could become an S&P 500 company and boost its earnings by more than $3 billion if it adopts the Financial Accounting Standards Board's (FASB) new ASU 2023-08 standard. Since starting its bitcoin acquisition strategy in August 2020, MicroStrategy’s performance has outpaced bitcoin.
"According to Benchmark, several dozen bitcoin-holding companies have chosen early adoption of the new ASU 2023-08 guidance. However, the Benchmark analyst noted that investors are divided on whether MicroStrategy will opt for early adoption."
CryptoSlate
[4/17] Ernst & Young (EY) recently announced its new service to manage enterprise contracts with blockchain technology. OpsChain Contract Manager (OCM) is built to handle complex business agreements through Polygon and Ethereum.
"OCM is designed to facilitate the secure handling of business contracts on a public blockchain, ensuring privacy by utilizing zero-knowledge proofs to maintain contract integrity and confidentiality while also improving time efficiency and reducing costs."
CNBC
[3/22] Some cryptocurrency traders assume that the IRS isn’t able to see their crypto transactions, so they don’t need to report them when filing taxes, according to Shehan Chandrasekera, CPA and head of tax strategy at CoinTracker. But failing to report income gains or losses from crypto transactions on your taxes could result in audits, penalty fees, interest charges on unpaid taxes, and even criminal charges.
"The IRS treats virtual currency as property for federal income tax purposes, according to its website. That means crypto is subject to capital gains and losses, which are typically taxed at a lower rate than ordinary income."
Forbes
[4/24] An accounting degree is a valuable asset with many career paths. CPA and founder of Choice Tax Relief Logan Allec shares some thoughts on what concentrations graduates can consider that align with their interests beyond core accounting knowledge.
"Instead of a degree focused only on accounting, business administration degrees have a concentration in accounting. Pursuing a business administration degree provides students with foundational business knowledge and managerial skills in addition to those in accounting. This concentration may suit aspiring entrepreneurs and students seeking a broad business skill set."
Forbes
[3/26] Patrick Villanova, Chief Accounting Officer at BlackLine, shares his perspective on how new technology and evolving business demands have reshaped his role. With automation and data analytics becoming more accessible, he believes that the?CFOs of tomorrow can add value with data management and advisory expertise.
"Twenty years ago, I never imagined I could be an analytical force driving business strategy on a project-by-project basis. As the CFO’s role expands from the top down, the career of an accountant is extending from the bottom up. The opportunity to assist strategic decisions across the organization promises a more engaging and rewarding career."
Bloomberg Tax
[4/4] KPMG is planning to weave AI into every part of its work. Bloomberg Tax interviewed Steve Chase, vice chair of AI and digital innovation for KPMG US, and David Rowlands, KPMG’s global head of artificial intelligence, to discuss the firm’s AI vision.
"Armed with a $2 billion war chest, they’re trying to transform KPMG so its 270,000 workers are trained to use generative artificial intelligence from drafting meeting minutes to analyzing tax documents, from writing spreadsheet formulas to letting their staffers experiment with novel uses in a safe, digital sandbox."
CPA Practice Advisor
[3/27] Saahil Desai of the Atlantic Online shares his experience with Direct File, the new pilot program from the IRS. Desai explains that Direct File isn’t perfect, but it displays the potential of government technology to benefit millions of Americans.
"Right now, Direct File is sort of akin to when Facebook (or rather TheFacebook) was a site for Harvard students run out of Mark Zuckerberg’s dorm room: Most people can’t use it, and the product is still a work in progress. The IRS has strategically taken things slowly with Direct File."
The CPA Journal
[3/29] The accounting profession continues to lack diversity, but longtime CPA and visionary Frank K. Ross has hope for change. Adrian L. Mayse, PhD, CPA, interviewed Ross, co-founder of the National Association of Black Accountants (NABA), to discuss his career experiences and outlook for the future.
"I believe that the leaders of the profession are finally serious about diversity in the profession. Each of the major firms are now increasing the number of Black partners they make every year. This requires that they increase the numbers they hire, and that they advance. To do this they have to provide them with the experience needed. They are now recognizing that this is very important if they want to have a larger number stay and advance within their firm and ultimately become a partner."
Time Magazine
[3/26] To make filing easier, tax companies have started to roll out AI-powered tools for customers. Some early promises of AI have been underwhelming, especially the performance of chatbots. Beyond the private sector’s recent AI deployment, the IRS plans to further its use of this cutting-edge technology too.
"Tax experts contend that taxpayers should not rely exclusively on AI tools to file this year. However, some still predict that AI will have a major impact on both the way people file and the entire tax industry in the years to come."
Forbes
[4/15] Some CPAs stand out from the rest, but it’s not necessarily easy to find them. Forbes’ list of America’s Top 200 CPAs puts them all in one place—and highlights the stories behind their success.
"To assist you in finding the CPAs at the top of their game, Forbes has produced our inaugural America’s Top 200 CPAs list. Created exclusively by Forbes editorial staff, it is a compilation of the finest CPAs active in public practice, culled from a collection of candidates sourced through independent nominations and accolades from every society and association of CPAs. Nominees were rated on a range of weighted criteria, including expertise, innovation, thought leadership, experience, and service to the community and to their profession, as well as responses to selected questions."
Accounting Today
[4/24] If your clients have ever approached you with bizarre, inexplicable misconceptions about their taxes you aren't alone. Accounting Today surveyed tax preparers to gather humorous client anecdotes from this tax season.
"Robert Seltzer, a CPA at Seltzer Business Management, in Los Angeles, said that he's had to tell many clients, 'No, you need to pay your expected balance due by April 15. The government is not giving you an interest-free loan.'"
The Washington Post
[4/8] With the April 15 deadline around the corner, taxes are a hot topic on social media. Unfortunately, many influencers have taken this opportunity to spread questionable or even outright incorrect advice for taxpayers.
"Some creators’ videos go much further, urging people not to pay taxes at all: 'Taxes are a scam.' 'There’s no law to pay taxes.' 'Paying taxes is voluntary.' All of those claims are false."
[3/28] The Accountant achieved some fanfare with its 2016 release in theaters, raking in more than $155 million at the box office. And now it’s finding a second audience on Netflix. After being added to Netflix’s U.S. streaming lineup, The Accountant quickly jumped to the top of the Netflix Top 10 Movies list.
"Thursday's edition of the Netflix Top 10 Movies list features The Accountant in the number one overall position, topping recent hits like Damsel and Irish Wish. The film hit Netflix's lineup and immediately soared straight to the top of the charts."
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