As part of this year’s Top 100 Most Influential People survey, Accounting Today asked, “What is the most important issue currently facing the accounting profession?"
The full responses of all the candidates are below. The full T100 list is available
The accounting profession is currently in the midst of a technology transformation. The global events this year further highlight the need for firms to accelerate adoption of cloud-based solutions and advanced technologies like artificial intelligence and robotic process automation in order to drive efficiencies in increasingly commoditized tax compliance work. By embracing expert solutions that combine technology innovation with deep domain expertise, firms can automate compliance work and give their staff more time to focus on the value-add advisory services that clients need and are asking about.
— Karen Abramson, CEO, Wolters Kluwer Tax & Accounting
There are really two key issues impacting the accounting profession today: the ability to attract and retain diverse talent and the ability to innovate and adapt in a changing environment.
First, attracting and retaining diverse talent is crucial. I have emphasized the word diverse because we know that our profession does not reflect the diversity of the communities and businesses we serve, and I think we all recognize that we need to make progress in both attracting and retaining today’s diverse candidates and in building the pipeline for tomorrow. Accounting is a great career path that enables people to make a good living, support their families and serve as pillars in their communities. Together we can help diverse youth see accounting as a viable path to a successful career and life. In addition, the pandemic has underscored the importance of caring for all of our people and providing them with the support and flexibility they need to be successful so that they can in turn support our clients and business communities.
Second, I think that the ability to innovate and adapt is important. The way our profession was able to pivot completely to serving our clients remotely this spring was impressive. The way we adapted and guided our clients through new stimulus options and changing tax deadlines was admirable. The way we banded together in the face of racial tragedy through groups like the AICPA, CAQ and CEO Action was inspiring. And we are making real progress at RSM with our new CEO Task Force for Racial Inclusion. The world continues to change rapidly, and our profession must continue to innovate and adapt to stay at the forefront.
— Joe Adams, managing partner and CEO, RSM US
The most important issue is remaining relevant. Our profession is ripe for disruption by outsiders. Every industry and every profession needs to evolve and change with the times, but our profession has always been slow to react to change, and this is becoming a huge problem. We spend so much time looking in the rearview mirror of audits of historic financial statements that we’re not adapting to the current needs of the world. Business leaders today need real-time financials and real-time assurance. If we are not willing to adapt to those needs, someone else will start providing real-time insight and real-time assurance, and we will become irrelevant.
If blockchain technology becomes widespread, audit as we know it will become irrelevant. Taxes will be automatically built into the blockchain and collected at
each step of the transaction. If that happens, why would anyone need to hire an accountant?
— Al Anderson, founder and president, Accountability Plus
Advising clients with going concern and surviving these extraordinary times, in a cost efficient and fast manner. The right accounting advice is literally the difference between surviving or not for many businesses, and sadly stories of business owners taking their lives to claim insurance and protect their family are emerging. The accountants are the first responders for many businesses during crisis like this.
— Solon Angel, founder, MindBridge AI
Right now, it is dealing with Covid-19 which is changing the way firms operate and serve clients. I believe that the changes we are seeing today will be a permanent element of the profession in the future.
— August Aquila, CEO, Aquila Global Advisors LLC
Tax laws are changing rapidly on a global scale. From economic nexus and marketplace facilitator laws in the U.S. to e-invoicing across Europe and Brazil, the tax complexity facing the clients of accounting professionals has never been greater. We’re seeing the confluence of several major trends that is accelerating the need for accountants to leverage technology and innovative processes to manage their client’s tax obligations.
One trend is the globalization of commerce driven by a rapid shift to ecommerce. Businesses of virtually any size can now sell to customers around the globe, which opens them up to a range of new tax obligations, including customs duties, varying tax types, and other compliance considerations. Another trend is the need for efficiency and ROI across businesses. The COVID-19 pandemic has put added financial strain on many businesses, which has created an increased emphasis on streamlining processes to save money, prioritize resources, and manage risk.
The rapidly changing nature of tax compliance and the compounding impacts of ecommerce, COVID-19, and a do-it-yourself economy is forcing the hand of many professionals to adopt technology to keep pace. The need for ROI will likely only increase as the pandemic wears on and businesses work to future-proof their processes for other inevitable disruptions, which will put added pressure on the accounting profession to provide comprehensive, affordable tax services with the help of technology.
— Liz Armbruester, SVP, global compliance operations, Avalara
2020 has been a defining year and moment for firms. As I have said during the first 100 days of the pandemic, firms did 10 plus years of relationship building. Firms need to continue to advance their overall capabilities and aggressively leverage technology platforms, so they can focus on playing the Trusted Advisor role for their clients.
— Erik Asgeirsson, president and CEO, CPA.com
SALY v. The New Guard: I believe there’s been a war brewing for years, and it seems to be coming to a head with two distinct sides of “but we’ve always done it this way” and “we can do better”. Old school accountants don’t want to upset the applecart when they can see their pot of gold at the end of the rainbow. They simply want to ride it out and not worry about anything jeopardizing their exit (so much so that even the thought of things changing after the fact leads them to cling harder and dig in their heels longer on their way out). This is in stark contrast to the new mindset of “blow it all up”, which, in my opinion needs to be tempered with a logical, reasonable, better plan that will replace what they’ve always done.
If 2020 has taught us anything, it’s that refusal to embrace technology can not only be detrimental to a firm, but it can also have significant consequences on clients. Firms who failed to provide a back-up plan for small businesses who looked to them for help, not only lost clients, but watched clients lose their livelihood. Firms who embraced technology available to them were ready to step up and lead their organizations, and their clients, through this difficult time.
— Kim Austin, business development manager, national accounts, Intuit
Accountants are generally conservative and resistant to change. I think technology like blockchain to verify transactions will be the biggest change in the next 10 years.
— George Azih, founder and CEO, LeaseQuery
It continues to be relevancy. Excessive regulation remains a close second, since over-regulated industries are not hotbeds of innovation, dynamism, and risk taking. In that spirit, I believe the profession should relinquish (or lose) the audit monopoly, which would allow competition to bring innovations to market. The possible splitting of audit from consulting among the Big Four in the UK doesn’t deal with the elephant in the elevator: that auditors cannot be independent if they are paid by the companies they are auditing. You simply cannot be paid to be independent. Allow insurance companies to offer financial statement insurance, and have the stock exchanges pay and select the auditors for their listed companies. No reform would be perfect, but these changes would be an improvement over the intolerable status quo.
— Ron Baker, founder, VeraSage Institute
Technological disruption is accelerating, and there is no part of the profession that will be untouched. COVID-19 is just the latest accelerant to force necessary technological change. Many firms were able to immediately deploy the needed technology to work remotely long-term. The pandemic also exposed CPA firms who have not fully embraced advanced technology. Firms that are thriving now are leading their clients into the future as well. We are seeing changes in the types of services firms offer as well as the ways they provide them. This necessitates change in the kinds of skills firms need access to, which in turn necessitates change in who firms decide to recruit. This will change firm composition, which will change firm
cultures, which will change firm leadership, which will ultimately change how the profession views itself in the modern business landscape. Enhancing technology competency is just the beginning. The implications of artificial intelligence must be the lens through which the CPA future is built. We are just at the beginning of a new era of disruption and productivity where CPA ingenuity is enhanced by speed and precision.
We have been focused on helping CPAs navigate this change.
— Joanne Barry, executive director and CEO, New York State Society of CPAs
Complacency and the willingness to change.
There are over 658,267 licensed CPAs. The focus tends to be on large firms, but the bulk of the CPA profession is comprised of over 41,600 firms with less than 4 or 5 people (Sole Practitioners) which will continue to service small to medium businesses. Firms can be broken down into many sectors of practice, from public, to government, to private. Plus, there are millions of non-CPAs all fighting for the right to do compliance and advisory services. Compliance work will be completely automated within the next two to three years. The world is changing, and accountants must change the paradigm of services they offer. If we don’t sell higher value services, we will cease to exist.
— David Bergstein, chief innovation officer, Bergstein CPA
Talent. There just is not enough great talent to go around for all of the business demands facing the profession. The only way to address this is for Business Schools to continue to provide a quality education to accounting and tax students – but also once they are in the profession to ensure they are given opportunities
where their interests and gifts are best utilized. It is also incumbent of all accounting and tax professionals to be curious and lifelong learners and for firms and companies to provide or encourage relevant and quality continuing education.
— Michael Bernard, chief tax officer, transaction tax, Vertex
The profession continues to navigate the dual crises of the pandemic as well as the systemic injustices facing the Black community. Each has profound implications. Our entire industry has had to find creative methods to help our people, clients, firms and communities advance towards our national recovery. While our industry has made progress towards greater diversity and inclusion, we have a great deal more to do. At BDO, I am collaborating with our teams on a more robust strategy for our firm that builds from the work we’ve done to create a more sustainable and impactful approach that supports a diverse and inclusive culture. Part of that approach is ensuring the appeal of accounting as a career choice to all promising candidates, so that the profession can draw on a diverse talent base that is representative of our nation.
— Wayne Berson, CEO, BDO USA LLP
That is the elephant in the room. Everyone knows that a major corporation has set out to dominate every one of accountants’ core services. That’s bound to marginalize accounting practices further, but everyone else is ignoring it. AccountantsWorld is the only company that’s motivating accountants to take action to reverse this trend, so they can regain control over their core services to raise their stature, and elevate the profession.
— Chandra Bhansali, co-founder, AccountantsWorld
How do you stay competitive and boost profitability, while also keeping up with technology trends and maintaining relevance as a professional? Balancing these short-term and long-term demands is a crucial issue for every professional accountant. It requires strategic implementation of technology and an openness to change. And juggling the demands of today and tomorrow is a key leadership challenge.
— Sharada Bhansali, co-founder, AccountantsWorld
The accounting profession has been significantly impacted by the Covid-19 pandemic. There are several important issues facing the profession but dealing with the coronavirus is a priority not only because of the financial impact on firms and companies they serve, but because of the impact on how practice occurs, particularly audits, when offices are closed or restricted and travel is prohibited. Even accounting education and the delivery of the Uniform CPA Examination have been impacted.
— Ken Bishop, president and CEO, NASBA
The opportunities provided by technology. Financial information is already being consumed in a very different way and the rapid changes in technology will only continue to evolve that consumption. As accountants, we need to take advantage of the opportunities afforded to us by the advancements in technology.
— Joel Black, chair, GASB
The lack of education. Most firm leaders receive their advice from twitter now. A new generation seeks feedback from quick social media posts and yet doesn’t dive deep into what it means to be an entrepreneur.
— Jason Blumer, CEO, Blumer CPAs; CEO, Thriveal CPA Network
The most important issue today facing our world (not just the accounting profession) is to embrace the momentum in society for positive change in the area of diversity, equity and inclusion. We are faced with an opportunity to talk about previously off-limits issues, learn from people who are different from us, and, together, make the world a better place for everyone who lives in it.
— Jim Boomer, CEO, Boomer Consulting Inc.
Rapid change. The profession is being disrupted in several areas: technology, processes, talentand market demand for advisory and consulting services. Firms and individuals who can change and learn faster than the competition will thrive. Accounting is a team sport and requires diverse skills that increase the value of client services.
— L. Gary Boomer, founder, visionary & strategist, Boomer Consulting Inc.
Change!
We’ve all been forced to change the way we do business as a result of the pandemic.
As a profession, we need to understand technology will continue to drive that change and we need to follow along to remain relevant for the next generation of professionals.
We need to leverage our “trusted-advisor” status and be in a position to provide whatever services to our clients they need and want us to provide. We need to seize opportunities to provide services and products that our clients are currently buying from other providers.
Firms that embrace change will see significant growth in advisory opportunities. These opportunities will help to drive change within our practices as we’ll be forced to hire individuals with skill sets never before seen by those practicing in our profession.
— Jim Bourke, Managing director of advisory services, WithumSmith+Brown
Relevance. Transformation is today’s work to secure tomorrow’s relevance. Change can be hard. Settling for the status quo is easy. But transforming how and
where we deliver the profession’s work requires courage, commitment, and effort. We can and must do more, increase value for our stakeholders, and secure a future for the generation of professionals who come after us.
In doing this, we must produce valuable new knowledge in our profession through research and experimentation, the analysis and synthesis of experience, and the development and adaptation of new methods. We must also communicate effectively to the public, as well as to all levels of government, regarding our work. Last, we must perform with high ethics and duties that consistently persuade all the parties at interest - the public, business, universities, the government, and others - to accept us as the profession worthy of their trust and authoritative in our work.
Thus, we all have a role to play in addressing the relevance of the profession and securing its place for generations of accountants who will come after us.
— Wes Bricker, vice chair and US & Mexico assurance leader, PwC US
A lack of vision about what the CPA of the future looks like. I think there are a lot of ideas floating around about what technology means for the profession and about CPA Evolution, but I don’t see an inspirational ideal of the future. The great news is that the brand of the CPA is as good as gets and there’s so much to work with; the profession just needs to clearly articulate the value not only to consumers of CPA services but to the pipeline of students making vital decisions about what they study. I know this is not a popular opinion but refusing to acknowledge the barriers of the 150-hour rule is a major problem and part of the lack of vision. I hear research cited, but the research isn’t shared. I talk to students, often, and I assure you 150 is a barrier for many bright, diverse candidates that we could bring into the profession. I can also assure you that in talking to partners at firms, it is also an issue to them. Alternate pathways to licensure and a meaningful appeal about all of the unique advantages of the CPA is necessary – there are still far too many arguments to young people that you will eventually make a lot of money. This isn’t good enough. I understand the dangers to licensure if we open up this topic, I just think we’re capable of overcoming those dangers.
— Jennifer Briggs, president & CEO, Indiana CPA Society
I believe that with the recent pandemic, the accounting profession MUST become more adaptive with technology and the use of cloud based processes. As we saw this year, the public has serious health and safety concerns. We have been hearing about the cloud for years and many accounting firms have been resistant to the change.
Since my firm is 100% cloud based, the pandemic caused my business to skyrocket due to my ability to work with clients without ever even meeting them. I have been practicing that way for years. Unfortunately, those firms who do not embrace this necessary change to the cloud will likely be out of business. I believe that we are struggling with the next generation of CPA’s without the influence of a pandemic which has resulted in a high demand for fresh and new young professionals.
— Dawn Brolin, president, Powerful Accounting Inc.
Overall, the most important issue facing the profession is the ability to anticipate client needs and market trends. For us, that means making investments in smart people and new technologies that allow us to deliver best and only solutions – whether it’s artificial intelligence, making big data consumable and actionable or putting together a leading digital assets capability.
Case in point is the rise of blockchain and crypto. These are ledgers –our profession’s sweet spot! However, the reality has been that even the largest and most capable firms have fumbled for years trying to understand the tech and its implications for commerce and accounting.
The answer is deceptively simple: All assets will become digital assets. From the dollars in our wallets, to the private and public securities we invest in, and even commodities. And, the public, private and hybrid distributed ledgers (blockchains) that these assets run on will require accountants and auditors to adapt, develop and use new tools, as well as evolve their standards and methods. Accounting will be on the frontlines of the blockchain technology revolution.
— Noah Buxton, director and practice lead, blockchain & digital assets, Armanino LLP
Sustaining public confidence in the face of large corporate financial failings, particularly as we’ve seen in Europe and South Africa, is the most pressing task before us. This is likely to be an even greater challenge in the days ahead as the pandemic’s calamitous impact brings the distinct possibility of a global recession, and with it a very real threat to the financial viability of many organizations. Anticipating emerging risks, even deep into 2021, has never been more critical than it is today. It is incumbent upon us all to pull out our telescopes and begin surveying the horizon.
— Richard Chambers, president and CEO, Institute of Internal Auditors
The shift from low-value, redundant work to high-value, strategic services – driven by disruptive technology and automation (machine learning and Artificial Intelligence). And COVID-19 has further accelerated this shift! Firms have been pressed to reimagine their future. Successful practitioners are transforming their legacy firms from heavy compliance (tax, audit and write-up) work to high impact consulting – providing deep insights beyond the debits and credits, positioning themselves as highly valued, strategic business partners with their clients.
— David Cieslak, EVP, chief cloud officer, RKL eSolutions LLC
The pandemic has created lasting changes – good and bad – across the profession. CPAs’ value and brand as trusted advisors to businesses and individuals has never been greater. And, the profession, as whole, is faring well.
Yet, the pandemic’s long-term impact to small businesses and employees is still cascading. Our nation’s economic distress has changed the business landscape, with some firms and clients evolving and changing their business models and some, unfortunately, closing for good. Many firms have been working 24/7 since mid-March and are simply exhausted. I am particularly concerned about how the pandemic is affecting students and young professionals – the future of our profession. Students faced interrupted semesters, and internships and job offers were postponed and/or converted to “on-line,” resulting in social isolation and, at times, working under less than ideal circumstance. Most CPA exam test centers were temporarily closed, delaying well-prepared CPA exam candidates. As a profession we need to continue to step up to the plate, day after day, to provide stability in uncertain times. I believe we are up for this challenge, and our efforts will create a stronger and more resilient profession that remains, at its core, committed to the public’s interest.
— Sue Coffey, EVP, public practice, Association of International Certified Professional Accountants
The impact from technological advancements is affecting every aspect of the profession and challenging the historical norms in which we operate. To keep up with these changes, accountants need to develop new skills and areas of expertise. As a profession we need to address the likely reality that smaller companies and auditors may not have the resources or infrastructure to keep pace with these changes. Ensuring our profession remains relevant will be critical to its future success.
— Susan Cosper, Board member, Financial Accounting Standards Board
Massive transformation. Major shifts in technology, competition, market conditions, regulation, and COVID-driven conditions, which are impacting all aspects of our firms.
— Gale Crosley, president and founder, Crosely+Co.
The rapid and exponential change in technology including artificial intelligence (AI), robotic process automation (RPA), blockchain, and cloud applications has created a need to attract and retain staff that can successfully manage these technologies in a way that delivers real value to both clients and firms. I’ve been in the accounting software business for over 30 years where the only constant is change and it has been accelerating for that entire time! Of course, like any challenge it also creates opportunity… we must be intentional, proactive, collaborative, and bold in how to turn these challenges into successes.
— Kevin Cumley, senior director, Sage Intacct Accountants Program, Sage
Let me give two. The first is envisaging the accountant of the future. In a digital world, what are the services such a person can offer? What is the value they can bring to the table and what are the skills and competencies they need? There is tremendous opportunity for our profession if we adapt and get this right.
The second is the fact that high-quality audits of financial statements are essential to strong organizations, financial markets and economies. And assurance will become even more important as reporting includes non-financial and sustainability information. As such, audit quality remains among the most important topics facing the accounting and auditing profession. In just the past year, we’ve seen prominent conversations about audit quality – for example, through the Brydon Review and Redmond Review in the UK alone.
Achieving high-quality audits requires a well-functioning ecosystem built upon ethics and independence, preconditions to achieving high-quality audits. This ecosystem involves a number of factors and participants including the right people, the right governance, and the right regulation. All participants in the audit and assurance ecosystem must act to improve the audit process – including, of course, the accounting and auditing professions.
Supporting high-quality audits is part of our profession’s public interest mandate. Especially in the face of today’s uncertainties, where the audit process faces new challenges, we must remain committed to delivering high-quality audits at all levels and in all sectors.
— Kevin Dancey, CEO, International Federation of Accountants
Our ability to “unlearn and relearn”. While we diligently work to prepare for what is on the horizon, and what it will mean to the profession, the pace of change is higher than at any other time in history. The reality is that we can’t even imagine what our industry will actually look like in 10 to 20 years. So, we must always be adapting. We will most certainly see more consolidation as required investments in technology, innovation, and consulting service offerings increase the cost of doing business for firms.
— Ted Dickman, CEO, governing board chair, BKD CPAs & Advisors
I talked about relationships last year. I think firms are being given a great opportunity this year to deepen those through truly value-added consulting. One issue that keeps rising to the top is that many firms struggle to centralize their client contact information. The practice management systems still seem to be a hindrance. COVID-19 clearly brought the systemic challenge to the surface for many firms. If this problem isn’t solved, it will be a roadblock to many firms’ success on the relationship side.
— Sarah Dobek, president and founder, Inovautus Consulting
The biggest challenge our profession faces is dealing with ambiguity and the ever accelerating rate of change. Our leaders must be human-ready, just as much as we are technology-ready.
The authoritarian, ego-based leadership model has long passed its expiration date. A more conscious, evolved form of leadership has been emerging for years, and the events of 2020 have shown us that the need for this new form of leadership is urgent. We are at a breaking point…and, breaking points signal profound opportunities to create true change.
We need leaders who:
- Genuinely care about others and demonstrate compassion and respect for all.
- Put the well-being of others before their own ego and personal comfort.
- Are humble and acknowledge they don’t have all the answers.
- Want to learn and are always evolving.
- Can let go of what they think they know to find new solutions.
- Listen first, with a desire to understand other perspectives, so they can continuously expand their own perspective and make wiser decisions.
- Lead with their minds and their hearts, seeking to collaborate and unite, rather than compete or divide.
- Help others find their power, rather than hold power over others.
- Take care of themselves, so they can show up more fully for others.
Each of us can consciously choose to be this kind of leader each and every day, and organizations can consciously choose to invest in creating a coaching culture that cultivates the leaders we need.
— Sarah Elliott, co-founder & principal, Intend2Lead LLC
The Covid-19 pandemic has pushed the profession forward by least 3 years in its ability to adapt and embrace technology. Yet, as a profession, we struggle to become more inclusive. As a data driven profession, we track trends and challenges related to regulations, demographics, customer expectations, technology, cyber security, and geopolitical uncertainty, yet, we have not fully understood the downside of microaggressions, the benefits of allyship and the positive impact of each person seeking a greater understanding of their colleagues.
Diversity of thought is non-negotiable and critical to our ability to look around corners and protect the public interest. Together, we absolutely can make a difference. In addition to my work on the AICPA Commission on Diversity and Inclusion and as a keynote presenter, I wrote an article that highlighted 12 steps that firms of all sizes could use to either begin or re-energize their Inclusion initiatives.
— Kimberly Ellison-Taylor, executive director – finance thought leadership, cloud business group, Oracle
Transitioning from an audit and tax return compliance firm to an advisory and consulting firm (working on future challenges and providing solutions).
— Domenick Esposito, CEO, Esposito CEO2CEO LLC
Navigating the change in the financial environment with the additional regulations; also, the influence of a worldwide market and protecting client data.
— Alvin Fennell III, vice president, underwriting and business development, Aon
As with last year, the most important issue remains to be staffing. The number of individuals taking the CPA Exam is declining, and the number of those who obtain the CPA credential and remain in public practice is also down. Today, many people, and not just in the accounting profession, make a “quality of life” decision. With this profession, many decide to use their CPA credential in other ways, which they feel gives them a better balance between work time and family time. For example, if you are a CPA in public practice, there are several months during the year in which you do NOT take a vacation, or schedule any other event that would take up an extended amount of time (a wedding, for example). This is a profession where the average age of those in it is increasing. It is a frequent topic of discussion within NCCPAP, at national conferences, chapter meetings, and our online discussion boards.
— Neil Fishman, president, National Conference of CPA Practitioners
I believe the most important challenge facing the tax and accounting profession is the need to transform itself to elevate the value it brings to clients and businesses and build the pipeline of diverse talent for the future. As businesses have become more dynamic and global, their tax and accounting needs have become more complex and changes in laws, regulations, and reporting requirements have accelerated. To provide real value to clients, the accounting profession needs to leverage new technologies and bring new skillsets, such as coding and database querying, into the accounting function. The profession needs to be thinking about where they can automate repetitive tasks and eliminate low-value ones while upskilling their talent, so more time is spent on informing clients and business stakeholders of key considerations and implications of their decisions. I believe this evolution in focus will empower tax and accounting professionals to deliver greater value and will ultimately make accounting a more attractive career option for students. This is key as we are facing a record shortfall in the pipeline of students majoring in accounting in colleges and universities. We need to get creative on a grand scale in driving awareness of the accounting profession in high schools and make sure accounting is offered in the curriculum like it was at my high school. But it doesn’t stop there with recruiting, we also need to do a better job of retaining diverse talent by investing in their professional development and leveraging their new ideas and approaches, so they can lead us into this new frontier for the profession.
— Lisa Fitzpatrick, president, Bloomberg Tax & Accounting
As today’s clients demand solutions to new challenges, accounting firms must question whether the traditional business model still makes sense. Many firms are generalists but the buyers are demanding greater industry specialization and subject matter expertise. Our recent study on shifts in accounting buyer behavior shows that they are demanding services that are more relevant to their current and emerging challenges such as operating in a difficult economy and strategic planning. Are accounting firms prepared to respond to these needs?
— Lee Frederiksen, managing partner, Hinge
It is the same issue we’ve been facing for many decades – creating a more diverse and inclusive profession. More diversity of thought allows us to better serve a diverse client base, foster innovation, broaden our pool of applicants and increase competitiveness.
Recent events in our country and around the world have moved racial inequality to the forefront of our conversations and has spotlighted the importance of equal economic, political and social rights and opportunities. We must open the doors wider and allow everyone access and opportunity.
At Crowe, the tragic death of George Floyd and others before him quickly elevated the topic of racial injustice and equity. In response, we quickly convened the members of our African American BRG to share their thoughts, feelings and personal stories to start the dialog. We also held firmwide inclusion forums, inviting everyone to share and listen to better understand and support each other. The firm also issued a statement outlining our commitment to change.
Additionally, we the firm held a matching donation campaign to support NABA’s mission of "lifting as we climb" and its focus on bridging the opportunity gap for black accounting and finance professionals. Crowe has had a strategic partnership with NABA for many years and we believe this financial support will provide opportunities for countless students and professionals to thrive in our industry. Our personnel, combined with a matching grant from the Crowe Foundation, resulted in a $71,726 donation to NABA.
— Herschel Frierson, chairman of the board of directors, National Association of Black Accountants
Genuine human connection between coworkers and clients. A lot of companies and firms thought they had a culture that created connections but being forced to work remotely put that to the ultimate test. The stay-at-home orders that were implemented greatly increased the need for forming genuine human connections.
Thanks to video conferencing, we’ve now been in each other’s homes. We’ve seen the kids running by, pets jumping on laps, and the pictures hanging on our walls. This has forced our personal lives to blend with our professional lives and there’s no going back.
— John Garrett, senior financial analyst, Clarian Health Partners
The speed of change and how well we adapt to it. Some things can’t change, however, like the central role trust plays in our profession.
— Tracey Golden, Chair, AICPA and Association of International Certified Professional Accountants
The ongoing tax law changes that will come from Congress based on COVID and what how that will impact our industry for decades to follow.
— Julio Gonzalez, CEO, Engineered Tax Services, The Growth Partnership and ABLE
Accountants are working around the clock to help struggling small businesses stay afloat and adjust to new legislation and deadlines, and behavioral and structural changes hastened by COVID-19 that will remain with us beyond the pandemic. This has made efficiency more important than ever. It’s essential for accountants to not only be up-to-date on the latest tax and compliance laws, but also understand how technology can benefit their practice and clients now and in the future.
Automation helps accountants streamline workflows, allowing them more time to focus on higher-level, strategic work. Furthermore, advanced technologies, including machine learning, provide real-time data insights into the performance and financial health of a business, giving accountants the opportunity to proactively share strategic counsel that could be the difference between a small business surviving or closing its doors. The needs for automation using AI is even more acute now as accountants help small businesses survive the current health and economic crises.
— Sasan Goodarzi, CEO, Intuit
COVID-19 continues to present many challenges in the U.S. and around the globe. Despite the uncertainty in the economy and unprecedented disruption in business operations, companies and boards must continue to deliver transparent financial reporting to the capital markets.
As part of the profession’s commitment to serving the public interest, we have a responsibility as independent auditors to perform high-quality audits that promote trust and confidence in the capital markets. And, in times of uncertainty, our role is more important than ever.
At EY, we take trust and transparency especially seriously. Trust is, and always has been, the foundation of our business. It’s hardwired into everything we do. And it’s why we’re leading the evolution of the audit process—which relies on principles of trust and transparency to ensure that businesses are operating with integrity.
U.S. Securities and Exchange Commission Chairman Jay Clayton has called the high-quality audit the “bedrock” of our financial markets, and audit quality must remain Job #1 for auditors.
When I talk with audit committees, CEOs, and regulators, it’s clear that the independence, integrity, objectivity, and professional skepticism the profession delivers is especially important in these extraordinary times.
And while the investments made in technology have enabled auditors to serve our clients virtually, they must continue to leverage those important qualities as they perform globally consistent, high-quality audits.
— Kelly Grier, U.S. chair and managing partner and Americas managing partner, EY
The most important issue facing the accounting profession is the need for firm leadership in the profession to lead like they have never led before.
Leaders must lead their firms in a way that allows successful navigation through unprecedented times not only now but also knowing that things will certainly be unpredictable in the future. This requires a focus on strategy, crisis planning, agility in meeting market and employee needs, digital skillsets across the board, a willingness to research, invest in and successfully implement technology to keep the firm streamlined, profitable and relevant continuously. This involved holding firm owners to new standards and not accepting a “reluctance to adapt” or a “change resistor” mentality.
In order for firms to remain profitable and competitive, leaders must also look at the market across industries and get ahead of what clients will need in the same way they should be looking at their own firms. Many firms have not looked at their firms as much like a business as has been needed. They have been focused more on client needs than the health of their own firm because client work is billable and most have been taught to make this a priority. What we have found is that firms who did, indeed make planning for the health of the firm and the development of a strong culture focused on leadership, communication, client service and growth have fared better than those who did not make it a priority.
Leaders must be committed to learn, grow and adapt in order to best lead their firms into the future. Firm strategic planning, people development, improvements in processes, workflow and technology must be ongoing. A commitment to stepping outside of comfort zones and serving clients in unique and innovative ways is necessary to retain the reputation as client’s most trusted advisor. All of these changes require leaders to rethink priorities, require different things from their team and not allow professionals to rest on their laurels because they will fall behind-and quickly. Investments must be made in creating a sustainable future for the firm.
— Angie Grissom, owner, chief relationship officer, The Rainmaker Companies
Feedback from our members indicates that the 2021 tax season will be extraordinarily difficult, and the accounting profession will have to adapt to meet unprecedented challenges. Pandemic-related issues include remote auditing, increased risks of fraud, thorny financial reporting issues such as impairment and PPP loan accounting, internal control changes and deficiencies, going concern, and remote staff development.
In the long-term, the pandemic will abate, but how the accounting profession incorporates the technological changes that have come to the forefront will be a critical success factor.
— Thomas Groskopf, technical director, AICPA Center for Plain English Accounting; assurance service line leader, Barnes, Dennig & Co.
The profession needs global alignment around a unified system for corporate reporting that includes both financial accounting and sustainability disclosure, connected via integrated reporting. We are making progress towards this goal. This year, CDP, CDSB, GRI, IIRC, and SASB published a shared vision for how existing sustainability standards and frameworks can complement generally accepted financial accounting principles (Financial GAAP) and serve as a basis for a coherent and comprehensive corporate reporting system.
— Janine Guillot, CEO, SASB
If there is one resounding sentiment that I hear over and over again when speaking to investors it is that they are frustrated with the current corporate reporting model. They believe corporate reporting is too narrow, incomplete, inconsistent, delayed, and backward looking to meet their needs. This sentiment seems to be shared by standard setters and regulators around the world. As a result, you have the SEC issuing new guidance on human capital reporting, the European Union considering new legislation around their Non-Financial Reporting Directive, and the IFRS Foundation considering whether to establish a second board to sit alongside the IASB to address sustainability reporting. All of this new information needs the support of the accounting profession’s expertise regarding measurement, management, assurance, and reporting. Otherwise, we stand to cede that influence to legislators, lawyers, consultants, NGOs, and special-interest groups.
— Jeffrey Hales, chair, Sustainability Accounting Standards Board
This is a defining moment for our profession to make the shift from being essential as we helped businesses navigate through the #COVID19 Relief programs. Now is the time to move to be even more indispensable in helping businesses transform and thrive as we navigate to the next normal. The phrase, America counts on CPAs (accountants) could never be more true - successfully navigating this pandemic will take everything the Profession has to offer.
— Tom Hood, CEO, Maryland Association of CPAs & Business Learning Institute
I believe the accounting profession needs to give a lot of thought as to how life inside an accounting firm (including how services are delivered) looks post-pandemic. Accounting firms have done an outstanding job of pivoting their operating model when the pandemic hit in March. They successfully transitioned to a virtual work environment and continued to serve clients at an extremely high level, and even attract new ones. However, when the pandemic is over, the operating model for firms will look quite different. Employees and clients both know that working virtually can be highly effective. With this said, technology needs will be different, office space will change, and firms will need to pay close attention to how their cultures have and will continue to change in a more virtual world.
— Charles Hylan, managing director, The Growth Partnership
Outside of the chaotic year that brought about new services and challenges for firms and their business clients, I believe there is an innate lack of alignment between business and innovation strategies. Everyone hears that change is coming and firms are embracing technology, but they are not aligning their strategy with their overall business model and it is creating disjointed organizations that cannot fully capitalize on the benefits of emerging trends. This became even more evident in 2020 when firms were forced into evolving to support remote work, cloud technology, and offering advisory services. I believe that we have to step back and look at the bigger picture and ask what more questions like what this acceleration of change means for our overall business model and clientele – not think so linear.
— Kacee Johnson, strategic advisor, CPA.com
The most important issue is supporting clients and businesses that have been devastated by the COVID-19 pandemic. We expect continued support for businesses into 2021 for PPP loans, cash flow planning, and working on business finances. In light of this, there is a profitable, long term service offering for CPA firms with Advisory Services. Definitions of Advisory Services need clarity, including consulting and Client Accounting Services (CAS). We expect automation to put fee pressure on the compliance work of tax, audit, and CAS. Further, new support programs will enable younger CPAs who want to work in the Advisory Services area.
— Randy Johnston, CEO and founder, EVP, NMGI and K2 Enterprises
Balancing the financial statement user’s desire for more granular information with the costs of providing it.
— Richard Jones, chair, FASB
In a word: Trust. When we look at polling data, we see that people’s trust in the institutions that impact their lives are at historic lows. As accountants, we have the rare opportunity to help bring transparency and reliability to these institutions. That’s part of why I’m so proud to work at PwC: because our purpose is rooted in building trust in society and solving important problems.
— Kathryn Kaminsky, vice chair, US and Mexico Tax Leader, PwC
Pandemic related issues continue to dominate the landscape. As the October 15 deadline inches up, late-filed returns, penalties and their abatement, state conformity challenges and advising at-risk clients continue the horizon. IRS is already starting its planning for the next filing season as we prepare for the possibility of continued challenges related to remote work. Adapting to these influences and adopting a management style that is virtual-first is critical for practice survival.
— Edward Karl, vice president, tax policy and advocacy, AICPA
COVID Recovery for both firms and clients will be paramount after the election and through 2021. While busy season will bolster firms financially for the first half of next year, I believe recovery won’t truly begin until the national distribution of a successful vaccine. Regardless of who wins the election, the economy is starting in a rough place.
— Roman Kepczyk, director, firm technology strategy, Right Networks
Because of rapidly changing and complex developments in the field, it is difficult for professionals to stay up-to-date and also difficult to find capable people who can deal with current challenges in the profession.
— Sidney Kess, senior consultant, Citrin Cooperman; of counsel, Kostelanetz & Fink
The most important issue currently facing the profession is relevance and sustainability. We need to create our future instead of letting it happen to us. We have experienced disruption at a rapid pace this year, and we will be able to survive and thrive as a profession if we can adapt and generate new service offerings for our clients and deliver these offerings efficiently with the help of technology.
— Elizabeth Pittelkow Kittner, VP of finance and HR, International Legal Technology Association
Fully embracing AI and other technology, the bots are loose! They are not going to take you job but they are going to change it forever.
— Ed Kless, senior director of partner development and strategy, Sage
Continuing to instill trust with stakeholders by demonstrating extraordinary integrity, professionalism and quality. We must have these at the core of everything we do in order to succeed in our business. Advancing diversity and inclusion also is critical. We know the benefits of a diverse workforce when inclusively led, especially in the professional services business, are immense: producing better ideas, increasing creativity, and enhancing productivity. When we have diverse and inclusive teams, we’re better able to solve our clients’ toughest problems, and that’s at the heart of what we do.
— Paul Knopp, U.S. Chair and CEO, KPMG LLP
Clearly not just coping with change but using the changes that have taken place in 2020 to serve as a catalyst or springboard for future growth and profitability. What has already happened in 2020 will impact the next decade more than the last four decades combined.
— Allan Koltin, CEO, Koltin Consulting Group Inc.
Most currently, the pandemic and client survival, as well as the long-term effects of what we’ve been through and firms making the necessary changes to their business model. We can no longer rely on “hours x rate” as the success measure and need to change how we interact with clients.
In the very near future—I’d say starting in about 6 months through the next 2-3 years—you’ll see an acceleration of M&A beyond the already rapid pace, partly because firms slowed selling in the last 8 months. But on the back side of the pandemic, several firm owners will just want to be done and not worry about this “new normal.”
— Mark Koziel, president & CEO, Allinial Global
How can I list just one? We have been in the midst of a perfect storm of challenges for many years that continues to hold back the profession. However, to list just one, I would say that to emerge stronger from the COVID crisis, we need to become more adaptable than ever before while accepting more risk in our business decisions. The pandemic has taught us that we can accept and embrace change, make effective decisions quickly and survive and even thrive with this new protocol.
— Art Kuesel, president and founder, Kuesel Consulting Inc.
In an age where automation is taking over much of what we do, we can thrive by becoming less automated, by embracing our humanity. We are taught to always bring certainty to what we do - bring certainty to the numbers, to the past and to the future. But human beings are not certain and now we are facing the most uncertain times of our lifetime. We must as a profession produce leaders who can connect with others instantly and authentically and then influence them to do the same.
— Brian Kush, principal and co-founder, Intend2Lead LLC
When the pandemic hit, requiring the need for shelter-in-place and disparate workforces, the ability to operate a business digitally and remotely became an advantage. And yet few businesses had that capability. The issue facing the profession is to help accelerate the digital transformation so that every business has the tools it deserves and can run efficiently. Firms have an opportunity to use this drive towards digital transformation to reposition the value they bring from transactional to strategic. Given the acceleration of AI, it is imperative that the profession move the business model from transactional services to strategic advice services.
— René Lacerte, CEO and founder, Bill.com
The greying lines between Banks, Apps, Accounting GLs and the services they provide to clients including many services traditionally provided by accountants and bookkeepers.
— David Leary, director of accounting & bookkeeping evangelism, Melio
Most will say succession and/or lack of speed becoming advisory service focused. Those are critical, but you have to get to the core driver behind those issues. Most firms have a weak business development infrastructure. Let me qualify this. A decade of staffing shortages and a great economy loaded with tax and regulatory changes created work for CPA firms. As a result, firms have what we call “impaired leverage”. This means only a percentage of professionals in most firms bring in material levels of new business. CPAs are struggling with consulting because they are not good a selling. Succession is a problem because the succession teams have minimal business development skills, which forces firms to seek an upward merger to ensure exiting partner buyouts. Most firms do not have funded buyouts, so the risk is too high to depend on a succession team that cannot sell to make their retirement payouts.
— Bob Lewis, president, The Visionary Group
Do I have to pick just one? Obviously, COVID-19 has created challenges in 2020 that no one expected coming into the year. I have been incredibly impressed at the resiliency of public company auditors, how they stepped up to overcome new challenges and quickly adapted to the new normal.
The profession is entering a very busy year-end audit season in a remote auditing environment. Will there be challenges? Certainly, but there will also be a laser-focus on audit quality accompanying those challenges. Outside of COVID-19, I would say it is raising awareness that the auditor’s core skillset and competencies extend beyond the traditional audits of financial statements and internal controls to nontraditional financial information like ESG, non-GAAP, and cyber risk management. We are seeing this trend already, but the profession needs to continue to be seen as a resource and trust provider in these areas.
— Julie Bell Lindsay, executive director, CAQ
Long term impact of working from home.
— Taylor Macdonald, SVP, channel sales, Sage Intacct
Ensuring the profession is a mirror of the society it serves. To thrive in the future, we need a younger, digitally adept and more diverse pool of people representing the profession, one that reflects the ongoing demographic shifts within the U.S. and the larger world as well as the new agile digital skills required to succeed. Within the profession, we know that accounting is a vibrant career that serves a vital public role, and that CPAs and management accountants can have satisfying, well-paying jobs helping people achieve their life goals. One of our key challenges is getting that message out to places where it isn’t yet heard.
— Janice Maiman, EVP, communications, PR and content, Association of International Certified Professional Accountants
Over the next few years, technology will change the face of tax compliance. It’s happened in Latin America and its happening Europe and Asia and the U.S. can’t be too far behind. According to some estimates, up to one-third of the revenue that should be collected through value-added tax (VAT) is lost to fraud, evasion or error - resulting in massive tax gaps that are holding back local communities. The U.S. recently estimated that states fail to collect somewhere between $8 billion and $32 billion a year in sales tax. In Brazil, the country put its VAT collection gap at $50 billion. Across the globe, governments are turning to technology-driven tax enforcement measures, including mandatory e-invoicing, to boost tax payments.
However, this digital transition has not been easy. Multinational companies are struggling to remain compliant amid this shifting global tax regulatory landscape, and the move to real-time transparency and compliance is forcing businesses to modernize their financial systems. In many places, traditional, manual paper processes must now be digitized down to the invoice level for greater government visibility into transactions. This shift will change what’s expected of accounting departments, and those in the profession need to be able to understand its implications. U.S. state and local tax compliance and enforcement will need to change. Companies and revenue authorities must recognize that existing processes will prove ineffective in a world of expanding obligations and increasingly complex requirements. Not everyone knows it yet, but the world of tax is about to become very different.
— Charles Maniace, vice president, regulatory analysis & design, Sovos
There are major disruptors our industry is navigating, including an increasingly complex regulatory environment, a highly competitive landscape, and most importantly, the evolving needs of clients. It’s not an easy environment to operate in but at Wolters Kluwer Tax & Accounting North America, we believe strongly that the advancements in technology are making it easier to address these key challenges.
— Jason Marx, president & CEO, Tax & Accounting North America, Wolters Kluwer
Besides the degradation of the human aspects that used to be the pride of our profession? I would say the fact that a large portion of the profession is so far behind the curve of technology adoption that they will forever be chasing a widening chasm that accelerating innovation opened. Did I mention the average age of our profession? It’s 55 and they have no exit plans. So in summary the two issues tied for top are the poor human treatment of bottom and the top, the entering and the retiring, and the slow acceptance of advancing technologies.
— Liz Mason, CEO & founder, High Rock Accounting
Learning to utilize Artificial Intelligence (AI).
— Chuck McCabe, president & founder, The Income Tax School
The most important issue facing accounting professionals is stepping up to advise clients in their greatest moment of need, and in doing so playing a much broader role in helping businesses navigate great uncertainty - up to and including keeping the doors open. Accountants today have access to the knowledge resources, technology tools, and referral relationships required to fulfill the expectations of clients. They’re up at bat like never before.
— Scott McFarlane, co-founder & CEO, Avalara
The adoption of cloud-based and advanced technologies. The longer firms delay in adopting new and more advanced technologies, the harder the transition will become. Applying advanced technologies like machine learning, artificial intelligence and robotic process automation to workflow processes will fundamentally change the way tax and accounting and audits are performed moving forward.
— Jim McGinnis, EVP/GM, professional market segment, Tax and Accounting North America, Wolters Kluwer
The immediate task is fulfilling our role as trusted advisors to business leaders to help them see a path forward post-Covid. Longer-term, the challenge is adapting to exponential change, which manifests itself in several ways:
-Technological change, such as the rise of the cloud, artificial intelligence and blockchain, which has been our message prior to Covid and now will accelerate.
-Demographic change, which highlights the need for the profession to become more diverse and inclusive
-Change in client demands and expectations, which in turn means we must become more innovative, adopt a more global outlook and deliver higher value services.
— Barry Melancon, president and CEO, AICPA; CEO, Association of International Certified Professional Accountants
The most important issue is staff training, retention and work conditions. This has been the most important issue since I started practicing in the late 1960s and in today’s world of buzz word management such as millennials, Gen Z, diversity, the Cloud, Bots, AI, ML and Lean processes, I believe the profession has lost its way and has not only not moved forward in this regard, but has moved backward. We are a people business – staff being the primary asset - and I feel this is misunderstood by most of those managing firms. Many firms have fancy recruitment brochures and promotional material with articles propagating their staff and family friendly culture with a proper work / life balance, but they do not deliver on this. This is borne by the numbers that leave the profession, and the disproportionately high amount of women accountants that leave. The issue of lower numbers of women partners is not a gender-discrimination issue, it is a work/life balance issue [for men and women] that the profession as a whole is blind to, using excuses and rationale from more than a half century ago. The people going into accounting haven’t changed – the work/life balance circumstances have gotten worse and continues on that track. Much more women than men simply refuse to subject themselves to these conditions. The COVID-19 tragedy has changed the way we are now working [with much more work at home] and the work / life balance issues I am referring to might find they will be somewhat resolved through these changes.
— Ed Mendlowitz, emeritus partner, WithumSmith+Brown
A difficult choice between needing greater diversity, equity and inclusion to ensure the future of the profession, and embracing technology. As you can see from my list of affiliations, I do a lot of work in this area with the profession and with actuaries. That said, I think I will focus on embracing technology and the opportunities it brings to the profession. Information is the lifeblood of every business, and technology provides the information superhighway to get information where CPAs need it, when they need it, and in the formats they need it to drive business insights and decision making. Technology isn’t a threat to the profession – it’s an enabler, a driving force that can propel the profession to higher, more strategic roles in public accounting and industry. RPA, AI, machine learning and Blockchain aren’t eliminating CPAs – they’re enabling the profession if the profession will embrace them and gain the competencies and skills to use them effectively and efficiently. Technology changes so rapidly that this is a challenge to keep pace with, but understanding which technologies meet the business needs, and deploying those technologies in the right way will help the profession reach its full potential. I teach an annual Webcast for the Institute of Management Accountants on top tech trends for the profession that regularly gets 1500+ attendees which indicates strong interest to learn more. I’ve authored numerous articles over the years on technology and its role in accounting and finance as a way to convey the value of technology to the profession.
— Brad Monterio, chief learning officer and VP of member competency and
learning, California Association of CPAs
The profession is facing a top talent shortage. There are many reasons that contribute to this such as:
1. Students are picking other professions that have higher starting compensation packages. I’m Finance executive with a tech company in Silicon Valley and competing for talent in disciplines such as finance, legal, and engineering within the same geography as Google, Apple, Facebook, and approximately 10,000 other venture-backed companies is insanely difficult.
2. Baby Boomers are retiring in droves and there are less people to mentor new CPAs. The AICPA estimates that 75 percent of all current CPAs will retire in the next 15 years.
3. This is even exacerbated for minorities. The AICPA trends report shows the number of Black with bachelor’s and master’s degrees in accounting hired into accounting/finance functions of U.S. CPA firms has decreased from 8% in 2007 to just 4% in 2018.
There needs to be a concerted effort to brand/market the opportunities in the profession to recruit students. The Center For Audit Quality just released a documentary on the accounting profession. Making it Balance is a documentary that follows three young adults from Austin, TX to Boston, MA as the interview people who majored in accounting about their various career paths. More efforts like this and through social media need to be made to reach students. Through NSBCPA we even started a Tik Tok channel to reach diverse students and discuss opportunities in the accounting profession.
— Shannon Nash, chair, National Society of Black CPAs
I think the biggest issue is simply adapting to the rapid change the industry is facing. Professionals need different skillsets than what they learned in college in order to become the data analysts and specialists in their industries and niches. This takes time and really does require professionals to learn differently and to commit to lifelong learning. Traditional CPE doesn’t address these needs and so professionals need to be motivated and committed to doing things differently. And let’s be honest – virtual business development looks different than face-to-face. We still need to be doing it, it just needs to look a little bit different.
— Adelaide Ness, chief learning officer, The Rainmaker Companies
The most important issue currently facing the accounting profession is relevance. Meaning that the accounting profession is at risk of becoming irrelevant.
The most significant way the accounting profession affects the lives of most people on the planet is in our role as auditors of public companies. Unfortunately, as the recent Wirecard and Luckin Coffee accounting scandals have demonstrated, auditors are generally pretty bad at detecting fraud. According to the 2020 Report to the Nations by the Association of Certified Fraud Examiners, only 4% of occupational fraud is discovered by external auditors.
At the same time, accounting standards have failed to keep up with a changing economy in which intangibles — not capital assets — generate the bulk of the value of many of the world’s most successful companies. This is why investors increasingly ignore GAAP financial statements in their assessments of public companies.
If the accounting profession can’t protect investors and provide them with useful information, we risk becoming irrelevant. Investors and the public will look elsewhere, and we will have failed in our responsibility as accountants — to serve the public interest with integrity, objectivity, and independence.
— Blake Oliver, director of marketing, Jirav
Our continued evolution as a result of COVID-19. Yes, we are now remote mostly working from home and utilizing new technology. But that, in itself, doesn’t create a virtual firm. We have to continue to look at how the profession will evolve its processes, its business models and its culture to remain competitive in the marketplace and in this new world
— Jody Padar, vice president of strategy, Botkeeper
Virtualization and automation to solve work from home and a shortage of accountant labor. Accounting enrollment is down for a 3rd consecutive year and this year’s PPP and CAREs programs accentuated the gap between demand for accounting services and the supply of accountants able to do it. Clients want self-serve, faster access to data, and more consulting and advisory than ever before. They are demanding an accounting solution that is not limited by the speed of typing or human throughput. Building a virtual and highly tech enabled accounting firm is critical to success in today’s COVID world.
— Enrico Palmerino, founder & CEO, Botkeeper
In the COVID impacted world, accountants have been to the forefront of helping clients. They have been assisting clients in obtaining PPP loans and forgiveness thereof. Without help from accountants, hundreds of thousands of businesses would have met a blood bath. The “new normal” was not something anybody could have anticipated. The systemic shock is way too strong. It is not easy to predict how much time will it take for a typical small business to bounce back fully.
Traditional accounting has been mostly after the fact, rearview mirror based, compliance-driven work. It is entrenched to ensuring compliance. The accounting profession's very fabric has not been pervasively built for making clients’ businesses successful. Effectively coaching and guiding businesses to be commercially successful is a very different knowledge, mindset, skillset, and outcomes-set. That needs to be a part of the accountants’ very personality and psyche. It is a core evolutionary challenge for accountants, on a personal as well at the firm level. Even recognizing this challenge is difficult because the current focus has been on helping and guiding businesses survive by overcoming COVID-induced economic problems and complying with Government regulations to secure funding and forgiveness thereof.
The existential threats that need to be immediately attended to are making it nearly impossible for accountants to look at the foundational transformation the profession needs. I am sure accountants will dig deep into their own resilience to keep their firms strong enough and help clients tide over the economic downturn. But survival fears will not easily allow accountants to look beyond immediate challenges.
Therefore, the most important issue facing the profession is the need for a quantum shift of the mindset, skillset, toolset, and more importantly, the “outcomes-set” to quickly and permanently become the “business, value, and success builders” for clients. As a whole, the accounting profession needs to become an “essential” part of clients’ minds, lives, and businesses, irrespective of the economy's state. Transforming the profession's outcomes to shape clients’ future success will construct the profession's path to be that fundamental and indispensable necessity.
— Hitendra Patil, director of practice development, AccountantsWorld
The need to understand and adopt modern/cloud technology while maintaining the highest level of safety and security for client information.
— Gail Perry, editor-in-chief, CPA Practice Advisor; owner, Gail Perry CPA
I believe that, during these unprecedented times, keeping the pipeline full and focused on the future accounting profession is one of the most important issues. This ties into the challenge today of developing new staff remotely and the impact it will have on firm culture and, ultimately, the pipeline.
— Carl Peterson, VP – small firm interests, AICPA
I worry that it is fatigue. The last three years included federal tax reform, state tax reform, the Wayfair decision, and then the pandemic with a recession. Any one of these would stress an industry, and the accounting industry experienced all four. Recessions stress clients, but not like the pandemic has stressed the hospitality industry. The primary issue today must be helping clients, especially those in the hospitality industry, attempt to survive.
— Scott Peterson, VP, U.S. tax policy and government relations, Avalara
I think the most important issue currently facing our world is eradicating COVID-19 and rebuilding our economy and our industry. Now more than ever, the economy needs trusted advisors.
— Jeff Phillips, CEO, Padgett Business Services
Meeting the high standards of regulatory reporting and analysis given the emerging financial and tax complexities facing clients and businesses in today’s digital world.
— Bernadette Pinamont, vice president, tax research, Vertex Inc.
Attracting the right people to the profession is our key to a successful future. We are competing for the best and brightest students for the career of choice with STEM and related fields, starting as early as middle school. The solution to this issue is two-fold. First, we must make sure that our message is clear and consistent: Accounting is a dynamic, varied career that leverages technology in exciting and novel ways; second, accounting must be seen as a welcoming profession that is inclusive of women and people of color. The lack of diversity in the accounting profession is a problem that must be addressed. Data from the American Institute of CPAs (AICPA) shows that minorities represent only one in six professionals at accounting firms nationwide, a statistic the MSCPA is working to change. We must recruit and support the diverse members of our workforce. Staffing the accounting profession with diverse talent will allow firms to compete in the changing business-owner demographic and remain profitable for years to come.
— Amy Pitter, president & CEO, Massachusetts Society of CPAs
The accounting profession faces changing client demands, especially in the wake of the coronavirus pandemic. For Grant Thornton, analytics have been an important part of how we help clients. Early in the crisis, we launched a Pandemic Risk Assessment tool to help companies benchmark their operations during the pandemic.
We’ve also found new ways to deliver value to clients. For example, we developed a COVID-19 dashboard that tracks pandemic-related company communications, such as SEC disclosures, in multiple industries. And we helped clients overcome the audit difficulties of their largely home-bound workforces by gathering large swaths of their data that we then cull for audit purposes.
Accounting firms are also facing an imperative to reinvent their own operations. To address this issue at Grant Thornton, we recently launched alyxTM, the firm’s new digital platform for transformation and innovation.
Additionally, the profession is facing competitive pressures from non-traditional sources. New competition from start-ups, private equity and technology companies — which all have access to capital for investment — is radically shaping the industry. As a result, Grant Thornton is focusing on services and revenue streams protected by regulatory and brand barriers to entry.
— Bradley Preber, CEO, Grant Thornton LLP
The most important issue currently facing the accounting profession today is the critical need to accept technology as a disruptive force. The exponential rate of growth in technology – and its application across all business and social spheres – will continue to influence the practice of our core disciplines. By embracing these tools, there are countless opportunities to ensure that the profession evolves and thrives in the century ahead. Other critical issues facing the profession include relevancy – meaning the need for the profession to become more diverse and inclusive to support thriving external stakeholders and also adjust our educational pipeline to reflect this diversification so we become more connected and networked. Other issues included succession support of the profession and alignment into new areas of service opportunities.
— Anthony Pugliese, president and CEO, California Association of CPAs
The changes that all CPA firms are facing will result in challenges that are unparalleled in history due to technology, demographics of firm owners, and competition from outside the profession for talent and alternative sources for services that meet clients’ needs. The most important issue facing the profession is building leaders within CPA firms that can manage those challenges. Virtually every firm has the talent on board to provide the technical needs of its clients as of today. Firm leaders need to be better at anticipating what will be needed even 5 years from now and assembling the resources to remain relevant to their clients.
— Terrence Putney, CEO, Transition Advisors LLC
Right now, there’s a lot of discussion in the accounting industry about the role technology plays in transforming how firms operate and how they can work more effectively with their small business clients. We’ve seen how technology can surface data and rich insights for small businesses and accounting professionals, but we shouldn’t overlook the importance of soft skills in this industry. When combined together with the right tech expertise, accountants and bookkeepers become well-rounded advisors who can work together with small businesses in
new and exciting ways.
In our industry, the services accountants can provide are rapidly changing. We’re seeing firms offer advisory services where you might need to have a conversation with a small business client around business planning. This takes different skills than doing something like a tax return where you can follow and complete a step-by-step process. If you’re having a business planning conversation with a client, there’s more coaching involved, so soft skills around emotional intelligence and empathy are critical to how you interact and build relationships with clients.
Technology is only half the equation — it’s the human and technology elements combined together that make the role of an accounting professional so powerful.
— Ben Richmond, U.S. country manager, Xero
Right now? Adaptability level. Simply put, some have it and some don’t. For example: I feel like there are almost two separate professions right now: the ones that have easily embraced remote work, and those who never did (all throughout Covid) or very begrudgingly did, and have no intention of becoming or staying more flexible. To be adaptable and strong right now takes incredible leadership and team spirit, as well as humility and patience as everyone is learning together. I’m impressed how many firms are doing well yet I know many are struggling to overcome missteps over the last 9 months or so.
— Michelle Golden River, President, Fore LLC
Frankly, self-esteem. Once an advisor’s self esteem is where it should be, they can accomplish most anything they want. Also worth mentioning is finding good talent.
— Richard Roppa-Roberts, founder, Quasar Cowboy
The pandemic has wreaked havoc on small businesses—and firms are working harder than ever to provide deeply insightful advisory services. This is the most important issue right now: taking care of clients not only with financial stability, but also offering them peace of mind. This requires firm leaders to provide a client experience beyond anything offered in the past.
— Darren Root, GM, Rootworks LLC
I’ll respond in two ways because our times demand it:
- Current, hot issue on everyone’s mind- Covid-19.
- Current, but slightly longer terms issues – succession planning and labor shortage.
Covid-19
Clearly, the virus has had a huge impact on CPA firms, affecting firms’ revenues, profits, operations, work processes, staff and clients (did I leave anything out?). The politization of the virus has been a shameful and unnecessary tragedy which has worsened an already worldwide catastrophe. This politization makes it impossible to know when life will return to normal because the White House has made it its business to confuse everyone. But it seems prudent to expect that the virus’s impact will last at least through June, 2021 and most probably, straight through to the end of 2021…if we’re lucky.
Key Covid practices remain in the gestation phase: How to recruit, train, supervise, retain and mentor staff without being face to face with people? How to keep morale up? How to get clients? How to keep clients and establish strong relationships? How to establish and maintain a firm’s culture? How to maintain partner unity?
Further, there will be permanent changes in how CPA firms operate: More remote work. Less client meetings. Less office space.
No one knows what the history of the mid 2020’s will say about the pandemic but I hope I’m around to read it.
Succession planning and the talent shortage
a. Succession planning. From two perspectives: First, Baby Boomers are retiring in droves. 80% of their firms have failed at succession planning because (a) there is a long-standing shortage of quality staff and (b) partners are so busy attending to clients today that they don’t focus enough on developing their people for tomorrow. CPA firms have never been good at succession planning and it hasn’t improved for at least 20 years.
Second, given the challenges stated above, compounded by the tremendous impact of the eventual seismic technology changes, succession planning difficulties will get even more challenging over the next 10 years or so. Many firms will need to make epic changes to fundamental ways they operate their firms. They will need to develop consulting services to replace declining revenue from compliance services. They will also be challenged to hire staff with non-accounting backgrounds. This is a perfect storm for CPA firm chaos.
b. Labor shortage. Virtually all firms, especially those smaller than the Top 100 struggle mightily with an inadequate supply of good staff. This is a decades-long problem for CPAs and no letup is in sight.
— Marc Rosenberg, president, The Rosenberg Associates
The COVID-19 pandemic has highlighted the continued need for flexibility and embracing change in the industry. We are seeing many of our customers transition to advisory work with their clients – in doing so they are providing invaluable assistance to their clients, many of which are small businesses struggling to manage operations amid the pandemic, and also expanding their revenue streams to go beyond preparing taxes. This is just one example of the kind of flexibility that will be critical for the profession moving forward.
— Charlotte Rushton, president, Tax & Accounting Professionals, Thomson Reuters
The digital skills gap is one of the greatest threats to our workforce - both in our profession and corporate America as a whole. How we operate and serve clients is more reliant on our digital capabilities than ever before, which was underscored by the pandemic when our organization, like most, had to take its operations completely remote nearly overnight. It was only because of PwC US’ deep investments in technology and culture change that we were able to make a smooth transition to a fully remote workforce and were able to successfully help our clients navigate some of the toughest months of their careers.
Our clients are more savvy than ever and are expecting high-touch experiences, real time engagement, and of course, more efficient analysis. We must leverage technology to deliver on these, while at the same time, equip our people with the capabilities to engage with and deliver on the technology they’re given, so that they’re able to use it to its full potential. By leveraging technology to carry through certain aspects of our business, we are able to work more efficiently, allowing our
people to spend more time on high-value tasks that involve greater involvement and perspective -- working with technology, not using it to replace the work that our people are doing.
This is a profession with countless development opportunities, and in a technology-driven world accounting organizations are competing for talent not just within the profession, but with every other large organization. Therefore, the leaders of the accounting profession must work to attract diverse, tech-enabled candidates, by articulating the value of our field and the bright career paths within it. They must also work with institutions of higher education to prepare the accountants of tomorrow for the kind of work we need done.
— Tim Ryan, chair and senior partner, PwC US
Providing users of financial statements transparent, decision-useful information to facilitate effective investment and capital allocation decisions in an uncertain economic environment.
— Hillary Salo, technical director and chair of emerging issues task force, FASB
The on-going pandemic is the most important issue currently facing the accounting profession. Accounting professionals are among the millions of front-line workers that are helping individuals and businesses navigate and stay viable through this period of severe disruption and change.
— Heather Satterley, CPA, Satterley Training & Consulting
Firms figuring out how to pivot to the new normal. The industry will never go back to where it was in March 2020 and will not remain where it is today. We will end up in a “blended” workplace—somewhere in the middle. Firms need to figure out how to operate in this new environment- the impacts on collaboration, virtual workers, a millennial workforce, physical office, etc…
This new normal will provide firms opportunities like never before —for those that figure it out. Opportunities related to hiring talent anywhere, not just in your geographic area and the same for clients. No reason a firm in a small city will ever be limited to grow.
— Gary Shamis, CEO, Winding River Consulting
There are three priority issues of urgent importance as follows: 1) talent attraction, retention, and development, 2) client experience through evolving services models and 3) the disruption of technology and artificial intelligence on the underlying accounting firm value proposition.
— Russell Shapiro, member, department chair – transactional group, executive committee member, Levenfeld Pearlstein LLC
The profession is facing many significant issues. We are still in the middle of a pandemic that has upended our clients and companies as well as the way we work. Diversity, equity, and inclusion (DEI) continues to be a challenge facing the profession. We are making some progress but there is still a long way to go. DEI has deservedly been more front and center with recent societal tragic events.
Still, I believe the most important issue facing the profession is ensuring the future relevance of the CPA. Technologies such as artificial intelligence (AI) and robotic process automation (RPA) are already being used more and more in the profession and will continue to advance at an ever-increasing pace. Widely cited research by the University of Oxford warns of a future where accountants and auditors face a 94 percent probability of having their jobs computerized, and tax preparers face a 99 percent probability of being automated. Many will take issue with such a study but I strongly believe that by 2027 technology will dominate audit, tax and accounting services functions.
For CPAs to ensure their relevance, they will need to expand from current compliance services to a focus on providing strategic insight to their clients and companies. Trust has been and will continue to be a cornerstone of the profession; however, to ensure relevance in a world of automation, we need to move to becoming the Most Trusted AND STRATEGIC advisor to businesses. This shift is at the core of the Illinois CPA Society’s “CPA Profession 2027” whitepaper.
— Todd Shapiro, president and CEO, Illinois CPA Society
Being able to transform quickly enough to take advantage of the impetus that the pandemic has provided to drive modernization of the tools, techniques, and business practices used by the profession.
— Donny Shimamoto, managing director, IntrapriseTechKnowlogies LLC
The most important issue currently facing the profession is the need for CPAs to transition from being seen by their clients as a compliance tool to someone who can help them navigate a complex and ever-changing environment. CPAs are well-equipped to be a key advisor, but many let the “day-to-day” get in the way of engaging with their clients on a higher level.
— Lisa Simpson, director, firm services, Association of International Certified Professional Accountants
How to embrace technology and adjust to become more of a trusted advisor and consultant and not just a traditional compliance practice. As technology reduces certain services and changes the way we operate, we will need to offer clients more than just conventional services to retain, attract clients and to grow professionally and financially.
— Joel Sinkin, president, Transition Advisors LLC
In more normal times the issues facing the profession, although challenging, are able to dealt with and addressed using tried-and-true business methods. The current situation, as has been noted numerous times, is a truly unprecedented time in almost every single way; the accounting profession is no exception to development.
Framed in that context, the most important issue facing the profession is to ensure that 1) colleagues and clients are able to successfully navigate and move forward in such uncertain terms, with CPAs truly serving as advisors and supporters, and that 2) even as we are contend with a once-in-a-lifetime situation that we as a profession remain focused on continuously improving, delivering value to our clients, and developing into trusted and strategic partners.
— Sean Stein Smith, assistant professor, City University of New York, Lehman College
The pivot: Firms of all stripes and sizes are finding it essential to adjust their strategies, technologies, staff, and service lines to survive and thrive through the pandemic-ravaged economy and beyond. The next three years will determine the next 30.
— Rick Telberg, CEO and founder, CPA Trendlines Research
The challenges that CPAs are currently facing are unlike any this profession has ever seen. The COVID-19 pandemic has put a spotlight on how important CPAs and other accounting professionals are to helping their business clients as well as their own organizations apply for stimulus funding, reinvent their business strategies and goals and basically keep the lights on. These are no easy tasks, but CPAs have risen to the occasion and proven how important they have become to a business’ bottom line. CPAs were already viewed as trusted advisors, but this pandemic has made it a necessity to tap into CPAs’ knowledge base.
— Ralph Thomas, CEO and executive director, New Jersey Society of CPAs
The most important issue currently facing the profession is the technological revolution it is currently undergoing, especially related to artificial intelligence (AI) and automation. Far from being a “job destroyer,” AI can allow finance and accounting professionals to unlock their full potential as strategic business partners within their organizations. That said, the challenge is in ensuring that professionals are adequately equipped with the skills they need in the future – data and analytics, decision analysis, and the ability to develop and successfully communicate long-term strategy. This requires new thinking on education and post-graduate training, which the profession has so far been moving toward only gradually. We need a greater sense of urgency in upskilling our profession to remain relevant and influential, now and well into the future.
— Jeff Thomson, president and CEO, Institute of Management Accountants
The accounting profession faces the same challenge and opportunity as other industries in this unique time—namely, that COVID-19 has accelerated digital transformation, made us rethink how we work, and challenged us to operate in a virtual environment. When the pandemic broke, our people were able to quickly pivot to virtual client work due to more than a decade of investments in our organization’s digital transformation. Our auditors seamlessly shifted to a virtual audit, while maintaining the high-quality standards we are known for, and our Tax professionals worked virtually through busy season while helping clients adapt and manage uncertainty and volatility.
Technology is at the heart of this moment, and the ability to adapt to new waves of technologies like cloud, robotic process automation, and blockchain is mission critical. It’s essential that the profession embraces the opportunity to digitize, innovate, and be agile.
— Joe Ucuzoglu, CEO, Deloitte US
The large-scale aggressive use of real-time integration technologies by governments seeking to fill consumption and income tax gaps is changing the way businesses think about tax compliance and information systems. The complete freedom that companies have had so far to exchange data electronically between each other for sales and purchasing purposes, and the standards that have been developed to facilitate these exchanges, are being uprooted by a new tax-first paradigm which often requires businesses to redesign how they deal with trading partner integration for procure-to-pay and order-to-cash cycles. In addition to potentially displacing technology and standards that have been refined by market forces over decades, these new controls require an unprecedented level of consistency between transaction and accounting data. The in-built power for governments to stop transactions creates an operational risk that fundamentally changes the role of tax in business continuity.
— Christiaan Van Der Valk, VP, strategy, Sovos
COVID-19 is the most important issue facing not only the accounting profession, but everything we do today. How the accounting profession addresses the effects of this pandemic is of great consequence. Whether it’s the impact on internal controls for those responsible for the accounting records and financial statements, or whether it’s the impact on audit procedures for those auditing financial statements in this remote working environment, the profession is dealing with unprecedented challenges and must adjust on the fly. There is no play book to follow, but the accounting profession needs to be vigilant in adapting to an extremely unusual time.
— David Vaudt, former chairman, Governmental Accounting Standards Board
A focus on firm culture. There are so many sub-areas of creating an engaged culture that have risen to the top as a high priority during COVID-19 between virtual work, mental health, and diversity, equity and inclusion. With the change to remote work at its core, technology transformation has been rushed into place by many to keep the lights on. This left each person alone to fend for themselves to meet their objectives while dealing with new processes, technology and ways of working. That’s why now is the time to pause and take stock in what is working and not working. This way you can access what to do differently as you move forward so people feel fulfilled by the work they do and are able to maintain human connection, which is so important to overall happiness. Just as firms focus on culture in the workplace, now more than ever, time needs to be spent assessing what people need to be successful, including professional education, allowing for time to connect during the workday on topics outside of work, and creating clear lines between work and personal time. This will not only benefit the business but allow staff to feel that their careers are safe, the work they are doing, and workplace relationships are fulfilling, and they will be able to achieve success.
— Amy Vetter, CEO, The B3 Method Institute
That most firms and practitioners are unwilling and unable to make the major change needed due to the truly lifetime disruptive change our industry is faced with. Improvement cannot be done through 2% budget increases or 5-10 year change plans, change needs to be major and happening everyday as we shift from a profession of data entry to one of creative thinking advisors. If we fail to make this change, we will suddenly find we no longer have a value to provide or clients.
Becoming irrelevant. Being replaced by technology and firms who have embraced the future and truly understand the value they can provide to their customers and stakeholders by being proactive and forward looking.
— Garrett Wagner, CEO/founder, C3 Evolution Group, C3 Advisory, C3 Financial
Working at a cloud accounting software provider like Xero, we constantly see how the accounting world continues to be dominated by technology and the opportunities presented by AI and machine learning. I believe this is a really exciting time for the industry. For the small businesses and accounting professionals we support, we know there are few things more precious to them than time. Our teams focus on using data and machine learning in the Xero platform to streamline processes and deliver the right nuggets of insight at just the right time. The reality is, many small businesses out there are still doing their accounting manually. With advances in AI and machine learning, workflows that used to take hours are completed in minutes making it faster and easier to collect and transact on information. With access to real-time insights, advisors can collaborate more closely with clients and help them make smart business decisions. Data is helping our profession create better workflows and as a result, we can enable small businesses to spend more time growing their business and doing what they love.
The other issue I think about a lot is how the pandemic has impacted small businesses. Data from multiple countries suggests the economic impact cut twice as deep in small business versus large enterprises -- a function of smaller cash reserves and less room to cut costs. Cash flow is the leading cause of small business failures, and that was true before COVID-19 crushed sales and revenue. For business owners struggling with cash flow or where they see the future of their business, now is the time for accountants and bookkeepers to step in and show their value as trusted advisors. Accounting professionals not only help with financial management, but they can provide access to government programs, technology advisory, and serve as a sounding board so business owners don’t have to make these decisions on their own.
— Tony Ward, president, Xero Americas, Xero
I believe fear of change is the biggest issue facing the accounting profession. Accountants are trained to be conservative, to manage risk, and to seek patterns and processes to ensure accuracy in their work. And while all of these traits are critical, it makes embracing new ways of thinking and doing things a struggle.
In my career alone, I have seen much change and those who sought to learn new ways of working and embraced the benefits fared much better.
Had I simply stuck to what I was trained to do or what felt comfortable, I would have stayed in the past, in the black and white, instead of seeking new challenges and better ways of working to improve not only myself, but my organization and my clients.
— Cari Weston, director – tax practice & ethics, Association of International Certified Professional Accountants
Our lack of confidence in ourselves and our abilities at the individual level and our collective inability to change and evolve fast enough to truly meet the needs of our clients. We have to be proactive and not reactive in helping our clients so that they can succeed in this fluid environment in which we find ourselves. We should be a shining example of what is possible, not laggards who wait for everyone else to figure it out and then show up to count things.
— Geni Whitehouse, countess of communication, Brotemarkle Davis & Co.; Solve Services; Even A Nerd Can be Heard
The Talent Gap. We have a twofold problem -- not enough accountants and accountants with an outdated skill set. Fortunately for our profession, unemployment is very low for accountants, but this does means hiring is harder and accountants end up overworked. Beyond that, accounting is rapidly changing, both from a guidance and technology perspective. Continuing education will be key for guidance, but we really need those in the industry to accelerate their knowledge of technology to be part of the revolution. At FloQast we aim to empower accountants to lead with rapid technological innovation.
— Mike Whitmire, co-founder, FloQast
NOW is time for us to move forward and strengthen our position in the area of diversity, inclusion and equality.Twenty-plus years ago,I sat on a stage as a panel moderator and looked out at an audience of ManagingPartners who were all white andmale except for onewhite woman.I asked,“when will this profession start looking like the rest of the world with women and people of color among the leaders?”The answer was,“just give it time;we are working on it.”Well, I’m tired of waiting! We must put some serious time and effort into making true change. This is our future, and we need to be strong warriors in changing our world.
— Sandra Wiley, president, Boomer Consulting Inc.
This year – BURNOUT and engagement issues from the distance and firms not being used to managing the crisis. Burnout is mostly due to capacity issues (too much work, not distributed well), the stress of the 10 month long busy season, the pandemic, racial unrest, the election, etc. It’s been a LOT. Managing engagement, motivation and mental health of their team members is critical for firm leaders.
— Jennifer Wilson, co-founder and partner, ConvergenceCoaching LLC
Hyper-commodification. There is a race to the bottom on price for traditional compliance and record keeping services, driven in part by automation technologies and in part by large, well-funded organizations that are leveraging these technologies to provide tax preparation and bookkeeping services at scale. The rank and file practices cannot compete on price and must differentiate their practices, offering services to larger businesses who are not served well by the scaled models and by offering highly specialized services and advisory services that differentiate them from the scaled models.
— Joe Woodard, CEO, Woodard
Our profession is constantly challenged with keeping up with and adapting to rapid change. From the pandemic’s economic impacts and increased transaction activity to new accounting standards and—of course—evolving technology, the phrase “change is the only constant” has never rung more true. These changes have widespread impacts on the way we operate within our firms and the way we help our clients.
As we continue to set new standards, diversify service offerings, adopt new processes and procedures, and implement new technologies, it’s important to build in flexibility and contingencies to position ourselves for future change.
— Candace Wright, chair, Private Company Council
Right now, dealing with the pandemic has overtaken everything. The accounting profession has survived a turbulent year so far: from learning how to operate an accounting firm remotely with very little notice, to taking care of our people and our clients over the long haul, while also dealing with the incredibly difficult and novel technical challenges from a tax perspective. I’ve never been prouder of my colleagues.
— Jamie Yesnowitz, principal, state and local tax, Washington national tax office, Grant Thornton
I believe one of the most important issues facing the accounting profession will be balancing the need for automation with the need for personal interaction and professional interpretation of the results of automation.
— Diane Yetter, president and founder, Yetter Consulting Services & Sales Tax Institute
The most critical issue currently facing the accounting profession is the Coronavirus's impact, both now and in the foreseeable future. I recently wrote about this in an article in CPA Practice Advisor Magazine (June 15, 2020). Education, no matter the industry or profession, is critical, especially during a pandemic that is re-writing our lives on a daily basis. A silver lining for CPAs in the current situation is the decrease in online education costs due to the increase of online content.
This positive shift around credentialing practices has been a long time coming. When the pandemic struck, CPAacademy.org provided a quality, little to no cost education, and our numbers show it. Since the year (and the epidemic) began, we have gained nearly 50,000 practicing accountants, issued almost one million CPE credits, and hosted over 2,500 webinars. We have developed the necessary technology to scale these offerings to our membership. With our help, members have gained tools to build and grow their practices while increasing market penetration and supplying their valuable content to clients across the country.
— Scott Zarret, president, CPAacademy.org
