By Cathy Rowe, Senior Vice President and Segment Leader, US Professional Market of Wolters Kluwer Tax & Accounting North America.
Private equity firms are entering the tax and accounting industry at an unprecedented rate—and they’re not just looking at client lists or billables. Increasingly, they’re zeroing in on the digital maturity of a firm’s technology stack. Why? Because tech-enabled firms don’t just run more efficiently—they’re poised to grow faster, too.
According to the Wolters Kluwer Future Ready Accountant Report, firms with over 75% technology integration saw revenue growth at 78%, compared to just 46% for firms with no tech integration. For firms looking to grow, merge, or exit—especially in a consolidating market—fully integrated, fully utilized tech stacks are no longer optional. They’re an asset.
A Modern Tech Stack Powers Post-Acquisition Efficiency
For private equity firms, the appeal of a well-integrated, cloud-based tech stack is simple: it unlocks operational efficiency across an entire portfolio. When multiple firms come together under a single umbrella, a unified tech stack minimizes friction, enabling centralized oversight, shared best practices, and cross-firm collaboration.
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Instead of managing a patchwork of legacy systems, all firms under the same private equity umbrella can implement standardized workflows for onboarding clients, managing engagements, invoicing, reporting, and compliance. This isn’t just a matter of convenience—it’s a catalyst for scale.
By reducing redundancies, cutting down on manual tasks, and creating consistent performance metrics, these firms can optimize resource allocation and streamline reporting. The result is a more agile organization, better margins, and a clearer growth story—everything private equity loves.
Addressing the Talent Crisis with Shared Systems
Every tax and accounting leader knows the pain of the talent shortage. But a fully integrated tech stack doesn’t just automate tedious work—it connects people.
When firms in different cities or states operate on the same front-end and back-end platforms, they can share work across offices. A deadline crunch in Cincinnati? A team in Dallas can jump in. A niche client request in Boston? Pull in a specialist from Denver. This interconnectedness transforms fragmented talent pools into a firm-wide advantage – but it’s an advantage that can only be seized with fully integrated technology.
Integrated cloud-based platforms make it easy to distribute work based on capacity and expertise, without being limited by geography. That’s not just better for efficiency—it’s better for clients. Firms can assign the best person for the job, regardless of zip code.
Attracting the Next Generation of Talent
Tech-savvy recruits aren’t just looking for better work-life balance and hybrid schedules—they want meaningful work. A strong digital backbone empowers firms to give young staffers more than grunt work.
The aforementioned Future Ready Accountant Report found that 80% of firms agree that technology helps mitigate the talent gap, with 61% emphasizing its ability to reduce mundane tasks, freeing up staff to focus on more engaging, high-value work.
That means that with modern automation handling time-consuming tasks like data entry and basic tax prep work, junior employees can get involved in strategic engagements, sooner. That shift isn’t lost on recent graduates.
When early-career professionals can see a clearer, faster path toward advisory work, client interaction, and skill development, they’re more likely to stay—and grow within the firm.
The Bottom Line: Tech Is a Value Driver
We’re past the point of debating whether digital transformation matters. In a world where private equity is reshaping the tax and accounting profession, technology is becoming one of the most important drivers of firm value.
Whether your firm is looking to grow organically, join forces with peers, or prepare for a PE-backed acquisition, investing in an integrated, cloud-based tech stack is no longer just about keeping up. It’s about leveling up. Because in this new era, your tech infrastructure doesn’t just support your business—it multiplies its value.
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Jeffrey Turner August 19 2025 at 8:29 am
What modern tech stacks are preferred by private equity firms? (The rankings for the top 2 or 3 apps for each area of use?)