Reimagined firm models, billion-dollar AI bets, and a quicker path to CPA

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 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're tracking a radical reimagining of firm structure, major AI investments reshaping daily operations, and a wave of strategic mergers positioning firms for growth.

Let’s dive in.

🔍 Top headlines

INCPAS calls for radical restructuring of accounting firms

The accounting profession needs to fundamentally rethink how firms are built, according to a new workforce transformation report from the Indiana CPA Society. The study recommends ditching the traditional pyramid structure—where entry-level staff form the base—in favor of an "inverted pentagon" model that flips the script.

The proposed framework calls for fewer entry-level positions, wider middle layers packed with specialists, and accelerated skill development programs. The reasoning is stark: Firms are facing projected workforce reductions of 20% or more, while demand for specialized advisory services continues climbing.

Instead of resisting these shifts, the report recommends leaning into them. It urges firms to prioritize hiring experienced professionals and specialists who can make an immediate impact, while rethinking the usual long climb from junior staff to senior advisor. It's a bold rethink of the traditional firm model—one that reflects today’s talent landscape and better positions firms to grow their advisory services.

SEC taps accounting veteran Kurt Hohl as chief accountant

The SEC named Kurt Hohl as its new chief accountant, effective July 7, bringing nearly four decades of accounting expertise back to the agency. Hohl, a former EY partner, isn't new to the SEC; he previously served there from 1989 to 1997, and authored the agency's Financial Reporting Manual, a cornerstone reference for public company reporting.

His appointment comes at a time when the SEC continues navigating complex financial reporting challenges. Hohl's background combines deep regulatory knowledge from his previous SEC tenure with extensive practice experience from his decades at EY.

For the accounting profession, his return brings someone who has worked on both sides of financial reporting oversight—crafting the guidance that shapes how companies report and auditors work, then spending years implementing those standards in practice. His dual perspective could prove valuable as the SEC addresses ongoing challenges in audit quality, financial reporting standards, and regulatory compliance.

States abandon grad school requirement, opening faster path to CPA

The accounting talent shortage is driving dramatic policy changes across the country. Nearly 20 states have amended their CPA licensing laws since January, allowing candidates to substitute work experience for the traditional fifth year of education. The result? Students are ditching graduate school plans and jumping straight into the workforce.

It's a seismic shift that addresses two pressing problems at once: firms get much-needed talent faster, and prospective CPAs avoid additional student debt and start earning sooner. Utah and Colorado, among others, are leading the charge, recognizing that the traditional 150-credit-hour requirement has become a barrier rather than a quality standard.

The changes reflect a broader rethinking of professional credentialing across industries. For firms, it means access to motivated candidates who are ready to work and learn on the job rather than spend another year in the classroom. Early indicators suggest strong interest from students, with many switching their plans as soon as the new pathways became available.

💻Technology & innovation

AI transitions from experiment to essential infrastructure

The use of artificial intelligence in accounting has crossed a critical threshold, moving from promising pilot programs to mission-critical infrastructure. The latest CPA.com AI in Accounting Report reveals firms achieving automation levels that seemed out of reach just two years ago—80% in tax preparation, 50% in document analysis, and full agentic execution in bookkeeping.

The shift represents more than efficiency gains; it's fundamentally changing how firms operate. What started as experimental tools for simple tasks has evolved into sophisticated systems capable of handling end-to-end complex workflows. For firms still testing the waters, the message is clear: AI adoption has moved from competitive advantage to competitive necessity.

RSM bets big with $1 billion AI investment

RSM US LLP is putting serious money behind agentic AI, announcing a $1 billion investment over three years to integrate advanced automation across operations and client services. The timing isn't coincidental—the major accounting firm is preparing for a transatlantic merger that will create a 23,000-professional organization with $5 billion in combined revenue.

The investment builds on RSM's existing AI infrastructure for tax automation and audit enhancement, but signals a much broader transformation. Agentic AI goes beyond simple task automation to systems that can plan, execute, and adapt without constant human oversight. For a firm of RSM's size, that level of automation could reshape everything from how teams are structured to how client engagements are priced and delivered.

AI emerges as antidote to accounting's talent crisis

With 75% of CPAs nearing retirement and 300,000 accountants leaving the profession between 2019 and 2022, artificial intelligence is offering a path forward that doesn't require waiting for enrollment numbers to recover. By automating routine tasks such as bookkeeping, document review, and tax preparation, AI allows remaining professionals to focus on higher-value work that actually requires human judgment.

The strategy isn't about replacing accountants—it's about making each financial professionals more productive and engaged. When technology handles the repetitive tasks that drive burnout, human professionals can concentrate on advisory work, client relationships, and complex problem-solving that technology can't replicate. It's a compelling solution to a workforce crisis that shows no signs of resolving through traditional recruitment alone.

🧠 Practice management

Two more accounting firms join Ascend platform

California's Glenn Burdette and Florida's Saltmarsh, Cleaveland & Gund joined the private equity-backed Ascend platform on June 1, bringing the total to nearly 20 regional firms that have restructured under the model. The approach allows firms to access growth capital and technology resources while maintaining operational independence—a middle ground between full acquisition and going it alone.

The moves reflect an accelerating trend among mid-market accounting firms seeking private equity partnerships to stay competitive. Rather than selling outright or struggling with limited resources, firms are finding that platforms such as Ascend offer a third option: shared infrastructure, pooled investment in technology, and collaborative growth strategies. For firms caught between the demands of modern practice and the limitations of traditional partnership models, these platforms are becoming an increasingly attractive way to meet in the middle.

🏢 Firms and mergers

GHJ adds Hacker, Douglas & Co. in California

Los Angeles–based GHJ has added Hacker, Douglas & Co., a 55‑year‑old firm specializing in profit participation and entertainment accounting. The move bolsters GHJ’s formidable entertainment practice, which has serviced “more than 80 of the top 100 grossing films and more than half of television’s greatest shows.”

It’s a strategic acquisition that deepens expertise in an especially complex and lucrative niche. Entertainment accounting, with its intricate revenue-sharing agreements, complex royalty structures, and rigorous reporting requirements, requires in-depth industry knowledge. For GHJ, bringing in a team with more than five decades of experience reinforces its position as the go‑to accounting partner for Hollywood’s biggest players.

SAX acquires New Jersey accounting firm

New Jersey-based SAX has acquired Sewald & Anastasia CPAs for an undisclosed sum, effective June 1, expanding its Monmouth County, New Jersey presence, and adding expertise in real estate and private client services. The deal grows SAX to 62 partners and 367 employees across five offices in New Jersey, New York, and Mumbai.

The acquisition reflects SAX's targeted approach to growth: adding complementary expertise in high-value service areas rather than simply expanding for scale. Real estate and private client services represent lucrative practices that align well with SAX's existing capabilities, while the Monmouth County location fills a geographic gap. For regional firms similar to SAX, strategic acquisitions that add talent and market presence offer a clear path to competing with larger players.

Plante Moran merges in Tonneson + Co. in Massachusetts

Southfield-based Plante Moran announced it will merge with Wakefield, Massachusetts-based Tonneson + Co., one of the largest 25 accounting firms in the Boston area, effective July 1. The deal adds more than 100 professionals to Plante Moran's nearly 4,000-person staff as the century-old firm continues its East Coast expansion.

The merger gives Plante Moran a significant foothold in the competitive Boston market, where establishing presence organically can be challenging and expensive. Tonneson brings established client relationships and local market knowledge that would take years to develop from scratch. For Plante Moran, this is another step in a deliberate strategy to build critical mass in key East Coast markets through strategic combinations rather than slower organic growth.

📅 Events, podcasts & webinars

WATCH

In the Know: ProConnect AI

In this episode of In the Know, Intuit QuickBooks explores how ProConnect Tax AI is transforming tax preparation workflows. Learn about the latest AI-powered features that can streamline research, automate routine tasks, and help tax professionals work more efficiently during busy season and beyond.

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On the Books: New QuickBooks innovations 

In this episode of On the Books, Intuit QuickBooks dives into the latest platform innovations designed to help accounting professionals serve clients better. The conversation covers new features, workflow improvements, and tools that can help firms stay competitive while delivering exceptional client experiences.

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Partner Council applications open

If you’re a forward-thinking ProAdvisor with ideas to shape the future of accounting software, now’s your chance to make an impact. Applications are open for the 2025 Intuit Partner Council through July 14, 2025.

🗣️ 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.