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Founded in 2008, DMAR Consulting LLC is a trusted accounting and business consulting firm dedicated to delivering both traditional accounting services and advanced financial reporting solutions that empower businesses to make informed decisions.
CPA Pipeline Shortage Threatens Public Accounting
The accounting profession faces a critical talent shortage as the number of college students majoring in accounting continues to decline. According to the AICPA’s 2023 Trends Report, bachelor’s and master’s degrees in accounting dropped by 7.8% and 6.4% respectively from 2021 to 2022. This trend has persisted since 2015, creating a gap at a time when demand for accountants is rising. Public accounting firms, especially in tax and advisory services, are feeling the brunt of this shortage. Firms are responding with higher salaries, CPA exam support, and even billion-dollar investments in technology and compensation to attract talent.
IRS Shutdown Disrupts Tax Operations
Nearly 40,000 IRS employees have been furloughed under a contingency plan, leaving only essential staff in place. This partial shutdown comes as taxpayers face looming deadlines and new compliance requirements. The AICPA has urged the IRS to implement relief measures to mitigate negative impacts on taxpayers and practitioners. Meanwhile, the IRS has announced annual inflation adjustments for tax year 2026, affecting over 60 tax provisions, including standard deductions. These disruptions raise concerns about delayed guidance and enforcement during a critical tax season.
AI Adoption Raises Ethical and Compliance Concerns
Artificial Intelligence is transforming accounting workflows, saving firms significant time—one firm reported 41 minutes saved per employee daily through AI tools. However, this efficiency comes with risks. Industry leaders warn that without proper guardrails, AI could introduce compliance and data security issues. Some firms are drafting AI ethics and compliance policies to safeguard against unknown risks. Experts predict that AI-driven automation could reduce accounting work hours by 25–30% within five years, reshaping the profession and requiring new skill sets.