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 Kozi Checks & Balances TaxTactics News 
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December 18.2024
2 Minutes Read

Embracing ESG: How Ethical Investments Drive Shareholder Value and Sustainability

Attendees engaged in sustainable investment seminar, modern conference.

Understanding ESG: A New Wave of Sustainable Business

Have you ever wondered how businesses can thrive sustainably and responsibly? Enter ESG—Environmental, Social, and Governance—principles, a game-changing framework that not only boosts a company's ecological and social standing but also drives economic success. From minimizing carbon footprints to promoting transparency and worker safety, ESG shows us that doing good is also good for business. An impressive 82% of corporate leaders in 2024 believe ESG will significantly impact performance, highlighting its growing importance.

The Business Case for ESG: Why It Matters

Imagine ESG as not just a checklist, but a strategy that aligns ethical practices with shareholder interests. ESG investments are directly linked to better efficiency and cost savings, which can translate to increased value for shareholders. Companies adopting these principles often find themselves enhanced in resilience, competitiveness, and profitability. This shift is particularly compelling for health-conscious consumers who increasingly align their purchasing decisions with companies committed to sustainable and ethical practices.

Inspiration and Practical Tips

Real stories of change can inspire us. Take, for example, a local business that turned to ESG practices by reducing waste and integrating community wellness activities. Their journey not only improved the environment but deepened their customer relationships, showing tangible value in everyday life. For those considering a more proactive approach to sustainability in their own lives or businesses, starting small—like minimizing waste or supporting businesses that prioritize ESG—can lead to significant positive impacts.

Audit-Proofing Strategies

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02.04.2026

Break the Groundhog Day Cycle: Revitalize Your Tax Department Today

Update Breaking the Groundhog Day Cycle in Corporate Tax Departments Every day feels just like the last for many tax professionals, echoing the famous movie where the protagonist relives the same day over and over. This resemblance points to a larger issue: a significant portion of tax departments remain trapped in repetitive cycles of under-resourcing, outdated technology, and overwhelming compliance demands. Gatekeeping corporate tax professionals from contributions beyond compliance tasks keeps them stuck in a continuous loop, much like Bill Murray’s character. The Forces Behind the Stagnation According to a recent analysis, 58% of tax departments report being under-resourced, with barely enough staff to manage escalating demands. This resource limitation is not just a snapshot; it's a chronic trend apprehended continually by tax leaders, with the challenge amplified by a lack of confidence in advancing technology solutions. As interesting as new technological tools can seem, many teams remain entangled with legacy systems that impede efficiency and inhibit progress. The Cost of Complacency Staying with antiquated systems has a profound cost. It perpetuates inefficiency and contributes to a staggering penalty risk, with 12% of under-resourced departments liable for losing over $1 million annually. The need for action becomes evident when realizing that the capability for strategic contributions remains unrealized, as these departments struggle against regulatory constraints and mounting compliance obligations. Can Technology Be the Answer? Advancements in technology—including automation and AI—offer a glimmer of hope for tax departments aspiring to break free from their stagnant cycles. A staggering statistic shows that organizations implementing visible AI strategies are twice as likely to witness revenue growth. Yet, despite this clear advantage, technology adoption remains slow; around 68% of tax functions still grapple with transitional upheavals, caught between legacy systems and modern platforms. Steps to Initiate Change So, how can tax departments begin to break free from this cycle? Embracing a proactive approach to technological adoption and focusing on training staff to utilize these tools effectively can set a foundation for progress. If each member understands how to leverage technology, the potential for elevated performance across all levels of the organization increases. Establishing a robust training program encourages tax professionals to not only familiarize themselves with existing systems but also take advantage of emerging tools. The Future of Tax Departments Looking ahead, tax departments that evolve into strategic assets rather than cost centers will thrive. Generative AI, analytics, and integrated systems will propel the profession forward, allowing tax professionals to focus on forecasting and strategic planning. The shift from simply reacting to compliance demands toward a more proactive stance will reshape the function of tax from merely adhering to regulations to becoming a predictive partner influencing business strategy. By embarking on this transformative journey, tax departments can unlock their potential, offering real value rather than just responding to the needs of compliance.

02.01.2026

Stop Budgeting Like It’s 2019: Why Accounting Firms Must Invest in Technology for Sustained Growth

Update Why Technology Investment is Key for Accounting FirmsAs we delve into the evolving landscape of accounting, it’s clear that traditional budgeting is no longer sufficient. A shift is occurring where accounting firms are recognizing the necessity of reallocating their resources from staffing to technology—an insight supported by recent survey findings. Technology investment is increasingly seen as the cornerstone for sustainable growth, especially in a climate beleaguered by staffing shortages and ever-rising client expectations.The Shift in Accounting Firm BudgetsHistorically, accounting firms allocated the bulk of their budgets towards human capital, often disregarding technology's integral role in operational efficiency and client satisfaction. However, according to Thomson Reuters, technology now represents 21% of firm budgets, reflecting a growing trend. The increasing proportion reveals an acknowledgment that robust technological infrastructure significantly enhances productivity and reduces operational costs. In the coming years, more than 60% of firms are planning to ramp up their IT budgets.Why Larger Firms are Leading the ChargeInterestingly, larger firms are at the forefront of this technological transition. Based on the findings from the Accounting Today report, larger accounting practices spend an average of 30 times more on technology than smaller firms. This disparity is alarming and showcases how smaller firms may be missing opportunities as large practices aggressively invest in innovations like artificial intelligence.The Pressure of Labor ShortagesThe ongoing issue of labor shortages has propelled many practices to re-evaluate their operational costs. According to survey results presented by Thomson Reuters, 2025's top priorities for tax firms now center around increasing efficiency and technology. A report from the AICPA illustrates that in 2024, the number of U.S. accounting graduates hit a low point, signaling a looming crisis in talent acquisition. As firms adapt to this reality, technology becomes not only a productivity enhancer but also a critical tool for survival.The Benefits of Embracing AutomationAs technology permeates the tax workflow, processes that once seemed overly manual are now becoming automated, giving professionals the freedom to focus on higher-value advisory roles. This represents a decisive shift from repetitive tasks towards a more strategic approach, emphasizing the necessity for modern firms to embrace automation at all levels. From the allocation of time towards more productive areas to delivering enhanced services to clients, the benefits are multi-faceted.Forecast for Accounting TechnologiesWhat can we predict for the future of accounting technologies? Trends indicate a pronounced shift toward cybersecurity, cloud adoption, and compliance. According to data compiled by Omega Systems, 2026 will see significant investments in advanced infrastructure and automation tools focused on risk mitigation and operational resilience. As accountants brace for an uncertain financial landscape, those who invest cautiously yet strategically in technology will likely see considerable returns.To succeed in this rapidly changing environment, firms must move from viewing tech expenses as mere costs to recognizing them as essential investments that foster growth, trust, and competitive advantage. The mantra of budgeting like it’s 2016 no longer holds value. Instead, firms should leverage technology to enhance firm capacity and client services, paving the way for future success.

01.31.2026

Engage Clients Year-Round: Masters of Proactive Financial Planning

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