Grow or Go: Technology and Taxes: Thinking Ahead to 2027

How are you feeling about tax season?I mean next year’s tax season, 2027.

Like most owners of an accounting firm, you’ve survived another round of helping your clients solve their tax problems, maximize deductions and income despite all the crazy last-minute, crunch time work. After a little break, it’s a good time to review how to do an even better job next year.

We have found that for many owners of accounting businesses, as they look forward to the next “lap around the track” it’s a time many consider the possibility of selling their practice, to move on to another life chapter or opportunity, or even retire.

Either way there are a lot of reasons to get a business valuation and an exit plan in place, before next year’s tax season, to take advantage of opportunities and not fall prey to circumstances outside your control.

Right now, there is high demand for accounting practices available for sale or acquisition. Sunbelt Business Advisors and True North Mergers and Acquisitions have guided more than fifty accounting practice owners through successful sales of their companies since 2020. There probably hasn’t been a better time than right now for you to take advantage of the experience and expertise that can be applied to your decision to either grow your practice or move on to the next chapter of your life – Grow or Go!

Technology and Taxes: The changing marketplace.

Accounting is such a fundamental discipline. It is a practice that was historically reliant simply on the skills of smart, detail-oriented professionals. Over the last twenty years personal computing has simplified accounting, financial and tax work. This commoditization has pressed accounting businesses to expand into other areas to build their practices with the addition of services like tax and financial planning and investment support. Today, many of these services are also becoming more accessible and commoditized because of more new technology – like AI.

There is a great deal of accounting industry consolidation going on right now. Application of new technology is one of the key drivers in establishing the value of an accounting firm. Use of cloud platforms, automation and AI that boost margins and enable scalable, remote services, can make a firm more attractive. So, the owner of an accounting firm’s position on new technologies, and willingness to incorporate them into the business is a key decision that needs consideration.

We find some owners are not hotly interested in investing a great deal in new technology. This isn’t necessarily a shortcoming depending on the size of the practice and the needs of its clients. Taking a big technological step may not be the right one for a business owner at this time. But technology and its applications are a huge reason there is so much consolidation occurring in the accounting industry. The technology is already here – creating more reasons and opportunities to either enhance or sell an accounting practice.

So, it's worth asking: Do you want to Grow or Go? Is now the time to keep building — or is it time to exit and move to the next chapter in your life?

And here's another question: If a well-funded buyer approached you tomorrow with a serious offer, would you be ready?

According to the Exit Planning Institute, while 83% of business owners claim to hold regular family conversations about transition, 70% have no formal exit strategy written and documented — and 82% don't feel fully prepared to execute a transition. That gap matters, because you are not always in control of your exit timing. Approximately 50% of business owners are ultimately forced into involuntary exits due to partner disputes, health events, death, disability, or financial distress. Planning for what may be inevitable is simply smart business.

Know what your accounting practice might be worth: Get a Confidential Value Range Assessment.

Whether or not you are considering a sale within the next year or two, it’s the perfect time to start with a confidential valuation conversation and get to work on a clear roadmap for an exit strategy, understand the value of your firm in today’s marketplace, and take steps to improve what your practice could be worth. All it takes to get started is brief phone call. Get started right now.

Call Matt Sobieski, CPASunbelt Business Advisors Accounting Practice Specialist612-964-8884.