Are your clients about to leave you?

Your workload may be winding down, but the news cycle is not. This week’s headlines include a Taylor Swift-worthy breakup between KPMG and the government, new tax legislation sweeping through the House and a sizable matching contribution from the government for Trump IRAs.

Also, check out strategies to rethink role design, create more VIP-centered offers and reduce client turnover rates.

First, though, brush up on the latest golf drama as LIV Golf loses investment backing and some players consider expensive penalties to rejoin the PGA Tour.

Scaled vs. loved: One CPA’s late-night thoughts on the loss of client relationships in the midst of tech stacks and firm growth

AI rethink: Invest in training and intentionally redesign roles to keep up with AI instead of being replaced by it

Balancing act: Scaling successfully requires standardization and reinvestment–here’s how to do it. 

Embrace uncertainty: Encourage employee agency over ownership to give them more confidence in navigating a volatile job market

Client upgrade: Offering prospects the VIP treatment could result in less work and better profitability

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Canopy Coworker reduces coordination drag across the firm. It executes follow-ups, monitors stalled work and enforces firm policy automatically—so your team can serve more clients without burning out.

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You may be in the midst of a client retention crisis and not even know it. Nearly 35% of businesses are proactively looking for a new accountant, with over 43% hoping to switch within two weeks.

How can you navigate this ticking time bomb? Kimberly Green of Sam’s List recommends three steps to engage current clients and prospects: Prioritize customer reviews, systematize prospective client follow-ups and showcase your expertise in niche markets. 

Why this matters: Most firms rely on client referrals for new business, but referrals alone don't let you be proactive. Creating a blend of touchpoints that nurtures existing relationships and attracts new ones is what separates firms that grow intentionally from those that just hope clients stay. (CPA Practice Advisor)

The future of audit is about to become more fractured than ever, at least according to James O’Dowd of Patrick Morgan. KPMG recently reduced its audit partner headcount by 10% and its audit CTO said the field will hardly need any humans for routine testing.

O’Dowd argues that these are early signals that we’re about to see a K-shaped employment model. High-performing partners do even better thanks to AI assists, while commoditized work collapses at the bottom of the chart. 

Increasingly coveted features will be deep industry experience, earned trust, sound judgment, a strong personal brand outside of the firm and charisma to connect with clients. 

Why this matters: The moves your firm makes over the next 10 years will determine where you fall on the K-shaped chart. Competitive positioning using O’Dowd’s framework could help earn your spot at the top. (Bloomberg Law)

U.S. GDP increase for Q1 of this year (BEA)

The first wave of private equity investments in accounting firms is now entering the next phase of business: reselling to other PE owners. While first-generation PE ownership resulted in high growth rates, the frenzy to snatch up firms may result in future valuation discrepancies for their successors.

In order to gain ROI, they’ll need to drive even more value in order to exit. But flips can also give the firm clear periods of sprinting for growth, followed by breathing room whenever a new owner comes in.  

Why this matters: Before taking on a PE partner, consider what the relationship will look like over the course of a decade or more. Then create a list of nonnegotiables that help preserve company culture. (CFO Brew)

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