THE WASHINGTON CPA
FALL 2025
www.wscpa.org • memberservices@wscpa.org
Tel 425.644.4800
170 120th Ave NE Ste E101 Bellevue, WA 98005
BOARD OF DIRECTORS
Joel Williams Chair
Kelly Nelson Vice Chair
Liz Redmond Treasurer
Richard Burger Mackey Secretary
Sarah Funk Immediate Past Chair
Kimberly D. Scott President & CEO
Jenny Cravens
Benjamin Hall
Jamie Hueners
Michaela Kay
Ursula Perkins
Andrew Prather
Jillian Robison
Scott Rodgers
Rachel Ross
David Togami
MAGAZINE PRODUCTION
Jeanette Kebede Editor
Jennifer Johnson Art Direction
The Washington CPA is published by the Washington Society of Certified Public Accountants for its members. Views and opinions appearing in this publication are not necessarily endorsed by the Washington Society of CPAs.
The products and services advertised in The Washington CPA have not been reviewed or endorsed by the Washington Society of Certified Public Accountants, its board of directors, or staff.
The Washington CPA is published semi-annually by the Washington Society of Certified Public Accountants, 170 120th Ave NE Ste E101, Bellevue, WA 98005.
Cover Graphics: © iStock/Michael-Merck, © iStock/jemastock, © iStock/wongmbatuloyo, © iStock/Caratti
POSTMASTER:
Send address changes to The Washington CPA, c/o WSCPA, 170 120th Ave NE Ste E101, Bellevue, WA 98005.
A CALL FOR NOMINATIONS
WSCPA Board of Directors
The Board Governance Committee is now accepting nominations for the 2026-2027 Board of Directors. Do you know someone who has been involved with the WSCPA and whose leadership could contribute to the future of the organization? Nominate them to serve on the board!
To submit a nomination, contact Cara DiCostanzo, Executive Assistant and Governance Administrator, at cdicostanzo@ wscpa.org. Nominations are due by October 31
WSCPA Awards
Every year, the WSCPA honors individuals (and one company or firm) that have demonstrated their commitment to supporting the Society and maintaining the CPA's trusted and respected place in Washington State's professional community.
Do you know someone who fits this description? Nominate a superstar for the WSCPA Lifetime Achievement or Community Leadership Award by December 31 at wscpa.org/nominate
Have you met your 20-hour CPE Requirement for 2025?
Individuals holding an active CPA license need to complete a minimum of 20 hours of CPE per year. Active licensees need to complete a total of 120 hours of CPE, including a Washington State Board of Accountancy approved ethics course, within their total reporting period, but should plan their CPE so they're earning at least 20 hours each year.
Explore CPE on demand, FlexCast and our line-up of highquality classes led by experts in their field at wscpa.org/cpe
Texts: Newest Way to Hear from the WSCPA
Want to be the first to learn about events and special offers? Interested in receiving your WSCPA membership renewal reminders via text? Sign up for text messages from the WSCPA on your My WSCPA profile page at wscpa.org/profile
WSCPA Mailing List Policy
The WSCPA does not sell member email or mailing addresses. To be excluded from occasional third-party partner mailings, click the "Update Preferences" link in any WSCPA email, or send a request to unsubscribe from third-party mailings to webmaster@wscpa.org
Bill Wells Lifetime Achievement Award Posthumous
BakerTilly - Seattle Business of the Year Award
Ursula Perkins, CPA Chair's Award
Marcia Holland-Risch President's Award Posthumous
Martha K. Ramirez, CPA Volunteer Leader Award
Nick Fuller, CPA, CFP® Volunteer Leader Award
Carrie Ommen, CPA New Professional Award
Heather Fitzgerald Rising Star Award
Amy Wallen Special Award
In 2025, the Washington CPA Foundation proudly awarded a total of 119 scholarships, investing $672,000 in the next generation of accounting professionals.
A record-breaking 93 scholarships were awarded through the Foundation's primary fund, including:
Scholarship Recipients
Learn more about these accomplished students at wscpa.org/scholars25 2025-2026
• 30 master's students receiving $10,000 SBOA awards
• 62 undergraduate students receiving $5,000 scholarships
• 1 doctoral/PhD scholarship at $10,000
The Autumn of Adaptation: Embracing Change Across the Profession
Joel Williams, CPA
Fall is here and for many of us, that means football season! Whether you're watching your alma mater on Saturdays or your favorite pro team on Sundays, football reminds us that success requires agility, teamwork, and the ability to adapt mid-play. The same is true for our profession.
As CPAs, we’re navigating a season of change, and how we respond will shape the future of our work. Across public practice, industry, government, education, and nonprofits, CPAs are being asked to evolve in what we do and in how we think.
Adapting to a Shifting Landscape
The pace of change is accelerating. Technology is transforming how we work, and client expectations are evolving just as quickly. Yet, despite these shifts, only 9% of accountants feel as if they fully leverage their technology investments.
That’s not a reflection of reluctance. It’s a reminder that adaptation takes time, intention, and leadership.
We’re not just implementing new tools. We’re reimagining how we deliver value. From cloud-based platforms to artificial intelligence (AI)-assisted workflows, the opportunity to innovate is real, but so is the need to guide our teams and clients through the transition.
Leadership at Every Level
Adaptation isn’t just a top-down initiative. It happens in classrooms, client meetings, boardrooms, and team huddles. It’s the educator reimagining how to teach ethics in a digital world. It’s the nonprofit controller navigating new funding models. It’s the CPA in public practice helping clients prepare for what’s next, not just report what’s already happened.
As we head into fall, I encourage each of us to ask ourselves: How am I helping my team, my clients, or my students adapt? What am I doing to stay curious, stay relevant, and stay connected?
Trust and Relevance in Uncertain Times
We’re living in a time of uncertainty. Economically. Politically. Socially. And yet, CPAs remain among the most trusted professionals in the world. A 2024 Edelman Trust Barometer report found that 78% of people trust their accountants to do what is right—higher than nearly any other profession
That trust is our foundation and something that we can never take for granted. But maintaining it requires us to evolve. It means embracing new tools while upholding timeless values, like integrity and objectivity. It means being proactive, not reactive. And it means showing up—not just with answers, but with empathy and insight.
Looking Ahead
The WSCPA is here to support you through CPE, advocacy, and community. We want to hear from you, and as Monette Anderson mentions in her article on page 14, we hope you were able to participate in the WSCPA’s latest member survey. If not, let us know: What’s working? What’s challenging? How can we better serve you?
As we move through this autumn of adaptation, let’s do so with purpose. Let’s embrace the opportunity to evolve, and let’s continue to show the world why CPAs matter, on and off the field.
There’s never been a better time to be a CPA.
Williams, CPA,
Washington CPA Foundation Awards More Than $37,000 in Grants
Benjamin Warren
The Washington CPA Foundation's mission is to strengthen and expand the profession by advancing and investing in the accounting profession. As part of this mission, the Foundation awards grants and scholarships each year as a way to increase access to the accounting profession and to support a more diverse pipeline of accounting students. Foundation grants are awarded to organizations with programs or events designed to improve the diversity of the CPA pipeline in Washington.
This year, the Foundation has awarded a total of $37,400 to four organizations that it felt aligned with the mission of the Foundation and the goal of the grant program.
Congratulations to this year’s grantees! Continue reading to learn more about the organizations and their programs.
Accounting Career Awareness Program (ACAP): ACAP is a youth development program serving students of color and those considered underrepresented in the accounting field. ACAP’s signature Residency Week summer program brings students to the University of Washington campus for a week to inspire them to pursue academic and career pathways in public accounting. Grant funds will sponsor several Residency Week participants, offset speaker fees, increase outreach for the program, and support implementation of new participant tracking tools. ACAP Executive Director Max Savishinsky said, “On behalf of everyone involved with ACAP, a very sincere thank you to you and the Grant Committee for your ongoing and very generous support of our work to foster diversity in accounting in our state.”
Degrees of Change: Degrees of Change prepares diverse, homegrown leaders to succeed in college and their career in order to build more vibrant and equitable communities. By partnering with community organizations, schools, and employers, Degrees of Change is able to provide leadership training, college success support, and career development programming. Their career-centered program, Seed Internships, invests in the future of Pierce and King County by identifying exceptional college students and recent graduates from underrepresented backgrounds, then matching them with top local employers. Grant funds will support placing students in accounting and accounting adjacent internships including covering program fees for not-for-profit or smaller firms and companies that wouldn’t be able to have an intern otherwise. Degrees of Change COO Kelly Bay-Meyer said, “We are incredibly grateful to the Board and staff of the Washington CPA Foundation for this grant opportunity and look forward to continuing our partnership.”
Central Washington University (CWU): CWU equips students with the expertise needed for diverse career opportunities in public accounting, corporate finance, government, and not-forprofit organizations. Various degree options help students learn accounting principles and practices, as well as essential skills in critical thinking and decision-making. Grant funds will be used to strengthen the CWU College of Business undergraduate accounting program by expanding tutoring services for students enrolled in accounting courses. Through enhancing learning experiences in an inclusive and supportive setting and by connecting students with tutors who are accounting majors pursuing a CPA license, this program aims to increase awareness of and opportunities into the CPA profession for students from underserved and underrecognized communities. CWU Executive Professor of Accounting Jenny Cravens said, “Thanks to the WSCPA Foundation grant, Central Washington University can now double the Peer-Assisted-Learning hours available to students in our intro accounting courses. This funding enables us to connect bright, motivated students with our top upperclassmen accounting mentors, fostering a supportive, inclusive, and encouraging learning experience that promotes their success.”
Washington Society of CPAs (WSCPA): The WSCPA is committed to supporting aspiring CPAs as they navigate the path to licensure. Recognizing that access to a high-quality CPA review course can be a significant financial hurdle, WSCPA will use grant funds from the Washington CPA Foundation to provide 50 Universal CPA scholarships to students who are paying out of pocket for their CPA exam preparation. These scholarships will be available to students who are ready to sit for the CPA Exam but lack access to a review course, as well as those actively taking the exam who need additional resources to pass. By easing this financial barrier, WSCPA aims to empower more future CPAs and strengthen the pipeline of accounting professionals in Washington. "We know how challenging the CPA Exam process can be, both academically and financially,"
said Monette Anderson, WSCPA Vice President of Membership & Education. "By providing these scholarships, we are ensuring that motivated students have the resources they need to succeed, regardless of financial circumstances. This grant allows us to directly support those who are investing in their own future and, ultimately, the future of the profession."
More details on the application process are available at wscpa. org/grant25.
Benjamin Warren is the WSCPA Manager of Pipeline Initiatives and staff liaison to the Washington CPA Foundation. You can contact Benjamin at bwarren@wscpa.org.
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WSCPA PEAK FIRMS
CURRENT PEAK FIRMS
NEW PEAK FIRM
The WSCPA Peak Firm program recognizes and awards special benefits to firms that sign up 100% of their eligible staff for WSCPA membership. Being a Peak Firm establishes you as a leader in the profession and provides an array of discounts and benefits.
Learn more and enroll your firm at wscpa.org/peak-enroll
Exclusive Benefits Include:
• Membership Dues Stay With Your Firm – Traditionally, WSCPA memberships remain with an individual, even if they leave your firm. When a member leaves a Peak Firm, we’ll honor your previous investment by providing FREE membership for the remainder of the membership year to your new hire.
• Easy Billing – Don’t get lost in paperwork—we’ll provide you with a single membership renewal invoice for all your employees.
• FREE In-House Training - Get 2.5 hours of personalized in-house training (valued up to $2,000), customized to meet the specific needs of your organization.
• FREE WSCPA Room Rental – One room per year, up to $1,200 value, subject to availability.
• FREE Job Listings – Up to two free listings on the WSCPA Job Board per year, additional listings at discounted member rate. Up to $200 value.
• FREE Passport Corporate Cards – All staff, members, and support staff/nonmembers; up to 30% of paid membership.
• Recognition – Your firm will be listed as a Peak Firm on the WSCPA website and social media, as well as in our magazine, The Washington CPA
• Receive a Peak Firm Logo – Display on your website to recruit staff and clients.
All benefits are for the membership year, June 1 - May 31.
Affinity Group CPAs & Consultants
Alegria & Company PS
Baker Tilly LLC
BPM LLP
Brantley Janson Yost & Ellison
Clark & Associates CPA PS
Clark Nuber PS
Cook CPAs and Consultants, PLLC
Cordell Neher & Company PLLC
DP&C
Eide Bailly LLP
Falco Sult & Co
FBCPA Group PS Inc
Finney Neill & Co PS
Gonzaga University Accounting
Greenwood Ohlund PS
Hellam Varon & Co Inc PS
Hunt Jackson PLLC
Hutchinson & Walter PLLC
Jacobson Jarvis & Co PLLC
James Russell PLLC
Johnson & Shute PS
Johnson Stone & Pagano PS
Kovarik & Kim PLLC
Larson Gross PLLC
Lodder CPA PLLC
Martin Bircher Thompson PC
McDevitt & Duffy CPAs
Newman Town PLLC
Norris Lutkewitte PLLC
Northwest CPA Group PLLC
Opsahl Dawson PS
Rekdal Hopkins Howard PS
Ryan Jorgenson & Limoli PS
Shannon & Associates LLP
Smith & DeKay PS
Starr & Leaf CPA Group PLLC
Sweeney Conrad PS
The Myers Associates PC
Vine Dahlen PLLC
Walker Garrett Bourn LLP
Werner O'Meara & Co PLLC
Your Financial Solutions LLC
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Washington and Florida CPA Societies
Back CPA QualityPro
New Platform Launches to Tackle Emerging CPA Licensure Challenges
In response to sweeping changes in CPA licensure requirements set to take effect across many states starting Jan. 1, 2026, CPA QualityPro, a groundbreaking compliance platform for accounting firms, officially launched today, with strategic backing from the Florida Institute of CPAs (FICPA) and the Washington Society of CPAs (WSCPA).
A firm license and registration module is available immediately for beta testing by CPA firms, with a fall release planned for CPA QualityPro’s flagship feature: a unified system to track individual CPA mobility across all 55 U.S. jurisdictions —an essential feature as new licensure pathways begin to alter long-standing reciprocity rules.
The two state CPA societies provided seed capital to jumpstart the platform’s development, becoming the first two to publicly endorse and invest in a purpose-built solution to help CPA firms manage the increasingly complex regulatory environment. Additionally, the Florida and Washington societies will each hold seats on the CPA QualityPro Board of Directors, ensuring that the voice of the profession is embedded in the platform’s long-term strategy and oversight.
“We saw a critical gap in the market. No tool was being developed fast enough to help our members prepare for the coming regulatory shifts,” said Kimberly Scott, President & CEO of the Washington Society of CPAs. “We chose to invest in CPA QualityPro because we believe this solution is what firms need now, and we invite other state societies to join us in supporting it.”
“The CPA profession is facing a wave of regulatory complexity, and we need solutions that are both practical and forwardlooking,” added Shelly Weir, President & CEO of the Florida Institute of CPAs. “That’s why we backed CPA QualityPro early. It’s built by people who understand the challenges firms face, and it has the potential to fundamentally improve how firms manage compliance in a multi-state environment.”
Industry Veterans at the Helm
CPA QualityPro was founded by longtime advocates for the accounting profession who bring deep expertise in regulation, firm leadership, and innovation: Lindsay Patterson, CPA, CIA,
and Joseph A. Maffia, CPA, CGMA. Patterson, who serves as CEO, is a recognized leader in the global accounting profession, currently serving on the Beta Alpha Psi Board of Directors and the American Accounting Association Foundation Board of Trustees. She is also a CPA Practice Advisor 40 Under 40 honoree. Her prior experience includes serving as the Executive Vice President of Membership, Marketing and Communications at The Institute of Internal Auditors and several roles at the American Institute of CPAs.
Maffia, who passed away in August, was a nationally respected CPA and regulatory leader, serving as Vice Chair of the New York State Board of Accountancy, Chair of its Mobility Committee, and a National Association of State Boards of Accountancy (NASBA) advisory committee member, with decades of experience as a firm partner, educator, and advocate for modernizing CPA licensure.
Additionally, Julia Woislaw joins CPA QualityPro as Vice President of Strategic Partnerships & Regulatory Affairs. In this role, Woislaw will ensure that the platform delivers real-time updates on regulatory and legislative changes, giving users the information they need to stay compliant with frequently evolving rules and the often-nuanced interpretations of those rules. She will also lead the development of strategic partnerships with state CPA societies, public accounting firms, insurance providers, and other industry stakeholders to strengthen and expand the CPA QualityPro network.
“Julia’s reputation, relationships, and deep understanding of CPA regulation make her the perfect leader to scale CPA QualityPro from a strong concept to a national standard,” said Patterson.
Woislaw brings over a decade of experience in licensing, advocacy, and communications in the CPA profession. Most recently, she served as Director of State Society Relations at the American Institute of CPAs, where she led engagement strategies with state CPA societies nationwide.
Finally, the Board of Directors will also include two leading experts in emerging technologies:
• Dave Aitel, Technical Staff, OpenAI. Aitel is a renowned software security and compliance expert with over two decades of experience as a CEO, technologist, and product strategist. Aitel currently serves on the technical staff at OpenAI and is widely recognized for his ability to bridge security, engineering, and enterprise SaaS development.
• Steve Beckhardt, Distinguished Engineer, Sonos Corp. Beckhardt has over 50 years’ experience as a software developer, manager, and architect. He has worked in computer operating systems, collaboration software, RFID tag architecture, life sciences, voting machines, and audio systems. Most notably, Mr. Beckhardt was one of the co-founders of Iris Associates, the company that developed the Lotus Notes product, under contract to the Lotus Development Corp. Mr. Beckhardt has been awarded over 40 patents in the areas of collaboration software, RFID tag architecture, and audio systems.
Built as a Quality Management Tool for CPA Firms of All Sizes
CPA QualityPro is designed to support the more than 46,000 CPA firms across the U.S.—from sole practitioners to large regional networks—that need a smarter way to manage licensure and compliance. Many of these firms still rely on spreadsheets or manual tracking, which increases the risk of missed deadlines and regulatory lapses. CPA QualityPro replaces those outdated workflows with a secure, automated system that simplifies compliance, reduces risk, and saves valuable time.
“This is the first solution that allows firms to confidently manage both firm registration and individual mobility in one dashboard,” said Maffia, in July at the time of launch. “With the changes coming in 2026, it’s not optional—it’s essential.”
The firm registration and licensure component of the product is available for pilot now. A full national launch, including the individual CPA mobility module, is set for November, just ahead of the January licensure reforms.
Learn More
CPA firms interested in early access can visit www.CPAQualityPro. com to join the early adopter program or schedule a demo.
The Future of the Profession: Insights from Your Peers
Monette Anderson, CAE
At the Membership Summit on June 12, WSCPA members shared their thoughts on the challenges and opportunities shaping the profession. The table discussions centered on three themes: emerging technologies, talent, and firm growth/profitability. What emerged was a clear view of the challenges facing firms and the opportunities they see for the future.
Emerging Tech Overload
“Not enough time to research and adapt.”
“Tech stack may be not integrated enough. We have to subscribe to multiple vendor products.”
“Using AI to streamline data entry gives us more time for client service.”
“Help us stay informed—and help vendors understand our compliance requirements.”
“It’s hard to evaluate all the AI tools out there. We need a filter.”
Technology is moving faster than many organizations can keep up. Members shared that it’s difficult to evaluate the flood of artificial intelligence (AI) tools on the market, and too often, systems don’t integrate well. The result? Staff juggling multiple logins and platforms or putting off adoption because they lack time to research and implement.
Still, there’s optimism. Members see promise in using AI for data entry, analytics, and client communications, freeing up staff to focus more on service.
The People Problem
“There’s a lack of accounting students. We’re not telling our story well enough.”
“High burnout. Staff aren’t willing to work long hours—and honestly, who can blame them?”
“It’s hard to teach the basics when we don’t even have a consistent feedback loop.”
The profession’s talent crunch was top of mind. Members voiced concerns about a shrinking pipeline of accounting students.
At the same time, firms are navigating changing expectations around workload and culture. Burnout, lack of structured mentorship, and the absence of consistent training for younger staff were also mentioned. Some firm staff are eager for peer connections to enable sharing of what’s working across similarsized organizations.
2025 MEMBERSHIP SUMMIT
Member Feedback Highlights
EMERGING TECH
What emerging technologies will most impact your practice in the next 3-5 years?
TALENT
What are your biggest talent challenges (recruiting, retention, development)?
GROWTH
What are your primary obstacles to practice growth or profitability in your firm or business?
Profit Margins Under Pressure
AI, data analytics, CRM, blockchain Curated CPE and resources, vetted tech panels, member case studies, peer discussion hubs
Burnout, recruiting students, lack of formal development, retention tools
Capacity limits, sales tax burdens, high wages, marketing gaps
“Too many small firms are struggling to find the right clients or price their services.”
“Burnout, rising wages, and shrinking margins. It feels like a slow squeeze.”
“We’re doing too many admin tasks and not enough billable work.”
For many, the business environment feels like a vice. Rising wages, increasing regulatory complexity, and the time drain of administrative tasks are chipping away at margins. Smaller firms, in particular, voiced struggles around pricing their services effectively and identifying the right clients. Others pointed to the need for better business development infrastructure like customer relationship management (CRM) tools, marketing resources, and guidance on value-based pricing.
Why It Matters for CPAs and WSCPA
It’s striking to me how consistent these themes have been across conversations. These aren’t isolated issues; they’re systemic trends shaping the future of the profession. I have heard these same concerns directly from firms and educators throughout the state. During the summer, Kimberly Scott, WSCPA CEO and President, and I have met with 11 firms and educators and will continue these visits in the fall. The consistency of these themes underscores just how deeply they’re felt across the professional landscape.
In September, as a WSCPA member, you should have received an invitation to participate in a full membership survey. We hope that you were able to add your voice to our research efforts.
WSCPA is taking this feedback seriously. These conversations are already shaping how we design new member experiences and test fresh ideas. One example is our Demo Day events, where
Early outreach, training bundles, leadership development, recognition programs
Pricing templates, marketing toolkits, benchmarking, small firm promotional support
members can join a day of scheduled product demonstrations in focused areas like Client Advisory Services (CAS) software or AI. In a single session, you’ll see multiple side-by-side solution providers, hear questions from peers, and evaluate what might work for your practice. Learn more about Demo Days on page 21 or visit wscpa.org/demo-days.
Looking ahead, our Welcoming Engagement and Inclusion Council (WEI) is exploring cohort-based roundtable pilots— smaller peer groups that would create space for deeper connections and conversations for peer groups, such as new professionals and those in the industry space. These kinds of initiatives are how member feedback turns into action. WSCPA is also preparing to launch a new online community, the WSCPA Circle, this fall.
The Membership Summit made one thing clear: while the challenges are real, the value of coming together as peers to share solutions and ideas has never been higher. In an environment where firms and professionals are facing similar pressures, WSCPA provides the forum to compare notes, exchange strategies, and build collective strength. The connections forged here remind us that no one has to navigate these changes alone and that solutions will require both creativity and collaboration. By bringing professionals together, WSCPA amplifies ideas, surfaces solutions, and ensures that the profession in Washington has both a voice and a network to rely on.
Monette Anderson, CAE, is WSCPA Vice President of Membership and Education and Executive Director of the Washington CPA Foundation. You can contact Monette at manderson@wscpa.org.
Mike Nelson
Historic Tax Increases and Their Impact on CPAs: Where
The 2025 Washington State legislative session ended with the largest combination of tax increases in the state’s history. Various changes will affect nearly every industry in Washington as well as CPAs, their clients and firms.
Engrossed Substitute House Bill (ESHB) 2081
ESHB 2081 makes noteworthy changes to the state’s business and occupation (B&O) taxes, including the addition of a tier and rate in the “other service” industry, which covers most CPAs. Service providers earning gross receipts annually in excess of $5 million will now be subject to a B&O tax rate of 2.1 percent.
This is an increase for these companies from the rate of 1.75 percent, which previously had been levied on any company making more than $1 million in gross receipts annually.
Another part of this bill addresses some of the confusion of the Antio, LLC vs. Dept. of Revenue Washington Supreme Court (Antio) case from last year, which has caused significant uncertainty around the longstanding understanding and application of the investment deduction for B&O taxes. Specific updates in the bill include:
WASHINGTON STATE
• The Supreme Court’s definition that deductible investments are only “investments that are incidental to the main purpose of the person’s business” is now in statute, so investment income will not be subject to B&O tax if the investments are incidental to the primary business activity.
• The language which was provided by the Washi ngton State Department of Revenue (DOR) to the legislature also enacts a simple 5 percent threshold for the definition of “incidental.” This is more strict than the 5 percent safe harbor that DOR had described as their historical position during and after this court case.
• The law includes language that exempts mutual funds and most nonprofit organizations.
• To address the persisting areas of confusion around the Antio case, the legislation instructs the DOR to establish and provide rules and guidance on many of the remaining nuances.
Engrossed Substitute Senate Bill (ESSB) 5814
ESSB 5814 was another of the tax proposals that widely affects the profession. This legislation changes the application of sales tax to a wide range of industries and activities. One of these changes was the removal of an exclusion to the definition of digitally automated services (DAS), which had traditionally been used as the basis for professional services to not be subject to sales tax even when transferred electronically. While the DOR has not entered official rulemaking and it is unknown when it will do so, in July they published frequently asked questions (FAQs) which state that, in general, accountants are not subject to retail sales tax because of these changes. DOR has stated that professional services have previously been considered "another services classification” under the B&O tax, and technology used in the performance of those services is already subject to retail sales and use tax.
It is important to keep in mind, however, that DOR FAQs are not legally binding and are “not intended to cover every situation.” In the interim guidance published in early September, the DOR stated that they do not believe CPA services were intended to be taxed by the legislature but that this may change, depending on legislative clarification in 2026 and the final rulemaking process.
This legislation also impacts the profession directly in other ways. Sales tax was expanded to apply to data processing and temporary staffing. DOR is currently determining how to define these tools, but activities like bookkeeping, payroll, etc., could be examples of data processing according to the published FAQs. Likewise, CPAs who provide services through a temporary staffing agency might have their services subjected to sales tax, depending on how that staffing relationship is formed. If you provide services through a temporary staffing agency, review the DOR guidance for your specific situation.
Sales tax also has been expanded to live presentations, including all CPE classes and conferences after October 1, 2025. There have been positive conversations with legislators on potentially addressing this during the 2026 session and DOR is still reviewing potential guidance in the meantime. However, it is likely that any event in person or online, that allows for a real-time communication between the presenter and audience, would be subject to sales tax.
Moving Forward
These bills (and others not mentioned) were all passed within two weeks of the end of the session. Governor Ferguson, as he signed the bills, acknowledged that the many unintended consequences of the bills would need to be addressed.
DOR announced in June that there would not be time to complete official rulemaking for these taxes considering how soon they would be implemented, October 1, 2025, for the vast majority. DOR has been trying to issue informal guidance through FAQs and interim guidance prior to October 1. Legislators and the DOR have already begun preparing several technical correction bills for the legislature to consider during the 2026 legislative session.
Along with other organizations and various firms, the WSCPA advocacy team is pushing for tax changes to be part of these bills when the lawmakers reconvene.
© iStock/Michael-Merck, © iStock/jemastock, © iStock/wongmbatuloyo, © iStock/Caratti photo: © iStock/kanruthai khamthet
Stay Up-to-Date on the Latest Advocacy News and Highlights!
The WSCPA's goal is to provide members with the most current news and advocacy resources. Find news and updates on a variety of issues such as legislation, proposals, and changes to regulation on the WSCPA advocacy blog, All Things Advocacy. Visit wscpa.org/advocacy-blog
Mike Nelson is WSCPA Manager of Government Affairs. You can contact Mike at mnelson@wscpa.org.
Illustrations:
Washington State Estate Tax Update: Small Exclusions
Require Creative Solutions
Joseph Berg, CPA, MS. Tax
Major changes to Washington state's estate tax, effective July 1, 2025, are set to reshape estate planning strategies for residents and nonresidents alike. Under the new legislation, the estate tax exclusion increases from $2.193 million to $3 million, providing some relief to moderate estates. However, this is counterbalanced by a significant rise in the top estate tax rate from 20% to 35%, cementing Washington’s position as the state with the highest estate tax rate in the nation. These updates make proactive estate planning not just advisable, but essential.
Understanding the Washington Estate Tax
For Washington residents, the estate tax applies to all property located within the state and all intangible property, regardless of where it’s located, if the decedent resided in Washington. However, real and tangible personal property located outside the state is excluded. For nonresidents, the estate tax applies only to real and tangible personal property physically located in Washington at the time of death.
Apportionment of the New $3 Million Exclusion
The new $3 million exclusion is still subject to apportionment if an estate contains both Washington and non-Washington property. Generally, the exclusion is reduced based on the ratio of non-includable (out-of-state) property to the total estate. According to the Washington Department of Revenue, the estate tax exclusion for decedents with out-of-state property is calculated by multiplying the gross taxable estate by an apportionment factor (value of Washington property / total gross estate).
In most scenarios, shifting as much value as possible outside Washington’s taxable reach is advantageous, thereby reducing the state estate tax due.
Trusts and Strategic Investments
The treatment of assets under Washington estate tax law depends on the property type and the decedent's location or domicile (WAC 458-57-025). Tangible personal property and real estate are sourced to where they are physically located, while intangible property is sourced to the decedent’s domicile. For assets held in trust, however, state law clearly states to look through the trust to the physical location of the underlying assets.
Parking assets in trusts is not a new strategy for estate planning, however, that has historically applied to real and other tangible personal property, doing little for the decedent’s investment portfolio or loose cash. Shifting a client’s portfolio to grantor trusts with underlying assets outside of Washington state would drastically reduce the value of their Washington taxable estate, without the headache of investing directly in real property to achieve the same effect.
One example of an investment that offers a unique advantage is the SPDR Gold Trust ETF (GLD). Classified as a grantor trust under CFR § 301.7701-4(c), GLD investors are treated as holding a direct beneficial interest in the underlying physical gold. Since the gold is stored in HSBC’s London vault, shifting investments to GLD can effectively reduce the value of a decedent’s Washington taxable estate, leading to significant state estate tax savings.
Planning Pitfalls
Just as some investments can reduce Washington estate tax exposure, others can unintentionally increase it. For example, nonresidents who hold investments in some Real Estate Investment Trusts (REITs) or Delaware Statutory Trusts (DSTs) that own property located in Washington may find themselves subject to Washington estate tax on those interests that exceed their apportioned Washington state exclusion. It’s critical to analyze the underlying assets of any trust or fund to ensure they don’t inadvertently create an estate tax liability.
Final Thoughts
The upcoming changes to Washington’s estate tax will require many people to reevaluate their estate planning efforts. The increased exclusion offers some breathing room, but the steep rise in the top tax rate could significantly affect larger estates. By carefully choosing the location of assets and the types of investments held in trusts, it is possible to reduce the taxable portion of an estate and preserve more wealth for heirs.
"...estate tax exclusion increases from $2.193 million to $3 million, providing some relief to moderate estates. However, this is counterbalanced by a significant rise in the top estate tax rate from 20% to 35%."
joe.berg@aldrichadvisors.com.
photo: © iStock/bymuratdeniz
Sources: https://app.leg.wa.gov/wac/default.aspx?cite=458-57-125
https://app.leg.wa.gov/wac/default.aspx?cite=458-57&full=true
https://www.law.cornell.edu/regulations/washington/WAC-458-57-005 https://dor.wa.gov/taxes-rates/other-taxes/estate-tax/estate-taxapportionment-out-state-property#:~:text=In%20general%20terms%2C%20 out%20of,property%20located%20outside%20of%20Washington.&text=Tangible%20personal%20property%20includes%2C%20but,Vehicles.
https://www.spdrgoldshares.com/media/GLD/file/Gold_ETF_Fact_ Sheet_4pp.pdf
https://ca.andersen.com/blog/washington-state-estate-taxes/
Joseph Berg, CPA, MS. Tax, is a tax associate with Aldrich in Spokane, Washington. You can contact Joseph at
CPA Demo Day Series
CPA Demo Days enable your practice to select vendors for new products and services more easily and efficiently by streamlining the initial stages of discovery and evaluation. This is a great opportunity to compare solutions side by side, ask questions, and discover what may be right for your organization.
Each monthly Demo Day (August-December 2025) is designed to help you efficiently compare leading solutions for specific product categories in a streamlined fashion so you can make confident, informed purchasing decisions sooner and with less effort.
How Demo Days work:
• 30-minute live product demos from competing solution providers for a specific product/solution category
• Live Q&A to get answers from vendors and insights from fellow buyers
• Confidential participation, vendors will not follow-up with you unless you request it
• Free for WSCPA members
MEMBER HIGHLIGHTS
Summer 2025 brought out the best in our members—from casual networking gatherings and cheering on local sports teams to celebrating our scholarship winners, the bright future of our profession. These moments highlight the connections, community, and camaraderie that make our membership so special.
SCHOLARSHIP
AQUASOX GAMEDAY
Upcoming CPE
A selection of WSCPA CPE events scheduled October-December are listed.
To view all of courses and complete details, please visit the CPE & Event Catalog at wscpa.org/cpe.
Pacific Tax Institute and Networking Reception
October 22-23 | Bellevue & Webcast | 16 Credits
The Pacific Tax Institute continues to be the premier destination for tax professionals seeking to stay ahead in a rapidly evolving landscape. Whether you're aiming to navigate the latest regulatory developments, tackle complex challenges with strategic insight, or lead innovation within your practice, this year’s conference is your catalyst for success in 2025 and beyond.
Emerging Leaders Workshop
November 13 | Bellevue | 8 Credits
The Emerging Leaders Workshop is designed to help accounting professionals —whether you're leading a team now or preparing to step into a leadership role—unlock and leverage your strengths for impactful organizational results. With guidance from Gallup Certified CliftonStrengths Coaches, attendees will learn how to maximize individual talents and empower their teams to succeed.
Not-For-Profit Conference and Networking Reception
November 19-20 | Bellevue & Webcast | 16 Credits
Join us for the WSCPA Not-for-Profit Conference, the premier 2-day 16 credit annual event designed specifically for accounting and finance professionals serving the nonprofit sector. Whether you're a CPA, CFO, auditor, or nonprofit leader, this comprehensive conference offers essential insights to help you navigate today’s dynamic financial landscape with confidence and clarity.
Fraud Conference and Networking Reception
December 4 | Redmond & Webcast | 8 Credits
Join fellow CPAs, auditors, nonprofit leaders, and financial professionals at the 2025 WSCPA Fraud Conference for a full day of high-impact insights, real-world case studies, and practical tools to detect, prevent, and respond to fraud in today’s complex landscape.
Upcoming In-Person CPE & Special Events
Networking Events
Oct 23 | Boos & Brews Trivia Night, Spokane
Nov 6 | Tax, Trusts & Toasts, Everett (CPE and Networking)
Tap Together Thursday Series - Casual, local networking
Oct 16 | Tacoma & Yakima
Nov 6 | Bellingham & Kent
In-Person CPE
Jan 21 | Federal Tax Update with Greg and George
CPA Exam Accelerator Virtual Fireside Chats
Oct 9, Nov 13, Dec 11, Jan 15, Feb 12
Demo Days Series (details on page 21)
Oct 29 | Foundational Accounting
Nov 14 | Client Portals and Document Management
Dec 12 | CAS Solutions
VOLUNTEER OPPORTUNITIES VOLUNTEER OPPORTUNITIES
Are you interested in using your CPA skills to make an impact in your local community, or do you know of a non-profit organization needing help from a CPA? Find or submit an opportunity at wscpa.org/ volunteer-opportunities
• EarthCorps – new
• Washington Business Week – new
• PorchLight - new
IBA Sells Privately Held Companies: Do you represent a client who is ready to retire or has taken a company as far as they want to or can? IBA is the Pacific Northwest’s oldest business brokerage (M&A) firm. We are professional negotiators with over 4,300 completed transactions. Please contact us if we can be of assistance at 425.454.3052, 509.907.9406, or www.ibainc.com.
Have a Client/Owner Ready to Explore the Business Sale Process? We help owners confidentially explore the sale process. Transaction expertise, market knowledge, and results. 100% performance based fees - owners pay only at closing. Business owners are experts on their business. We are experts on the process of selling a business. Call 206.703.3555 for a confidential, no commitment consultation. Check out resources and learn more at wabusinessbrokers.com. Put our experts to work for you!
Whatcom County Small Practice for Sale. Over 20-year existing client base with clients both in Whatcom County and other counties and states. Many are cross border clients with foreign returns required such as 1040 NRs, 5471s and 5472s as well as 3520s. Individuals, Cs Es, and C corps. Looking for a like-minded CPA that services their clients well. I will assist in transition of course. Largely 1040s with Sch Cs, Es, and 1040 NRs. Many complex 1040s with large investments and additional schedules required. 1065s and 1120s
and C corps as well as foreign reporting forms such as 5471s and 5472s for US citizens owning foreign corporations. A few still like to meet in person but the majority are used to sending their information virtually. Contact M Clothier CPA PLLC at michele@ mycpaga.com or 360.778.9028.
CPA Practice for Sale – Seattle (Lake Union View). Established and highly profitable CPA practice for sale in Seattle, Washington. The solo practitioner is retiring and offering this turnkey opportunity, which includes a stable and loyal client base of individuals and small businesses across various industries. The practice operates from a professional office with spectacular views of Lake Union. The lease includes two covered parking spaces, a rare and valuable asset in the area. Average gross receipts over the past four years exceed $580,000 annually, with strong cash flow and consistent growth. One experienced and dedicated support staff member is expected to stay on post-sale. The seller is committed to providing transition support to ensure continuity and client retention. Practice Highlights: - Prime Seattle location with lake views - 4-year average gross receipts of $580,000+ - Long-term, loyal client base - Professional office with 2 covered parking spots - Excellent support staff included - Smooth transition assistance available. Serious inquiries only. A non-disclosure agreement (NDA) may be required. Interested parties should contact: practicesale72@gmail.com
Looking to Acquire Solo Accounting/Tax
Practice.
Experienced CPA seeks to acquire a small solo accounting/tax practice in the Seattle area. Ideal size: $150K–$400K in annual gross revenue, with a mix of individual and small business clients. Committed to client continuity and service quality, and open to a flexible transition — whether that means a phased handover, part-time seller involvement, or consulting support. Let’s discuss a smooth and confidential transition that works for you and your clients. Contact Harry Nayyar, CPA, nayyarh@gmail.com or 425.516.4480.
CPA Practice for Sale in Whatcom County WA: With well-established client base in many states, I am looking for a CPA who can service my clients in the way that I have. $180K in gross billings and still growing. Owner will assist in transition. Clients have been with me for over 20 years and so were some of my staff. A good mix of returns including individual, partnerships and corporations. Practice includes non residents with property / business in the US as well as US citizens residing outside of the country. Citizens with foreign businesses also as well as Trusts and Estates. My email address is michele@mycpacga.com and this is my preferred method of communication.
Sales & Mergers
Established Portland Metro Tax & Accounting Firm (OR 1241). Over the past 7+ years, this thriving Portland-based firm has built a strong reputation for delivering comprehensive tax and consulting services to a wide-ranging client base. Operating under the innovative ‘Practice Forward’ model, the firm has redefined its identity as an advisory-first practice, providing all new clients with a bundled, year-round service package—including monthly accounting, quarterly strategic tax planning, business and personal tax preparation, and proactive business advisory. As of March 2025, the firm proudly supports approximately 300 active clients, showcasing consistent performance and client loyalty. The 2024 estimated revenue distribution—61% Tax Preparation, 27% Accounting/Bookkeeping, and 12% Planning/Advising—demonstrates a healthy, diversified service mix. With an average annual revenue of approximately $1,000,000 over the past 2 years (2023-2024), the firm offers proven profitability and scalability. Its success is driven by a skilled and dedicated 7-person team committed to operational excellence and client service, with one owner who seeks to remain an active partner to support future growth and continuity. To take advantage of this exciting business opportunity, call us at 253.509.9224 or send an email to info@ privatepracticetransitions.com.
Highly Profitable Virtual Consulting Firm (1248).
Established in 2011, this fully remote consulting firm delivers specialized services in finance, accounting, SEC reporting, governance, risk and compliance (GRC), and IT project management. The Firm’s service by revenue breakdown is as follows: 37% General Accounting, 34% SEC Reporting/Technical Accounting, 16% GRC, and 13% Project Management. As of April 2025, the Firm serves nine active clients with recent billings and maintains Master Service Agreements with an additional 13 clients - totaling 22 client relationships. From 2022 to 2024, the Firm averaged annual gross revenue of approximately $5.26 million, and 2025 YE projections are showing revenues of ~$5.6 million. The team includes 19 dedicated professionals, including the Owner. Known for its trusted name and long-term client relationships, this Firm offers an excellent opportunity for growth in the professional services space. The Owner is open to remaining in a leadership capacity for up to one year to support a smooth transition. To learn more, call 253.509.9224 or email info@ privatepracticetransitions.com.
Highly Profitable and Scalable Accounting Practice (OR 1242). Founded in 1958, this highly respected Oregon-based tax and accounting firm has been a trusted provider of tax and assurance services for over 66 years. With a well-established reputation and a loyal client base, the Practice continues to thrive in the community. The Practice offers a diverse range of services, including business tax (29%), audit (27%), individual tax (22%), bookkeeping and compilations (16%), and reviews/ miscellaneous services (6%). In 2024, the Practice had gross revenues over $2.5 Million and Sellers’ Discretionary Earnings (SDE) over $1.6 Million. As of March 2025, the Practice serves approximately 950 active clients, supported by a team of eight (8) staff, including the owners. Known for its exceptional service and strong reputation within the community, the Practice has built lasting relationships with clients who trust its expertise. The Owners are open to staying on with the right buyer, with varying commitments: one for up to 3 years, another for 4 years (including 2 years full-time), and another for 3 to 5+ years. To take advantage of this exciting business opportunity, call us at 253.509.9224 or send an email to info@ privatepracticetransitions.com with “1242 Highly Profitable & Scalable Accounting Practice” in the subject line.
Highly Profitable Tax & Accounting Practice (OR 1240).
With more than six decades of success, this well-established firm has been delivering comprehensive tax and accounting services to a diverse mix of business and individual clients. As of April 2025, the Practice proudly serves approximately 1,315 active clients and has become a staple in the Portland-area community. The Practice’s revenue is primarily derived from 90% tax services, with the remaining 10% from payroll, consulting, and other support services. In April 2025, the Practice reported trailing twelve-month (TTM) gross receipts of ~$1M, reflecting a strong 15% year-over-year growth from 2024. The Practice’s success is rooted in its personalized approach, long-standing name recognition, and prime location. Backed by a seasoned team of 14 professionals, including the Owner, the Practice is positioned for continued growth under new ownership. The Owner is committed to providing a smooth transition and is willing to assist with goodwill transfer, business development, and mentorship for an agreed-upon period. To learn more about this exceptional opportunity, contact us at (253) 509-9224 or email info@ privatepracticetransitions.com with “1240 Highly Profitable Tax & Accounting Firm” in the subject line.
Highly Successful Tax & Accounting Practice – 3 Locations (WA 1243). This highly successful multilocation tax and accounting practice has offered a wide range of tax and accounting services to both business and individual clients for many years. As of March 2025, the Practice has approximately 1,861 active clients supported by a dedicated team of ten (10) staff members and four (4) independent contractors. In 2024, the Practice generated total gross receipts of $2,237,424, reflecting a 15.5% year-over-year increase. The Practice’s success can largely be attributed to its knowledgeable staff, and well-defined, straightforward processes. The Practice’s service by revenue breakdown is 70% Tax, 26% Bookkeeping, and 4% Payroll. While the Practice is set-up to run without them, the Owners are willing to provide transition assistance and help with goodwill transfer for an agreed upon time to ensure the new owner’s return on investment is realized. To take advantage of this exciting business opportunity, call us at 253.509.9224 or send an email to info@privatepracticetransitions. com with “1243 Highly Successful Tax & Accounting Practice – 3 Locations” in the subject line.
Well-Established Virtual Accounting Services
Firm (1245). Seize this rare opportunity to acquire a well-established, fully virtual accounting services firm with a strong reputation and revenues. Founded in 2016, this cloud-based practice has embraced cutting-edge technology to deliver seamless financial solutions to a diverse and loyal client base. Currently, there are approximately 700 active clients. The Practice’s service by revenue breakdown is 68.3% bookkeeping, 13.4% advisory, 11.8% tax, 2.5% project work, 2.4% HR services, and 1.6% other. In 2024, the Practice brought in over $4 million in revenue. The Practice’s success can largely be attributed to its established name and loyal clients who have grown to trust the services it provides. The practice currently employs thirty-one (31) individuals, including the owner, who is willing to provide transition assistance and help with goodwill transfer, business development, and other “mentoring” functions for an agreed-upon period. This is an ideal acquisition for a firm looking to scale quickly, or for an entrepreneur ready to take over a high-performing, remote-first practice. To take advantage of this exciting business opportunity, call us at 253.509.9224 or send an email to info@ privatepracticetransitions.com.
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Fall Conferences
Oct 22-23 | Pacific Tax Institute*, Bellevue & Webcast
Nov 13 | Emerging Leaders Workshop, Bellevue
Nov 19-20 | Not-For-Profit Conference*, Bellevue & Webcast
Dec 4 | Fraud Conference*, Redmond & Webcast
*Networking receptions are available for these conferences.
Networking and Events
Tap Together Thursday Series - Casual, local networking
Oct 16 | Tacoma & Yakima
Nov 6 | Bellingham & Kent
Oct 23 | Boos & Brews Trivia Night, Spokane
Nov 6 | Tax, Trusts & Toasts, Everett
Register now at: wscpa.org/fall-25