Top Trends that will Shape the Accounting Industry in 2025

“Accounting professionals need to constantly refresh their skills and knowledge so they can navigate the complexities of the industry, leverage new technologies and achieve long-term career success,” said Ricardo Buenrostro, a veteran tax expert with over a decade of experience working in finance at UC Davis. 

An instructor in UC Davis Continuing and Professional Education’s Accounting Certificate Program, he believes the key to staying current on industry trends is through education. “Continuous learning ensures that accountants remain proficient and competitive in their profession and an asset to their clients and organizations.” 

So, what’s trending for 2025 that professionals should be prepared for? According to Buenrostro, some trends from years past such as automation and crypto currency continue to shape the industry, but new trends are emerging and looking to redefine the field of finance and accounting. Here’s a glimpse at Buenrostro’s picks for industry trends today’s accounting professionals need to be current on. 

Emerging Trends for 2025 

1. Cloud-Based Accounting Solutions 

The acceptance of cloud-based accounting software is growing, offering increased accessibility, real-time data insights and improved collaboration among stakeholders. Cloud-based solutions also ensure that our tax environments are current and up to date with any required patches or updates as they are pushed to our environment on a consistent basis. 

2. Data Analytics and Automation 

There is a growing emphasis on data analytics and automation in accounting. Businesses are using analytic tools to extract valuable insights, identify trends and make data-driven decisions. This has become more prevalent as we rely on Large Language Models (LLM) solutions to assist us in aggregation and analysis that used to be a much more time-consuming process. 

3. ESG Metrics 

The focus on Environmental, Social and Governance (ESG) metrics is increasing, and sustainability considerations are being integrated into financial reporting processes. ESG metrics measure a company's performance in three key areas: environmental impact, social responsibility and governance practices. These metrics are vital for transparency, attracting capital, enhancing brand reputation, reducing regulatory risk and ensuring progress towards ESG goals. 

Integrating ESG metrics into financial reporting helps bridge the gap between sustainability and traditional financial performance. This integration allows stakeholders to assess a company's overall impact and sustainability efforts alongside its financial health. Emerging mandatory sustainability reporting regimes, such as those proposed by the International Sustainability Standards Board (ISSB), aim to standardize these disclosures, making it easier for investors and other stakeholders to compare and evaluate companies' ESG performance. 

4. Regulatory Compliance 

Staying up to date on accounting standards and compliance requirements is crucial to ensure accurate financial reporting and avoid risks of non-compliance. Regulatory compliance in accounting involves adhering to laws, regulations and standards that govern how financial information is recorded, reported and audited. Key things to consider: 

• Ensuring Transparency and Accuracy: Compliance mandates that companies provide truthful and precise financial information. This transparency is vital for stakeholders who rely on these reports to assess the company's performance and make investment decisions.
• Standardization of Financial Reporting: Regulatory requirements promote consistency in how financial data is reported. This standardization allows for easy comparison between different companies and industries, facilitating better economic analysis. 
• Prevention of Fraud and Misconduct: Strict adherence to regulations helps prevent fraudulent activities by establishing clear guidelines and accountability measures. It deters unethical behavior and protects the interests of all stakeholders. 
• Legal Compliance and Avoidance of Penalties: Companies are legally obligated to follow accounting regulations. Failure to comply can result in fines, sanctions or even criminal charges against the organization and its executives. Recent updates to standards, such as those introduced by the Financial Accounting Standards Board (FASB) and the International Financial Reporting Standards (IFRS), highlight the importance of staying current with regulatory changes.
• Building Stakeholder Confidence: Adhering to regulatory requirements enhances trust among investors, customers and the public. It signals that the company operates responsibly and is a reliable entity within the marketplace. 
• Benefits of Compliance: Complying with accounting regulations offers numerous advantages that contribute to a company's success and sustainability. Accurate financial reporting ensures that a company's financial position is represented truthfully, aiding in internal decision making and strategic planning. 

Regulatory compliance is fundamental to maintaining the integrity and credibility of financial reporting. By staying current on accounting standards and compliance requirements, companies can avoid legal risks, enhance transparency and build trust with stakeholders. 

5. Client Advisory Services (CAS) 

The expansion of Client Advisory Services (CAS) is notable, with accounting firms offering financial planning, business strategy and technology consulting services to meet increasing client demand. CAS encompasses a broad range of services designed to help clients navigate complex financial landscapes and achieve their business goals. 

The rise of CAS reflects a shift from traditional compliance-focused services to a more holistic, advisory role, allowing accounting firms to build stronger relationships with clients by addressing their broader business needs and providing value-added services throughout the year. As a result, firms that embrace CAS can differentiate themselves in the market and achieve sustainable growth. Examples of CAS services include:

• Financial Planning: This involves creating comprehensive financial strategies tailored to individual or business needs. Services include tax planning, retirement planning, investment advice and wealth management. By leveraging their expertise, accountants help clients optimize their financial health and prepare for future challenges.
• Business Strategy: Accountants provide strategic advice to enhance business performance and growth. This includes market analysis, competitive benchmarking, risk management and long-term planning. By integrating financial insights with strategic planning, accountants help businesses make informed decisions that drive success. 
• Technology Consulting: With the rapid advancement of technology, accounting firms are increasingly offering technology consulting services. This includes advising on the implementation of accounting software, automation of financial processes, data analytics and cybersecurity measures. Technology consulting helps clients streamline operations, improve accuracy and stay competitive in a digital world. 

Revisiting Trends from Years Past 

1. AI and Automation 

The use of AI and automation in tax processes is here to stay, thanks to its ability to streamline routine tasks. 

2. Remote Work 

While remote work continues to be the new normal for many industries, some industries, like taxation, have been seeing a return to the office. Self-reporting and thus compliance has been a challenge, so some of these remote work practices have been diminishing or even disappearing. 

3. International Taxation and Tariffs 

International tax regulations have become increasingly more complex, so tax professionals have had to become well-versed in cross-border tax issues. This year, the trend is in tariffs and potential exceptions to these tariffs, so understanding how tariffs work, and tax planning is essential. 

4. Cryptocurrency Taxation 

Cryptocurrency has not gone away, and tax authorities are paying more attention to the taxation of digital assets. The reporting requirements will vary depending on where and how these currencies are purchased and traded, so this level of understanding is needed to appropriately comply with reporting requirements. 

5. Green Tax Incentives 

The topic of tax incentives for environmentally friendly practices could shift soon, so staying aware and current with government investment environmental trends is important. 

Staying Ahead of the Curve

Buenrostro recommends that accounting professionals looking to maintain industry relevance should consider educational opportunities that cover topics such as adapting to regulatory changes, embracing technological advancements, enhancing professional skills, fostering innovation and career advancement. 

“Taxation is an ever-evolving field, and I want to acknowledge that many of our students will each go into their niche tax field over time, whether it is property, income, unrelated income, or even sales and use tax,” said Buenrostro. “Still, it all starts with the same fundamentals, and our Accounting Program facilitates this process for our students and their futures in taxation.” 

Whether you're an experienced accounting professional or looking to get started in the industry, UC Davis CPE offers two online accounting certificate programs to help you take your career to the next level. Learn foundational skills in the Accounting Principles Certificate Program or get senior-level training with the Accounting Specialist Certificate Program.