Navigating 2025 Accounting Trends: Insights from Geni Whitehouse
Geni Whitehouse is a distinguished CPA and the visionary behind TheImpactfulAdvisor.com. She also serves as a wine industry consultant at BDCoCPA.com in Napa Valley. An accomplished author and keynote speaker, Geni holds CITP and CSPM designations. Her influence in the accounting world is well-recognized, having been featured in the Accounting Today Top 100 Influential People List. Recently, she took on the role of President of IT Alliance, an esteemed association of top technology and accounting professionals.
Changing Tax Laws and Regulations
Question:
With the new year and a new administration, tax law changes are likely on the horizon for 2025. Bills like the Inflation Reduction Act and SECURE 2.0 have already introduced updates to retirement plan and corporate tax rules, requiring time to fully understand their implications.
While accountants can’t fast-track the learning process, what strategies can they use to free up time and manage their workload effectively as they adapt to these changes?
Answer:
The pace of transformation in the profession means we can’t rely solely on annual updates or sporadic training. We need to carve out time for weekly learning and reflection to stay current and effective.
AI tools can be invaluable allies in this process. By summarizing complex updates and identifying the most relevant information for our clients, AI helps streamline learning. Specializing in a particular industry or niche makes this even more manageable, as it narrows the focus of what we need to stay on top of.
Ultimately, success lies in balancing clarity of purpose with a commitment to continuous learning. This mindset shift allows us to navigate change more effectively while reclaiming control over our time and energy.
Increased IRS Scrutiny and Audits
Question:
Since 2024, when Congress passed the Inflation Reduction Act, the IRS modernized its systems and enhanced its enforcement efforts. Reports indicate that the IRS has recovered $4.7 billion in taxes.
There’s uncertainty around the IRS's future modernization efforts due to potential budget cuts. If funding is significantly reduced, accountants might have to deal with longer processing times. If funding continues, accountants will need to keep adapting to new processes.
What’s your advice for navigating these two very different scenarios?
Answer:
The IRS's modernization efforts have already had a noticeable impact, not only through updated tools but also a shift in philosophy as they begin leveraging AI. This "let the taxpayer beware" approach is evident in the increased use of auto-generated notices. Unfortunately, these notices are often inaccurate, placing taxpayers in the frustrating position of either paying unwarranted assessments or spending additional time and money to dispute them.
Navigating future IRS changes, whether influenced by funding cuts or continued modernization—requires both adaptability and advocacy.
Scenario 1: Budget Cuts Lead to Longer Processing Times
If funding is significantly reduced, accountants will need to prepare for slower processing times and potential bottlenecks. To navigate these challenges effectively:
- Double-check all filings to minimize errors and reduce the risk of delays or disputes.
- Partner with software providers that offer advanced error-checking tools and real-time analytics to catch issues early and streamline submissions.
- Proactively communicate with clients about the potential for slower IRS responses.
- Set realistic expectations for timelines and emphasize the importance of timely document submission to avoid compounding delays.
- Use these resources to escalate urgent issues or gain clarity on complex matters. Practitioner hotlines can be an essential lifeline for resolving bottlenecks quickly, especially when traditional channels are overburdened.
Scenario 2: Continued Modernization Brings New Processes
If modernization efforts persist, accountants will need to stay agile and informed. Key strategies include:
- Regularly review IRS updates and attend relevant training sessions to understand system changes.
- Increased reliance on software publishers will be essential to ensure the accuracy of filings and reduce the time required to file both individual and business tax returns. Partnering with reputable software providers and using advanced solutions can help minimize errors and streamline the preparation process.
- AICPA advocacy plays a critical role in fostering better communication between tax professionals and the IRS. Continuing efforts by the AICPA to improve access to IRS resources, including practitioner hotlines and streamlined processes, will be key to navigating modernization efforts and addressing practitioner concerns.
In both scenarios, there’s one constant: the value of clear, efficient communication with the IRS.
Question:
Some cryptocurrency regulations are already in place, and more are on the way. Each new requirement adds complexity, requiring accountants to guide clients through compliance while preparing for upcoming changes. How can accountants maintain trust and deliver exceptional client experiences amid this constant evolution?
Answer:
Accountants must navigate a delicate balance between compliance and client advocacy to maintain trust and deliver exceptional experiences in a constantly evolving regulatory landscape.
While compliance with cryptocurrency regulations is non-negotiable, accountants should position themselves as proactive advisors rather than mere rule enforcers. This means going beyond ticking regulatory boxes to deeply understanding clients’ goals and offering tailored advice that aligns with their broader business strategies.
To maintain trust amid growing complexity:
- Stay ahead of regulatory changes by regularly updating your knowledge and communicating with clients about potential impacts before they become challenges.
- Engage in conversations about their long-term objectives, helping them navigate how cryptocurrency fits into their broader financial and operational goals. This reinforces your role as a strategic partner, not just a compliance officer.
- Help clients understand not only what is required but also why certain regulations exist and how they can plan for the future. This demystifies the process and positions you as a trusted advisor.
- Regulatory agencies increasingly view practitioners as agents of enforcement, which can strain the accountant-client relationship. By supporting professional advocacy efforts, such as those led by the AICPA, accountants can push for fair and practical regulations that balance compliance with maintaining strong client relationships.
Ultimately, trust is built on consistency, empathy, and strategic guidance. By focusing on our clients’ success and demonstrating expertise that goes beyond compliance, we can position ourselves as an invaluable ally in an ever-changing regulatory environment.
Technological Challenges and Cybersecurity
Question:
AI and automation are changing the game for accountants. What’s your take on leveraging these tools without losing the personal touch clients value?
Answer:
The shift to advisory requires more than just adopting new tools—it demands a new mindset, toolset, and skillset. While AI and automation streamline routine tasks and generate valuable insights, it’s the human connection that sets true advisors apart. Accountants must lean into their role as listeners and guides, asking thoughtful questions to uncover what clients truly want and need, rather than simply responding to surface-level problems.
To maintain the personal touch, integrate technology as a way to enhance—not replace—client interactions. For example, use automation to handle repetitive tasks so you can dedicate more time to understanding your clients’ goals and offering customized advice. It’s also critical to stay curious and empathetic, showing clients that you see them as partners in achieving success, not just data points in a system.
In niche practices, AI tools can uncover industry-specific insights but combining that with deep listening and personalized guidance ensures clients feel seen, heard, and valued.
Question:
Cybersecurity threats are a growing concern, especially with so much client data stored in the cloud. How can firms ensure they’re protected?
Answer:
Protecting client data requires both technical rigor and a human-centered approach. While investing in advanced cybersecurity tools like encryption, multi-factor authentication, and regular audits is critical, it’s equally important to address the human side of security. Train your team to recognize threats and empower them to make proactive decisions that protect sensitive information.
Communication with clients is another key element. True advisors don’t just secure data; they also reassure clients by explaining how these protections work and what they mean for their businesses. Transparency builds trust and reinforces the value of your advisory role.
As regulatory and technological landscapes evolve, ensure your mindset, toolset, and skillset evolve with them. Combine technical expertise with thoughtful communication to foster confidence and trust in your firm’s approach to data security.
Staffing Shortages and Workload Management
Question:
Fewer students are pursuing accounting degrees, with some citing the high workload and stress—particularly during busy seasons—as a deterrent.
How has the industry responded to address these concerns?
What positive changes have you seen in the profession to help manage stress and workloads for accountants?
Answer:
The industry is making strides to address workload challenges, but lasting change requires a shift in how we think about the profession itself. To attract and retain talent, we must emphasize that accounting is about making a difference, not just crunching numbers. Moving toward advisory services gives accountants the chance to engage in meaningful work, solve real problems, and build lasting relationships with clients.
Specialized advisory training and programs like the AICPA’s Pipeline Acceleration Plan are critical to this transformation. Initiatives such as the Experience, Learn, and Earn (ELE) Program are providing students with opportunities to gain practical work experience while completing their educational requirements, addressing both talent shortages and the demands of CPA licensure. This innovative approach not only prepares the next generation of accountants but also demonstrates the profession’s adaptability to modern educational needs.
Additionally, firms are introducing flexible work arrangements, prioritizing mental health, and promoting collaboration to create a more supportive environment. Mentoring programs and tools like the 30-Hour Communication Campaign—which emphasizes skills most valuable to new hires—are helping to foster a sense of belonging and purpose for younger professionals.
By reframing accounting as a people-driven profession, supported by initiatives like STEM recognition for accounting and expanded scholarship programs, we can attract the next generation of advisors eager to make an impact.
Question:
Remote and hybrid work is still evolving for many firms. What’s your advice for maintaining team productivity and communication during tax season?
Answer:
Start by investing in platforms that streamline communication and workflows, but don’t stop there—cultivate a culture that encourages connection, trust, and mutual accountability.
Regular check-ins are essential, but these shouldn’t just be about tasks. Use these moments to ask questions about challenges, goals, and well-being. Listening deeply to your team builds trust and fosters a sense of belonging, even in a virtual environment.
Encourage transparency about workloads and deadlines and consider implementing practices like virtual "open office hours" or shared dashboards to keep everyone aligned. Ultimately, it’s not just about productivity—it’s about creating a supportive environment where team members feel valued and heard. When people thrive, they do better work.
Changes in Client Expectations
Question:
Clients increasingly expect accountants to act as advisors, not just compliance experts. How can firms balance this demand with routine tax work?
Answer:
True advisors listen more than they speak. Start by asking open-ended questions about your clients’ goals, challenges, and aspirations. What keeps them up at night? What does success look like for them? Listening deeply helps you uncover opportunities to provide guidance that goes beyond taxes.
Developing a niche practice can also help streamline this balance. Specialization allows you to build expertise and develop tools tailored to a specific audience, making it easier to deliver both routine and strategic services efficiently.
Ultimately, advisory work is about making a bigger difference in your clients’ lives. When you combine the right tools with a commitment to understanding and serving your clients’ unique needs, you become an indispensable partner in their success.