January 15, 2025

Government Affairs: Hold on Tight! Big Changes in the Accounting Profession for 2025

By Kenneth Besserman, TXCPA Director of Government Affairs and Special Counsel

The 2025 Texas legislative session is just around the corner. January 14, 2025, will be the start the 89th Session of Texas Legislature. Representatives and Senators will come together to debate some of the biggest issues that Texas has faced in decades.

From continued proposals to further lower property taxes, to the ever-increasing need to find and secure water sources in a fast-growing state, to much-needed infrastructure projects, to the long-simmering debate over school choice, the 89th session will be the center of attraction in Austin and beyond for the next five months.

The 2025 Texas House of Representatives and the Texas Senate will remain in Republican control after the 2024 election. The biggest issue facing the House on opening day will be the election of a Speaker of the House. Speaker Dade Phelan – Speaker since 2021 – is in for a contested election, with at least six declared candidates for Speaker.

The accounting profession is facing some significant licensing issues in 2025 that will have repercussions in Texas and beyond. As the CPA pipeline and the need for talent continues to be a priority for the profession, states, state societies and state boards of accountancy are beginning to develop legislation to address the pipeline issue.

Texas is at the forefront of these discussions and these legislative proposals. As AICPA and NASBA propose exposure drafts on alternative pathways to licensure and mobility, states have seen the need to act in their best interests and timelines, which may not fully synchronize with the timelines of other organizations.

In Texas, Senator Charles Perry, CPA-South Plains, has filed Senate Bill 262 and Rep. Angie Chen Button has filed House Bill 1757, which will create an additional pathway to CPA licensure. This new pathway will require the completion of a baccalaureate degree (with the required accounting concentration), passage of the CPA Exam and two years of work experience to be defined by Board rule. Click here to learn more about the legislation that was filed.

More flexibility in licensing pathways has been one of the hallmarks of the National Pipeline Advisory Group and others that are fostering solutions to the issues related to the CPA pipeline.

While educational pathways are discussed, the issue of mobility and out-of-state practice privileges become more important than ever. All agree that current licensees should continue to have mobility even as the national fabric of mobility and licensing may change.

TXCPA will be supporting and advocating for legislation in 2025 that will continue and provide for ease and uniformity of mobility. On December 2, Senator Perry filed Senate Bill 522 that addresses CPA practice mobility and out-of-state practice privileges. Click here to learn more about the legislation that was filed.

TXCPA and the TXCPA Political Action Committee have had many good conversations with legislators during this past year, and we look forward to talking to legislators about our specific legislation in the months to come. TXCPA and its Key Persons and advocates will be spending a lot of time at the Capitol in 2025. Please see our 2025 Legislative Agenda below. Reach out to Kenneth Besserman and the TXCPA team if you want to become involved.

About the Author: Kenneth Besserman is TXCPA's Director of Government Affairs and Special Counsel. Contact him at kbesserman@tx.cpa.

 

TXCPA's 2025 Legislative Agenda

TXCPA’s advocacy efforts for the accounting profession ramp up during each legislative session. On November 7, 2024, the TXCPA Board of Directors approved the following 2025 Legislative Agenda. For more details, click here. We encourage all members to join in advocating for these important issues.

  • Additional Pathway to Licensure;
  • Mobility for Existing and Future CPAs;
  • Public Information Act Amendment;
  • Evergreen TXCPA Advocacy Items, including:
    • Prevent Any Proposed Sales Tax on Professional Services;
    • Ensure Proper Regulatory Oversight of the CPA License; and
    • Monitoring Proposed Tax Legislation

 

Thanks to the Sponsors of Today's CPA Magazine

This content was made possible by the sponsors of this issue of Today's CPA Magazine:

Accounting Biz Brokers

Accounting Practice Sales

Capstan

CPA Charge

efile4Biz

Goodman Financial

Poe Group Advisors

 

 

 

  • The Future of CPA Licensing: TXCPA Members in Action at the State Capitol

    With the profession facing a talent shortage, legislative efforts are underway to introduce alternative pathways to licensure. Additionally, bills have been introduced to address CPA mobility and practicing accounting across state lines. TXCPA members took action at the Texas Capitol to address and emphasize the importance of these initiatives in strengthening the profession.
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  • CPE: Corporate Codes of Conduct - Similarities and Differences, and Implementation and Communication Strategies

    Codes of conduct serve as essential guidance for organizations, ensuring ethical behavior, regulatory compliance and corporate integrity. This article examines the significance of codes of conduct, highlighting examples from Fortune 500 companies. Effective implementation involves executive endorsement, ongoing communication and integration, and reinforcing accountability.
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  • Build on Our Momentum

    During TXCPA's 2025 Advocacy Day at the state Capitol, CPA professionals met with legislators to discuss proposed legislation on alternative CPA pathways and mobility. These efforts strengthened relationships with lawmakers, positioning CPAs as trusted advocates for the profession. The positive feedback from legislators reflects the impact of these advocacy efforts.
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  • Assessing AI From a Tax Perspective, Part 2

    In part 2 of a series, this article examines the risks and limitations of using AI in tax preparation. While AI tools like ChatGPT, Copilot, Perplexity, and TaxGPT can assist with tax research, their accuracy depends on precise prompts and professional oversight. Responses are often outdated, misleading or incorrect, posing risks to professionals who rely on them without verification.
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  • Understanding Sustainability Accounting Standards Board Standards

    The Sustainability Accounting Standards Board (SASB) provides industry-specific guidelines for companies to report on ESG factors that impact financial performance. Companies use SASB metrics to enhance investor transparency and manage ESG risks. While SEC regulations on sustainability remain pending, over 3,000 companies worldwide have voluntarily adopted the standards to improve corporate performance.
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  • What’s Happening Around Texas - March-April 2025

    TXCPA chapters across Texas hosted various events to engage members and support future CPAs. TXCPA Dallas held a Coffee & Connections event, while TXCPA East Texas members inspired students at UT Tyler’s Beta Alpha Psi meeting. TXCPA Fort Worth welcomed new licensees at a luncheon and in San Antonio, members celebrated new iDEAL graduates and elected the 2025-2026 Officers and Directors.
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  • Navigating Timekeeping Compliance in Government Contracting

    Texas contractors receiving government funding must maintain rigorous accounting practices, particularly in timekeeping and labor distribution, to ensure they are adhering to federal regulations. CPAs and finance professionals play a crucial role in enforcing applicable standards. Mastering timekeeping is essential to help meet federal standards and uphold the integrity of taxpayer-funded projects.
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  • Spotlight on CPAs: Shilpa Boggram Sathyamurthy, CPA-Houston, CA

    Shilpa Boggram Sathyamurthy is an accounting profession leader with experience in both public and industry accounting. In this Spotlight on CPAs article, she discusses the differences in their focus, workload and learning opportunities. She also actively contributes to TXCPA through committee service, valuing collaboration and professional development.
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  • Do New SEC Disclosure Requirements for Share Repurchases Dilute Their Benefit?

    The SEC introduced new disclosure requirements for share repurchases, aiming to increase transparency. Under the updated rules, companies must now disclose daily repurchase data in quarterly reports. Companies must also disclose whether insiders traded in the four days before or after announcing a buyback. The rules do not specifically address accelerated share repurchase programs.
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  • Custom Reporting Solutions for ASC 842 Lease Accounting

    ASC 842 compliance remains challenging as organizations manage complex lease portfolios and multiple accounting systems. While standard software offers reporting features, many require custom solutions to integrate specific accounting attributes and enhance internal controls. Using a structured approach to developing custom reports can help improve efficiency and support the decision-making process.
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  • 2024-2025 Accounting Education Foundation Scholarship Recipients

    The TXCPA Accounting Education Foundation (AEF) awards scholarships to outstanding students, providing not only financial aid but also connections to a supportive community of experienced professionals. Congratulations to these exceptional students for their dedication and commitment to excellence!
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  • Take Note

    In this edition of Take Note: How to Get the Latest Updates on BOI Reporting; Safeguard What Matters Most; Accountants Confidential Assistance Network; Advocacy Day and Midyear Leadership Council Meeting; TXCPA Career Center; CGMA® Designation
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CHAIR
Mohan Kuruvilla, Ph.D., CPA

PRESIDENT/CEO
Jodi Ann Ray, CAE, CCE, IOM

CHIEF OPERATING OFFICER
Melinda Bentley, CAE

EDITORIAL BOARD CHAIR
Jennifer Johnson, CPA

MANAGER, MARKETING AND COMMUNICATIONS
Peggy Foley
pfoley@tx.cpa

MANAGING EDITOR
DeLynn Deakins
ddeakins@tx.cpa

COLUMN EDITOR
Don Carpenter, MSAcc/CPA

DIGITAL MARKETING SPECIALIST
Wayne Hardin, CDMP, PCM®

CLASSIFIEDS
DeLynn Deakins

Texas Society of CPAs
14131 Midway Rd., Suite 850
Addison, TX 75001
972-687-8550
ddeakins@tx.cpa

 

Editorial Board
Derrick Bonyuet-Lee, CPA-Austin;
Aaron Borden, CPA-Dallas;
Don Carpenter, CPA-Central Texas;
Rhonda Fronk, CPA-Houston;
Aaron Harris, CPA-Dallas;
Baria Jaroudi, CPA-Houston;
Elle Kathryn Johnson, CPA-Houston;
Jennifer Johnson, CPA-Dallas;
Lucas LaChance, CPA-Dallas, CIA;
Nicholas Larson, CPA-Fort Worth;
Anne-Marie Lelkes, CPA-Corpus Christi;
Bryan Morgan, Jr, CPA-Austin;
Stephanie Morgan, CPA-East Texas;
Kamala Raghavan, CPA-Houston;
Amber Louise Rourke, CPA-Brazos Valley;
Shilpa Boggram Sathyamurthy, CPA-Houston, CA
Nikki Lee Shoemaker, CPA-East Texas, CGMA;
Natasha Winn, CPA-Houston.

CONTRIBUTORS
Melinda Bentley; Kenneth Besserman; Holly McCauley; Craig Nauta; Kari Owen; John Ross; Lani Shepherd; Patty Wyatt

 

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