The strategic response to tax reform: Why now is the time to prepare

New tax legislation and rising client expectations put more pressure than ever on accountants at small and mid-sized firms. Just as one busy season ends, the next begins, bringing with it a fresh wave of complex rules, higher demands, and tighter timelines.

With every regulatory change, the pressure mounts. Your staff workloads increase, compliance risks grow, and clients expect more value. They also have less patience for delays or missteps. However, within this disruption lies a game-changing opportunity — to rethink how your firm operates, streamline workflows, and adopt smarter technology that boosts your firm’s compliance and resilience.

With another round of tax reform on the horizon, now is the time to prepare. Forward-thinking firms are using this moment to drive meaningful change. Waiting until next season could leave your firm scrambling to catch up, while others pull ahead by embracing tools and strategies that give them a competitive edge. By tapping into AI-powered tax technology, you can turn the challenge of tax reform into a strategic advantage.

This white paper explores why preparing now is essential in today’s fast-moving regulatory environment. You’ll learn about the biggest challenges tied to ongoing tax reform, discover actionable strategies, and see how technology — including the latest and greatest tools from Thomson Reuters — can help your firm reduce disruption, stay compliant, and grow stronger through change.

With a proactive and strategic approach to tax reform, your firm will not only weather the next wave of regulatory change but also emerge from it stronger and more future-ready. Let’s take a look.

The challenges of tax reform

As tax laws and regulations continue to shift at the federal, state, and local levels, firms must quickly adapt to remain compliant and deliver accurate, timely advice to clients. But this constant change requires more than just staying informed; it demands a strategic overhaul of how firms train staff, manage workflows, and communicate value to clients.

But even with the right mindset and tools in place, the path forward isn't without its challenges. Firms are dealing with a difficult and stressful environment that affects every part of the business. They are training staff, managing compliance risk, and justifying higher fees.

Below, we explore three of the most pressing challenges tax and accounting firms face when adapting to ongoing regulatory change and why addressing them is critical to future success.

1. Increased training needs for staff
   
   One of the most immediate challenges firms face is increased demand for training. With every tax code revision or regulatory update, staff must be brought up to speed — often in tight timeframes and during peak workloads. This not only puts added pressure on internal teams but can also lead to inconsistencies in how new rules are understood and applied. Without streamlined, ongoing training programs supported by reliable tax research tools, even seasoned professionals may struggle to navigate the complexity.
   
   
2. Compliance risks and potential penalties
   
   Compounding this issue is the heightened risk of non-compliance. Inaccurate filings, missed updates, or misunderstandings of new provisions can result in costly penalties for clients and reputational damage for firms. As compliance becomes more complex, so does risk exposure. Clients expect their accountants to be one step ahead of the law, and falling behind can erode trust and lead them to seek out more proactive competitors.
   
   
3. Potential reduction in client base due to increased fees

Additionally, the cost of adapting to tax reform — both in time and technology — can force firms to increase their fees. While some clients are willing to pay for added value and peace of mind, others may seek out lower-cost alternatives, putting pressure on firms to justify their rates. Without a clear strategy for demonstrating value or differentiating services, client retention can become a growing concern, especially in price-sensitive markets.

Ultimately, these challenges have a direct impact on profitability and competitiveness. Firms that lack the tools and systems to efficiently manage tax law changes risk falling behind in both performance and perception. But firms that invest in the right technology — particularly AI-powered tax technology solutions that automate updates, streamline compliance, and support staff learning — are better positioned to turn tax reform from a disruption into a strategic opportunity.

How to take a proactive approach to tax reform

There's no doubt that client expectations have shifted dramatically in recent years. Today’s clients aren’t just looking for a tax return — they’re seeking personalized insights, strategic advice, and a trusted partner in navigating their financial landscape. A proactive approach to tax reform enables your firm to meet these expectations, offering higher-touch services that build long-term loyalty. It also shifts the focus from simply surviving tax season to building a more resilient, future-ready practice that improves client satisfaction, increases retention, and boosts value.

Taking this proactive stance positions your firm to capitalize on change. As tax laws evolve, so do the needs of your clients. Firms that anticipate these changes and prepare accordingly can expand their offerings to meet emerging client demands. This change allows your company to grow and be more creative. It also lets your firm offer more valuable, year-round advisory services. By identifying new areas for client support — from tax planning to tax strategy — you can increase revenue while deepening your client relationships.

Proactivity also fuels competitiveness. Firms that invest in strategic planning, staff development, and advanced technology tools can serve clients more efficiently and accurately. This improves turnaround times, reduces risk, and enhances the overall client experience, which gives your firm an edge in a crowded market. As word spreads about your forward-thinking service, you're more likely to attract new clients and retain existing ones, leading to an expanded market share.

Most significantly, the shift toward proactive advisory services brings greater meaning and value to the work accountants do. Your staff will enjoy moving beyond repetitive compliance tasks and into more intellectually rewarding roles that directly impact your clients’ financial futures. This change not only boosts staff engagement and job satisfaction but also supports long-term profitability. Advisory work commands higher fees and delivers greater value — making it a win-win for both your firm and your clients.

In short, the challenges of tax reform can be reframed as a catalyst for lasting transformation and growth. Here’s how:

1. Absorb tax reform costs through automation

Automation is a powerful tool for helping firms absorb the operational and financial impact of tax reform. As new regulations introduce added complexity, manual processes become more time-consuming and error-prone — driving up costs and reducing capacity. Automation streamlines repetitive tasks like data entry, document management, and return preparation, allowing staff to complete work faster and with greater accuracy. This efficiency not only reduces overhead but also frees up valuable time that can be redirected toward higher-value advisory work.

By integrating tax automation technology into firms' workflows, they can respond to tax law changes with agility and confidence. These tools ensure compliance through real-time updates, intelligent calculations, and seamless integration with other systems. As a result, firms can scale their services without needing to significantly increase staffing levels, making it easier to maintain margins and deliver consistent value to clients — even amid evolving tax policies.

Automated tax preparation and compliance solutions empower firms to absorb reform-driven complexity through automation, integration, and data consistency — all key to managing rising compliance costs. With integrated data flow, smart diagnostics, and real-time updates, UltraTax ensures your tax returns are accurate, timely, and compliant with the latest regulations, which significantly reduces the administrative burden on your staff. This tool enables your firm to focus less on chasing forms and more on delivering strategic value.

How UltraTax CS delivers cost‑saving resilience amidst tax reform:

• Automated tax preparation and compliance for a comprehensive suite of federal, state, and local tax programs — 1040, 1120, 1065, 1041, exemptions, estates, trusts, and more. These options ensure full coverage across client types — without any extra plugins needed. 
• Advanced data‑sharing capabilities in the CS Professional Suite streamline repeated entries. Enter client info once, and UltraTax propagates it across all returns automatically, minimizing errors and saving hours of data re‑entry. 
• Built‑in robust calculation tools handle complex scenarios like multistate apportionments, K‑1 allocations, and high‑net‑worth situations, so your firm stays compliant without manual juggling. 
• Native integration with other Thomson Reuters products — like SurePrep, SafeSend, Accounting CS, Practice CS, Onvio, GoFileRoom, and Planner CS — creates a seamless end‑to‑end workflow. Save time, reduce friction, and boost accuracy across tax prep, planning, billing, and document management. 

2. Elevate your advisory offerings

Shifting to advisory services empowers accounting firms to turn the uncertainty of tax reform into a strategic advantage. Rather than simply reacting to legislative changes with compliance-based tasks, firms can proactively guide clients through the impact of new regulations. Firms can now offer insights that help clients reduce tax liabilities, optimize financial decisions, and plan more effectively for the future. This shift not only strengthens client trust and loyalty but positions the firm as a forward-looking, indispensable advisor rather than just a seasonal service provider.

Tax reform often creates confusion and complexity for clients, which opens the door for deeper, more frequent engagement. By offering advisory services such as scenario planning, cash flow forecasting, and entity structuring advice, firms can provide year-round value that goes beyond the annual return. These higher-value engagements drive stronger revenue potential, improve client outcomes, and create a sustainable growth path for the firm, even as the regulatory landscape continues to evolve.

Use the framework and tools in Practice Forward to expand your firm into high-value advisory services that address clients’ broader financial and strategic needs. With resources to help your firm develop consultative skills, build personalized service offerings, and create scalable advisory workflows, Practice Forward is a catalyst for strengthening client relationships and opening new revenue streams. With a trusted roadmap to success, you’ll ensure your firm’s transition to advisory work isn't only more profitable, but also more meaningful and engaging for staff and clients.

How Practice Forward strengthens advisory services during tax reform:

• Comprehensive expert tool library. Get over 300 ready-to-use tools, from templates for proposals and reports to pricing calculators and checklists, ready for advisory engagements and customization. 
• Personalized coaching and one‑on‑one consulting. Partner with a dedicated business advisory consultant who provides tailored guidance, shares best practices, and ensures accountability throughout your firm’s implementation journey. 
• Peer‑to‑peer community support. Join the online Practice Forward group and participate in virtual roundtables to exchange insights with fellow forward-thinking firms and build a trusted advisor network.
• Office hours and CPE‑qualified webinars. Tap into regular office‑hour sessions with Practice Forward consultants, and grow your team's knowledge through live, CPE‑qualified webinars and masterclasses.

3. Reduce time spent on tax research

Reducing the time spent on manual tax research is critical to managing both risk and cost during periods of tax reform. When regulations change quickly, relying on time-consuming, manual searches through outdated documents or scattered resources increases the chance of overlooking key updates or misinterpreting guidance. This oversight can lead to compliance errors, missed planning opportunities, and even penalties for clients — all of which pose reputational and financial risks to the firm. 

By streamlining research with AI-powered tools like CoCounsel Tax, firms can instantly access up-to-date, authoritative content and receive precise, citation-backed answers in seconds.

Not only does faster, more accurate research improve confidence and decision-making, but it also drives down the labor costs associated with complex tax planning. What used to take hours of a senior staff member's time can now be done more quickly by less experienced team members with the help of smart research tools. This streamlining reduces bottlenecks, improves firm-wide productivity, and enables more scalable client service — all essential strategies for thriving amid the increased demands and complexity that come with tax reform.

By reducing the time spent on manual research and ensuring interpretations are grounded in up-to-date, authoritative sources, CoCounsel Tax mitigates compliance risk while improving overall productivity. It empowers your staff to respond faster and with greater precision, which leads to better outcomes for clients and a stronger reputation for the firm.

How CoCounsel Tax streamlines research and reduces risk during tax reform

• Accelerates research with trusted sources. CoCounsel Tax integrates Checkpoint's up-to-date regulatory, case law, and agency guidance with public tax content — enabling users to pose questions in natural language and instantly receive authoritative, citation-backed answers, all in one searchable platform. 
• Enables AI-powered document analysis for speed and precision. By leveraging generative AI (GenAI) and agentic workflows, CoCounsel Tax can analyze complex documents — such as new legislation or multijurisdictional tax provisions — within seconds. It streamlines workflows while ensuring decisions are grounded in accurate, professional-grade research.
• Minimizes reliance on manual processes. CoCounsel Tax autonomously retrieves and synthesizes relevant content, identifies key risks, and suggests next steps — all without manually parsing multiple sources. This ability mitigates the risk of oversight and reduces the resource drain on senior staff.

Altogether, these technologies help firms build a resilient foundation for the future. They reduce compliance risks and operational costs, improve internal efficiency and output, and enhance the client experience. When firms can deliver more value in less time — with greater accuracy and insight — they're better positioned to retain clients, grow their business, and navigate the next wave of change with confidence. Embracing these tools isn’t just about keeping up; it’s about setting the pace.

Building your firm’s resilience to change

To navigate the ever-shifting landscape of tax legislation, firms must build a strong foundation of resilience. This growth begins with cultivating a culture of innovation and adaptability. Forward-thinking firms embrace change as an opportunity, not a disruption, and foster an environment where continuous learning and experimentation are encouraged. By normalizing change and encouraging staff to test new tools or approaches, your firm can become more agile and better positioned to respond when new legislation is introduced.

Another key strategy is investing in employee training and development. Tax experts are at their best when they’re empowered with current knowledge and skills. Providing regular access to professional development opportunities, including CPEs and hands-on training with new tools, ensures your team is ready to meet emerging client needs and regulatory requirements. This also helps retain top talent, as employees are more likely to stay with firms that invest in their long-term growth.

Technology plays a pivotal role in supporting these strategies. By streamlining workflows and automating repetitive tasks, firms can shift resources toward higher-value, strategic work. Tools like CoCounsel Tax, for example, give professionals instant access to trusted tax research, helping them resolve complex questions faster and more accurately. This kind of efficiency is critical when deadlines tighten, and complexity rises under new tax rules.

Standardizing workflows is another important component. When processes are clearly defined and repeatable, firms can respond faster and with greater consistency during times of change. Solutions like UltraTax and Practice Forward help create repeatable processes that scale, reducing the chance of errors and freeing up time for staff to focus on client service and strategic planning.

Ultimately, resilience isn't a single action, but a mindset supported by practical strategies and modern tools. By embracing innovation, nurturing talent, and investing in the right technology, firms can not only withstand tax reform but turn it into a catalyst for smarter, stronger operations.