Compliance Changes for CPAs and Lawyers for 2025

The legal and accounting professions are facing significant shifts in compliance requirements as we move into 2025. These changes reflect the evolving landscape of technology, ethics, and regulatory oversight. Certified Public Accountants (CPAs) and lawyers must adapt to new standards and regulations to maintain their professional standing and serve their clients effectively. This article explores the key compliance changes that these professionals need to be aware of and prepare for in the coming year.

What New Technological Compliance Standards Are Being Implemented?

Cybersecurity Protocols

In 2025, both CPAs and lawyers will be required to adhere to stricter cybersecurity protocols. The increasing digitization of sensitive client information has necessitated more robust protection measures. Professionals will need to implement advanced encryption methods, multi-factor authentication, regular security audits, and a strong business cybersecurity strategy to safeguard client data.

AI and Machine Learning Integration

The use of artificial intelligence (AI) and machine learning in professional services is becoming more prevalent. Compliance standards now mandate that CPAs and lawyers understand the ethical implications and potential biases of these technologies. They must ensure transparency in AI-assisted decision-making processes and maintain human oversight.

How Are Ethical Guidelines Evolving?

Enhanced Conflict of Interest Policies

Regulatory bodies have introduced more comprehensive conflict of interest policies. CPAs and lawyers must now conduct more thorough checks and maintain detailed records of potential conflicts. This includes expanded disclosure requirements and stricter rules on client representation in related matters.

Sustainability Reporting

A new focus on environmental, social, and governance (ESG) factors has led to the introduction of sustainability reporting requirements. CPAs, in particular, will need to familiarize themselves with new standards for auditing and reporting on clients’ sustainability practices.

What Changes Are Coming to Continuing Education Requirements?

Technology Competency

Continuing education requirements now include mandatory courses on emerging technologies. CPAs and lawyers must demonstrate proficiency in areas such as blockchain, data analytics, and cloud computing as they relate to their respective fields.

Ethics and Professional Responsibility

The emphasis on ethics training has intensified. Professionals are required to complete more hours of ethics-related courses, with a focus on real-world case studies and scenario-based learning.

How Will Client Communication Standards Change?

Digital Communication Protocols

New regulations govern the use of digital communication platforms. CPAs and lawyers must adhere to specific guidelines when using email, instant messaging, and video conferencing to communicate with clients. This includes rules on encryption, record-keeping, and client consent for various forms of digital interaction.

Plain Language Requirements

There’s a growing push for transparency and accessibility in professional communications. New standards require CPAs and lawyers to use plain language in client communications, contracts, and reports, ensuring that complex information is conveyed clearly and understandably.

What New Financial Reporting Standards Will CPAs Face?

Cryptocurrency and Digital Asset Reporting

As digital currencies and assets become more mainstream, CPAs must comply with new standards for reporting and auditing these holdings. This includes specific guidelines on valuation, disclosure, and risk assessment related to cryptocurrencies and other digital assets.

Real-Time Financial Reporting

Advancements in technology have paved the way for more frequent and timely financial reporting. CPAs will need to adapt to new standards that require near real-time financial data reporting for certain types of entities and transactions.

How Are Privacy Laws Impacting Legal Compliance?

Enhanced Data Protection Measures

Lawyers must navigate increasingly complex data protection laws. New compliance standards require more stringent measures for handling and storing client data, including specific protocols for cross-border data transfers and data breach notifications.

Client Consent and Information Sharing

Updated privacy laws have led to new standards for obtaining and managing client consent. Lawyers must implement more comprehensive systems for documenting client permissions regarding information sharing and use.

What Changes Are Coming to Professional Liability Insurance?

Expanded Coverage Requirements

Both CPAs and lawyers will face new mandates for professional liability insurance. These requirements include higher coverage limits and expanded scope to address emerging risks such as cyber liability and technology errors and omissions.

Risk Management Protocols

Insurance providers are implementing new risk management protocols as a condition of coverage. Professionals must demonstrate adherence to specific risk mitigation practices to maintain their insurance policies.

How Will Anti-Money Laundering (AML) Compliance Evolve?

Stricter Due Diligence Procedures

CPAs and lawyers, especially those dealing with financial transactions or business formations, will face more rigorous AML compliance standards. This includes enhanced due diligence procedures and more frequent reporting of suspicious activities.

Technology-Assisted Compliance

New standards encourage the use of advanced technology in AML compliance. Professionals are expected to implement AI-powered tools for transaction monitoring and risk assessment to improve the efficiency and effectiveness of their AML efforts.

What New Reporting Requirements Will Affect Both Professions?

Cross-Border Transaction Reporting

With the increasing globalization of business, new standards require more detailed reporting of cross-border transactions. Both CPAs and lawyers must comply with enhanced disclosure requirements for international clients and transactions.

Beneficial Ownership Transparency

New regulations aim to increase transparency in business ownership structures. Professionals must adhere to stricter standards for identifying and reporting beneficial owners of business entities, particularly in high-risk sectors.

Stay Ahead with Elliman Technologies

As we navigate these significant compliance changes in 2025, it’s crucial for CPAs and lawyers to stay informed and prepared. At Elliman Technologies, we understand the challenges these new standards present. Our cutting-edge solutions are designed to help professionals seamlessly integrate these compliance changes into their practices.

We offer comprehensive training programs, advanced technological tools, and expert consulting services tailored to meet the evolving needs of CPAs and lawyers. Don’t let compliance changes catch you off guard. Contact us at Elliman Technologies today to ensure your practice remains at the forefront of professional standards and regulatory compliance.