Relevant taxes include; Basis of taxation. Corporate tax. Withholding tax rate (non-treaty). Resident individual. Non-resident individual tax rates. Good and services tax. Estate duty. Stamp duty. Property tax. Income tax filing deadlines. Double tax agreements.

The post AGN EMEA Tax Cards 2025 appeared first on AGN International.

On 11 July 2025, the Federal Council approved the law for an immediate tax investment programme to strengthen Germany as a business location.

– What do these changes mean for your clients operating in or with Germany?
– How can you help them stay compliant and seize new opportunities?
– What are the implications for internationally active businesses across EMEA?

The tax changes are intended to stimulate investment that will ensure a sustainable, growth-promoting environment and planning security for companies in Germany. The tax law changes also affect annual financial statements under commercial law and financial statements prepared in accordance with IFRS accounting standards with regard to deferred taxes.

The following measures, amongst others, were decided upon:

1. Reduction of the Corporate Tax Rate

The current tax rate of 15% will continue to apply until the end of 2027. From 2028, it will be reduced by 1% annually until it reaches 10% in 2032.

In addition to corporate tax a solidarity surcharge and a trade tax should also be paid. Trade tax is levied by the municipality in which the company has its place of business. Trade tax amounts to approximately 15%, depending on the location of the place of business. Existing deferred taxes must be revalued. Due to the gradual reduction, different tax rates must generally be applied, depending on the reversal date.

2. Reintroduction and Increase of Declining Balance Depreciation for Movable Fixed Assets – “Investment Booster”

Declining balance depreciation can be used instead of straight-line depreciation for movable fixed assets acquired or manufactured after 30 June 2025 and before 1 January 2028. The percentage to be applied may not exceed three times the percentage applicable to straight-line depreciation and may not exceed 30%.

3. Extension and Increase of the Research Allowance

The main change is the introduction of a flat-rate surcharge of 20% for the overhead and other operating costs on the assessment basis. The surcharge applies to research and development projects that start after 31 December 2025.

Furthermore, for eligible expenses incurred after 31 December 2025, the maximum assessment basis for the research allowance will increase from EUR 10 million to EUR 12 million per year. This results in a maximum research allowance of EUR 3 million per year. By raising the maximum assessment basis in conjunction with a 10% bonus, small and medium-sized enterprises will theoretically be able to apply for up to EUR 4.2 million research allowance per year in future. This applies to companies that employ fewer than 250 people and either have an annual turnover of no more than EUR 50 million or whose annual balance sheet total does not exceed EUR 43 million.

Moreover, the eligible value of hours worked for own contributions will increase from EUR 70 to EUR 100 per proven hours worked.

4. Introduction of a so called Turbo-Depreciation Allowance for Newly Purchased Electric Vehicles

The purchase of a new fully electric vehicle is to become more attractive to companies from a tax perspective. In the year of purchase, 75% of the acquisition costs can now be written off. In the following year, a further 10% can be deducted; in the second and third subsequent years 5% each, in the fourth subsequent year 3% and in the fifth subsequent year 2%. The regulation applies to the purchase of an electric vehicle in the period from July 2025 to December 2027.

Brought to you by the AGN EMEA Tax Committee

If you have any questions in relation to this article, please get in touch with Christine.

Christine Ries
Tax Consultant
Wirtschaftstreuhand Group

Email: christine.ries@wirtschaftstreuhand.de

The post Germany Launches Major Tax Investment Programme to Attract Business Growth appeared first on AGN International.

The two events brought together over 120 participants from both AGN and Nexia, offering a valuable opportunity to connect, exchange ideas, and further strengthen the collaborative relationship between the two associations in the region.

The meeting kicked off on the evening of 9 July with a traditional Thai welcome dinner, offering a relaxed atmosphere for attendees to get to know one another while experiencing the city’s culture. 

Learning and Growing Together

Thursday’s programme began with an AGN-only session, featuring a thought-provoking panel discussion on sustainability management, moderated by Kevin Bae and Tim Suryanata of Calibre Business Advisory (Australia and Singapore). Panellists from China, India, Indonesia, and New Zealand shared insights on in-demand services and key aspects of capability management across various jurisdictions. 

Andrew White from Ashfords, Australia, shared inspiring insights from the AGN Talent Secondment Programme, highlighting the benefits of cross-border collaboration through staff exchanges with Ballards LLP in the UK. 

Malcolm Ward, AGN Global CEO, and Mireia Rovira, AGN Director of Brand and Member Value, then led an engaging session on “Calibrating Your International Business Strategy.” They introduced key concepts to build international business strategy, highlighting some of the tools and resources available to members. This was followed by a workshop to discuss practical strategies and challenges in smaller groups.

Later in the day, delegates experienced some of Bangkok’s iconic culture, visiting Wat Arun (Temple of Dawn) and Wat Pho (Temple of the Reclining Buddha), followed by a memorable dinner aboard the Horizon Cruise on the Chao Phraya River—enjoying five-star cuisine with stunning views of the city at night. 

Sharing Experiences and Building Value

Friday morning began with a breakfast discussion for women from AGN Asia Pacific firms, creating a supportive space to exchange stories, challenges, and successes. The session also aimed to guide firm leaders on how to attract, retain, and promote talent by understanding and embracing the unique challenges women face in the profession.

The half-day conference began with opening remarks delivered by Nexia’s APAC Chair, Krupal Kanakia, and AGN’s APAC Chair, Greg Cusack, then continued with updates on our collaborative alliance presented by Nexia’s CEO Matthew Howell, and AGN’s Global CEO Malcolm Ward. Delegates then dived into two key sessions: Nexia presented about Talent Management, focusing on career development frameworks, and AGN team focused on Building Value to Firms, showcasing the approach on member value with focus on the Technology space, in context with the transformation of the competitive space. A quick assessment showed how firms rated priorities on this area.

After lunch, some AGN delegates joined an optional tour to explore Ayutthaya—Thailand’s former capital and UNESCO World Heritage Site. The tour included a visit to the Elephant Palace & Royal Kraal to learn about the cultural importance of elephants, a guided walk, through Ayutthaya Historical Park, and concluded with a scenic dinner at Grand Chaopraya Riverside Dining. 

“I’ve been a member of AGN for almost ten years. One of the key takeaways from this year’s conference was the importance of focusing more on international business — something that really stood out to me during Malcolm and Mireia’s session. This is also my second conference attended alongside Nexia members. It was great to reconnect with some I met last year and meet new ones. I really enjoyed connecting with them.”

Manoj Chawla – KNM, India

“It’s been a great experience to be part of the 2025 Asia Pacific Regional Meeting in Bangkok. I really enjoyed the sustainability management panel discussion on Thursday morning. I learned a lot, especially about regional collaborations and the challenges in the region. I’m going home with great memories.”

Yun Shan (Sandy) Lin, CPA at EnWise CPAs & Co, Taiwan

A Meaningful Gathering for the Region

The AGN Asia Pacific Regional Meeting 2025 blended insightful professional discussions with rich cultural experiences, helping members strengthen their connections and discover new ideas to support growth and collaboration across borders.

The post Press Release: The AGN 2025 Asia Pacific Regional Meeting Drives Collaboration Through Change appeared first on AGN International.

Funding Future Investment – Raise new capital funds or is it time to sell up?

Investing in new technologies and funding new skills and fresh talent, all while maintaining independence and your firms unique culture, is no doubt a tall order. The pressure to embrace and resolve these matters is relentless. Competitive pressure, productivity and workload pressure or the pressure of modernizing and transforming your business in the face of near constant developments in technology – all bring the need for capital funds into focus. Some firms rely on a strong balance sheet with reinvested profits. Others draw on modest capital injections from retained earnings, bank lending, or new equity partners, or external backing.

This AGN Global Business Voice publication synthesizes seven strategic capital-raising routes available to AGN member firms. Each has unique advantages, trade-offs. Their strategic fits depending on the firm’s objectives, risk appetite, and ownership philosophy.

Strategic Financing Options Mapped by partner autonomy,
timescale commitment &
funding potential

Left, is an illustrative schematic comparing relative partner autonomy, timescale commitment and funding
potential between options. Individual circumstances and deal structures vary widely, impacting this assessment, and
below we explore the potential pros and cons of all these approaches.

On the move?
Tune into our mini podcast on Spotify at the end of this article for a quick summary of the key insights.

Below is AGNs checklist of matters you should consider at the start of your journey to raise capital resources for your firm: The checklist would make useful section headings for an internal project report.

Funding Future Investment 1: Strategic Alliances and Partnerships

Perhaps not the most obvious starting point, but perhaps it’s possible to avoid the need for raising capital altogether? Strategic alliances involve partnering with another organization to drive mutual growth—without full mergers. Accounting firms may align with other firms, consulting or tech businesses, or join investor-backed networks. These arrangements aim to leverage strengths such as client bases, expertise, or technology access. While alliances typically don’t bring a large one-time capital injection, they often reduce capital needs and generate new revenue.

Application Across Timeframes

Suitability for Medium-Sized Firms

Alliances are ideal for firms seeking capability growth over sheer size. For example, a 15-partner firm strong in compliance might partner with a consulting boutique to add advisory depth. Joining an international network allows service expansion across borders, and tech alliances can support transformation goals at lower costs.

Conclusion

Strategic alliances offer a balanced path to growth. While not suited for firms needing fast capital, they enable mid-sized practices to stay competitive, broaden their offer, and access tech—all without giving up control. For firms that want to remain themselves but do more, alliances are a powerful tool. They amplify capabilities, reduce cost burdens, and allow firms to punch above their weight—especially when well-managed and mutually beneficial.

Funding Future Investment 2: Private Equity Investment

PE firms see medium-sized accountancy practices as attractive due to recurring revenues, strong client relationships, and potential for digital and service transformation. These firms provide a foundation for platform-building, where PE can drive rapid growth through add-on acquisitions and operational efficiency.

Why Private Equity Is Interested in Accounting Firms:

PE firms look for:

• Strong EBITDA performance
• Growth potential
• Recurring revenue
• Niche expertise
• Leadership & succession
• Digital readiness
• Cultural fit

Firms demonstrating digital maturity, operational efficiency, and strategic clarity are especially appealing Introduction. Firms with specialist services (e.g., tax, corporate finance, ESG, or tech consulting) often command higher valuations, especially when they’ve embraced digital tools and can scale.

What members can do next?

AGN firms can:

• Learn from peers – AGN members include a raft of firms that have taken PE investment.
• Use diagnostics to assess readiness – The AGN Advisory Migration Diagnostic, the AGN Digital Maturity Diagnostic and the AGN Practice Performance Diagnostic.
• Explore advisory migration through discussions with AGN member firms that are advanced in their journey.
• Build regional platforms with scale – AGN includes members that have catapulted their growth and scale country based acquisitions.

Funding Future Investment 3: Bank & Debt Financing

Banks, credit organisations and other financial institutions allow firms to raise capital via debt—commonly through term loans, lines of credit, or specialized instruments. Accounting firms with stable revenue streams can often secure sizable loans, though usually with personal guarantees equity or seconded on Trading history or forecast future performance. While debt doesn’t dilute ownership, it does require repayment with interest.

Application by Time Horizon

Conclusion

Bank financing is a practical, non-dilutive funding route for medium-sized firms. It supports independence and growth if firms are financially disciplined and confident in their repayment capacity.

Funding Future Investment 4: Employee Stock Ownership Plans (ESOPs)

An Employee Stock Ownership Plan (ESOP) allows a firm to transfer ownership to employees through a trust, often using a loan (leveraged ESOP) to buy partner shares. Over time, profits repay the loan and shares are allocated to employees— usually based on salary or tenure. It’s a form of internal succession and financing, with the added benefit of boosting engagement and retention. Though rare in accounting, ESOPs are gaining traction after BDO USA’s notable adoption in 2023.

Suitability for Medium-Sized Firms

ESOPs work well for firms with steady profits, low debt, and a deep team—especially those facing leadership succession. If a firm has retiring partners and engaged staff, an ESOP can align interests, provide exit capital, and retain independence.

Applicability Over Time

Funding Future Investment 5: Internal Partner Funding

Internal funding involves using the firm’s own partners—current or incoming—to raise capital. This can be through capital contributions, retained earnings, or new partner buy-ins. It’s a traditional method that keeps ownership within the firm, often facilitating generational succession.

Suitability for Medium-Sized Firms

Internal funding is ideal for stable, independently minded firms with upcoming leaders. It suits planned, moderate capital needs—like phased tech upgrades or service expansion—and firms aiming for long-term sustainability.

For instance, a 15-partner firm with retiring seniors and rising managers might use this model to transfer ownership and raise funds simultaneously. It works well when firms reinvest profits year over year, supporting continuous but controlled evolution.

Use Across Timeframes

Conclusion

Internal partner funding is the most traditional financing method for professional service firms. It supports control, stability, and long-term continuity, but comes with limits on capital availability and speed.
It’s most effective when aligned with a forward-looking succession plan and used for investments that can be planned and phased over time. For medium-sized accounting firms prioritizing independence, internal funding provides a reliable, sustainable approach—especially when supplemented with other capital sources as needed.

Funding Future Investment 6: Mergers or Acquisitions (Strategic M&A)

Merging with or being acquired by another firm can inject capital, solve succession issues, and provide scale. It trades independence for resources and often forms part of consolidation strategies in the accounting sector.

Funding Future Investment 7: Public Listing or IPO (Initial Public Offering)

An Initial Public Offering (IPO) represents a bold capital-raising move—opening a professional services firm to public investment by listing on a stock exchange. Although rare in the accountancy world, a handful of firms, particularly in legal and advisory services, have paved the way. Going public can unlock substantial capital, raise brand visibility, and enable rapid expansion—but not without significant governance and regulatory burdens.

Suitability for Medium-Sized Firms

The most high profile listing of firm listings took place in the early 90s with the likes of Numerica and Tenon floating on the UK AIM exchange – a not entirely successful venture. However, listing is back in vogue if in a lower key format largely for the legal sector; Knights Group (UK Law Firm): Listed on the London Stock Exchange AIM in 2018. The Australian legal sector saw firms like Shine Lawyers and Slater & Gordon have listed successfully, demonstrating that professional service businesses can work as public companies—if structured properly.

For most AGN members, a full IPO may not be an immediate option, however, the idea of a quasi-public route is evolving. Firms might:

• List only non-audit subsidiaries (e.g. consulting or digital arms).
• Explore private placements or mini-bonds via capital markets.
• Use ESOPs as stepping-stones to broader market participation.

Ownership Impact

• Original partners may retain a stake, but shareholder interests dominate.
• Board and executive governance become critical.
• Voting rights shift towards institutional or public investors.

The autonomy of the founding partners is reduced—but capital availability and future liquidity options are greatly enhanced.

Application Across Timeframes

Other Financing Options are available

Conclusion

The ability to raise and deploy capital strategically is an increasingly important factor for successful modern accounting firms. Whether it’s attracting private equity, borrowing from a bank, unlocking internal funds, forming alliances, building an ESOP, or merging with a peer, each pathway has a place in a firm’s journey.

AGN members are encouraged to reflect on their current and future needs—balancing ambition, independence, and succession planning. In many cases, a hybrid approach offers both agility and stability. Use this guide as a diagnostic and discussion tool with your leadership team as you build your future-ready firm.

Mini podcast

Tune into our mini podcast on Spotify for a quick summary of the key insights.

Copyright © 2025 AGN International Ltd. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted by non-members without prior permission of AGN International Ltd.

The post A Guide to Funding Future Investment – Raise new capital funds or is it time to sell up? appeared first on AGN International.

• Up-to-date information on tax developments in Asia Pacific countries.
• Current corporate world issues and hot topics affecting the respective countries’ economies and global development – including insight into the potential impact this could have.
• Annual budget announcements.

In this issue…

SINGAPORE

Explore how Singapore’s 2025 Budget strikes a balance between short-term economic relief and long-term growth and sustainability initiatives. Contributed by N Vimala Devi at BSL Tax Services.

PAKISTAN

Review the proposed amendments under Pakistan’s 2025 Finance Bill, highlighting key changes likely to impact businesses and investors.

The post AGN Taxpresso: 2025 – Issue 2 appeared first on AGN International.

Main taxes are addressed to international entities that are considering making investments in any of these countries in a way that can quickly identify business indicators that are relevant to their purposes.

This publication does not contain the extensive or detailed information required to make any decisions on investments in CSA countries. In that sense, if you are planning to do any type of action in the region, please contact professionals in the AGN firms that will provide you with legal, tax and accounting advice specific to your particular case.

The post Central & South America Main Taxes 2025 appeared first on AGN International.

Introduction

Switzerland has released its Safe Harbour interest rates for 2025—benchmarks that significantly affect how multinational companies structure intra-group loans. While often overlooked due to their technical nature, these rates carry real weight for compliance, tax risk management, and treasury strategy. For finance professionals and tax advisors operating in or through Switzerland, staying informed isn’t optional—it’s essential.

What Are Switzerland’s Safe Harbour Rates—and Why Do They Matter?

Safe Harbour rates are annual reference interest rates published by the Swiss Federal Tax Administration (SFTA). These rates allow Swiss entities to comply with the arm’s length principle for intra-group loans without without complex benchmarking.

When applied correctly, Swiss tax authorities accept them as compliant—thus reducing tax audit risks.

2025 Rates: Key Updates at a Glance

– Effective January 1 – December 31, 2025
– Retroactive application from January 1, 2025

Practical Considerations for Tax and Treasury Teams

• Swiss-only presumption: Foreign tax authorities may not accept these rates for cross‑border loans—transfer pricing documentation may still be needed.
  
• Exclusions: Short‑term funding and cash‑pooling structures do not qualify and must be benchmarked separately.
  
• Credit risk ignored: These rates ignore borrower creditworthiness. For loans with higher risk profiles, supporting comparable market data is essential.
  
• Non‑compliance risks: Applying non‑arm’s length rates without documentation can lead to hidden profit distributions and possible Swiss withholding tax of 35% (or reduced in case a Double Taxation Treaty would be applicable).

Recommended Next Steps for CFOs & Tax Leads

• Catalogue intra‑group loans: Determine eligibility for Safe Harbour treatment.
  
• Amend contracts to reference the 2025 Safe Harbour rates where applicable.
  
• Prepare transfer pricing documentation or seek tax rulings for cross‑border or high‑value loans.
  
• Align treasury policies to ensure consistency globally.

Conclusion: Leverage the Rules, Mitigate the Risks

The 2025 Safe Harbour rates reflect the present interest rate environment in Switzerland and serve as an effective compliance tool—when used correctly. For loans that fall outside their scope, prudent documentation or official rulings are key to avoiding tax ambiguity or material exposure.

Brought to you by the AGN EMEA Tax Committee

If you have any questions in relation to this article, please get in touch with Rocco.

Rocco Arcidiacono
Partner & Swiss certified tax expert, TEP
Fiduciaria Mega SA

Email: rocco.arcidiacono@fiduciariamega.ch

The post Switzerland’s Safe Harbour Interest Rates 2025: What Treasury Teams and Tax Leaders Must Know appeared first on AGN International.

Introduction: The Transformation Mismatch

We are living through an era of profound technological acceleration. From AI-powered audit procedures to cloud-based advisory dashboards, the professional services industry is undergoing sweeping change. Mid-sized accountancy firms, including AGN members, are among those leading the charge—making bold investments in digital infrastructure, training, automation, and analytics to enhance client service and firm profitability. But there’s a problem...

Many clients aren’t keeping pace. In fact, the gap between the digital maturity of professional firms and the readiness of their clients is growing wider, and it’s starting to affect relationships, efficiency, advisory services—and in some cases—billable opportunities. We call this the transformation mismatch: a scenario where the firm is ready to move at digital speed, but the client isn’t equipped (or willing) to follow.

This Global Business Voice paper explores how this misalignment manifests, what it means for the delivery of services and advice, and what practical steps AGN members can take to mitigate the risk and capitalise on the opportunity.

On the move?
Tune into our mini podcast on Spotify at the end of this article for a quick summary of the key insights.

All AGN members are somewhere on the journey to Digital Transformation. The AGN Digital Maturity Diagnostic Tool (accessible to members only) provides AGN members with a diagnostic report and suggestions on key areas of improvement after answering a series of questions. The graphic below presents the four levels.

Practical Actions for AGN Members: What To Do Now

Here are 7 practical and immediately actionable steps AGN members can take to address client
digital immaturity.

1. Diagnose Your Client Base

Not all clients are equal in digital terms. Conduct a light-touch assessment of your top 50 clients and
classify them into tiers:

• Leaders – already using integrated cloud accounting and open to new tech.
• Followers – some adoption but inconsistent practices.
• Laggards – little to no use of digital tools.

Understanding this segmentation helps you prioritise efforts and tailor approaches.

2. Tailor Communications to Digital Maturity

Generic client emails or newsletters may miss the mark. Consider developing communications that speak
directly to the client’s digital level. For example:

• For ‘laggards’ – “Three simple tech steps that will reduce your admin burden.”
• For ‘leaders’ – “Harnessing AI for real-time business decision-making.

Understanding this segmentation helps you prioritise efforts and tailor approaches.

3. Launch Digital Literacy Briefings

Some clients simply don’t understand the ‘why’ of digital transformation. Host informal webinars,
breakfast briefings, or 1:1 sessions to:

• Demystify terms like AI, automation, and APIs.
• Demonstrate tangible value—like faster response times, better cash flow reporting, or automated
  reconciliations.
• Use simple, real-life client success stories.

This is education without the jargon.

4. Co-Create Digital Roadmaps

Engage your clients in developing their own digital journey. Help them define where they are now, where
they want to be in 12–24 months, and what steps they’ll take to get there. Consider offering these as part
of an onboarding pack, client review, or even as a chargeable advisory product.

Include milestones like:

• Migrate to cloud accounting.
• Implement client portal.
• Introduce simple dashboard reporting.

5. Develop Digital-First Advisory Services

Package services that are not only digitally delivered, but enhanced by digital capability. Examples:

• “CFO Dashboard-as-a-Service” – combining real-time reporting and monthly insights.
• “Cashflow Alerts & Predictive Modelling” – AI-generated forecasts and automated flags.
• “Digital Health Check” – one-time scan of client systems and readiness

These services exemplify your digital ability and offer clients tangible benefit. They can demonstrate to
laggards, what laggards are missing out on.

6. Upskill Relationship Managers to Spot & Sell Digital

Your partners and senior managers are often the closest to clients. Invest in training to help them. What
are the conversation starters? Do your partners/managers have a script around this topic? Are they
equipped with recommended solutions for those that show an interest?

Training might focus on:

• Recognising digital blockers (e.g., manual invoice processing).
• Introduce simple tools (e.g., Dext, Xero projects).
• Share short client stories that highlight transformation success.

7. Incentivise Change with Low-Risk Pilots

Offer time-limited discounts, bundled training, or “first 90 days free” options on new digital services.
This reduces the barrier to entry and lets clients experience the value before committing fully.

It’s about creating momentum and lowering risk—for both sides.

The Digital Acceleration Divide: What’s Going On?

AGN member firms are digitalising at an impressive pace. According to internal benchmarks and diagnostics, over 70% of firms have adopted some level of automation, AI experimentation, cloud systems integration, and dashboard reporting in the last 24 months.

They’re doing this not just to improve margins, but to:

• Increase delivery capacity without headcount.
• Elevate client insight and value.
• Create scalable advisory propositions.

However, client firms—particularly SMEs—are a mixed bag, and so these changes don’t alway get imdiate traction with clients.

Why Clients Are Lagging

Despite the steady advance of digital solutions within accountancy firms, many clients remain hesitant,
slow, or outright resistant to change. This hesitancy can be puzzling to firms that see the benefits so
clearly—but it is rooted in real, often deeply embedded challenges. Let’s explore the most common
causes:

The consequences for AGN firms are significant. As clients hesitate or stall, the firm’s ability to fully leverage its own digital infrastructure becomes compromised. And more than that—relationships begin to strain, as client expectations and firm capabilities move out of sync.

The Three Core Challenges of Client Digital Immaturity

Capability vs Comfort: A Growing Mismatch

AGN firms are increasingly fluent in digital working. From automated data extraction in audit engagements to predictive analytics in advisory, these capabilities are now embedded in many firms’ delivery models. However, when clients remain rooted in paper-based systems or low-tech workflows, the resulting disconnect is stark.

Scenario: For example, a mid-sized accounting firm rolled out an AI-assisted tax reconciliation platform designed to reduce turnaround time by 60%. However, nearly a third of clients declined to use it, citing uncertainty about “AI accuracy” and a preference for their long-time spreadsheet system. The firm is left straddling two workflows—one advanced, one antiquated—undermining efficiency and morale. Firms must then manage the cognitive dissonance of operating at two speeds: high-performance digital with some clients, and analogue friction with others. The costs—both operational and emotional—are real.

2. Digital ROI Stalls Without Client Buy-In

Most AGN members have made significant investments in digitisation—through client portals, automated workflows, intelligent document management systems, and AI-assisted compliance. These investments are intended to increase profitability, scalability, and consistency. But crucially, they rely on client participation to deliver value.

Scenario: If only half your clients upload documents through the portal, the manual chasing begins again. If clients ignore task alerts or continue to send documents via email or post, the system breaks down. Exceptions multiply. Instead of automation freeing time, your staff spend it correcting or working around the exceptions.

This stalls ROI and creates a hidden cost burden—you pay twice: once for the digital infrastructure, and again for the manual work required when clients don’t engage with it.

Worse still, this client behaviour often goes unbilled, because firms feel awkward charging clients for inefficiencies
they themselves created.

3. Advisory Services Need Clean, Timely Data to Work

The growing advisory proposition of AGN members depends on data—good data, recent data, reliable data. Whether it’s offering scenario modelling, ESG reporting, cash flow forecasting, or strategic dashboards, the fuel for these services is accurate and timely input from the client. Without it, even the most sophisticated advisory offer falters.

Scenario: A firm develops a real-time KPI dashboard for a key client. It’s ready to go live. But the client only updates their ledgers once a quarter and refuses to automate bank feeds. The dashboard becomes a digital ornament—impressive, but ultimately unused.

The trust built through advisory work is undermined when insights are incomplete or out of date. And from the firm’s side, the advisory effort becomes unscalable when every project requires a manual workaround just to get basic client data.

Final Word on the Lag

Digital transformation is not just a technical project—it’s a behavioural and cultural shift. AGN firms may have the systems and the know-how, but unless clients can be brought into the ecosystem, that transformation will be incomplete. Addressing the lag is not about forcing clients forward—it’s about understanding the reasons behind their resistance, and finding empathetic, ways to help them take the next step. That’s the opportunity for AGN members: to become not just accounting firms with great tec—but true transformation partners for the clients they serve.

The Advisory Opportunity: Turn the Gap into Growth

While the mismatch presents challenges, it also unlocks one of the biggest growth opportunities for mid-sized firms: become your client’s digital transformation guide. This is advisory with a capital A—and it’s exactly the journey AGN’s Advisory Migration Methodology (AMM) supports. The four regions of the AGN Advisory Migration Methodology (Data & Skills Inputs, Service Framework, Stakeholder Environment, and Outputs & Reporting) can be directly applied to assisting a mutual shift towards digital transformation and post digital advisory. The fact is your firm already understands the levers of the methodology – the opportunity here is to apply them to yours and the client’s business.

Top Tips:

Use what the software can provide to improve Outputs & Reporting. Help a client design board-level easy to access and interpret dashboards.
Offer training sessions to teach Foundational Skills data analysis skills to your client’s finance team.
This not only supports your client—it differentiates your firm in an increasingly commoditised market.
Think carefully about the Stakeholder & Business Environment. Understand how to manage change resistance in the client team.

Conclusion: Mind the Gap—Then Close It

Digital transformation has shifted from optional to existential. Your firm may already be adopting
the tools, platforms, and thinking required to thrive in the new era—but your clients may not
be ready. This readiness gap is now a defining feature of modern professional service delivery.
Firms that fail to bring their clients along risk frustration, underutilised investments, and missed
revenue.

But those who embrace the opportunity to educate, support and lead clients into the digital
age will:

• Unlock deeper relationships.
• Build scalable advisory offerings.
• Future-proof their own value proposition.

Mini podcast

Tune into our mini podcast on Spotify for a quick summary of the key insights.

Copyright © 2025 AGN International Ltd. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted by non-members without prior permission of AGN International Ltd.

The post The Pace of Digital Transformation vs Client Readiness appeared first on AGN International.

Private equity (PE) is fundamentally reshaping the accounting industry, offering growth, expansion, and competitive positioning, while introducing complex strategic considerations for firms navigating this transformation.

On the move?
Tune into our mini podcast on Spotify at the end of this article for a quick summaryof the key insights.

So, are we seeing a New Era?

The traditional partnership model has long been the backbone of professional services. Definitions are unclear, but there are likely between 20 and 50 active PE-funded consolidators in each of the US and UK markets. Globally, the PE phenomenon is moving into other jurisdictions like Canada, Australia, and some other European and emerging markets.

This AGN Global Business Voice brings the thinking up-to-date and invites AGN members to think widely about their future options, identifying some “must-do now” actions.

Key Considerations for AGN Members

Traditionally, accounting firms have been structured as partnerships, offering long-term career paths culminating in equity ownership for high-performing professionals. The introduction of PE into the sector has begun to change this model.

• The pool of future firm owners may narrow, as equity is increasingly concentrated among institutional investors rather than senior professionals who have worked their way up through the firm.
  
  
• This could lead to talent retention challenges, as ambitious professionals may not have the equity participation opportunities they had expected.
  
  
• Some firms are exploring hybrid models that preserve elements of partnership structures alongside PE investment to maintain leadership incentives. Given the relaxed regulatory environment, there is scope here for imaginative solutions – Employee Stock Ownership Plans (ESOPs), Bank Funding etc, (See Appendix A).
  
  
• It will be important to build and maintain an inclusive and entrepreneurial culture, attractive to top professionals.

“The First Flip”: Still an Open Question

PE investment is cyclical, with firms typically undergoing a ‘flip’ to new investors after a few years. While the first wave of PE-backed firms in the accounting sector appears to be achieving initial return targets, it remains to be seen how sustainable these models will be over multiple investment cycles.

• The long-term value of PE-backed accounting firms will depend on their ability to generate sustained growth beyond the initial expansion phase.
  
  
• Investors will need to balance short-term financial targets with long-term client and talent retention strategies to avoid market instability.
  
  
• Close monitoring of the outcomes of early PE-backed firms will provide valuable insights into the sustainability of these investment models.

The Debt Burden Factor

One of the core mechanisms of PE investment is the use of leveraged buyouts (“LBOs”), where external funding is used to finance the acquisition of firms. While this approach can accelerate growth, it also introduces new financial risks:

• Some successful accounting firms that were previously self-sustaining are now carrying significant debt loads as a result of PE transactions.
  
  
• Is there a risk that this added financial burden may pressure firms to prioritise short-term Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) growth over long-term client service and professional development?
  
  
• Firms considering PE investment must carefully evaluate their ability to manage debt obligations while maintaining financial stability.

Evolving Markets, Talent & Technology

By bringing in top specialists and investment muscle, PE-funded businesses are leveraging technology and new expertise to drive efficiency, attract talented professionals, and provide great service and rewarding careers. We should anticipate notable successes as they drive high-quality, repeatable, and scalable approaches, such as technology driven auditing.

The PE phenomenon presents opportunities for conventionally funded firms: PE-backed firms’ technologies and expertise could become commercialised and more accessible, affordable, and common. Additionally, bespoke, high-touch, premium offerings like specialised tax services or sector-specific expertise may prefer other service models. Already, some conventionally funded firms are reporting an influx of recruits from the PE-backed environments — potentially the early stages of professionals opting for alternatives to professional life in the PE-backed models?

Regulatory Implications: Returns vs Quality?

The accounting sector has undergone a dramatic shift in ownership structures over the last 30 years, moving from unlimited liability partnerships of technical experts to corporate ownership of external investors. The latest shift catalysed by private equity has yet to be fully tested by regulatory bodies:

• Historically, partners bore direct responsibility for audit compliance and faced unlimited personal liability for their work. More recently, whilst most jurisdictions have had forms of limited liability for some time, ownership remained primarily with those working in the business.
  
  
• Under PE ownership, the legal and financial risk shifts further away from the individual professionals doing the work. At some point this may likely raise concerns about accountability.
  
  
• Regulatory responses remain uncertain, as audit oversight bodies adapt to a new landscape where ownership and compliance responsibilities are increasingly separated.
  
  
• The potential for future regulatory scrutiny is high, particularly as the sector grapples with maintaining audit integrity under a profit-driven ownership structure

Action for AGN Members

As firms navigate this evolving landscape, the key to success lies in strategic positioning
and informed decision-making. Firms should:

• Assess Long-Term Value Creation: Whether seeking PE investment or one of the alternative models, firms should focus on building a business that attracts investment while safeguarding long-term sustainability. Alongside, an emphasis on building an attractive entrepreneurial culture will be important.
  
  
• Remain Agile in Decision-Making: Whatever funding and ownership model is chosen for the future, PE will impact significantly the competitive landscape. Firms must actively evaluate the role that PE could play in their future, whether through a minority investment, full buyout, or strategic partnership.
  
  
• Understand the PE Investment Cycle: Firms should conduct rigorous due diligence on potential investors and ensure alignment between their long-term strategy and investor expectations.
  
  
• Monitor Regulatory Developments: Understanding how regulatory bodies respond to changes in firm ownership will be critical in ensuring compliance and maintaining public trust.

Essentially firms have an opportunity to pursue active modernisation and investment strategies – this attracts the PE community. And in more than the short term, whether with PE or other means, firms will need to adapt their strategies to remain competitive.

Conclusion: Embracing Change While Maintaining Integrity

Private equity represents neither a demolisher nor a panacea for accounting firms. But it undoubtedly represents a significant structural and competitive shift in the industry. If navigated effectively, it can drive both substantial growth and innovation, and significant opportunities for those choosing PE-backed models, or indeed the various alternative models that exist.

As AGN supports its members through these changes, we focus on equipping firms with insights and frameworks to thrive in this evolving landscape. PE is a transformative strategic tool that requires careful management. The choice for firms is not simply “PE or you lose”; rather, it is about how to adapt, grow, and create sustainable value while navigating the opportunities and challenges of PE investment where it is applied.

For further information on this topic or anything relating to the AGN International Association of Accounting and Advisory Firms or to become an AGN member, please email your closest AGN Regional Director (see below) or go directly to www.agn.org.

Appendix 1: Other Ownership Models Are Available….

Employee Stock Ownership Plans (ESOPs)

• Employees acquire ownership over time, creating a vested interest in firm success.
• Potential tax advantages, including deferred capital gains tax for selling owners.
• Used successfully by accounting firms to maintain independence while offering succession
  solutions.

Hybrid Partnership-PE Model

• Maintains a core group of equity partners while selling a minority stake to PE investors.
• Balances external capital for growth while retaining traditional partnership governance.
• Helps existing teams maintain control and cultural integrity.

Cooperative Ownership Model

• Shared ownership between employees, partners, and even clients or industry stakeholders.
• Encourages long-term decision-making and aligns incentives across all stakeholders.
• Rare but viable in professional services where sustainability and independence are priorities.

Strategic Alliances with Shared Ownership Pools

• Instead of full mergers, firms create equity pools across multiple firms.
• Used to create economies of scale, share tech investments, and enable joint market expansion.
• Could work well within international associations like AGN to build integrated service offerings
  without ceding full PE control.

Minority Investor + Employee Option Pool

• External investors take a minority stake while employees get share options.
• Reduces challenge of cultural shift compared to full PE ownership.
• Provides liquidity while keeping leadership incentives aligned.

Public Listing via Alternative Investment Markets

• Some accountancy firms (e.g., in Australia and the UK) have explored IPOs or public listings on
  secondary markets.
• Offers access to capital while allowing the option of M&A with some element of consideration in
  marketable securities.
• Creates complexities in governance but can be a strong alternative for high-growth firms.

Private Family Office “Evergreen” Investment Model

• Allows firms to remain independent while securing funds for development.
• Long-term capital investment from a family office instead of PE firms.
• More patient capital, focused on steady growth rather than fast exits.
  

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Copyright © 2025 AGN International Ltd. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted by non-members without prior permission of AGN International Ltd.

The post Private Equity – A New Era for Accounting Firms appeared first on AGN International.

Our latest edition of Global Business Voice, The Future of Accounting, explores insights from the winning entry of the AGN 2024 ‘Road to Rome’ NextGen Challenge—AGN International’s flagship global competition aimed at fostering strategic thinking, collaboration, and innovation among early-career professionals.

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How NextGenners Envision the Future of AI in Accounting

Among seven teams, each comprised of three individuals from AGN member firms across different countries, Team 5 emerged victorious. Their work showcased a visionary, practical, and deeply insightful approach to AI and digital transformation in accounting, setting a compelling benchmark for how future professionals will shape the industry.

Their two winning submissions tackled the profound implications of automation and AI in auditing, finance, and advisory services. Their thought leadership was not only forward-looking but also structured in a way that accounting firms can adopt to future-proof their workforce, service offerings, and ethical considerations.

A Vision for the Future — and the Strategic Shifts Required

The Road to Rome challenge is more than just an academic exercise. It is a window into how the next generation of accountants sees the profession evolving. The NextGenners’ vision of the future suggests that accountancy firms must make deliberate, strategic shifts:

1. From Compliance to AI-Driven Advisory: The future accountant will not be a compliance officer but a strategic AI-powered consultant. AGN support members journey to advisory with the following detailed guides and resources: AGN Migration Methodology related materials and AGN Advisory Resource Center

2. From Data Entry to Data Interpretation: AI will handle financial processing, while accountants must master advanced data analytics to deliver real insights.

3. From Traditional Risk Assessment to Real-Time Cybersecurity & AI Ethics: AI will flag financial risks in real time, but human professionals must ensure regulatory compliance and ethical AI decision-making.

Challenge 1: AI and Automation – The Future of Accounting Jobs

The first challenge asked teams to explore how AI and automation will redefine the accounting profession by 2030. Team 5 took an analytical approach, identifying a fundamental shift: the automation of routine accounting tasks will create new, higher-value roles focused on oversight, cybersecurity, advisory services, and AI governance.

Their research highlighted key transformations:

• Tasks Replaced: AI will handle risk assessment, financial report generation, audit report writing,
  document summarisation, reconciliations, and real-time anomaly detection.
  
• Tasks Added: A surge in demand for AI oversight, cybersecurity, advanced data analysis, AI-driven
  client advisory, and compliance monitoring.
  
• The New Audit Senior Manager: The traditional audit manager role will evolve into a hybrid AI expert and strategic consultant, requiring skills in AI oversight, cybersecurity, regulatory compliance, and relationship management.

Team 5 went a step further, crafting a job description for the Audit Senior Manager of 2030. They forecasted a blend of technology expertise, strategic advisory, and AI-enhanced decision-making as core competencies, rather than simply auditing financial statements.

What Can Member Firms Learn?

Team 5 – The Changing Roles in the AI Age – Audit Senior

Challenge 2: Future-Ready Leadership – A Learning & Development Roadmap for AI in Auditing

Team 5’s second challenge focused on the practical side of AI adoption: how should firms train their workforce to thrive in an AI-driven accounting environment? Their response was a comprehensive Learning & Development (L&D) Program for Future Audit Managers, structured around five critical pillars:

01. AI Systems Management
– Introduction to AI-powered auditing tools used by firm
– Managing automated data entry and financial report generation tools
– Customization of AI systems specific to firm and client needs

Key Skill: AI Software Expertise

02. Cybersecurity
– Cybersecurity threats in financial systems
– Strategies to detect and prevent cyber attacks
– Mitigation plan in case of data breaches

Key Skill: Risk Mitigation

03. Governance: Ethical and Regulatory
– Industry-wide regulatory & compliance requirements
– How to avoid algorithmic bias and ensure transparency

Key Skill: Compliance Management

04. Develop as a Client Advisor
– Provide AI-augmented advisory services
– Customizing AI-generated forecasts for individual client need

Key Skill: Relationship Development

05. Collaboration
– How to effectively lead hybrid human-AI teams
– How to foster a culture of innovation and continuous improvement

Key Skill: Project management

Lessons for Accounting Firms: How to Stay Competitive in an AI World

Final Thought: The Road to the Future is AI-Powered

Team 5’s Road to Rome victory is more than an award—it is a clear call to action for AGN firms worldwide. Their insights provide a blueprint for how firms should adapt to digital transformation, ensure their staff remain relevant, and deliver cutting-edge advisory services in an AI-first world.

For AGN firms that wish to remain ahead of the curve, the time to act is now. AI is not a distant future—it is here. And if firms don’t seize the opportunity to train their staff, reimagine advisory services, and embed AI into their operations, they risk being left behind.

Next Steps: How AGN Firms Can Adapt

• Adopt a structured AI training framework, similar to Team 5’s L&D proposal.
  
• Invest in AI-powered auditing and advisory tools, ensuring staff can leverage them effectively.
  
• Reassess service offerings—AI-powered cybersecurity, digital compliance, and AI consultancy
  should become core services.
  
• Position AI expertise as part of the employer brand—Attract and retain talent by ensuring professionals see AI as a career accelerator, not a threat.

Team 5 may have won Road to Rome, but their challenge-winning insights should serve as a strategic playbook for every AGN firm looking to remain competitive in a rapidly evolving AI-driven world.

AGN Resources:

• The AGN Advisory Resource Centre
• GBV: Unleashing the Power of ChatGPT
• GBV: The AGN Advisory Migration Methodology
• GBV: Making Sense of Cryptocurrencies: Part #1
• GBV: Metaverse Part 1 – The real reality?
• GBV: Metaverse Part 2 – The business implications

On the move?

Tune into our mini podcast on Spotify for a quick summary of the key insights.

For further information on this topic or anything relating to the AGN International Association of Accounting and Advisory Firms or to become an AGN member, please email your closest AGN Regional Director (see below) or go directly to www.agn.org.

Copyright © 2025 AGN International Ltd. All rights reserved. No part of this publication may be reproduced, distributed, or transmitted by non-members without prior permission of AGN International Ltd.

The post The Future of Accounting – Insights from AGN NextGenners appeared first on AGN International.