For decades, firms in the accounting industry have relied on mergers and acquisitions (M&A) as a business strategy to fuel growth and support succession plans.
While much of this M&A activity has been mergers between two equals or acquisitions of small firms by mid-sized practices, recently a new, slightly different trend has taken hold. The rise of private equity (PE) investment in accounting firms.
Many have asked what is driving this new PE interest in the accounting industry? While the traditional reasons for targeting an organization for investment may seem the most obvious – stable and reliable revenue streams, economic resilience, and long-standing client relationships – what stands out as particularly unique in the accounting industry is the opportunity in many firms to scale and optimize operational business functions through technology. The infusion of capital provided by private equity investment makes these necessary technology transformation projects possible by removing the most common barrier firms face to taking them on (budget!), streamlining business processes, and ultimately increasing the efficiency and profitability of the firm, resulting in the return-on-investment (ROI) PE firms seek. But this ROI can also be achieved by those firms looking to grow and scale who may be growing organically or through more traditional M&A events.
In this post, we’ll discuss one area of accounting firm operations that is ready for such a technology transformation: Learning Compliance.
Ensuring Learning Compliance Through Technology
As firms grow, there is an increased pressure on internal learning and compliance teams to not only deliver high quality CPE approved training, but to ensure alignment with evolving standards set forth by regulatory bodies. In addition, with a larger firm comes increased board and peer firm oversight, and the manual business processes that once worked for the firm most often will not hold up under additional visibility and scrutiny.
One area where this is particularly true is in the automation of workflow and tracking around the creation, deployment, and consumption of CPE worthy content. In many firms, teams are often using a combination of home-grown technology, middleware, and off-the-shelf systems cobbled together (i.e., having one LMS for learning and another for CPE compliance) to manage the complex, and nuanced standards, outlined in The Standards for Continuing Professional Education published jointly by the National Association of State Boards of Accountancy (NABSA) and the American Institute of Certified Public Accountants (AICPA). Selecting the right technology that can scale with the business is critical to addressing the short- and long-term success of any technology initiative.
Where to Start
Reviewing current workflow and process is a critical first step in identifying tools and technology that can enable internal teams to better support business stakeholders and reduce overall firm risk for non-compliance. Below are five areas to evaluate your process workflow for automation opportunities.
- Verification of Learner Attendance and Engagement: In these workflows, pay special attention to virtual and self-study formats, where NASBA has strict requirements for participant monitoring.
- Timely and Accurate Submission of Documentation: This workflow area can be resource-intensive for firms offering a high volume of CPE programs.
- Preparation for Onsite Reviews and Remote Audits: These review and audit workflows assess not just course content, but also record-keeping practices and overall compliance processes.
- Navigating Jurisdiction Requirements: These workflows must consider nuanced differences in reporting periods, credit hour requirements, and content expectations that vary across jurisdictions.
- IRS CE Workflow Automation and Audit Ready Reporting: Workflows in this area must consider alignment with the new IRS standard on Program ID validity periods.
Accelerating Execution
As accounting firms navigate an increasingly complex regulatory environment and a growing demand for operational efficiency, the need for scalable, intelligent solutions has never been greater. Calculo stands out as a powerful ally in this transformation—helping firms streamline CPE compliance processes, reduce manual effort, enhance efficiency, and minimize risk through automation. Using built in workflow, checklists, and audit logs to optimize processes, Calculo automates repetitive tasks such as collecting a user’s biography or checking qualifications.
Summary
Growing accounting firms must consider implementing robust quality control systems that ensure the same level of rigor and content integrity across all programs. By integrating leading-edge technology into both core service delivery and critical support functions such as L&D and compliance, firms can accelerate their digital maturity, ensure regulatory alignment, enhance efficiency, and ultimately focus on driving more on strategic growth. Embracing this type of technology is a key move in shaping a resilient, future-ready firm.
