Key Takeaways:
- A more strategic approach to tax planning, credits, and compliance drives growth rather than focusing only on filing deadlines.
- Clear financial visibility and streamlined operations enable faster, smarter decision-making while freeing teams to focus on client work.
- Practical risk management and scenario planning position firms to remain resilient in the face of economic uncertainty.
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As you plan for 2026, your firm is likely facing a familiar tension: staying compliant and efficient while positioning for growth in a shifting economic and regulatory environment. Whether you lead a law firm, architecture and engineering (A&E) practice, marketing agency, consulting firm, or CPA firm, the challenges are real — and so are the opportunities.
This article outlines six strategic priorities that can help your firm navigate the year ahead with clarity and confidence. Each priority is grounded in the realities of running a professional services firm today and sets the stage for deeper, industry-specific insights
1. Aligning Tax Strategy With Business Goals
The challenge: Tax compliance is no longer just about filing on time. It’s about aligning your tax position with your broader business strategy. The One Big Beautiful Bill Act (OBBBA) introduced permanent changes to bonus depreciation rules, but many firms haven’t yet adjusted their planning to take full advantage.
You may also be navigating multi-state nexus, pass-through entity tax (PTET) elections, or the tax implications of expanding into new markets or service lines. These issues are complex — and they’re evolving.
What to watch:
- Law firms stepping away from estate tax work (e.g., Form 706) may need new tax partners to fill the gap.
- A&E firms must manage project-based revenue recognition and potential sales tax exposure.
- Marketing and consulting firms with remote teams face growing multistate compliance risks.
How to get ahead:
- Schedule a tax strategy review to align your entity structure, income allocation, and state filings with your growth plans.
- Use PTET elections strategically to reduce your effective tax rate.
- Model the tax impact of any planned mergers and acquisitions (M&A), restructuring, or geographic expansion before you act.
2. Maximizing Tax Credits and Incentives
The challenge: Many firms leave money on the table by underutilizing available tax credits. Whether it’s the R&D credit, Section 179D for energy-efficient design, or state-level incentives, the key barrier is often documentation — not eligibility.
The OBBBA restored immediate expensing for domestic R&E expenditures, which could benefit firms investing in proprietary tools, platforms, or process improvements.
What to watch:
- A&E firms designing energy-efficient buildings should act before 179D sunsets in mid-2026.
- Marketing and consulting firms may qualify for R&D credits tied to software, analytics, or automation.
- CPA firms investing in client-facing platforms or internal tech may be eligible for credits they haven’t claimed.
How to get ahead:
- Conduct a credit eligibility assessment with your tax advisor.
- Start documenting qualifying activities now, especially for R&D and energy projects.
- Use project codes or tags to track expenses and simplify substantiation.
- Bundle credit claims with your annual tax filings to streamline compliance.
3. Gaining Financial Visibility to Support Smarter Decisions
The challenge: You can’t manage what you can’t see. Many firms operate with fragmented systems, delayed reporting, and limited insight into project profitability or cash flow. That lack of visibility makes it harder to price effectively, plan confidently, or respond quickly to change.
What to watch:
- Law firms need better account oversight and billing transparency.
- A&E and consulting firms often lack real-time job costing and work in progress (WIP) tracking.
- Marketing firms struggle to connect campaign spend with return on investment (ROI).
- CPA firms need better margin tracking as they shift toward consulting services.
How to get ahead:
- Implement dashboards that track key metrics like utilization, realization, and cash flow.
- Move to cloud-based accounting platforms that support project-level reporting.
- Schedule quarterly financial reviews with your controller or outsourced accounting partner.
- Consider fractional CFO support to strengthen forecasting and scenario planning.
4. Reducing Operational Bottlenecks to Focus on What Matters
The challenge: As your firm grows, the back office can become a bottleneck. Manual processes, disconnected systems, and overextended staff can slow down billing, payroll, and reporting — and pull your team away from client work.
What to watch:
- Law firms often spend too much time on billing and trust reconciliations.
- A&E firms face delays from inefficient payroll and project tracking.
- Marketing and consulting firms need better tools for managing vendor payments and client billing.
- CPA firms are increasingly integrating AI driven automation to eliminate manual tasks, accelerate workflows and free up staff for higher-value work.
How to get ahead:
- Map your core workflows and identify where manual steps are slowing you down.
- Automate billing, payroll, and reporting where possible — even small improvements can save hours.
- Explore outsourced accounting to reduce internal workload and improve accuracy.
- Build standard operating procedures (SOPs) and train your team to ensure consistency and scalability.
5. Managing Cybersecurity Risk Without Overengineering
The challenge: You don’t need an enterprise-grade cybersecurity program — but you do need a clear and actionable plan. Professional services firms are increasingly targeted by phishing, ransomware, and data theft. A breach can damage your reputation and disrupt your operations.
What to watch:
- Law firms must secure client communications and sensitive documents.
- A&E firms need to protect proprietary designs and project data.
- Marketing and consulting firms handle client data across multiple platforms.
- CPA firms must meet IRS data security standards and protect financial records.
How to get ahead:
- Conduct a basic cybersecurity risk assessment — even a checklist-based review can uncover gaps.
- Implement multi-factor authentication, secure cloud storage, and endpoint protection.
- Train your team on phishing awareness and data handling protocols.
- Consider a virtual chief information security officer (CISO) or IT risk consultant for periodic reviews and policy development.
6. Planning for Resilience in an Uncertain Economy
The challenge: Economic uncertainty continues to shape client behavior, pricing pressure, and hiring decisions. Firms that develop scenario plans and maintain strong client relationships will be better positioned to adapt.
What to watch:
- Law firms face growing competition from do-it-yourself (DIY) platforms and larger firms.
- A&E firms are navigating labor shortages and shifting construction timelines.
- Marketing firms are seeing cautious client budgets but steady digital spend.
- Consulting and CPA firms must demonstrate ROI and differentiate through value.
How to get ahead:
- Build scenario plans for revenue, staffing, and cash flow under different market conditions.
- Monitor leading indicators like proposal volume, pipeline velocity, and client feedback.
- Diversify your service offerings and client base to reduce concentration risk.
- Invest in client retention and proactive communication to stay top of mind.
Turn Your Firm’s 2026 Priorities Into Action
These six priorities are more than a checklist — they’re a framework for how your firm can stay compliant, efficient, and resilient in 2026. That’s where the right support can make a meaningful difference. Our team works alongside professional services firms to help strengthen tax strategy, improve financial visibility, streamline operations, manage risk, and plan for sustainable growth.
Whether you’re looking to pressure-test your current approach or build a more strategic roadmap for the year ahead, we can help you move forward with confidence. Reach out to our team today to start the conversation.