By Jeff Call, Managing Partner and CEO, Bennett Thrasher
The accounting industry is undergoing a seismic shift. With advancements in artificial intelligence, evolving tax policies and changing workforce dynamics, 2025 will be a year of challenges and opportunities. As professionals, we’re tasked with navigating these transformations while staying rooted in the fundamental principles that have defined our industry for decades: trust, relationships and service.
AI and Automation: Friend, Not Foe
AI is already revolutionizing how accounting professionals work, offering unprecedented opportunities for efficiency and precision by automating repetitive tasks like drafting emails, preparing financial reports and conducting data analysis, freeing time for teams to focus on more thoughtful, strategic and high-value consulting work. However, the rise of AI also introduces risks that firms must navigate carefully – especially around compliance and safety.
Generative AI tools like ChatGPT are powerful but come with challenges. If client-sensitive information is input into these platforms in their general database, data exposure to the broader public is risky – a scenario that no firm can afford. This is why firms increasingly focus on ensuring their AI strategies are built around compliance frameworks and safety protocols.
Many firms are forming dedicated committees that evaluate tools, implement secure practices and develop policies to guide teams. These committees are essential in determining which platforms meet compliance standards and ensuring employees are appropriately trained.
Additionally, proprietary AI platforms like Microsoft Copilot are becoming key to mitigating risks because they operate within a secure, private “container” for sensitive data that adheres to compliance and safety requirements. Such platforms give firms the confidence to harness AI’s potential while protecting their most valuable asset: client trust.
Tax Policy: A Landscape of Change
Change is also imminent in the regulatory environment. The upcoming sunset of key provisions from the 2017 Tax Cuts and Jobs Act in 2026 is already sparking debate. Whether these provisions will be extended, replaced or allowed to lapse will have profound implications for businesses and individuals.
Tax professionals should be proactive in helping clients navigate this uncertainty. Beyond staying up to date on legislative changes, it’s about anticipating potential impacts and preparing clients for multiple scenarios. Adaptability will be critical, whether advising a multinational corporation on international tax compliance or assisting small businesses with cash flow strategies.
Moreover, the increasing complexity of global tax regulations adds another layer of challenge. Tariffs, digital taxation and cross-border compliance issues are becoming more prominent, especially for companies with an international footprint. As the demand for expertise in navigating these complexities grows, firms must develop deep, specialized knowledge.
The Workforce Evolution: Attracting and Retaining Talent
One of the most pressing challenges for the accounting industry is navigating the evolving workforce landscape. In recent years, private equity (PE) investment has reshaped the dynamics of many firms, promising rapid growth and technological transformation. But the influx of capital comes at a cost: heightened demands, relentless focus on short-term financial results, and frequently a deterioration in workplace culture. The push to “do more with less” leads to burnout, alienating professionals seeking balanced and fulfilling careers.
Independent firms, by contrast, are uniquely positioned to meet the next generation’s expectations. What they value most – authentic mentorship, people-first cultures, purpose-driven leadership, and workplaces that prioritize well-being and meaningful career progression – are often difficult to achieve under the private equity model.
Independent firms are uniquely equipped to prioritize values over velocity, crafting environments that foster collaboration, creativity and a genuine sense of community.
Firms that invest in their teams see that investment return many times over in employee retention, client loyalty, innovation and sustainable growth. Independent firms are proving that success isn’t just about hitting growth metrics – it’s about building a legacy of excellence that starts with taking care of your people.
Client Expectations: A Human-Centered Approach
As technology transforms how services are delivered, client expectations are also evolving. Efficiency and accuracy are no longer differentiators; they’re baseline requirements. Clients increasingly value a partner who understands their business, anticipates their needs and delivers solutions tailored to their goals.
This underscores the importance of maintaining a human-centered approach. Technology can help streamline processes, but trust is built through meaningful interactions. Whether it’s a face-to-face meeting, thoughtful email or timely advice, the moments that build relationships cannot be automated.
Firms that successfully combine technological efficiency with personalized service will be best positioned to thrive. It’s not about choosing between innovation and tradition –it’s about integrating the two.
Preparing for the Future
The accounting profession is at a pivotal moment. The choices we make today – about how we adopt technology, approach regulation and invest in people – will shape the industry for years to come. As we step into 2025, it’s clear that change is the only constant, and with change comes opportunity – to innovate, adapt and grow.
