Billionaire (tax) things

This edition is packed tighter than a PBC list the night before an audit deadline. We're talking billionaire's dogs, billion-dollar crypto tax risks and $1 billion in unclaimed tax refunds.

You'll also find out why scaling back DEI could scare off future hires and what time the workday ends now (spoiler: it's not 5 pm).

Scroll on—you won't want to miss a juicy line.

Think beyond tax to serve the whole family

No matter what services your firm offers, chances are you have one or two wealthy clients who need more help. In a recent episode of The Accounting Technology Lab, hosts Brian Tankersley and Randy Johnston discussed family office service and what it actually means to support high-net-worth clients.

It's not all moonshot investments and trust planning (though there's plenty of that); sometimes, it's getting the dog fed in Vail or finding a plumber who won't overcharge a billionaire. Accountants who step into this space aren't just number-crunchers; they're trusted problem-solvers.

Why this matters: As tax and bookkeeping services become more commoditized, family office work offers a high-touch, high-value path forward. Odds are, you already serve clients who need it. (CPA Practice Advisor)

Crypto isn't going away, no matter how much you ignore it

Dealing with your client's crypto transactions can feel like a tangled mess of wallets, blockchains and tax headaches. No wonder some accountants would rather pretend it doesn’t exist. But here’s the reality: cryptocurrency isn’t just a passing trend. Ignoring it means missing out on a massive opportunity (or, worse, leaving your clients at risk). 

The Net Gains reached out to Derek Wride, founder of CPAI, an AI-based crypto accounting tool, to learn more about it. If you’re still on the fence about crypto, this one’s for you. –Janet Berry-Johnson

Why do you think some accountants dismiss crypto, and what do they risk by ignoring it?

Blockchain fundamentally differs from traditional finance, making it overwhelming for many accountants. It lacks the familiar structures and processes of traditional transaction statements and accounting. Instead, transactions can happen across multiple wallets, exchanges, blockchains and DeFi protocols, often with much left up to technical comprehension and interpretation. The sheer complexity, unfamiliar terminology, evolving regulations and the need to track cost basis across fragmented data sources pushes many accountants to avoid it altogether.

The risk? Crypto is not going away. More clients will need expertise in this area. Accountants who misreport crypto transactions, whether through ignorance or avoidance, put their clients at risk of audits, penalties and legal trouble.

How is cryptocurrency impacting tax reporting, compliance and financial statements, and what do accountants need to know to serve their clients effectively?

Crypto disrupts traditional accounting in three major ways: Tax reporting. Most transactions can trigger a taxable event, from trading and staking to liquidity pool rewards and airdrops. Unlike stock sales, crypto transactions don’t have built-in cost basis tracking, requiring accountants to piece together transaction histories across hundreds or even thousands of records. Compliance. Regardless of administrative changes, the IRS and regulators are catching up, introducing new rules and audits specifically targeting crypto holders. And financial statements. Crypto isn’t inherently treated like cash or stocks; it’s currently considered property. Businesses and serious traders have the added complexity of navigating volatile price swings while ensuring they meet evolving accounting standards.

How can accountants get up to speed on crypto accounting?

Learning crypto accounting isn’t always as simple as taking a CPE course. It requires hands-on experience, the right tools and a willingness to rethink how transactions are tracked and classified. 

Accountants can get up to speed by using crypto-specific accounting platforms that pull on-chain data, automate cost-basis calculations and reconcile transactions across multiple blockchains. They should also connect with crypto-savvy professionals who already specialize in it, whether through LinkedIn, industry groups or direct partnerships.

Crypto accounting isn’t just difficult; it’s fundamentally different. Those who invest time in learning it will gain a competitive edge, while those who ignore it will struggle to stay relevant.

DEI is out (or is it?)—let's talk

Big firms like KPMG and Deloitte are quietly scaling back their diversity, equity and inclusion programs—a move that could backfire. In this episode of Accounting Influencers, host Rob Brown unpacks why this is happening and why it might not be the right move at a time when hiring accounting talent is such a challenge.

Governing bodies like the AICPA are doubling down on inclusion even as some firms are ghosting their own initiatives, citing legal risks, political pressure and internal burnout. Brown breaks down the ripple effects on hiring, retention and reputation, especially with younger talent watching closely. Spoiler alert: Gen Z isn't impressed.

Why this matters: If your firm wants to stay competitive in a tight labor market, pulling back on DEI could send the wrong message to the very people you're trying to attract. (Accounting Influencers)

One down, three to go. This TikTok creator serves up pure joy, a little rhythm and a big reminder that every passed section of the CPA exam is worth celebrating.

QuickBooks + iPhone = your new favorite payment sidekick. Seth Fineberg breaks down how mobile payments just got way more accountant-friendly. Your clients' phones are now a POS system—literally.

A masterclass in reinvention. A peak performance strategist talks transformation, burnout, business evolution and why your identity shouldn't begin and end with your job title.

Trusts, tax and generational wealth. Are you helping clients build legacies? Or just filing tax returns?

$1 billion

The IRS's estimate for unclaimed tax refunds for tax year 2021, available to be claimed by April 15. (IRS)

• IRS teams up with banks to sniff out fraud
• Auditors dive deep into digital asset companies' books
• Workday now ends at 4:39 pm
• The startup turning home loans into an employee benefit
• CFOs struggle to keep up with shifting rules

Vero Beach audit delays spark financial turmoil

In a tale that could give any accountant a headache, Vero Beach, Fla.'s finance department found itself in hot water after missing crucial state audit deadlines, leading to a loss of state revenue, frozen pension funds and over $32 million in grants hanging in the balance.

Despite budgeting $38,000 for audit assistance, the city shelled out nearly $82,000 to accounting firm Cherry Bekaert, more than double the planned amount, without completing the audit on time. This financial faux pas left city officials "flabbergasted" when state regulators imposed stiff penalties for the overdue audit. 

This isn’t just a story about a city blowing its budget—it’s a glimpse into what happens when client support turns into crisis control. It appears Cherry Bekaert went above and beyond trying to help Vero Beach’s Finance Department wrap up a mountain of pending PBC items, but even heroic efforts couldn’t overcome delays on the client’s end. 

Why this matters: This is a reminder to set clear engagement scopes, document follow-up efforts and be extra cautious when a client’s internal processes start slipping. (VeroNews)

The Net Gains is your one-stop shop for fresh, FREE accounting insights. You can reach the newsletter team at thenetgains@mynewsletter.co. We enjoy hearing from you.

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The Net Gains is curated and written by Janet Berry-Johnson and edited by Bianca Prieto.