Is Your Firm Equipped to Navigate the Future?

As accounting firms gear up for another busy season, there’s one question that leaders should be asking themselves:

• Is your firm ready to meet the challenges of tomorrow, or are you stuck solving the problems of today?

The Accounting Industry Has Changed—Has Your Firm?

As we enter 2025, the accounting profession is in a period of unprecedented change. Traditionally seen as stable businesses, firms today face more uncertainty than ever before. And with that uncertainty comes a wave of crucial questions:

• Is private equity (PE) the right fit for my firm? More importantly, is my firm the right fit for PE?
• How will AI transform our operations?
• What’s the best strategy to attract and retain top talent?
• Are we prepared to compete in an increasingly digital-first world?

Having answers to these questions isn’t enough. Firms need tangible strategies and, more importantly, a relentless focus on execution. Staying the same isn’t an option—and doing so may put your firm’s independence at risk.

Change: The New Constant in Public Accounting

Before you can position your firm for long-term success, you must first understand the environment in which you want to succeed.

The accounting landscape has shifted...

• Private equity and consolidation are reshaping the industry.
• Digital-first relationships are now the norm, opening new markets and competition.
• Talent shortages and succession planning have become major pain points.
• Governance and firm structure are key determinants of long-term sustainability.

Your competitors have changed, too. PE-backed firms are stronger and better-capitalized than ever. Meanwhile, AI-powered startups are securing major investments—and gaining traction within Top 100 firms.

As new technologies continue to develop and garner mainstream acceptance, a new wave of disruptors will emerge. Just last month, Basis, a Silicon Valley startup that makes AI agents specifically for accountants, raised a $34m Series A from a veritable who’s who of investors and announced their technology was already deployed in several Top 100 firms, and Aiwyn, which provides automation software to 130 of the Top 500 CPA firms, raised $113m in funding. It’s not all growth though: accounting software platform Bench briefly shuttered its doors before being acquired by Employer.com.

Everything about the way your firm competes today has changed––and the pace of this change is only going to continue to grow more rapid.

A Fork in the Road: Independence vs. Investment

It might seem like all anyone can talk about is the growing role of private equity in the accounting industry. There’s so much happening: from mergers of some of our industry’s largest firms to established regional firms rolling up smaller players, to entirely new platform-based models. Some firms are remaining independent but still need the capital to invest in building their future without ceding all of their equity to external investors.

Today, many partnership groups find themselves exploring whether PE is the right fit for their firm. Be clear: staying independent shouldn’t be the default choice. Firm leaders owe it to themselves, their partners, and their broader team to interrogate the question of whether their firm would be better placed as an independent firm, or as part of a larger group.

It’s a question leaders dramatically differ on. Some, including GHJ’s Tom Barry and Sassetti’s Jessica Freiburg, are focused on remaining what they term “fiercely independent”. Others, like MarksNelson’s Josh Beck and HD Growth Partners’ Tim Petrey, firmly believe that PE holds the key to their firm’s future success.

Related Article: Is Your Firm Ready to Stay Independent?

No one viewpoint is right or wrong, but this is a fork in the road, and it’s vital you make the right choice for your firm. Build a strong, thriving business, and the choice is yours: you’ll have access to institutional capital to support your transition, whether that’s from PE or some other source.

Want to learn more? Read our recent article in IPA: Perspectives from the Profession: Exploring Your PE Options

Winning in 2025 and Beyond

No matter which path your firm chooses, staying the same will not allow you to stay independent. Thriving firms excel in three key areas:

Leadership:

• Strong Managing Partner
• Deep bench of emerging leaders
• Culture that prioritizes talent development
• Clear succession planning

Technology:

• AI & automation integration
• Scalable service delivery models
• Digital-first client experience

Execution:

• Focus on advisory services
• Getting intention and strategic about growth
• Operational efficiency & capacity building
• Agile, nimble, and responsive decision making

The Bottom Line: The future isn’t coming—it’s already here. The firms that adapt and execute will thrive. Those that don’t will be left behind.

The decisions you make in 2025 will shape your firm’s future for years to come. Are you ready?