AICPA News – May 2023

AICPA News is a round-up of recent announcements from the American Institute of CPAs.

IRS Incorporates AICPA Recommendations in Strategic Operating Plan

The IRS recently released a blueprint for the 10-year, $80 billion it was allocated under the Inflation Reduction Act. The spending plan includes goals and timetables covering areas such as operations support, enforcement, taxpayer services and IT modernization.

Over the last two years, AICPA has consistently recommended the IRS focus on stronger taxpayer services, concentrating on modernization. The new plan focuses on expanding digital services and innovation, enabling taxpayers to access their data, helping taxpayers understand and claim appropriate credits and deductions, and efforts to make payments easy.

AICPA is encouraged to see that the IRS plans to retire legacy applications, adopt modern systems, give IRS employees the technology they need to effectively serve taxpayers, and give taxpayers and practitioners the tools they need to access their data.

AICPA Endorses Bipartisan Bill to Expand Use of 529 Savings Plan

The American Institute of CPAs (AICPA) expressed its support of H.R. 1477, the Freedom to Invest in Tomorrow’s Workforce Act. The bipartisan bill – sponsored by Representatives Abigail Spanberger (D-VA) and Rob Wittman (R-VA) – would expand eligible uses of 529 savings plans to include fees and expenses required to obtain or maintain recognized postsecondary credentials, including professional credentials and certifications. It would provide accounting professionals with greater financial flexibility as they enter the workforce and seek to further their education.

In the letter, the AICPA emphasizes the importance of ensuring that 529 plan owners and administrators can easily understand and use the expanded benefit and encourages increased clarity around the process used to identify a certification as a “recognized postsecondary credential,” as well as clarity on the qualifying expenses, fees and costs under the proposal.

New Study Highlights Desire to Boost Career Development  

According to a new study, more than half of finance professionals are considering changing jobs to boost career development. AICPA & CIMA, together as the Association of International Certified Professional Accountants, recently released Finance and the Great Reshuffle in cooperation with PwC. Based on research conducted among 270 professionals working for large companies, primarily in controlling, reporting, financial planning and analysis (FP&A), and accounting, the report examines the reasons behind the “Great Reshuffle” in the finance profession in Central and Eastern Europe.

The study found that finance professionals are moving roles with increased frequency and feel the need to acquire new skills and adjust to the modern business world, with almost a quarter of workers (24%) saying they want to change their jobs within a year, and another 29% not ruling out this option. Furthermore, over half of respondents observe that employee turnover within their organizations is increasing (52%), and more than half perceive that it is easy or very easy to find a new job (54%).

For 63% of respondents, promotion and career advancement is also the primary motivation to change work (the second most commonly mentioned reason is wanting a salary increase, and the third — lacking a sense of purpose). In addition, the lack of meaningfulness, empowerment, or upskilling opportunities proves to be a better predictor of the willingness to move roles than burnout or the lack of wage increase. Among those who feel empowered, only one in six plan to change jobs.

Other key findings:

• 71% of surveyed professionals experience large transformation within their companies they work for — mainly in the business services and technologies sectors.
• As many as 83% of respondents say that the ability to learn new competencies quickly is the most crucial soft skill. Next in line are analytical thinking (81%) and the ability to deal with complexity/ambiguity (80%).
• Among digital skills, respondents consider the knowledge of data visualization tools as the top priority (82%), followed by AI/machine learning (81%) and database management systems (67%).
• A large percentage of respondents indicate that they feel symptoms of professional burnout. This was most often indicated by team leaders (51%).

Finance and the Great Reshuffle offers key recommendations for employers on how to deal with the Great Reshuffle and mitigate its impact on organizations. These include:

• Preparing for attrition 
• Creating a secure working environment and facilitating psychological comfort
• Providing a sense of meaning and empowerment
• Enabling upskilling
• Ensuring support for middle management

The survey was conducted between August and November 2022 and included responses from 270 finance professionals working primarily in controlling, reporting, financial planning and analysis (FP&A), and accounting. Respondents came mainly from large companies (>€500 million in turnover) located in Poland, Czech Republic, Slovakia, Hungary, Bulgaria, Austria, and Romania, representing various sectors: Business Services, Technologies, Finance, Manufacturing, Consumer Goods, Pharma, and Healthcare.