Accounting enrollment rebounds, AI reshapes the profession, and confidence wavers among finance execs

Welcome to our weekly digest, a space to reflect on where the accounting profession is headed and how it’s evolving in real time. Each week, we bring you a curated roundup of recent headlines, ideas, and innovations shaping the future of the industry.

From emerging technologies and shifting talent pipelines to strategic mergers and evolving client expectations, the profession is in motion. Our goal is to surface stories that matter—whether you’re leading a firm, advising clients, or just ruminating about what comes next.

In last week’s issue, we looked at the accounting profession’s growing ties to financial education, a generational shift in workplace expectations, and the retirement of a long-standing AICPA leader. This week, we explore early signs of momentum in the talent pipeline, the growing influence of AI on both firm operations and dealmaking, and how accountants are helping clients navigate mounting economic uncertainty. 

Let’s dive in.

🔍 Top headlines

Student interest in accounting is on the rise

After years of concern over the talent pipeline, there’s finally some encouraging news: undergraduate enrollment in accounting programs rose 12% year-over-year this spring, with two-year institutions seeing a 24% jump. That’s over 29,000 more students entering the pipeline, driven by growing awareness of accounting’s stability, earning potential, and broad career relevance. Profession-wide efforts like updated CPA licensure pathways, outreach initiatives, and firm-backed recruitment are starting to resonate. Graduate programs are also reporting increases in applications. For firms, it’s a key moment to double down: students are showing renewed interest, and the profession has a chance to support that momentum with mentorship, accessibility, and clearer paths into long-term careers. Sustaining this growth will take continued, coordinated action, but the energy is there, and the window is open.

Intuit upgrades GenOS to power next-gen AI agents

Intuit has rolled out major enhancements to its GenOS platform, accelerating the development of “done-for-you” AI Agents across QuickBooks, TurboTax, and beyond. These agentic systems are designed to perform complex tasks—like managing AP/AR or updating tax code logic—on behalf of users, while staying seamlessly connected to human experts. Powered by a robust blend of proprietary and commercial LLMs, GenOS combines planning, reasoning, and execution tools with Intuit’s rich financial data to deliver smart, proactive support at scale. New developer tools, including an Agent Starter Kit and real-time evaluation services, enable Intuit teams to ship these experiences faster across products. For accountants, this means AI that doesn’t just assist. It completes tasks, flags insights, and helps clients move faster, with built-in trust and transparency. It’s a glimpse into how advisory workflows may soon be powered by smart collaboration between AI and expert-led guidance.

Finance execs signal sharp drop in confidence

The latest AICPA-CIMA Economic Outlook Survey shows a dramatic shift in sentiment among senior finance professionals. Just 27% of CFOs, controllers, and other accounting and finance executives now have a positive view of the U.S. economy—down from 67% at the end of 2024. Nearly one in five believe we’re already in a recession, and another 34% expect one by year-end. Top concerns have shifted from inflation to tariff volatility, which is disrupting supply chains and driving up costs for two-thirds of businesses. Hiring plans are cooling (only 14% are expanding), and revenue and profit expectations have reached their lowest levels since 2020. Even confidence in individual company outlooks has dropped, from 50% to 37%. For accountants advising business leaders, this data highlights the urgent need for proactive scenario planning, cost control, and steady guidance in a market defined by caution and complexity.

💻Technology & innovation

The Big Four prepare to audit AI systems

PwC, Deloitte, EY, and KPMG are building out capabilities to audit artificial intelligence models—a response to rising demand for independent oversight of increasingly complex and opaque systems. As boards and regulators push for greater transparency around AI, the Big Four see an opportunity to establish themselves as trusted verifiers, much as they have in financial reporting and ESG assurance. These audits would assess data inputs, governance structures, model performance, and compliance with emerging ethical standards. But the AI assurance space is still in its early stages: there’s no universally accepted framework, client demand is still developing, and most firms are piloting their own methodologies. Even so, the direction is clear. As AI adoption accelerates, trust and explainability are becoming business imperatives—and auditors are getting ready to meet that moment.

Crete Professionals Alliance is betting on AI-driven accounting consolidation

Crete Professionals Alliance (CPA), a rapidly growing accounting platform backed by Thrive Capital, plans to invest over $500 million in acquiring US firms—with a bold vision to integrate OpenAI-powered tools across its network. CPA’s model combines traditional M&A with modern infrastructure: shared services, centralized technology, and automation designed to boost firm efficiency and profitability. The move signals a new phase in private equity’s interest in the profession—one that’s not just about scaling, but about embedding AI to transform how firms operate. As CPA accelerates its roll-up strategy, it could set a new template for what future-ready accounting firms look like: tech-integrated, investor-backed, and built to deliver both human expertise and machine-enabled precision.

🧠 Practice management

IRS ramps up scrutiny on form 1065

The IRS is increasing enforcement around Form 1065, flagging a surge in partnership filings with missing or inconsistent data—particularly around balance sheet entries. With penalties now hitting $230 per incomplete return, firms that prepare partnership returns should expect more scrutiny and fewer processing leniencies. The issue stems partly from software defaults and preparer oversights, but the IRS has signaled that vague or placeholder values (like zeros or “various”) won’t fly going forward. As audits increase and digital enforcement tools evolve, accurate and complete Form 1065 filings are no longer just best practice—they’re a risk mitigation necessity. It’s a clear warning: check your inputs, or prepare to pay.

AI accelerates M&A momentum in accounting

AI isn’t just changing how accounting firms work—it’s also influencing who’s buying whom. According to Middle Market’s analysis, AI is becoming a key catalyst for M&A activity across the profession. Firms are seeking tech capabilities they lack in-house, and acquirers—both strategic and private equity—see AI tools as a lever to increase margins, reduce overhead, and scale client services. Rather than a cost-cutting play, AI is increasingly seen as a driver of long-term competitiveness, especially in advisory and compliance-heavy areas. The implication for mid-market firms? Those with developed AI strategies may be more attractive acquisition targets—or better positioned to make their own moves.

🏢 Firms and mergers

Withum adds Texas firm PKF of Texas to its growing national footprint

Withum is expanding into the Texas market through a merger with Pannell Kerr Forster of Texas, P.C. (PKF Texas), a respected Houston-based firm with strong ties to the region’s mid-market business community. The move deepens Withum’s presence in the South and brings its national resources—including advisory, tech consulting, and industry specialization—to one of the country’s fastest-growing business hubs. For firms watching how regional strengths align with national strategy, this is a case study in leveraging local relationships while scaling service capabilities. It also underscores the growing importance of cross-state consolidation as firms aim to stay competitive in a landscape where clients increasingly expect both proximity and breadth.

DMJPS expands to Charlotte through merger with Potter & Company

North Carolina firm DMJPS has merged with Potter & Company, bringing its team and client base into the fold and extending DMJPS’s footprint into the Charlotte metro area. The deal adds 30 professionals and strengthens DMJPS’s regional service capacity across tax, assurance, and advisory. More than just geographic expansion, the move reflects a larger trend: midsize firms growing through culturally aligned mergers to build density and depth in key local markets. For firms navigating succession planning or regional competition, the DMJPS–Potter deal highlights how mergers can be a strategic lever to enhance client service while preserving trusted relationships, especially in a market like Charlotte, where business growth and complexity continue to climb.

PKF O’Connor Davies enters Central PA with Rainer & Company acquisition

PKF O’Connor Davies (PKFOD) is expanding again—this time into Pennsylvania’s Chester and Montgomery counties through its acquisition of Rainer & Company, a well-regarded local firm with over 60 years of history. The move supports PKFOD’s ongoing strategy to build out a strong East Coast corridor, while also reinforcing its presence in suburban markets with growing advisory needs. For accounting firms watching the pace of consolidation, this deal reflects how larger players are targeting legacy firms with deep-rooted client bases and niche expertise. As PKFOD continues to scale, it’s aiming to offer both breadth and local continuity—an increasingly critical balance.

📅 Events, podcasts & webinars

WATCH

In the Know: Simplify Bill Pay for new clients

In this episode of In the Know, Jaclyn Anku walks through how to seamlessly onboard new clients using QuickBooks Online’s Bill Pay feature. From setting up workflows to streamlining approvals, you’ll learn how to eliminate common hiccups and help clients hit the ground running. If you manage payments or client onboarding, this quick session is packed with practical wins.

APPLY

Intuit Partner Council: Shape what comes next

Applications are now open for the 2025 Intuit Partner Council. This is your chance to collaborate directly with product teams, share your insights, and shape the tools the accounting profession will rely on next. If you're ready to represent your peers and drive change, apply now.

🗣️ Quote of the week

The future of accounting is unfolding every day, and it’s being shaped by professionals like you who are exploring new ideas, testing what works, and finding better ways to support clients. Whether you’re growing your skill set, expanding your services, or simply staying curious about what’s next, we hope this issue gives you a few useful sparks.

We’ll be back next week with more insights, trends, and tools to help you keep moving forward—one step, one win, and one update at a time.