Changes bring bigger IRS refunds in 2025

AI shakes up pricing models, IRS refunds are getting bigger and busy season burnout might be fixable (seriously). This week, we break down why firms are being forced to rethink the billable hour and why giving accounting students a crash course in data science will help the future of accounting. Plus, should Ben Affleck shill for accounting instead of Dunkin' Donuts in next year's Super Bowl ads? We think so. 

AI changes pricing (and profitability) of accounting services

Generative AI and automation are everywhere in accounting. These tools can drastically cut the time spent on data-intensive tasks like tax preparation, auditing and financial analysis—and it's raising questions about the future of the billable hour.

Alex Smith, global search and AI lead at iManage, a software company specializing in AI-powered document and knowledge management, believes there's a place for both time-based and value pricing strategies in accounting firms. But you need to understand the type of work best suited to each.

Why this matters: Accountants who embrace AI-driven efficiency can unlock new service opportunities, optimize pricing and improve profitability. (CPA Practice Advisor)

Future-proofing accounting education

Technology is reshaping accounting, and universities must adapt their programs to equip students with the skills needed to land jobs and have lucrative and rewarding careers. Current accountants must adapt, and future accountants must prepare to do more than crunch numbers—they'll need to think critically, interpret complex data and give their clients strategic insights to grow and achieve their goals.

Siqi Li, Ph.D., an accounting professor at Santa Clara University's Leavy School of Business, sat down with The Net Gains to discuss how higher education is evolving to meet these demands. –Janet Berry-Johnson

How is the rise of AI and automation transforming the skillset that accounting students need to develop, and how is accounting education adapting to meet these new demands?

As AI and automation tools are increasingly being used for routine tasks such as data entry and invoice processing, accounting students need to develop strong data analytics skills and exhibit proficiency in data visualization tools (e.g., Tableau). More importantly, students need to develop stronger critical thinking skills to interpret complex data and learn to make sound business decisions. Accounting programs, such as the accounting department at Santa Clara University (SCU), are making curriculum changes to include more data analytics content and to incorporate relevant topics of AI and automation into existing courses. In addition, to prepare students for the digital future, many programs offer students hands-on experience with state-of-the-art software and technology to simulate real-world environments.

With analytics playing a bigger role in financial decision-making, how are universities integrating data science and technology into traditional accounting programs?

At SCU, we offer a stand-alone course in data analysis and visualization to teach students how to use business intelligence tools such as Tableau to uncover insights that might not be obvious through traditional accounting methods. In many universities, accounting students work with advanced accounting software and enterprise source planning (ERP) systems to gain experience in data-driven financial forecasting and modeling. Emerging topics such as blockchain and cybersecurity are increasingly integrated into accounting programs. There are also cross-disciplinary learning opportunities between accounting and other fields/departments, such as computer science and information and data science.

What advice would you give to accounting students or early-career professionals who want to stay competitive in an increasingly tech-driven industry?

First, take advantage of the learning opportunities offered at your school—not just the classes in the accounting department, but look for interesting courses from other departments. Second, build and strengthen critical thinking and problem-solving skills. It is not enough to just analyze data; you need to focus on enhancing the ability to analyze complex situations, effectively communicate your thoughts and collaborate with cross-functional teams. Last but perhaps more importantly, stay curious and have a growth mindset! Continuously updating your skillset through courses, experience and real-world applications will help you maintain a competitive edge.

How do you see the future of accounting education evolving over the next decade, and what major changes should current and aspiring accountants be prepared for?

In my view, the future of accounting education will be shaped by technological advances. The role of accountants will shift from purely number-crunching to leveraging data to make strategic decisions. Data analytics will become a key component of any accounting curriculum. With routine tasks being handled by automation, accountants will likely focus more on advisory and leadership roles. This suggests that data analytics skills, as well as soft skills such as critical thinking, problem-solving and effective communication, are critically important for current and future accounting students.

Redefine "busy season" for a healthier work culture

Is busy season burnout just par for the course in an accounting firm? Hannah Hood and Joey Kinney, hosts of The Young CPA Success Show, are challenging the status quo. In a recent episode, they explored firm leadership's role in easing the stress of a heavy workload, how automation and delegation can help and why the staffing shortage continues to strain the profession. Most importantly, they emphasize the power of mentorship, self-care and empathy—because running a successful firm isn't just about numbers; it's about people.

Why this matters: Forward-thinking firm leaders should leverage automation, rethink workflows and advocate for healthier work environments to build a more sustainable future for the profession. (The Young CPA Success Show)

Super Bowl = Super Boom? The Big Game isn't just a win for football fans—host cities rake in billions. But does the economic boost live up to the hype? 

Bookkeepers navigating social media chaos: Building self-determination and diversifying connections for success biggest struggles.

Ben Affleck's back as The Accountant: Numbers don't lie, and Hollywood is betting big on the sequel to the cult-favorite forensic thriller.

Who's looking out for us? Tax preparer Megan Justice, EA, calls on the NAEA and the AICPA to break their silence—and she's not holding back.

The secret to profitability: Understanding human behavior can shape smarter (and more profitable) business decisions.

$800 million +

Fox Corp.'s record-breaking haul from ad sales for Super Bowl LIX. (Variety)

Profit boost: A clever accounting move could give Meta a big earnings lift this year.

TTFN PCAOB? Regulators discuss folding the PCAOB into the SEC.

DEI dilemma: With political winds shifting, Deloitte pulls back on diversity initiatives.

Exam chaos: The accounting world is puzzled as fewer candidates pass the CPA exam than ever before.

Pay transparency: Companies wrestle with how much pay transparency really benefits employees.

IRS refunds are bigger this year. But why?

Good news for some taxpayers: IRS refunds are trending higher this year. According to Kiplinger, early tax filers are seeing larger refunds compared to last year, with the average payout up nearly $100. The reason? Several tax provisions have been restored or expanded, including a more generous Earned Income Tax Credit, inflation adjustments to standard deductions and wider income tax brackets. 

Why this matters: Bigger refunds tend to mean more client questions. Be prepared to explain the drivers behind these increases and use it as an opportunity to offer proactive tax advisory services. (Kiplinger)

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.