Top CPA Operational Pain Points in 2025
& How to Solve Them

The accounting profession is experiencing one of its most significant transformations in decades. From rapid AI adoption to increasing cybersecurity threats, CPAs in 2025 must adapt to a landscape marked by operational disruption. Cybersecurity attacks on accounting firms have surged by 300% since 2020, highlighting just one of the pressing operational risks impacting today’s firms. With 90% of finance teams expected to use at least one AI-powered solution by 2026, CPAs are operating in an era that demands rapid innovation and resilience.

This guide explores the seven most urgent operational challenges CPAs face today and offers practical, future-ready strategies to address them. From cyber incidents that take an average of 204 days to contain (costing $4.88 million on average) to AI tools that 57% of accountants believe will reshape the profession, you’ll discover how these pain points can become strategic opportunities.

CPA Operational Pain Points in 2025: Top Challenges to Watch

The accounting profession is going through major changes in 2025. Approximately 300,000 accountants and auditors have left the profession since 2020, representing a staggering 17% decline. The loss of talent is a sign of deeper challenges that are changing how CPA firms operate.

Staffing Shortages and Talent Retention Challenges

In the United States, talent acquisition remains one of the most urgent concerns. Nearly 75% of CPAs had reached retirement age by 2020, while accounting job openings continue to surge, about 135,000 positions annually. At the same time, the talent pipeline has shrunk, with new graduates declining by nearly 50% since 1990, creating a widening and unsustainable staffing gap.

Progressive firms are leveraging automation to help existing staff do more with fewer resources. Strategic outsourcing offers access to specialized talent without traditional recruitment headaches, especially for routine bookkeeping and compliance roles. Currently, 36% of CFOs consider the talent shortage a pervasive business risk, making outsourcing a practical solution for bridging the talent gap.

Cybersecurity and Data Protection Risks

Data security threats have become a growing concern for accounting firms. One in three accounting firms experiences a cyber attack, making this sector the fifth most targeted industry.

Why CPA firms are prime targets

CPA firms represent ideal targets because they maintain extensive collections of sensitive financial information and personal data. Hackers specifically target accounting firms as “aggregators of data” with frequent access to client funds. Up to 95% of data breaches result from human error, while phishing attacks affect 79% of businesses.

Best Practices to Secure Client Data

• Develop a Written Information Security Plan (WISP) as required by the Gramm-Leach-Bliley Act Safeguards Rule
• Implement multi-factor authentication (MFA)
• Use encrypted file-sharing and password managers
• Schedule ongoing staff cybersecurity training
• Incorporate phishing simulations and teach secure data handling as part of your firm’s culture.

Technology Overload and Integration Challenges

Managing new technologies has become a complex challenge for firms trying to modernize. On average, tax teams spend 40–70% of their time collecting and processing data tasks that AI can accomplish faster and more accurately.

AI adoption is expected to grow by 30% annually through 2028, with 68% of firms believing it will enhance tax operations. However, 97% of firms report inefficient technology use-often due to legacy systems that complicate integration and create security vulnerabilities.

Choosing the right tech stack for your firm

With 71% of accounting firms report that seamless tool interactions are essential to improve client experiences and retain business. Avoid generic, one-size-fits-all tools in favor of solutions that offer:

• Tailored accounting features
• Built-in security protocols
• Strong third-party integration capabilities
• Support for remote collaboration and document traceability

Remote Work and Workflow Disruptions

Remote work has permanently reshaped the accounting profession, bringing ongoing challenges that require strategic adaptation. Communication has become more transactional, lacking relationship-building aspects. Schedule coordination struggles in hybrid environments create communication gaps that can reduce productivity by up to 25%.

Cloud-based file-sharing tools enable teams to collaborate in real-time on single versions, saving hours of confusion on tasks like document revisions, approvals, and delivery. Specialized accounting collaboration platforms incorporate centralized communications, real-time collaboration, client portals, and instantaneous information sharing.

Client Expectations and Service Delivery Gaps

Traditional accounting services no longer meet evolving client demands. Client Advisory Services (CAS) practices report a remarkable 61% increase in median annual revenues since 2022, highlighting the growing importance of the CPA as a trusted advisor. CAS revenue grew 17% in 2024 and is expected to rise 99% over the next three years.

Tips for Enhancing Client Service:

• Establish clear onboarding processes
• Use engagement letters to define scope and fees
• Adopt secure, cloud-based client portals instead of email
• Maintain consistency and transparency in communication

“Clear and proactive communication is now essential for client loyalty and retention.”

Increasing Regulatory and Compliance Burdens

Regulatory complexity continues to escalate, with 42% of jurisdictions predicting accounting and tax will become more complex over the next five years.

Key updates include:

• AICPA and NASBA’s new licensure model requiring only a bachelor’s degree
• BOI (Beneficial Ownership Information) reporting penalties of up to $500/day for non-compliance
• FTC Safeguards Rule requiring encryption and vulnerability assessments

Firms should form compliance task forces with executive oversight, while adopting tools that automate updates, monitor requirements, and ensure data security.

Cash Flow and Expense Management Pressures

Many firms have seen cash flow deteriorate over the past 12 months. 86% cite difficulty collecting client fees as a major cause, while 78% say their clients are also struggling to pay.

Solution: Automated Cash Flow Tools

Real-time cash flow software provides visibility into accounts receivable and helps firms identify financial issues before they escalate. These tools reduce expense processing costs by 75%, dropping from $26.63 to $6.85 per report.

Conclusion

Facing these seven operational challenges may seem daunting. But with informed strategies and proactive planning, CPA firms can turn disruption into opportunity.

Firms that embrace automation, reinforce cybersecurity, adapt to remote work, and align their services with evolving client needs will be positioned to lead, not just survive, in the changing accounting landscape.

Reactive responses are no longer sufficient. Strategic transformation is the path forward.

At KTRIAN, we partner with accounting firms to build agile offshore support teams, customized to solve the operational challenges unique to your business.

Key Takeaways

• Fortify cybersecurity defenses: Use MFA, conduct phishing training, and develop a WISP.
• Automate strategically: Bridge the talent gap with AI solutions and automated workflows.
• Balance advisory with compliance: Leverage CAS growth while ensuring regulatory adherence.
• Invest in remote infrastructure: Prioritize secure, collaborative cloud platforms.
• Stay ahead of regulations: Use real-time monitoring tools and form compliance task forces.
• Close the talent gap creatively: Combine outsourcing, automation, and flexible work arrangements.
• Strengthen financial visibility: Automate expense tracking and client invoicing.

FAQs

What are the main challenges facing CPAs in 2025?

The key challenges include cybersecurity threats, technology integration, remote work disruptions, evolving client expectations, cash flow pressures, staffing shortages, and increasing regulatory burdens.

How can accounting firms address the talent shortage?

Firms can tackle the talent shortage by leveraging automation and AI tools, Implement comprehensive onboarding processes, use engagement letters defining service scope, ensure timely payroll execution, and maintain transparent communication.

What role does technology play in addressing operational pain points for CPAs? 

Technology streamlines operations, enhances cybersecurity, facilitates remote collaboration, improves financial visibility, and manages regulatory compliance.

How are client expectations changing for CPA firms?

Clients increasingly expect CPAs to provide strategic advisory services beyond traditional compliance work. Firms need to balance compliance tasks with proactive, value-added consulting.

What steps can CPA firms take to enhance cybersecurity?

Implement multi-factor authentication, conduct regular employee training, use secure client portals, encrypt sensitive data, and develop a Written Information Security Plan (WISP) as required by regulations.

Sources:

Verizon (2024 Data Breach Investigations Report): 300% rise in cyberattacks; average breach cost ~$4.88M; one-third of firms targeted.

IBM Security (2023 Cost of a Data Breach Report): Breach detection takes ~204 days; cost per incident ~$4.88M.

BusinessChief / Gartner: 90% of finance teams expected to use AI by 2026.

SmartVault / Accounting Today: ~300,000 accountants and auditors have left since 2020 (~17%).

ControllersCouncil.org: 75% of U.S. CPAs reached retirement age by 2020; CPA exam candidates have declined ~50% since 1990.

U.S. Bureau of Labor Statistics: ~135,000 accounting job openings expected annually.

Financial‑Cents / Today’s CPA: 1 in 3 accounting firms experiences cyberattacks; phishing targets 79% of businesses.

Wolters Kluwer: 68% of accounting firms believe AI will improve tax work; tax teams spend 40–70% of time on data prep.

Verizon / other studies: 97% of accounting firms admit they’re not using technology efficiently.

Zoom / Gallup: 87% of employees prefer remote or hybrid work; workflow disruptions can reduce productivity by up to 25%.

PairSoft / Levvel Research: Automation reduces expense report costs from ~$26.63 to $6.85.

SquareWorks: 36% of CFOs cite talent shortages as a significant business risk.

TMF Group Global Business Complexity Index 2024: 42% of jurisdictions expect growing tax/accounting complexity.

AICPA & NASBA: New CPA licensure path requiring a bachelor’s, exam, and experience.

IRS / Taxpayer Advocate: BOI reporting penalties can reach $500 per day.

FTC – Gramm-Leach-Bliley Safeguards Rule: Mandated encryption and vulnerability assessments.