IRS mistakenly shares taxpayer data

Get ready for an issue packed with tips to avoid bottlenecks in your firm, an explainer on agility quotient and the future of the multidisciplinary practice model. But first, pull up a chair and enjoy a juicy roundup of historical tax scandals. Then, dive into this week’s current events in accounting, which include not one, but two shake-ups at the IRS.

Cross-border: A global take on accounting use cases, even in countries with no income tax

Beyond dollar signs: Accountants want flexibility, meaningful work and a good culture almost as much as a high salary 

Location, location, location: PwC limits entry-level hires to certain office locations (thanks, AI)

Scaling too fast: There’s unlimited demand for accounting services; here’s how to avoid bottlenecks in your business

Stretch yourself: Your agility quotient as a leader could impact your level of success, happiness and fulfillment

Revenue alone doesn't guarantee success

Even as accounting and tax firms grow, it’s all too common for profit margins to shrink. Nadya Britton—Enterprise Content Manager for Tax and Accounting at Thomson Reuters—outlines growth strategies to help outpace rising expenses. Pricing structure is one area where most firms have room to improve. Although 40% of projects are billed hourly, Britton recommends getting creative with fixed fees, subscriptions and bundled packages. Another marker of higher income? Firms that have clear strategic and marketing plans.

Why this matters: Intentional growth leads to a better bottom line than simply scaling at an unsustainable rate. (Thomson Reuters)

Clients want a one-stop advisory shop

The multidisciplinary practice model is in high demand among clients, but regulatory issues make it difficult for CPA firms to integrate lawyers and other consultants into their practice. Alan B. Clements, JD, PhD, CPA, and M. Catherine Cleaveland, Phd lay out the historical restrictions between combining accounting and legal services under one roof. But they also share examples of states where reform may be underway, plus a workaround under the parallel firm model. 

Why this matters: We’ve seen that firms offering advisory services earn more and grow faster. While you may not be able to bring in-house counsel at this moment, it’s worth paying attention to your state’s regulatory changes to be an early adopter when the opportunity arises. (CPA Journal)

10% 

Number of households responsible for nearly half of U.S. consumer spending (Reuters)

• Data sharing between IRS and DHS goes awry
• Who’s reviewing tax returns this season?
• “Outsized mandates” lead to record-breaking CFO turnover
• January jobs data brings unexpected good news

Getting schooled in accounting

Believe it or not, accounting is not yet classified as a STEM subject in the education world. But that could change soon thanks to the Every Student Succeeds Act recently introduced in the U.S. Senate. The goal of the proposed bill is to include accounting in STEM-related grant programs, which would introduce the industry to students earlier in their academic lives. It would also position accounting as a technology-centered career path.

Why this matters: Getting students interested in accounting at a younger age could broaden the talent pool in the years to come. Earlier industry experience centered on technology could also help them successfully enter the field as entry-level positions diminish. (The Accountant)

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The Net Gains is curated and written by Lauren Ward and edited by Bianca Prieto.