Can tech and AI empower accounting teams and bridge talent gaps?
The 2025 tax season was relatively unremarkable as Congress, the Department of the Treasury, and the Internal Revenue Service took no significant action from a legislative or regulatory perspective. However, this didn't lessen the load for U.S. tax and accounting professionals who worked tirelessly to file more than 144 million tax returns, an increase of 1.4% over 2024. In fact, the year's filing statistics were up in almost every category.
Between increasing demands for expertise and execution and the industry's well-known talent shortage, tax and accounting professionals must contend with ongoing strain. At Wolters Kluwer, we surveyed more than 2,300 tax and accounting professionals to learn their thoughts on industry trends, challenges, and opportunities. Through this Future Ready Accountant Report, we found that 41% of respondents are concerned that persistent talent shortages will threaten continued growth. They're right to worry; according to the most-recent data from the American Institute of Certified Public Accountants, nearly 75% of the CPA workforce has already met retirement age.
The good news? Accounting teams can leverage the technology tools in which they've already invested, as well as AI solutions, to successfully weather this stubborn talent drought and improve efficiency.
Fully integrated technologies can help tax and accounting firms reduce redundant work and automate time-consuming, manual tasks like data entry and basic tax prep. That's especially valuable when trying to recruit and retain early-career professionals. Less time spent on lower-value, repetitive tasks means creating more capacity to get involved in more challenging, strategic advisory work faster. Even so, not all firms are using the full breadth of their tech stack's current capabilities.
To stop leaving tech stack value on the table, firms should audit and map their current systems and processes, from client intake to final billing and everything in between. The goal is to identify redundancies, data silos, and manual workarounds that could be automated.
Key questions to ask during this process include:
• Which of our processes are still manual?
• Do our core systems and tools integrate with each other, or are we double-entering data?
• How often are staff switching between platforms to complete a single task?
• Are we using all the features we're paying for?
With answers in hand, firms can work with tech providers to close gaps and fully leverage their tools. When technology is used as a true force multiplier, firms are better equipped to overcome the talent shortage. They can become more agile and efficient environments where employees can focus on high-value work, not mundane tasks.
CLOUD SOLUTIONS ARE CHANGING THE WAY FIRMS WORK
Daily office commutes are fading fast, and firms competing for scarce talent need to embrace that. According to a 2023 Illinois CPA Society survey, respondents ranked 'flexible hours' and 'remote work' as the second and third most attractive employer benefits, after salary. That said, 29% of firms still operate fully in person and haven't fully embraced cloud solutions that enable flexible work. Concerns about migration costs and complexity keep many of these firms on the sidelines. But viewing cloud migration solely as an IT issue misses the bigger picture: it's a strategic move for attracting and retaining top talent.
The transition starts with identifying reputable cloud-based tech vendors with proven industry experience, secure protocols, and strong integration support. Firms can then collaborate with their tech partners to develop a step-by-step cloud migration roadmap. Equally important is investing in staff training and change management. This helps ensure the broader team understands the 'what's in it for me' benefits of moving to the cloud—expanded capacity, improved flexibility, and a modern, more agile work environment.
When looking at tax professionals working at large firms (with 50+ employees), 76% feel optimistic about AI, and 56% report they're already using it. Most want AI to handle low-value tasks, like standard client communication, document scanning, data extraction, and research. Tech-powered efficiency leaves more time for critical thinking, strategic advisory, and building stronger, more profitable client relationships. In a talent-strapped field, that translates directly into increased retention and higher employee satisfaction.
To best leverage AI, firms should identify high-volume, repeatable tasks that are ripe for automation, then explore AI-powered features already built into their existing tools. Piloting AI in a single workflow—such as document intake or client Q&A—can help teams build comfort and spot early wins. It's vital that they share those early results with firm leaders and other employees to help build trust, demonstrate value, and inspire broader AI adoption.
Tax and accounting firms face a clear challenge: growing demand despite a shrinking talent supply. The firms best positioned to thrive are leaning into technology—integrating their tech stacks to empower their staff to practice at the top of their license, migrating to the cloud to enable flexibility, and using AI to reduce repetitive work. Together, these strategies don't just boost efficiency. They create the kind of modern, agile work environment today's professionals want to be part of. And in a tight talent market, that can make all the difference.
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