Tax season's over: 5 ways to use the slowdown

The height of tax season is over, and it’s time to start thinking about where to take your firm over the next year. In this week’s edition, we’re talking about an easy offering to help dip your toes into CAS as well as an old-fashioned approach to growing your client pipeline. For those considering an exit either now or in the future, you’ll find out how not to drop the ball before the deal is closed. 

But first, check out how one Big 4 firm is fast-tracking junior accountants to manager levels in just three years. 

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Easy win: Consider offering outsourced payroll services to expand CAS

Relationship building: How to grow a client pipeline with coffee chats

AI shortlist: Check out the latest AI tax research tools for small firms

Personality quiz: Considering fractional work? Read this first

30-hour work week: Think it’s impossible? You don’t have a time problem; you have a design problem

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Small accounting firms can’t keep up with the Big 4’s ability to pay-to-play in college campus recruitment efforts. But Kenneth Bills of Michigan State University’s Eli Broad College of Business doesn’t see that as a death sentence for attracting fresh talent. Instead, he recommends that smaller firms lean into the features that differentiate them from larger firms. Highlight lifestyle benefits and unique networking opportunities that aren’t available in a more corporate environment.

Why this matters: Don’t assume all top-tier college graduates want to work at a Big 4 firm. By focusing recruitment efforts on workplace culture and hands-on development opportunities, you can meet your hiring targets with entry-level accountants who are excited to be there. (CPA Practice Advisor)

The commodity side of accounting is getting squeezed by technology and offshoring, but leveraging AI in the right way can actually enhance your consulting services. Joshua Chananie, a partner at Sax, argues that AI gives you better data that you can use to excite your clients about their business and industry. This sentiment is underscored by a recent Morning Brew report that discovered three top emerging skills in finance: strategic thinking, data storytelling and cross-functional collaboration.

Why this matters: If you want to stay competitive, start using AI to turn client data into clear, compelling insights—not just reports. By incorporating data storytelling, you can deliver strategic guidance that clients will actually value and pay for. (CFO Brew)

Number of workers losing at least five hours weekly due to inefficient systems (HR Dive)

It may seem like private equity is falling over itself to buy out accounting firms, but an exit isn’t guaranteed until the check is signed. In fact, the majority of deals that fall through tend to lose steam during the latter part of the due diligence period. The two biggest culprits? Weak financial operations and governance, and technical accounting mistakes. Even if the deal does go through, the discovery of credibility problems can result in a lower valuation from the buyer before finalizing the purchase. 

Why this matters: Firm owners looking for an exit shouldn’t rely on strong buyer appetite alone. If you don’t prepare your books to be GAAP compliant while also investing in financial infrastructure, you may end up fumbling before you reach the finish line. (Thomson Reuters)

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