AICPA Town Hall Podcast Summary
Episode Title: Tech and AI Trends Across the Profession
Date: September 26, 2024
Hosts: Erik Asgeirsson (B), Lisa Simpson (C)
Guests: Rachel Dressen (E), Dan Hood (F), Andrew Argue (D)
Overview
This AICPA Town Hall episode centers on the rapidly evolving technology and AI trends influencing the accounting profession. Executive leaders and tech experts provide D.C. updates, technical guidance, and in-depth insights from their annual Executive Roundtable, featuring the latest strategies in automation, AI implementation, practice transformation, and firm structure changes. The episode includes critical updates on government policy, reporting obligations, and regulatory actions affecting practitioners.
Table of Contents
- Washington, D.C. & Legislative Update (00:55)
- Technical Updates: Relief, ERC, and Standards (15:35)
- Executive Tech Roundtable Highlights (25:52)
- AI, Automation, and Firm Transformation (29:06)
- Tax Services Evolution and Advisory Opportunities (37:50)
- Open Forum and Notable Q&A (55:32)
- Memorable Quotes & Moments
1. Washington, D.C. & Legislative Update (00:55) <a name="dc-update"></a>
Government Funding Bill
- Congressional passage of a continuing resolution to fund the government until December 20, avoiding a shutdown. The push came from election season urgency and hurricane-related concerns.
- “The bill passed in the House yesterday afternoon by a vote of 341 to 82… The Senate passed it overwhelmingly by a vote of 78 to 18…” — Rachel Dressen (01:25)
- A December funding debate looms post-election, possibly extending into tax season.
Tax Legislation & BOI
- Wyden–Smith tax bill: Uncertain prospects, could see action post-election depending on results.
- BOI Reporting: Unlikely to be repealed or delayed; firms must prepare clients by Jan 1, 2025. Only ~4.5M of 32.5M filings submitted so far.
- “It’s a tremendous risk not to do the work and to just be hoping that Congress passes legislation in December.” — Rachel Dressen (09:55)
- Cannabis legislation: Potential protections for CPAs providing ancillary services.
SEC & PCAOB Developments
- 5-hour testimony by SEC Chair and all Commissioners, first since 2019.
- PCAOB’s future discussed, including a legislative proposal to move it under the SEC—Chair Gensler opposes, warning it could weaken both bodies (12:50).
- Supreme Court decision on SEC in-house judges led to dropped enforcement actions against auditors—impacts remain unclear (13:49).
2. Technical Updates: Relief, ERC, and Standards (15:35) <a name="technical-updates"></a>
Disaster Relief
- Several states (CT, NY, LA, PA, NC, GA, FL) under new declarations; AICPA Benevolent Fund offers member support.
- Advocacy continues for faster disaster relief processes.
ERC (Employee Retention Credit)
- Ongoing IRS denial letters; guidance provided on how to appeal if a claim is rejected.
- “If possible, file your dispute, your response to the denial letter within 30 days…” — Lisa Simpson (17:45)
- November 22 deadline for the second round of IRS Voluntary Disclosure Program.
- Updates on handling ERC claims via third-party payroll providers.
New ARSC Proposal
- ARSC’s exposure draft clarifies that CPAs providing financials as part of ongoing consulting wouldn’t need to follow SARS 21 Preparation Standard, moving such engagements under consulting standards—not subject to peer review.
- “This is all about the client accounting services category… fastest growing service line in firms.” — Erik Asgeirsson (24:10)
3. Executive Tech Roundtable Highlights (25:52) <a name="roundtable"></a>
- Annual roundtable brings together over 40 major and emerging tech vendors—focus on expanding the profession’s tech ecosystem for all sizes of firms.
- Key investments in automation, streamlined data movement, niche vertical solutions, and cloud evolution.
- Significant representation from both established companies and startups ensures diverse innovation.
- “I’ve never seen a more comprehensive set of solutions across all the practice areas.” — Erik Asgeirsson (28:39)
4. AI, Automation, and Firm Transformation (29:06) <a name="ai-automation"></a>
The State of AI Adoption
- Massive shift toward applied AI—use cases beyond brainstorming now include production tools in auditing, tax, client management.
- “Last year… a lot of ideas. This year, pretty much every company had something in production.” — Andrew Argue (30:26)
- Focus on automating “grunt work,” optimizing data flow, enhancing staff capacity.
- Transparency & Black Box Problem: Vendors prioritizing explainability so accountants can trust AI outputs.
Upskilling & Transformation
- Increased accessibility: AI is an equalizer, available to firms of all sizes.
- Shift from repetitive manual “grunt work” to higher-value advisory services, using new models of training (case studies, sandboxes).
- “They are more than eager to use technology to work smarter… this technology is going to give those quality guardrails.” — Lisa Simpson (34:38)
Private Equity's Role
- Influx of private equity is accelerating tech adoption—especially in mid-sized and large firms.
- “Private equity always has a thesis…they think they can help them do better by utilizing more technology… to drive greater value.” — Erik Asgeirsson (36:31)
- Firms exploring capital options and new structures.
5. Tax Services Evolution and Advisory Opportunities (37:50) <a name="tax-evolution"></a>
The Dawn of Next-Gen Tax Software
- Decades-old tax prep tools set for overhaul thanks to AI and LLMs; zero-touch bookkeeping and 60–90% reduction in return prep time now within reach.
- “I tell people that there’s only about two normal tax seasons left.” — Andrew Argue (38:23)
- Early-stage tools in beta today may be production-ready for the 2025 tax season.
Rise of Tax Advisory Services (TAS)
- Most firms currently focused on compliance; a minority (under 5%) offer fully packaged recurring advisory.
- Automation frees up capacity, facilitating higher-value services like year-round planning and proactive consultation.
- “Over the next 18 to 36 months, you’re going to see a massive shift.” — Andrew Argue (39:20)
- Potential for new business models, engagement styles, and pricing strategies (recurring, tiered services).
- “This allows you to think about the clients that you’re going to serve, how you’re going to price these services… and really even out the workflow…” — Lisa Simpson (44:53)
Small Firm Perspective
- Small firms may have a change advantage, adopting advisory or advanced technology sooner.
- Major opportunity to move beyond annual touchpoints toward holistic, ongoing client relationships.
6. Open Forum and Notable Q&A (55:32) <a name="open-forum"></a>
PCAOB Structure
- PCAOB is currently separate but under SEC oversight; a merger would require legislation (56:04).
BOI Reporting & UPL
- Most states still allow CPAs to assist clients; firm caution required on advisory/decision boundaries.
- “As of right now, there is no state who has said that CPAs are not allowed to assist their clients in BOI filings.” — Lisa Simpson (57:01)
AI Accuracy & Human Oversight
- “Hallucination” (AI confidently returning incorrect answers) remains an issue but is increasingly mitigated.
- “Most of the tools you’re using don’t ask for clarification… But you can see every quarter… we are approaching these levels [of human accuracy] in various different areas.” — Andrew Argue (58:54)
- Continuous review and supervision remain necessary.
7. Memorable Quotes & Moments <a name="quotes"></a>
- “Younger accountants… can start doing meaningful work right away, like on day one... not doing the grunt work firms have been stuck with for a long time.”
— Dan Hood (29:06) - “The core work is going to become easier and easier over the next couple of tax seasons. So if we can free up our time… we pick our head up and we say, gee, most of our clients could be doing a little bit more.”
— Andrew Argue (42:26) - “There’s a lot more collaboration between firms now… They call it ‘coopetition.’ Not so much a competition mindset but ‘how do we work together’…”
— Andrew Argue (53:10) - “The uncertainty was there, but not the anxiety. And I thought that was a really interesting change...”
— Dan Hood (54:24) - “We have to have the mindset of thinking about what’s next and not being scared by it, but being curious about it. Having that, ‘this is going to be fun.’”
— Lisa Simpson (55:04)
Additional Resources
- For deeper dives and follow-up: Check out the upcoming Digital CPA Conference, AICPA Town Hall rebroadcasts, and newsletters for slide downloads and resource links.
Tone: Professional, optimistic, collaborative, and future-focused—reflects leadership’s enthusiasm for technology-driven transformation across the accounting profession.
[Episode Length: 62:17]