Show Notes
Is private equity turning firms into a 'dumpster fire'? Blake and David unpack Accounting Today's survey showing partners are upbeat while staff are sour on PE. They hit Andersen's $176M IPO, why Big Four ties to Big Tech raise independence questions, and how AI could finally kill the billable hour. Plus, what tax pros really charge in 2025 - and the wild 'Middle Finger Ranch' fraud.
Sponsors OnPay - http://accountingpodcast.promo/onpay Cloud Accountant Staffing - http://accountingpodcast.promo/cas
Chapters (00:56) - Private Equity in Accounting Firms
(01:51) - Sponsor Message: OnPay Payroll Solutions
(04:15) - Arthur Andersen's Legacy and IPO
(07:45) - Private Equity Survey Results
(21:04) - Big Four and Tech Giants
(28:25) - Pricing Models for CAS Engagements
(30:22) - Tax Preparers' Fees Breakdown
(36:12) - Cloud Accountant Staffing
(37:34) - Economic Growth and Consumer Spending
(40:26) - Fraud Stories: Middle Finger Ranch and More
(43:24) - PCAOB Budget Cuts and Enforcement Actions
(52:29) - IRS Readiness for Tax Season
(53:43) - Conclusion and Upcoming Topics
Show Notes
PE in accounting firms: From 'dumpster fire' to excitement https://www.accountingtoday.com/news/pe-in-accounting-firms-from-dumpster-fire-to-excitement
Andersen Group Shares Gain 47% After $176 Million US IPO https://www.bloomberg.com/news/articles/2025-12-17/andersen-group-shares-jump-34-after-176-million-us-ipo
Andersen goes public, hits $2.6B valuation https://thefinancestory.com/andersen-group-ipo-2-6b-valuation
The Big Four consulting firms are embedded in Big Tech. Here's who audits each of the Magnificent 7 companies https://www.businessinsider.com/big-four-accounting-audits-magnificent-seven-financial-records-2025-12
What do tax preparers charge? https://www.accountingtoday.com/news/what-do-tax-preparers-charge
How much do tax professionals charge in 2025? Insights from NATP's Fee Study https://www.natptax.com/news-insights/blog/how-much-do-tax-professionals-charge-in-2025-insights-from-natp-s-fee-study/
U.S. economic growth surges in third quarter to 4.3% https://www.washingtonpost.com/business/2025/12/23/gdp-economy-consumer-spending/
The US economy expanded at the fastest pace in two years as wealthier Americans kept spending https://www.cnn.com/2025/12/23/economy/us-gdp-q3
Kansas accountant diverted family funds to fictitious 'Middle Finger Ranch' https://kansasreflector.com/briefs/kansas-accountant-diverted-family-funds-to-fictitious-middle-finger-ranch/
Kansas Accountant, Who Created Fictitious 'Middle Finger Ranch' for Fraud Scheme, Sentenced to 4 Years in Jail https://www.cpapracticeadvisor.com/2025/12/04/kansas-accountant-who-created-fictitious-middle-finger-ranch-for-fraud-scheme-sentenced-to-4-years/174381/
PCAOB to tighten budget in 2026 https://www.accountingtoday.com/news/pcaob-to-tighten-budget-in-2026
PCAOB Approves 2026 Budget https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-approves-2026-budget
Accounting Firms Must Stop Charging for Time https://cpatrendlines.com/2025/12/02/accounting-firms-must-stop-charging-for-time/
Dirty money gangster jailed over plot worth almost £12m https://www.dailyrecord.co.uk/news/scottish-news/dirty-money-gangster-jailed-over-36410033
PCAOB Sanctions CPA for Violations Related to Audit Evidence and Her Former Audit Firm for Quality Control Issues https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-sanctions-cpa-for-violations-related-to-audit-evidence-and-her-former-audit-firm-for-quality-control-issues
Ahead of Tax Filing Season, Warren, King, 15 Senators Warn of Tax Filing Chaos After Trump Admin Attacks on IRS https://www.warren.senate.gov/newsroom/press-releases/ahead-of-tax-filing-season-warren-king-15-senators-warn-of-tax-filing-chaos-after-trump-admin-attacks-on-irs
Need CPE? Get CPE for listening to podcasts with Earmark: https://earmarkcpe.com Subscribe to the Earmark Podcast: https://podcast.earmarkcpe.com
Get
More from The Accounting Podcast
AI outperformed 12 CPAs on a month-end close benchmark, but that doesn’t mean it can replace them. Blake Oliver and David Leary unpack the study’s limits and why adding AI to existing workflows may not save time. They also explore survey findings that accounting budgets triple when businesses hit $1 million in revenue, plus why most firms are invisible in AI searches. Learn what these shifts mean for your firm’s processes, pricing, and marketing.
Could AI replace your CFO or simply make their job more exhausting? Blake and David debate automation’s limits, unpack an enrolled agent’s log of 188 IRS calls, and explore proposed reforms to taxpayer service. They also examine why AI is putting pressure on billable hours, gaps in AI safety audit requirements, and a romance scam victim’s $225,000 tax bill. Learn what these developments could mean for your firm, clients, and workload.
Will AI replace accountants—or finally ease the profession’s talent shortage? Blake and David unpack why AI-exposed accounting roles are seeing pay rise, not fall; how EY cut audit deficiencies from 28% to under 5%; and why firms must give AI agents limited access and auditable logins. They also explore the coming firm structure: fewer staff, more AI agents, and partners focused on judgment, review, and client relationships.
Could AI make a one-person audit firm possible—and what happens if the data-center boom slows down first? Blake and David examine the AI economy’s circular debt, the construction ripple effects of a pullback, and practical ways firms can document workflows before automating them. They also cover AI-powered continuous audits, Mercury’s new general ledger, and tax evasion headlines.
Is AI the real threat to accounting firms, or is it the client experience? Blake and David unpack a KPMG-linked Polymarket insider-trading investigation, AI-powered fraud, Xero’s influencer backlash, and a tax startup founder charged with defrauding investors. They also share their own experiments using Claude and ChatGPT to prepare tax returns, making the case that firms must eliminate frustrating back-and-forth if they want to keep clients.