Daily Brief

News

• AICPA Top Issues Survey: firms’ focus on technology rises — Technology/AI change management is now CPA firms’ leading issue by expected five-year impact, while finding qualified staff remains the top concern across firm sizes. Small firms are being told to treat tech adoption as a staffing-leverage strategy, not just a cost.

• AI is an accounting assistant, not a replacement — Puzzle CEO Sasha Orloff argues AI should prep work, flag anomalies, and execute firm-defined rules to speed the close — but a qualified human must review, approve, and stay responsible for the books. A useful framing for scoping where automation belongs in a firm.

• A big year for AI in accounting — 64% of accounting firms plan to invest in or upgrade AI systems this year (up from 57% in 2024), and organizational adoption jumped from 22% to 40% between the 2025 and 2026 Thomson Reuters surveys. The strongest ROI is still in text-heavy work around the numbers: intake, checklists, categorization suggestions, and client-communication drafts.

• AICPA small-firm resources: cybersecurity and the independent-firm model — July’s small-firm library added “7 Steps to Boost Your Small Firm’s Cybersecurity” and “Evaluating the Independent CPA Firm Model” — timely as more solo/boutique firms weigh staying independent versus joining platforms.

Book of the Day

Profit First — Mike Michalowicz

What it’s about: A cash-management system that flips the usual formula from Sales − Expenses = Profit to Sales − Profit = Expenses — you set profit aside first, then run the business on what remains.

Why it matters for a CPA / professional-services firm: It’s both an operating discipline for your own practice and a ready-made advisory offering for clients who look profitable on paper but are perpetually cash-strapped. It turns “cash flow” from an abstract statement into a set of concrete habits an owner can actually follow.

Key takeaways to apply:

• Flip the formula. Allocate a fixed percentage of every deposit to profit before paying expenses, forcing costs to fit the remainder rather than absorbing all revenue.
• Use separate bank accounts (Income, Profit, Owner’s Pay, Tax, Operating Expenses) so allocation is physical and visceral — behavioral guardrails beat willpower and spreadsheets.
• Set Target Allocation Percentages by revenue band and move gradually from your current percentages toward them, rather than overhauling everything at once.
• Run a twice-monthly allocation rhythm (e.g., the 10th and 25th) to smooth decisions and build the habit — and reserve tax money as you go, a natural fit for how CPAs already coach clients.