Podcast Summary: AICPA Town Hall – March 5, 2026

Episode Title: Top 100 Firms Report Insights and Small Firms Update
Hosts/Speakers:

• Erik Asgeirsson (President & CEO, CPA.com)
• Mark Peterson (AICPA Executive)
• Melanie Lauritson (Technical Expert, AICPA)
• Dan Hood (Editor-in-Chief, Accounting Today)
• Lisa Simpson (VP, AICPA)
• Stephanie Otero (Small Firm Advocate, AICPA)

Episode Overview

This dynamic episode of the AICPA Town Hall focuses on industry-defining trends from the newly published Accounting Today Top 100 Firms report and connects these insights to small firm realities. The episode delivers vital updates on DC policy, IRS operations, regulatory changes, and the drivers accelerating transformation in public accounting. Special segments highlight both the success strategies of mega-firms and the practicalities and opportunities awaiting small practitioners in a rapidly changing marketplace.

DC Update & Policy Developments

With Mark Peterson
[00:10–15:56]

Key Discussion Points

• Primary Elections & Congressional Dynamics:

  • Tight margins in Congress are making every seat matter, especially with pivotal Senate races (e.g., North Carolina, Texas).
  • Volatility is high, with legislative processes affected by narrow majorities and incumbent losses.
    • “You get a different attitude about things if you, for example, lose your election… Even right now these things can start to impact the production of legislation on the House and Senate floor.” – Mark Peterson, [02:42]

• Disruptions & Resilience Resources:

  • Ongoing business disruptions (COVID aftermath, tariff debates, military actions) require resilience planning.
  • AICPA is regularly updating resources for members to address these uncertainties.
    • “We do have resources… thinking about business resilience as we work through these issues…” – Mark Peterson, [04:08]

• Department of Homeland Security Funding Lapse:

  • Only partial government shutdown, but DHS (including TSA, E-Verify, FEMA) remains without funding, impacting travel, hiring, and disaster relief.
  • Delays in FEMA funding for disaster victims are likely.

• Supreme Court Ruling on Tariffs:

  • The Court limited the White House’s authority to impose broad tariffs using emergency powers; potential for tariff refunds now moved to the Court of International Trade.
  • Refund litigation is expected to surge; administration seeking new paths for imposing tariffs under alternative authorities.

• Department of Education Loan Cap Definitions:

  • Accountants, once improperly classified as non-professionals, are now being recognized as a profession for student loan purposes following intense AICPA advocacy.

• National Debt & Congressional Transparency:

  • Bipartisan proposals to require Congress to formally review federal financial statements in joint sessions.
    • “We do know a lot about financial statements, right? … It should be connected to what is the impact on the bottom line of the US government.” – Mark Peterson, [12:08]

• Taxpayer Assistance & Service Act (TAS Act):

  • Bipartisan legislation with 63 provisions, including increased IRS oversight over paid preparers, disaster relief, and electronic filing reforms.
  • Anticipation that movement may occur via year-end or post-election legislative vehicles.

IRS & Filing Season Technical Update

With Melanie Lauritson
[16:16–26:33]

Insights

• IRS Leadership & Staffing Changes:

  • Acting IRS Commissioner (Secretary Besant) at the end of allowable interim term; involuntary reassignment of IT and HR staff to customer service is ongoing, but many lack tax backgrounds.
  • Training for reassigned staff is expedited; 1,500+ employees impacted.

• Filing Season Performance:

  • Slight dip in received (down 2%) and processed (down 2.4%) returns suggests potential backlog.
  • IRS.gov visits surged by 46%, indicating increased demand for guidance.
  • Average refund rose by 10% to $3,804 per return.

• GAO on Paid Tax Preparer Oversight:

  • 57% of taxpayers use a paid preparer, but most preparers are unregulated, leading to higher error rates and abuse risks.
  • GAO recommends congressional action to establish minimum professional standards.
    • “GAO has come forward and said that congressional action needs to be taken, and they are asking for a minimum level of standards…” – Melanie Lauritson, [19:40]

• TAS Act Key Provisions:

  • Notable elements include disaster relief triggers, billable preparations, and the “Safe Act,” aimed at easing extension-related workloads.

• Postal Service Postmark Changes:

  • With local postmarking ending, CPAs are urged to move internal deadlines up, encourage e-filing, and utilize certified mail for paper returns to ensure timely filing.

• IRS New Schedules:

  • Finalized forms for tip income, overtime, vehicle, and senior deductions released, with updated guidance—especially on overtime.

Top 100 Firms Report: Trends & Takeaways

With Dan Hood (Accounting Today), Erik Asgeirsson, and Lisa Simpson
[27:09–46:27]

Growth & Market Dynamics

• Overall Growth:

  • Average Top 100 firm growth reached 8.58%, with remarkable performance among the largest ($1B+) firms and dynamic movement in the rankings.
  • When excluding the Big Four, average growth exceeds 12%.

  “There’s so many different things that accounting firms can do—different ways they can be structured, different ways they can pursue growth, different ways they can partner with outside investors, particularly private equity.”
  – Dan Hood [27:46]

• Mega-Firm Expansion:

  • 12 firms now exceed $1B in revenue, up from barely 5 only a decade ago.
  • Acquisitions and major mergers (e.g., Baker Tilly-Moss Adams) are reshaping the leaderboard.

• M&A Activity:

  • Over 225 reported deals in 2025—almost double the prior year, reflecting a dramatic rise in PE-driven roll-ups and consolidation.
  • Fastest-growing firms are disproportionately PE-backed or involved in platform models.

  “For growth rates, they’re being driven a lot by those outside partnerships, mostly PE-based. That’s really what’s driving the high, high, high growth.”
  – Dan Hood [36:20]

• Private Equity Impact:

  • PE-backed firms are focused on aggressive reporting, increased partner accountability, and major investments in technology.

  “There’s a lot more reporting, and then a lot more accountability… They’re setting goals and they’re holding people to them more strongly.”
  – Dan Hood [36:48]

• Technology Adoption:

  • Technology investment is the top driver for PE partnerships, aimed at further growth, service expansion, and resolving capacity pressures.

  “The number one answer was to be able to invest in technology… so I think firms are hoping… that technology will help them grow.”
  – Dan Hood [37:59]

• Staffing & Partnership Pipeline:

  • Slight declines in partner numbers point to retirements, not exits, but succession remains a challenge.
  • Firms are hiring, often from non-traditional backgrounds, to address workforce gaps.

  “A lot of firms have had trouble filling the partner pipeline to cover for those retirements…”
  – Dan Hood [39:12]

• Service Line Growth:

  • 85% of firms report client accounting services (CAS) as growth areas, especially when focused by niche/vertical.
  • Shift to advisory and strategic services is accelerating, building on technology and talent.

  “Firms are still focusing in on their people as they look at talent, technology, expanding services, M and A, etc. So it’s good insight.”
  – Lisa Simpson [45:29]

Practical Insights for All Sizes

• Market entry by large, acquisitive firms is increasing competition, even for small and regional players.
• Deliberate diversification of strategies—M&A, client selection, new services, and technology—define successful firms at every tier.

Small Firm Opportunities & Practical Tips

With Lisa Simpson & Stephanie Otero
[47:03–55:41]

Highlights

• Small Firm Resilience:

  • Small firms are essential to the profession, offer strong client relationships, and are well-suited for agility and niche service.

  “Small firms are the heart of our profession, so they’re absolutely needed.”
  – Stephanie Otero [47:55]

• Busy Season Growth Mindset:

  • Even in peak season, firms should leverage interaction with clients to identify advisory opportunities and document potential disengagements.

  “Small firms can be very agile and they have close client connections… those two things allow for opportunities during busy season that aren’t a heavy lift but can lead to growth.”
  – Stephanie Otero [48:10]

• Use Extensions Strategically:

  • Early and proactive use of extensions manages capacity, reduces burnout, and provides more time for deeper client interactions.

  “I view extensions as a tool to help create capacity during busy season and prevent burnout.”
  – Stephanie Otero [48:59]

• Post-Busy Season Actions:

  • Evaluate clients for fit and profitability; revise pricing and fees as needed.
  • Plan strategically for rolling out advisory and financial planning services.
  • Be intentional in tracking pain points and building ideal client portfolios.

  “Being intentional… is really digging into ideal client profiles, looking at the clients that… are ready for advisory relationships, not just focused on the… see you next year tax return.”
  – Lisa Simpson [52:54]

• Resources for Small Firms:

  • Utilize toolkits for burnout prevention, client conversations, and advisory services (PCPS membership recommended).
  • New “Small Firm Hub” and newsletter provides centralized access to updates and support.

Memorable Quotes & Moments

“If you have a client that does paper file… encourage people to e-file and make e-payments… proper postmarks… the most thorough and complete way to ensure and have proof that this return was filed timely… is through certified mail.”
— Melanie Lauritson [21:22]

“We need to move now to the next segment… it shows the strength of the overall, you know, service that’s being provided by these firms to the market. Only two or three down years over the past 30…”
— Erik Asgeirsson [46:27]

Timestamps for Key Segments

| Segment | Start | End | |-------------------------------------------|---------|---------| | DC Update & National Issues | 00:10 | 15:56 | | IRS Operations & Technical Update | 16:16 | 26:33 | | Top 100 Firms Report – Major Trends | 27:09 | 46:27 | | Small Firm Segment - Strategy & Tips | 47:03 | 55:41 | | Q&A and Resources | 55:41 | 61:23 |

Conclusion & Resources

The March 2026 AICPA Town Hall provides a comprehensive and forward-looking review of the accounting profession’s current landscape, from the policy storms in Washington, to the growth engines of the top firms, to the practical realities and innovation at the smaller end. All segments agree: strategic agility, investment in people and technology, and intentional service design are critical for continued relevance and success.

Free Resources Mentioned

• Top 100 Report & Industry Insights – [Accounting Today]
• IRS Identity Theft Webpage
• Burnout Prevention Toolkit
• PCPS Membership & Toolkits
• Small Firm Hub & Newsletter
• GenAI Tax Research platform (Blue Jay 7-day trial)
• Client Accounting Services Best Practices
• COSO GenAI Controls Guidance

Next Town Hall: March 26, 2026

Subscribe for more: [AICPA Town Hall Series on podcast apps or CPA.com/TownHall]