January 15, 2025

Government Affairs: Hold on Tight! Big Changes in the Accounting Profession for 2025

By Kenneth Besserman, TXCPA Director of Government Affairs and Special Counsel

The 2025 Texas legislative session is just around the corner. January 14, 2025, will be the start the 89th Session of Texas Legislature. Representatives and Senators will come together to debate some of the biggest issues that Texas has faced in decades.

From continued proposals to further lower property taxes, to the ever-increasing need to find and secure water sources in a fast-growing state, to much-needed infrastructure projects, to the long-simmering debate over school choice, the 89th session will be the center of attraction in Austin and beyond for the next five months.

The 2025 Texas House of Representatives and the Texas Senate will remain in Republican control after the 2024 election. The biggest issue facing the House on opening day will be the election of a Speaker of the House. Speaker Dade Phelan – Speaker since 2021 – is in for a contested election, with at least six declared candidates for Speaker.

The accounting profession is facing some significant licensing issues in 2025 that will have repercussions in Texas and beyond. As the CPA pipeline and the need for talent continues to be a priority for the profession, states, state societies and state boards of accountancy are beginning to develop legislation to address the pipeline issue.

Texas is at the forefront of these discussions and these legislative proposals. As AICPA and NASBA propose exposure drafts on alternative pathways to licensure and mobility, states have seen the need to act in their best interests and timelines, which may not fully synchronize with the timelines of other organizations.

In Texas, Senator Charles Perry, CPA-South Plains, has filed Senate Bill 262 and Rep. Angie Chen Button has filed House Bill 1757, which will create an additional pathway to CPA licensure. This new pathway will require the completion of a baccalaureate degree (with the required accounting concentration), passage of the CPA Exam and two years of work experience to be defined by Board rule. Click here to learn more about the legislation that was filed.

More flexibility in licensing pathways has been one of the hallmarks of the National Pipeline Advisory Group and others that are fostering solutions to the issues related to the CPA pipeline.

While educational pathways are discussed, the issue of mobility and out-of-state practice privileges become more important than ever. All agree that current licensees should continue to have mobility even as the national fabric of mobility and licensing may change.

TXCPA will be supporting and advocating for legislation in 2025 that will continue and provide for ease and uniformity of mobility. On December 2, Senator Perry filed Senate Bill 522 that addresses CPA practice mobility and out-of-state practice privileges. Click here to learn more about the legislation that was filed.

TXCPA and the TXCPA Political Action Committee have had many good conversations with legislators during this past year, and we look forward to talking to legislators about our specific legislation in the months to come. TXCPA and its Key Persons and advocates will be spending a lot of time at the Capitol in 2025. Please see our 2025 Legislative Agenda below. Reach out to Kenneth Besserman and the TXCPA team if you want to become involved.

About the Author: Kenneth Besserman is TXCPA's Director of Government Affairs and Special Counsel. Contact him at kbesserman@tx.cpa.

 

TXCPA's 2025 Legislative Agenda

TXCPA’s advocacy efforts for the accounting profession ramp up during each legislative session. On November 7, 2024, the TXCPA Board of Directors approved the following 2025 Legislative Agenda. For more details, click here. We encourage all members to join in advocating for these important issues.

  • Additional Pathway to Licensure;
  • Mobility for Existing and Future CPAs;
  • Public Information Act Amendment;
  • Evergreen TXCPA Advocacy Items, including:
    • Prevent Any Proposed Sales Tax on Professional Services;
    • Ensure Proper Regulatory Oversight of the CPA License; and
    • Monitoring Proposed Tax Legislation

 

Thanks to the Sponsors of Today's CPA Magazine

This content was made possible by the sponsors of this issue of Today's CPA Magazine:

Accounting Biz Brokers

Accounting Practice Sales

Capstan

CPA Charge

efile4Biz

Goodman Financial

Poe Group Advisors

 

 

 

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    TXCPA addressed key challenges in the accounting profession through strategic initiatives focused on the CPA talent shortage, advocating for licensure flexibility, expanding student outreach, and enhancing member services. Key achievements included support for legislation introducing additional CPA pathways, strong participation in advocacy efforts and impressive engagement in CPE programs.
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    This article examines the ethical codes of four major professional organizations - AICPA, ACFE, CFA Institute, and IIA - highlighting their shared values of integrity, objectivity, confidentiality, and competence. While all emphasize ethical behavior and professional standards, each code is tailored to the unique responsibilities of its field.
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  • 89th Legislative Session Review: New House Leader, Rule Changes and a Productive Session for TXCPA

    The 89th session of the Texas Legislature began on January 14, 2025. TXCPA has been hard at work advocating its legislative agenda and has had a very productive session. Texas is one of the state leaders in addressing CPA pipeline issues.
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  • Special Report: The Digital Transformation of Accounting

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    There is a growing role for generative AI tools to be used in financial statement audits. The tools offer numerous advantages, including enhanced data analysis, continuous learning, predictive insights, audit automation, and cost savings. However, challenges remain, such as data privacy risks, bias in training data and the inability to verify source data. Learn more in this article.
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  • How Accountants Can Embrace an Entrepreneurial Spirit

    The use of AI-driven technologies has resulted in numerous tools that threaten the existence of many professionals. Accountants are not immune to the threat since many of their tasks can be automated. To stay relevant, accountants can upskill or start their own business. Despite low risk tolerance, their financial expertise makes them strong entrepreneurial candidates.
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  • Maximizing Audits: Key Elements for Efficient and Successful Financial Assessments

    Audits provide stakeholders with reliable financial insights, but the process can be daunting for companies. To prepare effectively, businesses should focus on strong internal controls, accurate transaction records and clear, compliant financial statements. Internal controls help prevent fraud and ensure accurate reporting, while well-organized documentation streamlines auditor reviews.
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  • Spotlight on the Accounting Profession: Jessica Rodriguez Reyes

    Jessica Rodriguez Reyes, an outstanding undergraduate in the BS/MS accounting program at the University of North Texas, shares her journey as a first-generation college student. With internship experiences in small and large firms, Jessica emphasizes the value of hands-on learning and her dedication to mentoring other students is making a noticeable impact.
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  • A Year of Progress and Impact

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  • What’s Happening Around Texas - May-June 2025

    Members in Austin, Dallas and San Antonio participated in community service activities and professional networking events. Fort Worth hosted a successful masquerade ball to fund scholarships, while TXCPA South Plains introduced its new board. Southeast Texas engaged students at a career expo, Victoria hosted a student-CPA coffee meet-up, and Wichita Falls organized an educational event at Midwestern State University.
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  • Accounting Firms Continue to Innovate in Response to Rapidly Changing Market Conditions

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  • Take Note

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CHAIR
Mohan Kuruvilla, Ph.D., CPA

PRESIDENT/CEO
Jodi Ann Ray, CAE, CCE, IOM

CHIEF OPERATING OFFICER
Melinda Bentley, CAE

EDITORIAL BOARD CHAIR
Jennifer Johnson, CPA

MANAGER, MARKETING AND COMMUNICATIONS
Peggy Foley
pfoley@tx.cpa

MANAGING EDITOR
DeLynn Deakins
ddeakins@tx.cpa

COLUMN EDITOR
Don Carpenter, MSAcc/CPA

DIGITAL MARKETING SPECIALIST
Wayne Hardin, CDMP, PCM®

CLASSIFIEDS
DeLynn Deakins

Texas Society of CPAs
14131 Midway Rd., Suite 850
Addison, TX 75001
972-687-8550
ddeakins@tx.cpa

 

Editorial Board
Derrick Bonyuet-Lee, CPA-Austin;
Aaron Borden, CPA-Dallas;
Don Carpenter, CPA-Central Texas;
Rhonda Fronk, CPA-Houston;
Aaron Harris, CPA-Dallas;
Baria Jaroudi, CPA-Houston;
Elle Kathryn Johnson, CPA-Houston;
Jennifer Johnson, CPA-Dallas;
Lucas LaChance, CPA-Dallas, CIA;
Nicholas Larson, CPA-Fort Worth;
Anne-Marie Lelkes, CPA-Corpus Christi;
Bryan Morgan, Jr, CPA-Austin;
Stephanie Morgan, CPA-East Texas;
Kamala Raghavan, CPA-Houston;
Amber Louise Rourke, CPA-Brazos Valley;
Shilpa Boggram Sathyamurthy, CPA-Houston, CA
Nikki Lee Shoemaker, CPA-East Texas, CGMA;
Natasha Winn, CPA-Houston.

CONTRIBUTORS
Melinda Bentley; Kenneth Besserman; Barry Kaplan; Holly McCauley; Shicoyia Morgan; Craig Nauta; Kari Owen; Dipesh Patel, CPA, CGMA; John Ross; Lani Shepherd; Patty Wyatt

 

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