Top 5 priorities for modern tax and accounting firms

Jump to ↓

The landscape of the tax and accounting industry is evolving rapidly, driven by technological advancements and a growing demand for value-added services.

According to the 2025 State of Tax Professionals Report by Thomson Reuters Institute, tax, audit, and accounting firms are focusing on several key priorities to stay competitive and meet the changing needs of their clients. This blog highlights the top five priorities and explores the impact of artificial intelligence (AI) on the industry.

Top 5 priorities for tax and accounting professionals

In today’s fast-changing tax and accounting landscape, firms are facing a range of challenges that demand thoughtful strategies and innovative solutions.

To keep pace, professionals are honing in on key areas that promise real impact. These priorities are not just about staying competitive—they’re about thriving in a complex and dynamic environment.

Let’s dive into the top five areas shaping the future of tax and accounting.

Better efficiency through technology

Key insight: Technology is at the forefront of improving efficiency in tax and accounting firms. Automation tools are streamlining routine tasks, reducing the risk of errors, and freeing up professionals to focus on more strategic work. Cloud-based solutions and integrated software platforms are enhancing collaboration and data security, making it easier for firms to manage client information and comply with regulatory requirements.
Small/midsize firms: For small and midsize firms, adopting cloud-based solutions and automation tools can significantly reduce operational costs and improve service delivery. These firms can leverage affordable, scalable technologies to enhance their capabilities and compete with larger firms.
Large firms: Large firms are investing in advanced technologies, such as AI and machine learning, to automate complex tasks and provide deeper insights. They are also integrating multiple software platforms to create seamless, end-to-end solutions for their clients, enhancing their competitive edge.

Looking for growth opportunities

Key insight: Growth is a top priority for many tax and accounting firms. This includes expanding the client base, diversifying service offerings, and exploring new markets. Firms are increasingly offering value-added services such as tax strategy, financial planning, and advisory services to differentiate themselves and meet the evolving needs of their clients.
Small/midsize firms: Small and midsize firms can focus on niche markets and specialized services to stand out. By building expertise in specific industries or areas, these firms can attract a loyal client base and create a strong brand identity.
Large firms: Large firms are expanding their service offerings to include high-value advisory services, such as strategic planning and business consulting. They are also exploring international markets and forming strategic partnerships to drive growth and diversify their revenue streams.

Tackling the talent challenge

Key insight: Attracting and retaining top talent is a significant challenge for tax and accounting firms. The industry is facing a skills gap, particularly in areas like technology and data analytics. Firms are investing in training and development programs to upskill their existing workforce and attract new talent.
Small/midsize firms: Small and midsize firms can focus on creating a supportive and flexible work environment to attract and retain talent. Offering competitive compensation, professional development opportunities, and a strong company culture can help these firms stand out in a competitive job market.
Large firms: Large firms are investing in comprehensive training programs and career development paths to attract and retain top talent. They are also leveraging their brand reputation and extensive resources to offer unique opportunities for professional growth and advancement.

Adapting to changing client needs

Key insight: Client needs are evolving, and firms must adapt to stay relevant. This includes providing more personalized and proactive services, leveraging data analytics to offer insights, and using technology to enhance the client experience. Firms are also focusing on building stronger relationships with their clients to better understand their unique needs and challenges.
Small/midsize firms: Small and midsize firms can leverage their agility and personal touch to build strong, long-lasting relationships with clients. By offering tailored solutions and responsive service, these firms can differentiate themselves and gain a competitive advantage.
Large firms: Large firms are using advanced data analytics and AI to gain deeper insights into client needs and preferences. They are also investing in client relationship management (CRM) systems to enhance communication and collaboration, ensuring that clients receive the highest level of service.

Determining price and value

Key insight: Pricing strategies are a critical aspect of business success. Firms are exploring new pricing models, such as value-based pricing, to better align their services with the value they provide to clients. This approach involves charging based on the outcomes and benefits delivered, rather than just the time and effort invested.
Small/midsize firms: Small and midsize firms can benefit from value-based pricing by focusing on the unique value they bring to clients. By clearly communicating the benefits and outcomes of their services, these firms can justify higher fees and build stronger client relationships.
Large firms: Large firms are using sophisticated pricing models and data analytics to optimize their pricing strategies. They are also investing in client feedback mechanisms to ensure that their pricing aligns with client perceptions of value, leading to increased client satisfaction and loyalty.

These five priorities — talent management, client adaptability, pricing strategies, leveraging technology, and embracing AI — are interconnected pillars that firms should address to remain competitive.

By focusing on these areas with intention and innovation, firms can build stronger foundations for sustainable growth and long-term success.

The impact of AI in tax and accounting firms

AI is transforming the tax and accounting industry in several ways. AI-powered tools are automating routine tasks, such as data entry and compliance checks, allowing professionals to focus on more complex and strategic work.

Machine learning algorithms are being used to analyze large datasets, providing insights and predictions that can inform business decisions. AI is also enhancing client service by enabling personalized recommendations and proactive advice.

However, the adoption of AI also presents challenges. Firms must ensure that AI systems are transparent, ethical, and compliant with regulatory requirements. They must also invest in training their staff to effectively use and interpret AI-generated insights.

Despite these challenges, the benefits of AI are clear, and firms that embrace this technology are well-positioned to thrive in the future.

Navigating the future of tax and accounting

The 2025 State of Tax Professionals Report underscores the importance of technology and growth in the tax and accounting industry. By focusing on efficiency, growth, talent, client needs, and pricing, firms can navigate the challenges of a rapidly changing market and position themselves for success.

The impact of AI is a key factor in this transformation, offering new opportunities for innovation and value creation. As the industry continues to evolve, firms that stay ahead of the curve will be the ones that thrive.