I’ve consulted with hundreds of accounting firms over the past two decades, but there has never been a moment in our profession’s history quite as challenging as this:
- Advanced technology—including artificial intelligence—is no longer a theoretical, it’s impacting firms’ daily operations.
- Technology changes have given way to even harder-to-manage cyberthreats.
- Fewer accounting students overall, plus more retirees, is causing a staffing shortage poised to disrupt industries outside our own.
I’ll be addressing these topics and more at the upcoming RightNOW 2025 conference. But my professional advice is you don’t delay responding to these challenges for another moment. Keep reading to learn which critical issues impacting firms must be remediated, and soon, along with my practical suggestions for how to handle them.
4 accounting profession challenges and solutions
1. Declining staff numbers
What’s happening? The numbers tell a concerning story:
- 75% of CPAs reached retirement age in 2020.
- Accounting graduates declined 4%, year over year, from 2020 until 2023.
- In the fall of 2024, undergraduate enrollment in accounting programs increased by 12% as compared to 2023.
Despite the increase last fall, there’s no way that accounting firms will be able to meet the significantly increased demand for the next few years.
This perfect storm is creating intense competition for talent, forcing firms to fundamentally rethink their recruitment and retention strategies.
How to fix it: You may be outsourcing tasks to non-credentialed personnel, leveraging overseas staff to supplement some work. Other successful firms are responding with more flexible, hybrid and remote work models, as well as offering comprehensive benefit packages that go beyond traditional compensation.
The most effective approaches to attracting potential staff include:
- Hybrid work environments with flexibility on scheduling.
- Clear career advancement paths with formal mentoring programs.
- Robust technology tools that support remote work.
- Regular professional development opportunities.
- Competitive salaries with performance-based incentives.
…But that’s not all. Get our advice for recruiting and retaining accounting professionals.
2. Keeping up with technology
What’s happening? Firms can no longer afford to be “settlers” in technology adoption. Those taking a “wait and see” approach risk falling significantly behind as client expectations evolve toward real-time service delivery and digital collaboration.
Additionally, accounting industry surveys indicate that technology-mature firms earn more revenue per employee than the not-as-advanced practices.
How to fix it: If you’re a small to midsized firm, without a dedicated IT and security team, you must leverage the expertise of an accounting-specific technology provider. This is the most cost-efficient way to not only ensure you are keeping up with the rapidly changing technology, but that the technology you’re using is up to the strict FTC and IRS security six standards.
Key areas requiring immediate attention include:
- Cloud infrastructure for secure, anywhere access.
- Digital workflow tools to standardize processes.
- Client collaboration platforms for seamless document exchange.
- Automation tools for routine compliance work.
- Data analytics capabilities for advisory services.
Learn more about the integral role of technology in your firm’s strategy.
3. Growing cybersecurity risks
What’s happening? Rapid technology changes have given way to even harder-to-manage cyberthreats. And the pace of the cyberattacks aimed at accounting professionals keeps growing. On average, accounting firms face 900 attempts of cyberattacks…and that’s just during tax season.
It comes as no surprise then that “rising cybersecurity/fraud threats” was among the most frequently selected accounting profession challenge in the State of Accounting Firms Trends Report 2024.
How to fix it: “Fixing” cybersecurity threats requires a layered, comprehensive approach. The safest practices deploy several safeguards to protect their firm from current and emerging threats:
- Enterprise-class security infrastructure
- Mandatory security awareness training
- Multifactor authentication implementation
- Regular security assessments
- Incident response planning
Most importantly, firms must recognize that internal IT teams alone rarely have sufficient resources to maintain adequate security. Partnership with specialized providers has become essential.
4. Regulatory complexity demands new approaches
What’s happening: The pace of regulatory change continues to accelerate, making it impossible for individual practitioners to keep up with all developments. Failure to keep up isn’t an option, as a misunderstanding could lead to fines or penalties.
According to Caseware’s State of Accounting Firms Trends Report 2024, 16% of accounting professionals stated that new laws and regulations were among their top practice management challenges in the past year. The sentiment was echoed in AICPA and CIMA’s PCPS CPA Firm Top Issues Survey.
How to fix it: Successful firms are adopting systematic approaches, leveraging profession-specific publications, networking events and technology to stay informed.
Stay informed about changes to the accounting profession with these five tips:
- Subscribe to profession-specific publications: Follow sites like cpapracticeadvisor.com, accountingtoday.com and journalofaccountancy.com, which provide updates on new regulations, accounting standards and other accounting-specific news.
- Join professional organizations: The American Institute of Certified Public Accountants (AICPA), CPA Firm Management Association (CPAFMA) and the Institute of Management Accountants (IMA) offer a wealth of resources—including training programs, conferences and webinars— that provide updates on regulatory changes and other important developments.
- Visit government agency websites: The Securities and Exchange Commission (SEC) and the IRS websites are great places to browse information about new regulations and guidance.
- Participate in webinars and events: Social gatherings provide opportunities to learn about and discuss the impact regulatory changes are having on firms. And they may provide you with better ideas for how to address them.
- Designate specific personnel to monitor changes in key areas: Then, develop a standard process for sharing and implementing changes.
Join me at RightNOW 2025
Want to dive deeper into these challenges and explore practical solutions? Join me and other industry experts at RightNOW 2025.
Along with my “Think Like A Hacker” security session, I’ll help lead an interactive panel discussion on the future of accounting. Learn how to address staffing, technology, security and regulatory challenges alongside a network of peers, with concrete strategies that you can implement in your firm immediately.
Secure your spot and join the conversation about shaping the future of accounting today. Explore the RightNOW agenda.
