AI-driven advisory, firm rankings reshaped by M&A, and new FASB credit loss guidance

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 explored how agentic AI is reshaping finance operations, NASBA’s and AICPA’s approval of a major nationwide CPA licensure shift, and what the first global confidence uptick in over a year says about the profession’s outlook. This week, we look at how AI and automation are accelerating the rise of strategic advisory services, the shakeup of firm rankings through bold M&A and specialization plays, and FASB’s move to ease credit loss forecasting burdens. Plus, we spotlight the evolving case for firm independence, new cybersecurity pressures, and a major integration for firms that use Intuit ProConnect Tax.

Let's dive in.

🔍 Top headlines

AI adoption accelerates, reshaping advisory work and tech strategies

A new 2025 Intuit QuickBooks Accountant Technology Survey offers a sweeping look at how firms are adapting to a rapidly digitizing profession—and where friction still lingers. Based on insights from 700 US accounting professionals, the report reveals that AI and automation are now central to client-facing and internal workflows. Nearly half of respondents use AI daily, with 81% reporting that it boosts productivity and 95% saying it frees up compliance time, allowing them to shift into higher-value advisory roles. Still, integration challenges, tech resistance, and talent shortages continue to hinder progress, especially as firms juggle an average of eight digital tools at once.

Interestingly, advisory is where growth is expected to surge most, with 79% forecasting expanded services in the next year. Meanwhile, firms are doubling down on recruiting for tech skills, outsourcing for efficiency, and standardizing their tech stacks. The big picture: Accountants aren’t just using new tools—they’re redefining the shape and scope of their work.

Mergers, strategy, and specialization reshape firm rankings

The 2025 INSIDE Public Accounting (IPA) rankings are out, and this year’s list reflects a profession in transition. Strategic mergers such as Baker Tilly’s headline-making combination with Moss Adams, propelled firms into new territory, with Baker Tilly leaping from No. 10 to No. 6. Newcomer to the list, Sorren, formed by the merger of 13 regional firms, debuts at No. 61, signaling how scale and synergy continue to drive relevance.

In an interview with Bloomberg Tax, IPA’s Chelsea Summers points to a growing divide between firms that merely grow and those that evolve. Independent firms are climbing the ranks by honing niche specializations, expanding advisory offerings, and investing in operational strategies such as outsourcing and offshoring. It's a pivotal moment for the profession, where clarity of vision and willingness to adapt are emerging as key indicators of firm longevity.

FASB eases credit loss forecasting burden for receivables

The Financial Accounting Standards Board (FASB) has issued a new Accounting Standards Update aimed at simplifying how companies, especially private ones, handle forecasting when estimating credit losses on accounts receivable and contract assets. The update responds to stakeholder concerns about the complexity and cost of applying Topic 326 to current receivables under Topic 606.

The new guidance introduces two key changes:

1. A practical expedient for all entities to assume stable conditions over the asset’s remaining life.
2. An optional policy for private companies to factor in post-balance sheet collection activity.

These updates are expected to streamline the credit loss estimation process while maintaining useful information for investors.

The update is optional, but it offers firms a meaningful way to reduce reporting friction, especially when working with near-term receivables and time-sensitive statements.

💻Technology & innovation

Karbon, Ignition, and SmartVault launch integrated ecosystem for Intuit ProConnect Tax users

Ignition, SmartVault, and Karbon have launched the first fully integrated ecosystem for Intuit ProConnect Tax users, unifying practice management, client engagement, and document storage. Designed to eliminate the inefficiencies of fragmented tech stacks, the partnership delivers deep native integrations, including contact sync, e-signatures, and auto-routing of documents, each tailored to modern tax workflows.

Karbon manages workflow and communication, Ignition handles proposals and billing, and SmartVault ensures secure document handling. The goal? Fewer tools, fewer handoffs, and a smoother experience for firms and clients. It’s a timely move as more firms ditch legacy systems in favor of scalable, connected solutions.

Accounting automation gets smarter (and more strategic) with IPA

Intelligent process automation (IPA) is taking accounting automation beyond data entry. Built on AI and machine learning, IPA systems can flag high-risk audit areas, draft documentation, generate tax scenarios, and monitor regulatory changes, tasks that once relied solely on human judgment. IPA also integrates across systems, enabling automation of full workflows such as financial close or due diligence, not just isolated steps.

For firms under margin pressure or facing hiring gaps, IPA improves efficiency without cutting corners. It reduces manual load, supports faster insights, and frees staff for advisory work. With generative AI layered in, it can even help design processes and client deliverables.

🧠 Practice management

Independent firms are redefining what growth looks like

As private equity reshapes the accounting landscape, a growing number of firms are opting out, choosing to scale without giving up control. Firms like GHJ are investing in tech, hiring strategically, and standardizing operations to grow with purpose. Automation and AI are used to streamline processes and elevate client work, not replace people.

This model prioritizes agility, cultural alignment, and long-term client relationships over short-term returns. Independence allows firms to move faster, stay values-driven, and retain full ownership of their direction. Firms that choose to remain independent are showing that growth doesn’t have to rely on outside capital—just clarity, conviction, and a smart strategy.

Cyber risks are rising—and CPA firms aren’t immune

Cyberattacks are hitting firms of all sizes, and CPA practices are increasingly in the crosshairs. From ransomware and data theft, to third-party claims tied to client system breaches, the risks are both varied and growing. Suzanne M. Holl, CPA, who serves as executive president of Loss Prevention Services with CAMICO, urges that it’s critical to understand first-party (internal losses) vs. third-party (client-related claims) risks, and to make sure that cyber insurance covers both.

Even seemingly routine requests, such as wire transfers, can expose firms to liability if a hacker has infiltrated client communications. Experts recommend voice-verifying transactions, using code words, and preparing for AI-enabled scams. As attackers become more sophisticated, so must defense strategies.

🏢 Firm news and mergers

Frazier & Deeter acquires Anglin Reichmann Armstrong

Top 50 firm Frazier & Deeter has acquired Anglin Reichmann Armstrong, expanding its presence across Alabama and Florida. The move creates a strategic geographic corridor connecting the firm’s existing hubs in Atlanta, Tampa, and Nashville, while deepening expertise in sectors like government contracting and construction.

Anglin, now operating as “Anglin, a Frazier & Deeter company,” brings specialized capabilities in government contracting, construction, client accounting and advisory services (CAAS), and HR consulting. The acquisition follows Frazier & Deeter’s recent private equity backing from General Atlantic, signaling continued momentum in scaling its advisory platform. Leaders from both firms emphasized long-standing collaboration and cultural alignment as drivers of the deal, positioning the combined firm to deliver expanded value and support for clients across the Southeast.

Rodefer Moss launches transaction advisory services for CPA firms

Knoxville-based Rodefer Moss has introduced a new transaction advisory service aimed specifically at supporting other CPA firms. The offering is designed to help firms meet rising demand for M&A, quality of earnings, and financial due diligence work, especially when in-house resources are limited.

Rather than competing with peer firms, Rodefer Moss is positioning this as a behind-the-scenes support model. Services are delivered under the partner firm’s brand, allowing them to expand capabilities without stretching internal teams. It’s a strategic move that reflects a growing trend: CPA firms collaborating to scale advisory offerings in response to increasingly complex client needs.

🏅Featured firms and accountants

HORNE ranks No. 30 on IPA’s 2025 Top 500 list

INSIDE Public Accounting has named HORNE the 30th largest public accounting firm in the US based on net revenue. With more than 1,500 team members across 50 states, Washington, D.C., and Puerto Rico, the firm continues to grow its national presence while maintaining a strong focus on client service and team culture. CEO Rusty Butcher credits the recognition to a team “that truly cares,” a core value that underpins HORNE’s advisory approach and long-term strategy in a rapidly evolving profession.

📅 Events, podcasts & webinars

WATCH

In the Know: Bank feed updates in QuickBooks Online

The latest episode of In the Know breaks down recent changes to Bank Feeds in QuickBooks Online. Joe Black and Sushma Rathnam walk through what’s new, what’s improved, and how these updates can help reduce friction in your clients’ books. If you’ve run into syncing issues, duplicate entries, or reconciling headaches, these improvements are worth a closer look and could save you time heading into year-end.

LISTEN

On the Books: How accountants really feel about AI

This episode of On the Books turns the mic over to accounting professionals to share how they’re navigating the rise of AI. You’ll hear candid perspectives on what’s exciting, what’s concerning, and where firms see the biggest potential for change. Whether you’re already experimenting with AI tools or just beginning to evaluate them, this is a chance to hear how peers are thinking through the tech—and what it means for the future of advisory, compliance, and career paths.

🗣️ 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.