The 2024 Top 100 People: The most vital issues in accounting

December 11, 2024 9:00 AM

Once again, many of the Top 100 Most Influential People identified the talent pipeline as the biggest concern in accounting, but several other challenges also crept into the consciousness this year, ranging from the technological to the strategic to the transactional.

When asked the question, "What is the most important issue currently facing the accounting profession?" this year's Top 100 People were not shy in sharing their thoughts on accounting's most pressing issues, a selection of which we present here.

(To see the full responses of all the candidates for the Top 100, click here. And to see who the Top 100 voted the most influential, see here.)

Many issues the profession currently faces stem from this root cause: unclear and insufficient value propositions. A strong value proposition is the most important element of any firm's business model and should drive the other eight elements. Once a business model is defined, the operating model is shaped to support it.

Consolidations and PE deals infuse needed growth capital, but most expand the firm more or less "as is," growing the scale of the same problems. We're overdue for a rethink of the actual business model — not just the operating model. Until firms have clear value propositions for a specific clientele, and a nontime-based revenue model, they'll struggle to generate sufficient cash for talent and technology. The hours x rate approach won't get firms there. Instead, affect a dramatic revenue-per-person increase by aligning pricing with client ROI, not team hours.

As the fifth generation of CPAs wrongly taught that we "sell time" (we do not), it's on us to shift perspective and build new skills to uncover our real value.

— Michelle Golden River, owner/president, Fore LLC

I believe the most important issue facing the profession is proper succession planning. Many larger firms took the private equity path, some early, some late. Other firms of all sizes and specialties were absorbed into firms that secured a war chest of cash from private equity infusion, realizing higher multiples than ever before. Other firms are trying to figure out how to be competitive and achieve reasonable growth and pull off succession planning, the old-fashioned way or in a way that does not include the sale of a portion of the firm to outside parties.

There lies the challenge currently facing the profession…which will be the best path forward for the firm and for the profession overall?

Only time will tell!

— Jim Bourke, managing director, advisory services, WithumSmith+Brown

Photo by Richard Morgenstein

The greatest challenge facing the accounting and internal audit professions is the need for practitioners to keep pace with emerging threats and new trends, particularly when it comes to digital disruption. The need to convince our members that embracing technology is an absolute imperative to our profession's ability to continue to thrive is the number one thing that keeps me up at night.

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The rapid advancement of new technology, such as AI, has significant implications for the broader internal audit profession, with implications on the accounting practices and risk management systems related to an organization's financials. In order for practitioners to build a comprehensive understanding of emerging technology and the potential risks they pose, they must first take steps to actively embrace new digital tools, including AI, in their own audit and governance plans.

— Anthony Pugliese, president & CEO, Institute of Internal Auditors

Right this minute, I'm going to say a lack of momentum, bordering on paralysis. The aging and impending exit of so many CPA firm partners, CFOs, controllers, CEOs, operational leaders and key executives inside the profession's associations — it is all leading to a lot of "wondering" — who will the next successors be, wonder if we should monetize now while valuations are climbing (and until we decide, should we hold off on strategic planning, leadership development, big IT investments, or acquiring other firms), wonder what the next administration will focus on, etc. We're seeing it in almost every organization we encounter in the profession right now.

We're telling our firm and association leaders who do have a three- to five-year vision plans with the intent to remain independent at this time that they can really differentiate and "make hay" in attracting the best clients and talent who want to be part of that kind of growth certainty, a youthful leadership bench, and ideas for transforming business models and modernizing overall. The silence of leaders who are ambivalent or secretly plotting an exit is deafening and it's not a magnet for attracting talent or clients.

— Jennifer Lee Wilson, co-founder and partner, ConvergenceCoaching LLC

Arianna Campbell

The biggest challenge facing the accounting profession today is the reluctance of many firms to evolve their business models. With technology advancing and clients expecting more real-time insights and strategic advice, sticking to traditional methods is holding firms back. This hesitation often stems from a fear of disrupting current revenue or reliance on legacy systems, but this mindset leads to missed opportunities.

Firms that are slow to adopt tools like AI and automation risk falling behind — not just in efficiency but also in delivering the value clients now expect. To stay competitive, firms must embrace change by adopting AI and automation in meaningful ways while continuing to invest in their people. By shifting routine tasks to technology, firms can free up talent to focus on building relationships and providing higher-value advisory services.

The decisions firms make today — whether to invest in technology, expand services, or prioritize developing their teams—are shaping their future. Those willing to act now will be better positioned for long-term success, while those that resist risk falling behind as the industry evolves.

— Arianna Campbell, shareholder and COO, Boomer Consulting Inc.

Nicole Connolly/Photo by NicoleConnolly.com

The most important issue currently facing the accounting profession is digital transformation. We need to leverage technology to work smarter, not harder. By successfully integrating digital tools, we can increase efficiency, do more with less, and ultimately improve profitability while reducing time spent on tasks. This could also help address other challenges, like raising starting salaries and easing the talent pipeline issues we're facing here in the U.S.

— Carla McCall, chair, AICPA, and managing partner, AAFCPAs

There are two answers to this question, but they are connected. One is on the competency side, and one is on the speed side. I think the evolution of our competencies, just like every other aspect of society, has to be at the forefront. Professionals who've got 20 more years to work in this profession, their competency evolution in those 20 years is going to be dramatic. Obviously, someone who is entering the profession comes to the table with a different set of skills. But even that evolution over 40 years is going to be phenomenal, and that ties to speed. It's not just the evolution of those competencies, it's the pace at which the world is changing, the speed of that, that requires it to be done at a much different pace.

And the truth is that the profession won't be successful, and the individuals in the profession won't be successful, unless they are adaptive and unless they change. We have to constantly move as a profession. Because if we're going to be the deliverers of trust and capabilities, we're going to have to stay abreast of that very fast. I think the profession does a really good job of adapting. But it's going to have to happen even quicker, and that provides a lot of stress.

To me, it all comes down to how we can advance those competencies quickly enough to hold a distinct advantage in the market. Since you are immensely significant and valuable when you occupy a unique position in the industry. And if you add our trust quotient to that, you're probably the most successful group when you can put all those pieces together.

— Barry Melancon, president and CEO, American Institute of CPAs; CEO, Association of International Certified Professional Accountants

The most important issue is making sure we have the right people, the right capacity, skill set, and motivation to best serve clients. This is a complex issue requiring firms to create attractive work environments and appropriate expectations, technology, processes and resources to empower and equip team members to be the best client servers and advisors as possible. It involves making sure this is an attractive profession to get into and stay in and maintaining the integrity and prestige of the profession, competitive pay and benefits, opportunities for advancement and career satisfaction through meaningful work where we tap into the gifts of the people. It involves allowing team members to contribute to leading firms and adding innovative ideas for best serving clients using technology to automate repetitive work and AI and machine learning to make aspects of the job easier all to allow team members to use their passions and talents and create innovative solutions to best solve client problems. Advisors are needed now more than ever, and this profession is a noble and extremely exciting one. We are in a people business. Our people are the service and the product serving people. This must stay top of mind.

— Angie Grissom, owner, chief relationship officer, The Rainmaker Companies

The most prominent issue is managing private equity transitions. PE money is coming into firms and software publishers alike. PE's performance metrics and expectations affect those involved in the transactions and all their competitors. The impact can be good and bad at the same time. While the talent pipeline remains tight, automation and artificial intelligence assist with these issues. PE is investing in these initiatives, forcing others to invest, too. Many new startups are challenging the traditional providers of tools and applications. Vetting investments is challenging, and frequently, claims are not truthful.

Further, client expectations are increasing. Clients expect a modern, efficient and effective way to deal with the firm, regardless of the service area. While we still have concerns that client accounting services can become commoditized, advisory services will remain valuable to clients of all sizes. PE deals are causing audit groups to be spun off while tax is automated more. The services, platforms and teams used to care for clients will continue to go through a heavy transition over the next five years, making change management a continuing challenge.

— Randy Johnston, CEO and founder, EVP, NMGI and K2 Enterprises

SUEBARR

It's twofold – talent and artificial intelligence. We're in an era of increasing business complexity, data overload and global turmoil, and CPAs have never been more in demand to serve as trusted advisors and protectors of the public. We're going to be called upon to do even more in the future — sustainability reporting and assurance is just one example — so we need durable solutions to attract and retain talent and leverage technology, especially generative artificial intelligence.

As part of this, we need to broaden the appeal of a CPA career to underrepresented communities so the profession is as vibrant, respected and future-focused as it can be.

— Susan Coffey, CEO, public accounting, Association of International Certified Professional Accountants

The most pressing issue facing the accounting profession today is the need to adapt to rapidly evolving technology while maintaining the human element that is essential to our work.

The emergence of generative and agentic artificial intelligence, machine learning, and automation is revolutionizing how tax professionals process data and perform routine tasks. While this technological shift offers immense potential for increased efficiency and accuracy, it also presents a significant challenge: redefining the role of accountants in this new landscape. As routine tasks become automated, tax professionals must pivot towards higher-value services that leverage our uniquely human capabilities. This involves developing stronger analytical skills, honing the ability to provide strategic insights, and focusing on advisory services that go beyond traditional number-crunching.

— Elizabeth Beastrom, president, tax & accounting professionals, Thomson Reuters

Consolidation, private equity, and the changing nature of organizational structure. In many firms it takes a long time for someone to become a partner. A corporate structure may allow young accountants to realize the economic value available from practicing accounting.

— Scott Peterson, VP of U.S. tax policy and government relations, Avalara

Ed Wheeler Photography

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. While we do need to address the need for more accountants entering our profession, taking advantage of technology can mitigate some of the impacts we experience with professionwide workforce shortages.

— Joel Black, chair, Governmental Accounting Standards Board

It is a perfect storm of aging exiting boomers continuing to deplete the labor supply with the waiting game of AI and other technologies getting to the point where they can materially make a dent to offset the labor shortage. The issue though is how firms will survive this gap. They need to adapt a reprice and better manage their capacity or they will continue to need to merge upward to survive. The inflection point firms are facing is off the chart.

— Bob Lewis, president, The Visionary Group

The use of artificial intelligence and how that impacts financial reporting and auditing. The profession is quickly adapting, but there are many issues and challenges to be addressed.

— Jennifer Burns, chief auditor, AICPA-CIMA

The most pressing challenge for the profession today is keeping pace with the relentless evolution of tax regulations in our digital economy. Tax professionals must deftly navigate increasingly intricate tax laws that vary widely across jurisdictions, demanding both innovation and adaptability in compliance strategies.

The whirlwind of legislative changes adds to this challenge, demanding more than technical skills; it requires a deep understanding of the legal nuances with far-reaching implications. The potential for litigation or audit exposure looms large, making it essential to remain proactive in their compliance efforts. As legislation evolves at an unprecedented pace, professionals must adapt quickly to ensure their organizations remain compliant. This not only requires technical knowledge but also the ability to interpret complex legal language effectively.

— Charles Maniace, VP, regulatory analysis and design, Sovos

With the soaring demand for CAS and other accounting services, scaling to address this demand remains a significant challenge. Recruiting young talent to our profession should be a top priority and we need to proactively uncover opportunities to highlight the benefits of an accounting career to college students as well as to professionals in private industry who may want to broaden their horizons. Recruiting the right individuals is key to effectively meeting our growing needs.

— Kane Polakoff, principal, client advisory services practice leader, CohnReznick

Upskilling for the future. Keeping the current and future accounting professionals up to speed on the most current tools, technology and services to properly serve our employers and clients. This goes for CFOs in business and in public accounting.

— Mark Koziel, incoming president/CEO, Association of International Certified Professional Accountants, AICPA & CIMA

The most important issue currently facing the accounting profession is the substandard working conditions within large public accounting firms. Too often, staff are forced to work long hours for low pay, leading many college graduates to pursue alternative careers. This is the main cause of the accounting talent shortage and until we address it as a profession, we will continue to watch our numbers head in the wrong direction.

— Blake Oliver, founder & CEO, Earmark

Reyes Florez

I think the influx of private equity is a huge one. While it clearly validates the value large, midsize, and small firms provide and has lots of positives, without intention and willingness to really understand the culture and modus operandi of boutique firms, a lot of the foundational things that make the category great — relationships, community, local control — could be lost. I hope independent firms, when they look to sell or merge, are really weighing which firms believe in the category and are invested in the industry's long-term success. And I hope consolidators are being intentional with the technology and processes they introduce, because the work we do should enhance and evolve what makes boutique firms great, and we shouldn't be disrupting just for disruption's sake.

— Reyes Florez, CEO and founder, Platform Accounting Group

thomas strand

The most important issue facing the profession is cultivating and maintaining trust across the stakeholder environment of the public, customers, employees, regulators and investors. In a world where trust is constantly under construction, it is even more critical that we continue our trusted business advisor roles.

— Kimberly Ellison-Taylor, founder and CEO, KET Solutions LLC

The most important issue currently facing the accounting profession is the integration and effective use of artificial intelligence. AI has the potential to automate routine, time-consuming tasks, allowing practitioners to focus on higher-value work. This not only helps to address the current talent shortage by freeing up capacity, but also has the potential to improve job satisfaction among staff, as they can engage in more meaningful and strategic activities.

— Kacee Johnson, VP, strategy & innovation, CPA.com