The accounting world is constantly changing. Whether it be technology advancement, new tax laws and systems, or taking on a new industry client, CPA’s today have to be adaptable and prepared.  There are an abundance of tools and resources to help ensure that every CPA can stay on top of the industry and broaden their client base. Read on for 4 things every CPA should know as we approach 2019.

New Tax Laws

In December, President Trump passed the Tax Cuts and Job Acts (TCJA). It’s important for every CPA to be familiar with and understand the changes within the act, and how it affects their clients. For example, one major change affects corporation tax rates, lowering them from 35 to 21%. This is obviously a huge cut, and will really increase corporate earnings. In addition, there were changes to what corporations can and cannot deduct, such as meal deductions, or employee parking. For individual or joint filers, the Standard Deduction has doubled from $6,000 to $12,000 for individuals, and $12,000 to $24,000 for married couples. The bill also rewrote tax brackets, shifting income ranges slightly within the 7 brackets. Take a look at Intuit ProConnect’s Tax Cuts and Job Act resources to get a better handle on all the changes you can expect to encounter with the latest tax reform. 

Stock Market

Accountants should be good investors. Understanding the stock market and where it is heading is imperative when advising your clients, especially if you’re recommending they should stay put or re-arrange their investments.

According to Forbes, the stock market return will drop 4 percent going into 2019. Many investors believe that 2018 is the time for investing in stocks. Earnings are surging from the corporate tax cut; however, it does not appear to be sustainable. Essentially, it is predicted that the longer you wait, the lower your return will be. No one can truly say for sure, so there is no time like the present!

Technology

Although accounting started as a manual act, technology is streamlining the modern-day accounting world. Technologies and programs have become the norm to not only optimize efficiency, but catch any errors a CPA may make. Technology also creates an easier path to fluently reading and understanding data and information for various business types. Accountants need to have IT skills and be tech savvy to get ahead in the industry. Familiarize yourself with the newest software and stay up to date.

CPA Exam Changes

Because of the Tax Cuts and Jobs Act, many changes will be made to 2019’s CPA Exam. The exam is usually updated 1 every year to 2 years. If you are a first time accountant about to take your exam, here are the areas that will receive content changes; Auditing and Attestation, Financial Accounting and Reporting, and Regulation (in response to changes in legislation). Knowing these revisions will be imperative when preparing for your exam. There are also user experience changes. The exam itself will undergo a new design, creating a more modern look, and there is expected to be a sample released so users can familiarize themselves prior to taking the exam. As part of this update, Microsoft Excel will be incorporated to replace the existing spreadsheet tool. This will be extremely helpful because of how widely accepted Excel is and many test takers will already be familiarized with it. The last user experience change is an update to testing computers, giving the ability to view multiple aspects of testing simultaneously.

With these four facets in mind, you’ll be well-prepared to head into 2019 with confidence in your practice.