Top Challenges Facing Tax and Accounting Professionals: Staffing, Time Management, Changing Tax Laws, and Billing

The accounting industry is facing a myriad of challenges as tax and accounting professionals navigate the ever-changing regulatory landscape, client and employee expectations, and advancements in technology like artificial intelligence. Some of the top challenges include attracting and retaining talent, time management, keeping up with changing tax laws, and billing and cash flow issues.

According to the Thomson Reuters Institute 2024 State of Tax Professionals Report, firms are re-evaluating their business models to stay competitive by leveraging technology for greater efficiencies, expanding service offerings, and improving talent acquisition and retention strategies.

Attracting, hiring, and retaining staff is a major concern for many firms, with a growing number of professionals seeking retirement and a lack of new accounting graduates entering the profession. To address this challenge, firms are increasing salaries, offering incentives, providing training and development opportunities, and exploring automation and outsourcing options.

Time management and meeting deadlines is another top challenge, with firms prioritizing efficiency to meet client demands and provide higher-value services. Automation and technology solutions are key to improving workflows and streamlining processes to free up staff time for more strategic tasks.

Keeping up with ever-changing tax laws and regulations is crucial to ensure compliance and mitigate risk. Firms are investing in workshops, seminars, and webinars to keep team members up-to-date on the latest developments in tax law.

Billing and cash flow issues are also a concern as firms move towards value-based pricing models to better reflect the value they provide to clients. Value-based pricing, market-value pricing, retainer pricing, and competition-based pricing are gaining traction as firms seek to optimize revenue and cash flow.

Overall, the accounting profession is facing significant change, with additional challenges such as economic headwinds, rising costs, and the adoption of generative AI. Firms must stay informed and adapt to these challenges to remain competitive in the evolving landscape of the industry.