by Daniel Kittell | Accounting News, Business Growth, Industry - Professional Services, News, Newsletter, Professional Services, Small Business
The professional services industry is undergoing a significant transformation in 2025, driven by rapid advancements in AI and automation. As firms seek greater efficiency, enhanced decision-making, and improved client service, AI-powered solutions are reshaping how businesses operate by streamlining operations, optimizing resources, and ultimately boosting profitability. Here’s how AI and automation are shaping the professional services sector in 2025.
AI-Powered Digital Assistants Improve Productivity
One of the most immediate ways AI is transforming professional services is through generative AI-powered digital assistants. These smart tools manage repetitive, time-consuming tasks, allowing professionals to focus on high-value activities.
- Appointment Scheduling: AI can automatically schedule meetings, send reminders, and reschedule conflicts without human intervention.
- Report Generation: AI-powered tools can compile and analyze large datasets to generate detailed reports in seconds.
- Data Retrieval: Instead of manually searching for files, AI can instantly pull relevant data and summarize key insights.
By reducing administrative burdens, firms can increase efficiency, reduce operational costs, and allow professionals to focus on client service and strategic initiatives.
AI in Finance: Enhancing Productivity, Strategy, and Compliance
AI is also transforming financial management within professional services firms by enabling CFOs and finance teams to take a more proactive and strategic role.
- Advanced Forecasting: AI analyzes real-time financial data to predict future trends, cash flow fluctuations, and investment risks.
- Compliance Monitoring: AI-powered systems can detect anomalies, fraud, and compliance risks in financial transactions before they become major issues.
- Enhanced Decision-Making: AI-driven insights help finance teams optimize resource allocation and improve profitability strategies.
In 2025, finance leaders must go beyond simple automation and use AI to drive productivity, ensure compliance, and support business growth.
Integrated Talent Management
To attract and retain top talent, organizations are prioritizing end-to-end talent management platforms that span the employee lifecycle—from hiring to retirement.
These platforms leverage AI and automation to create a seamless workforce experience, including:
- AI-driven performance tracking and analytics to assess employee engagement.
- Automated learning and development programs tailored to individual career paths.
- Predictive analytics to anticipate workforce needs and reduce turnover.
By integrating HR, performance management, and workforce planning into a single AI-powered system, firms can improve talent retention, reduce hiring costs, and boost employee satisfaction.
AI-Powered Recruitment and Onboarding
Recruiting and onboarding processes are being dramatically improved with AI-driven solutions that help firms find and retain top talent more efficiently.
- AI Resume Screening: AI tools can quickly scan and analyze thousands of resumes, identifying the most qualified candidates based on job requirements, reducing the need for manual review by HR personnel.
- Automated Interview Scheduling: AI-powered scheduling tools coordinate interviews without the need for email communication, which shortens the time it takes to complete the hiring process.
- Onboarding Acceleration: AI-driven chatbots and digital assistants guide new hires through paperwork, company policies, and training programs, getting them acclimated quickly while minimizing the need for HR teams to spend extensive time on repetitive tasks.
- Optimized Workforce Planning: AI analyzes hiring trends and workforce data to help companies make data-driven hiring decisions, preventing over-hiring or under-hiring and ensuring cost-effective workforce scaling.
With AI-powered recruitment and onboarding, firms can reduce hiring time and administrative expenses, streamline HR operations, and improve overall workforce efficiency as well as the employee experience.
Flexible Workforce Models Gain Traction
The rise of AI and automation is also pushing professional services firms to adopt more flexible work models. Many firms are embracing the gig economy and using freelancers or independent contract workers to fulfill project-based needs.
- On-Demand Hiring: AI-powered platforms match firms with skilled freelancers or contract workers for short-term projects.
- Scalability: Businesses can scale their teams up or down as needed, improving cost efficiency and responsiveness.
- Hybrid Workforces: AI helps manage remote, in-office, and freelance employees, ensuring smooth collaboration across different work arrangements.
By leveraging flexible workforce models, which tend to be a good fit for professional services, firms can remain competitive and cost-effective in an evolving industry landscape.
By integrating AI into daily operations, professional services firms can boost efficiency, improve decision-making, and foster long-term success in 2025.
by Daniel Kittell | Accounting News, News, Newsletter, Retirement
Medicare is undergoing significant changes in 2025, impacting costs, prescription drug coverage, telehealth access, and caregiver support. Retirees should prepare for these updates to manage their healthcare expenses effectively. Below, we break down the key Medicare changes for 2025 and what they mean for beneficiaries.
Higher Costs for Medicare Parts A and B
Medicare costs are rising in 2025, impacting premiums, deductibles, and potential out-of-pocket expenses for beneficiaries. The Part A deductible—which covers hospital stays, skilled nursing facility care, inpatient rehabilitation, and hospice services—increased from $1,632 to $1,676, while the Part B deductible—which covers doctor visits, outpatient care, and preventive services—went up from $240 to $257.
Although most seniors don’t pay a premium for Part A, Part B requires a monthly premium, which increased from $174.70 last year to $185.00 this year. However, higher-income beneficiaries may pay significantly more—up to $628.90 monthly.
In addition to these costs, Part A and Part B include copayments and coinsurance, which can further impact healthcare expenses. Understanding these changes can help you budget for medical costs and avoid unexpected expenses.
Cap on Out-of-Pocket Prescription Drug Costs
A major win for retirees in 2025 is the implementation of a $2,000 cap on out-of-pocket prescription drug costs under Medicare Part D. This is part of the Inflation Reduction Act, designed to reduce the financial burden of high-cost medications.
Previously, there was no cap on what retirees paid for prescriptions. Under the new rule:
- Once a retiree reaches $2,000 in out-of-pocket drug costs, Medicare will cover the rest for the remainder of the year.
- This change eliminates catastrophic coverage phase expenses, reducing financial strain for those needing costly medications.
Seniors with high prescription drug costs should explore Medicare Part D plans that align with their medication needs.
Expiring Telehealth Benefits
Telehealth services became widely accessible during the COVID-19 pandemic, but Medicare’s expanded telehealth benefits are set to expire at the end of 2024 unless Congress takes further action.
- In 2025, Medicare beneficiaries in rural areas may face limitations on virtual care access.
- Some telehealth services will no longer be covered for patients receiving care at home.
- Many mental health and specialist consultations may require in-person visits instead of virtual appointments.
Retirees who frequently use telehealth should check with their providers before these changes occur.
Additional Resources for Family Caregivers
Medicare is increasing support for family caregivers, who often provide essential care to aging relatives. Expanded benefits include:
- Inpatient respite care programs for beneficiaries receiving hospice services. To reduce caregiver burnout, the patient receiving hospice care can stay in a Medicare-approved facility for up to five days at a time.
- Training and education for family members assisting with medical care. This includes medication administration, personalized care techniques, and more. Medicare covers some of this training, but the beneficiary is responsible for 20% of the Medicare-approved amount plus the Part B deductible.
- Access to support groups and counseling services.
New Medicare Program for Postal Service Retirees
Starting this year, U.S. Postal Service retirees will transition to a new Medicare program under the Postal Service Health Benefits (PSHB) system. The program aligns postal retirees with standard federal employee retirement healthcare policies and may reduce the costs for some retirees by integrating benefits between Medicare and their federal health plan. Eligible retirees are required to enroll in Medicare Part B for continued health coverage.
by Daniel Kittell | Accounting News, Industry - Veterinary Medicine, News, Newsletter
As veterinary medicine continues to evolve, 2025 promises to be a transformative year. Industry professionals face emerging legislation, possible new roles, energized investor interest, and shifting dynamics in the pet insurance market. Here are the top trends shaping the field and what they mean for veterinary practices.
The People and Animals Wellbeing (PAW) Act
Introduced by Congresswomen Deborah Ross and Claudia Tenney in September of last year, the People and Animals Wellbeing (PAW) Act aims to expand access to veterinary care for underserved communities. The bill proposes federal funding for mobile clinics, subsidies for low-income families, and grants for practices serving rural areas.
The PAW Act has the potential to redefine how and where care is delivered, making veterinary services more accessible. Practices should keep an eye on the bill’s progress, as it could open funding opportunities and partnerships while increasing competition in traditionally underserved markets.
A New Industry Role
In a groundbreaking move, Colorado has introduced a midlevel practitioner role within the veterinary field—the Veterinary Professional Associate (VPA). This role is designed to fill the gap between veterinarians and veterinary technicians, providing a cost-effective solution to workforce shortages. A VPA’s responsibilities include conducting routine exams, prescribing medications, and performing minor surgical procedures under a supervising veterinarian’s guidance.
The creation of this new role has sparked debate in the veterinary community. Supporters highlight its potential to alleviate staffing shortages and increase access to care. Critics, however, question whether VPAs’ training—which includes a master’s degree in veterinary medicine—will be sufficient for the responsibilities assigned to them. Also of concern is the possible impact the VPA role could have on the roles of existing veterinary professionals. As Colorado serves as a testing ground, other states may evaluate the program’s success before considering adoption.
Investor Interest in High-Growth Segments
Investors are increasingly targeting high-growth areas within the veterinary industry. De novo hospitals, emergency care, and mobile services are increasingly attractive investments due to their potential for scalability and high returns.
- De Novo Hospitals: New veterinary hospital startups are appealing for their ability to tailor services to local demand and implement cutting-edge technologies.
- Emergency Care: With pet owners prioritizing immediate access to care, emergency clinics are becoming an essential asset to the veterinary industry.
- Mobile Services: Mobile veterinary services cater to a growing demand for convenience and personalized care, especially among urban pet owners.
These high-growth areas provide strategic opportunities for veterinary practices looking to grow or attract investment.
Pet Insurance Market Consolidation
The pet insurance market is rapidly consolidating. Now that JAB Holding Company owns over 20 pet insurance brands operating in more than 10 countries, critical questions about pricing, policy standardization, and referral dynamics within these networks are surfacing.
While immediate changes are unlikely, consolidation could influence pricing models, treatment coverage, and approval for diagnostic tools. Practices may find themselves navigating tighter referral relationships, which could limit options for clients.
To mitigate risks, practices should:
- Diversify partnerships with multiple pet insurance providers.
- Evaluate contracts carefully to ensure alignment with business goals.
- Advocate for policies that balance affordability for clients with fair reimbursement rates for providers.
The broader challenge is creating pet insurance models that work for both providers and pet owners.
Preparing for the Future
This year could bring significant change to the veterinary industry, driven by legislative shifts, innovative roles, investor interest, and market consolidation. Practices that stay informed and proactive can turn these trends into opportunities for growth and improved care.
by Daniel Kittell | Business Growth, Industry - Construction, News, Newsletter
For construction companies, growth and profitability often hinge on that company’s ability to overcome progress barriers. Whether it’s delays in project timelines, inefficiencies in communication, or outdated practices, construction firms need innovative solutions to stay ahead. In the article below, we discuss how firms can transform challenges into opportunities for growth and higher profits.
Embrace Innovation to Drive Success
Construction firms that resist change risk falling behind, especially as competitors adopt new technologies to streamline operations and improve outcomes. One key area for innovation is project management. Modern construction project management software is specifically designed to address the industry’s unique challenges, enabling firms to:
- Enhance Coordination: Centralize project details to ensure that all stakeholders have access to up-to-date information.
- Stay on Schedule: Use real-time tracking tools to monitor progress and adjust workflows as needed to meet deadlines.
- Control Costs: Track expenses and allocate resources effectively to avoid budget overruns.
For example, implementing a project management platform will likely result in less miscommunication between office staff and field teams, leading to fewer costly mistakes and rework.
Streamline Operations with Connected Construction Management Solutions
Another move to break through progress barriers is adopting a connected construction management solution. These systems integrate various functions—such as scheduling, payroll, equipment tracking, and documentation—into a single, user-friendly platform. Benefits include:
- Improved Communication: Ensure that field workers and office staff can seamlessly share information in real time.
- Data-Driven Decision-Making: Utilize analytics to make informed decisions about project priorities and resource allocation.
- Increased Productivity: Automate repetitive tasks to allow teams to focus on more critical priorities.
For example, a connected solution could allow a field manager to instantly access the latest blueprints on a tablet while on-site. This would help to ensure alignment with the construction team and reduce downtime caused by outdated plans.
Overcoming Common Challenges
A significant barrier many construction firms face when embracing technology is the challenges in implementing new systems, including upfront costs, a steep learning curve for staff, and resistance to change. To address these issues:
- Invest in Training: Provide comprehensive training to ensure all employees are comfortable using new tools.
- Start Small: Implement one solution at a time, allowing teams to adapt gradually.
- Focus on ROI: Highlight how new technologies will reduce costs and improve efficiency over time.
Achieving Long-Term Growth and Profitability
Breaking through progress barriers requires firms to evaluate their current processes, identify pain points, and prioritize technology investments that deliver the greatest impact. By integrating modern project management software and connected construction management solutions, construction firms can:
- Complete projects on time and within budget.
- Foster better communication between teams.
- Enhance overall efficiency and profitability.
In an industry where delays and inefficiencies can significantly impact the bottom line, these solutions offer a clear path to sustained growth.
by Daniel Kittell | Accounting News, News, Newsletter, Retirement, Retirement Savings
Essential changes to Individual Retirement Accounts (IRAs) and 401(k) plans are set to take effect in 2025, primarily due to the SECURE 2.0 Act. These modifications, set to phase in over the next several years, will impact your retirement savings strategy. Here’s what you need to know about these upcoming changes.
Catch-Up Contributions
One of the most significant changes involves catch-up contributions. The 401(k) contribution limit will increase from $23,000 in 2024 to $23,500 in 2025, while IRA contributions for workers age 50 and older remain at $7,500.
However, starting in 2025, workers aged 60 through 63 will have access to even greater catch-up contributions due to a provision in the Secure 2.0 Act. They’ll be able to make catch-up contributions of up to $11,250. This move helps workers in this age group bolster their financial security as they near retirement.
Automatic 401(k) Enrollment
Another key reform of the Secure 2.0 Act seeks to increase individual retirement savings. New 401(k) plans established on or after December 29, 2022, will be required to implement an automatic enrollment feature in 2025. Eligible employees will be automatically enrolled in their employer’s retirement plan at a minimum contribution rate of 3%, though they can opt out by selecting a 0% contribution rate. Employers can gradually increase the contribution amount by 1 percent, reaching up to 10% over time.
SIMPLE IRA Catch-Up Contributions
Changes are on the way for SIMPLE IRAs (Savings Incentive Match Plan for Employees). The annual limit for contributions to SIMPLE IRAs will increase to $16,500, up from $16,000 in 2024. For those aged 50 or older, the contribution limit remains at $3,500, but it increases to $5,250 for those aged 60-63, allowing for greater flexibility and potential for growth as these workers approach retirement.
The New 10-Year Rule for Inherited IRAs
Under the SECURE 2.0 Act, non-spouse beneficiaries must withdraw the entire balance of an inherited IRA within 10 years of the original account holder’s death. This is a shift from the previous “stretch IRA” rules, which allowed beneficiaries to take distributions over their lifetime. The change aims to ensure that inherited funds are utilized more quickly and will impact the tax strategies used in the future when benefactors are planning for their heirs.
However, the following types of beneficiaries of inherited IRAs can still utilize the “stretch IRA”:
- Surviving spouses
- A child of the decedent under the age of 21
- A beneficiary who is not more than 10 years younger than the decedent
- An individual who is disabled or chronically ill
If you are the benefactor of an inherited IRA and fall into one of the categories above, you must still withdraw funds from the inherited IRA over your lifetime beginning in the year following the decedent’s death.
Inherited IRA RMD Penalties
Lastly, there will be updated penalties related to Required Minimum Distributions (RMDs) for inherited IRAs. Previously, failing to follow the RMD rules resulted in a penalty of 50% on the amount not withdrawn. Starting in 2025, this penalty is significantly reduced to 25%. This adjustment offers some relief for beneficiaries who miss RMD deadlines, making the inherited IRA process less financially burdensome.
