Tax professionals are using technology, innovation, and grit to prosper, new report shows

2026-06-09 · Source: Thomson Reuters Institute · Field: Business & Management — Corporate Strategy & Leadership, Operations & Process Management, Consulting & Professional Services · Depth: Intermediate, quick

Summary

The "2026 State of Tax Professionals Report" by the Thomson Reuters Institute, based on a survey of over 600 professionals, reveals that tax, audit, and accounting firms are successfully adapting to rapid technological and political changes. Most firms experienced increased revenues and profits in 2025, with average profit margins around 30% and some exceeding 40%. A significant trend is the expansion of advisory services, including tax strategy and business consulting, which fuels growth and competitive differentiation. Firms are optimistic about AI-enhanced technologies, backing this with increased investment, and prioritize efficiency and firm growth for 2026, largely through technology adoption. Despite these successes, a chronic talent shortage, marked by an anemic pipeline and senior retirements, remains a key challenge, leading to overwork and capacity constraints, particularly for midsize firms.

Key takeaway

For tax, audit, and accounting firm executives navigating market disruptions and talent scarcity, prioritize strategic investment in AI-enhanced technologies to boost efficiency and expand advisory service offerings. You should focus on developing specialized consulting in areas like tax strategy and financial planning to differentiate your firm and secure higher profit margins. Address talent challenges proactively through targeted training and automation, ensuring your firm can capitalize on growth opportunities and maintain competitiveness.

Key insights

Tax firms are thriving by expanding advisory services and investing in AI, despite talent shortages.

Principles

• Expand advisory services for growth.
• Invest in AI to enhance existing tools.
• Prioritize efficiency and firm growth strategically.

In practice

• Offer tax strategy and business consulting.
• Automate tax processes and workflows.
• Utilize AI to enhance current tech stack.

Topics

• Tax Professionals
• Accounting Firms
• Advisory Services
• AI Adoption
• Talent Management
• Business Consulting

Best for: Domain Expert, Consultant, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by Thomson Reuters Institute.