In New York City, Mike Federle, the CEO of Forbes, led an engaging discussion with three outstanding CPAs: Lexy Kessler from Aprio, Steven Harris of RubinBrown, and Tony Argiz of BDO USA. This event celebrated the inaugural recognition of America’s top CPAs by Forbes, drawing attention to the unique challenges in the accounting profession.
The panel discussed the theme, “Courageous Integrity in a Complex World,” emphasizing the importance of ethical practices in the face of various pressures. They addressed how factors like artificial intelligence, private equity, changing tax laws, and the ongoing need for new CPAs impact the industry.
Artificial Intelligence
AI is reshaping the accounting landscape. Lexy Kessler shared that their firm saves about 41 minutes a day per employee by implementing AI tools. However, she stressed the necessity of having guidelines in place to ensure ethical use. Tony Argiz noted that AI could reduce overall working hours by 25% to 30% in the next few years, helping firms address the shortage of new CPAs.
Steven Harris pointed out that the excitement surrounding AI can attract young talent. Today’s graduates want to work with innovative tools, and integrating AI into the profession makes accounting more appealing to new entrants.
Private Equity Trends
The discussion also highlighted the growing interest of private equity firms in accounting. Tony Argiz explained that private equity sees value in consolidating firms to tap into talent and resources. With the industry proving resilient even in economic downturns, private equity sees a stable opportunity for investment.
Tax Regulations
On the topic of taxes, Steven Harris humorously referred to constantly shifting tax laws as job security for CPAs. He emphasized that adapting to these changes allows firms to provide valuable advice to clients, rather than just completing tax returns. This proactive approach not only creates opportunities for clients but also fosters collaboration among staff.
PCAOB Oversight
The Public Company Accounting Oversight Board (PCAOB) has increased scrutiny, imposing higher penalties and public disciplinary actions. Lexy Kessler noted that firms are feeling the pressure, making it crucial for them to continue their audit services while managing risks. The potential rise in insurance costs adds to the burden, prompting discussions on how best to navigate these challenges.
Future of CPAs
As many experienced CPAs reach retirement age, the future workforce is a pressing concern. The group discussed various strategies for attracting new talent. Steven Harris highlighted outsourcing as a viable solution to alleviate pressure on existing staff and improve profit margins. Meanwhile, schools are being encouraged to promote accounting more effectively to young students.
Lexy Kessler also pointed out that competitive starting salaries and better work-life balance are vital to attract new CPAs. Firms must adapt to meet the expectations of newer generations, which include collaborative work environments and engaging academic experiences in accounting.
Overall, the conversation underscored the evolving landscape of the accounting profession, revealing the importance of embracing change, upholding ethical standards, and finding innovative ways to attract the next generation of CPAs.
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