Zach Donah, President & CEO, Massachusetts Society of CPAs
Invest: spoke to Zach Donah, president and CEO of Massachusetts Society of CPAs, to discuss the recent developments and challenges faced in Greater Boston, covering key topics such as areas of growth and emerging technologies, while addressing strategies for navigating regulatory changes.
What have been some of the key successes or highlights for MassCPAs in Greater Boston over the past year?
Over the last year, MassCPAs underwent a leadership transition. This was part of a lengthy and deliberate succession planning process to ensure minimal disruption to the organization, our team and our members. This process provided our leadership team with valuable insights into the challenges faced by our members during their own transitions, underscoring the importance of effective succession planning. We’ve also observed positive trends in organizational growth, particularly in membership, which is encouraging. There has also been a rise in merger and acquisition activity within the accounting industry, leading to the consolidation of large regional and national accounting firms. This shift has paved the way for an emergence of new, smaller accounting firms that are more entrepreneurial and offer specialized services. We take pride in our members’ ability to adapt to these changes and are eager to serve as a trusted partner in advancing the profession, working closely with our member firms and key stakeholders to support these emerging practices and strengthen our professional community.
What specific services or industries among your member clients have you seen the most demand for over the past year?
Client accounting services (CAS) has been one of the fastest-growing areas within the accounting profession in the past year. These services range from basic bookkeeping all the way up to fractional CFO services, and we’ve seen over 35% growth in this line of service. This reflects both the increasing demand for CPA services and the talent shortage that many industries are experiencing. Our members are helping to fill gaps for startups, nonprofits and companies in sectors like technology and life sciences, particularly with advisory and consulting services. As trusted business partners, they provide invaluable expertise that empowers clients to make critical decisions, further underscoring the essential role CPAs play in driving business success.
We’ve also seen growth in more traditional core services, like audits and financial statement reviews. At the same time, there is a growing demand for non-financial attest services, such as cybersecurity audits and SOC reporting. These services assess whether an organization’s internal controls, processes and risk management framework is sufficient to protect its data. This service line experienced over 50% growth year-over-year, and I expect it will continue to expand as cybersecurity becomes more critical. Another emerging area is environmental, social, and governance (ESG) reporting. While the U.S. has been slower to adopt clear ESG standards compared to other developed nations, recent developments – such as the SEC’s recent climate disclosure rule and new regulations in California – indicate significant potential for growth in this area. For example, 98% of S&P 500 companies already face some ESG reporting requirements, which will create ongoing opportunities for CPAs to offer these valuable services.
What are some of the key opportunities or challenges that you’ve identified, and how are MassCPAs capitalizing on them?
One of the most pressing challenges facing our profession is the shortage of human capital, a concern that extends beyond accounting and impacts many industries. In New England, we’re experiencing a particularly acute talent deficit due to a higher number of people leaving the region than moving in, which is exacerbating the problem. Addressing this issue requires us to shift perceptions about the accounting profession, which is why we prioritize outreach to students to inspire the next generation, and to educate them on all the career paths that are possible with an accounting degree.
We’re also dedicated to supporting firms with effective recruitment and retention strategies. Retaining talent is just as crucial as attracting new hires, so we work with our members to enhance the employee experience, ensuring they can keep the skilled talent they already have. Additionally, we’re actively promote the benefits of living and working in Boston and the Greater New England area to counteract our demographic challenges.
Emerging technologies present both another significant challenge and a tremendous opportunity. Accounting firms, like many other industries, are increasingly navigating how to best leverage these advancements to build capacity and enhance operations. We’re witnessing the effects of automation, and the rise of AI promises even more changes on the horizon. This is where we see a critical opportunity to help our members. Whether they’re a large organization investing millions in new technology or smaller businesses with limited resources, our goal is to bridge the gap by providing the necessary tools and guidance to effectively harness these innovations. By doing so, we can help our members not only adapt but thrive in an evolving landscape.
How are MassCPAs guiding its members through the adoption of emerging technologies like AI, blockchain, and crypto?
We’re committed to equipping our members with the tools and resources they need to effectively navigate these new technologies. One of our key initiatives is the launch of our Emerging Technology Resource Center, which aggregates all the resources we’ve developed around new tech like AI, blockchain and cloud computing. We’ve also created roundtables and committees where our members can come together to share best practices and learn from one another. One of the biggest challenges with these technologies is the overwhelming number of products and services out there, making it difficult for firms to determine what’s right for their practice. That’s why we’re focused on guiding them through this complex landscape.
In terms of AI, we see it becoming more mainstream in a couple of ways. For example, Microsoft 365 has introduced its Copilot AI tool as a core feature, and similar trends are emerging in accounting software. By 2026, about 80% of accounting software providers plan to integrate AI into their existing products. This means that even if firms aren’t actively seeking out AI solutions, they will encounter them through the tools they already use. Our goal is to help our members become comfortable with this technology so they can leverage it to enhance their services and build capacity
What specific pieces of legislation at the state, federal, or international level are you keeping an eye on?
There are several key areas we’re monitoring closely. On the international front, there’s significant focus on new audit standards, especially around ESG reporting. International audit standard-setting boards at the forefront of this initiative, and as more global companies adopt ESG criteria, it will undoubtedly impact firms and organizations in Massachusetts.
At the national level, many provisions from the Tax Cuts and Jobs Act of 2017 are set to expire in 2025. The outcome of the election will play a crucial role in determining whether these provisions are extended or allowed to expire. Our members are primarily concerned with predictability rather than specific tax rates, as a clear, consistent tax policy helps them to provide better guidance to their clients. We will be closely watching how the election outcomes impact these provisions.
On the state level, we’re focused on how Massachusetts may need to conform or decouple from federal tax provisions as they change. Additionally, we’re examining how various policies, including tax policy, impacts the state’s overall competitiveness. One area we’ve been particularly active in is advocating for programs that address the pipeline and workforce shortage challenges in our profession, which will remain a top priority as we move into the next year.
How do you see the accounting profession evolving over the next few years, and what are MassCPAs doing to support that growth?
The accounting profession has undergone more transformation in the last few years than it has in decades, and I believe this rapid pace of change will continue. Several key factors are driving this evolution: the human capital shortage, the rise of emerging technologies, and increased merger and acquisition activity — much of which is fueled by private equity investment. This shift is reshaping the traditional accounting firm model. We’re seeing more firms expand beyond the traditional tax and audit services to offer a broader range of consulting and advisory services, some of which don’t necessarily require a CPA license. As a result, the future of accounting firms may look more like a CPA-led organization providing a diverse array of professional services rather than adhering strictly to the traditional CPA firm structure.
At MassCPAs, we’re focused on evolving alongside our members. One of our strategies is to invest in our own infrastructure to enhance the delivery of our products and services, thereby improving the overall member experience. We also recognize that our members increasingly view their client base as regional or even national, not just confined to Massachusetts. To support this shift, we are fostering greater collaboration across state lines, partnering with other state societies and professional organizations across New England and beyond to ensure we effectively meet our members’ needs in this changing landscape.
