Clients are going elsewhere for work you could be doing

This week’s major theme is what you don’t know can hurt your business. A new report has come out revealing that clients are likely to take more complex accounting needs to other firms if you don’t make the right recommendations. Plus, find out how CPAs and tax preparers should be getting ready for aging clients, the Great Wealth Transfer and bigger liability concerns.

But first, check out the latest in the drama between President Trump and the IRS. A judge recently rebuked the president’s lawsuit, categorizing it as an “improper purpose.”

High caliber talent: Attract top candidates for your firm with a job description that stands out

Risk management: As the Great Wealth Transfer gears up, CPAs will be asked to do more–prepare for liability risks to increase as your clients age

Decision, decision: Stop overthinking and instead use this framework to make confident moves in your business 

Explaining to do: Your client doesn’t just want to know what has changed in their financials; they also want you to explain why and what they should do next

Shadow AI: Most companies lack AI access controls and other safeguards against employee data dumps

Sponsored by Puzzle Financial Inc.

Legacy accounting software wasn't built for today's financial stack.

Puzzle replaces QuickBooks-era workflows with real-time accounting designed for clients using Stripe, Brex, Ramp, Mercury and more. It continuously categorizes transactions, reconciles accounts in real time and helps you close faster with AI agents that work alongside your team, not instead of it.

Every workflow stays fully under your control, with every action reviewable before it's finalized. That means fewer manual steps, faster closes and accounting that stays current as your clients move.

A new study shows that while most accounting firms track client satisfaction, they lack the systems needed to actually link that information to retention and referrals. While you may prioritize what you view as high-quality service, evaluate how well you and your team actually listen to clients and understand their needs. Perform exercises around experience mapping, client data unification, insight generation and segmentation to make meaningful changes. 

Why this matters: Common sources of revenue leakage include complex services going to other firms and missing out on untapped opportunities. By upleveling your client insights and experience, you’ll make sure you’re not considered interchangeable. (Yahoo! Finance)

Wondering what your ideal revenue goal should be? Most acquired firms are mid-sized practices between $5 million and $15 million with 20 to 50 employees. But Ira Rosenbloom argues that this is also an ideal size for remaining independent. You can support a real management team at this level and can develop deep specialization that makes it easier to attract clients and improve profitability. Mid-size firms are also attractive in recruiting and can easily expand into other advisory areas, like forensics or wealth management.

Why this matters: When setting long-term revenue goals, it’s easy to assume bigger is always better. But considering a target range of $5 to $15 million can help you set targets based on profitability, sustainability and lifestyle, not just size. (CPA Practice Advisor)

Estimated U.S. economic impact from World Cup (CBS News)

530A IRAs (aka Trump accounts) officially started accepting contributions earlier this month, including a $1,000 contribution from the government for children born between January 1, 2025 and December 31, 2028. Understanding the details of these accounts can help you advise your clients to take advantage of free money. Just remember to track some of the ongoing uncertainties surrounding these accounts, such as how they’ll impact FAFSA decisions and how state taxes will work.

Why this matters: Proactively suggesting new tax incentives builds trust with existing clients. By delivering more value and expertise, you set yourself up to be their go-to resource for tax and accounting issues of all levels of complexity. (Fast Company)

Thanks for reading this week's edition! You can reach the newsletter team at [email protected]. We enjoy hearing from you.

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