Good morning, capital markets servants. Got some news for you. Reminder that comments are off on news briefs and Footnotes by default but you can still submit your thoughts by email or @ us.
First, let’s swing by academia. Nature brings us this paper published in Humanities and Social Sciences Communications: The impact of artificial intelligence on accounting practices: an academic perspective. The authors looked at Saudi-Arabian accounting practices specifically but the gist is the same no matter where in the world the beans are counted and it’s fully open so you can spend all day reading it if that’s your thing.
Then a couple CPA PhDs have this in Journal of Accountancy: Accounting automation’s intelligent future. That future, according to the article, is IPA:
Intelligent process automation (IPA) represents a transformative approach combining robotic process automation (RPA), artificial intelligence (AI), and other advanced technologies to streamline complex business processes.
IPA represents a major leap forward for automation technologies. For instance, an IPA system might analyze historical audit findings, current regulatory guidance, and client-specific risk factors to suggest appropriate testing approaches for an audit engagement — a level of assistance that far exceeds what RPA can provide. This capability to support professional judgment represents a fundamental shift in how automation technologies can serve accounting professionals.
The integration of generative AI within the IPA framework further distinguishes it from previous automation approaches. Whereas traditional automation executes existing processes, IPA with generative capabilities can help design new processes, draft professional communications, generate analytical frameworks, and create documentation templates tailored to specific client situations. This creative dimension enables IPA to serve as both an implementation tool and a creative partner in professional service delivery.
Have we covered the Deloitte-1 satellite that’s been orbiting the Earth since March before? I don’t think we have. I know we’ve definitely discussed Deloitte’s ambitious space plans (see: Deloitte Sets Its Sights on the Final Frontier, published April 2023). A couple days ago, the firm put out a news release about its “cyber intrusion detection system for on-orbit assets” a.k.a. Silent Shield:
It’s basically, no, definitely a thinly veiled ad but still somewhat interesting to see a Big 4 firm’s space practice getting out there among the stars.
As of May 2025, there are about 11,700 total active satellites in orbit (60% of which are Starlink). According to the Live Science article I just linked, satellites only have a couple years of orbiting in them before they sputter out and come back down to Earth.
Senior Political Strategist Ashlee Rich Stephenson at the US Chamber of Commerce shares findings from a new public opinion survey that found seven-in-ten Americans will be more likely to support a candidate for Congress who voted to make the 2017 Tax Cuts and Jobs Act permanent.
And sixty-two percent (62%) support permanently allowing businesses to fully expense investments in machinery, equipment, and technology.
China suddenly decides to tax bond interest for the first time in decades, reports Bloomberg:
The government will resume collection of value-added tax on interest income from bonds sold by central and local governments, as well as those from financial institutions starting Aug. 8, the Ministry of Finance said in a statement released on Friday. Bonds issued before that, including the reopening sales on these notes, will be exempted from the tax.
The new rule is likely to push up the cost of borrowing new debt, especially as the interest income on sovereign bonds had been tax exempt since the 1990s.
A cash windfall from Trump’s tax law is showing up at big companies, reports WSJ:
AT&T recently said it expected $1.5 billion to $2 billion in cash tax savings this year, due to provisions in the tax-and-spending law dubbed the One Big Beautiful Bill Act. The high end of the range is equivalent to an 11% boost to analyst estimates of 2025 free cash flow before the law was enacted. AT&T estimated annual cash tax savings of $2.5 billion to $3 billion in both 2026 and 2027.
It’s not exactly CASH though…
The cash savings won’t affect reported earnings, which are calculated using different accounting rules than taxes. It won’t all ultimately end up in free cash flow either, because AT&T plans to reinvest much of the savings in new capital projects. But the change is still a positive for the company’s shareholders and valuation, all other things being equal.
MPR talks about tax transparency in Minnesota, something that would be cool to see nationwide tbh:
Whether they like it all or not, Minnesota taxpayers purchase a lot of state services. A relatively new state law entitles them to a receipt for what they buy – sort of.
At least once per year since the 2023 Minnesota “Taxpayer Receipt” law took effect, state officials have been required to publicize its existence. That happened last week, putting fresh attention on an online calculator that spits out information on how money sent into Minnesota’s state government gets pushed back out.
The calculator looks like this:
Some motivation for Minnesota smokers wanting to quit: the calculator throws out a number of estimated tax paid based on your income if you buy tobacco in the state. At a yearly household income of $100k, they estimate $1,590 in cigarette tax alone. Think of all the avocado toast you could get instead.
Kiplinger did a “My First $1 Million” story with a former accounting firm partner from Boston who retired at the age of 56. Check this out:
Out of college, my starting salary was $20,000 per year.
This partner is 62 years old so he or she would have started out in the mid-80s or thereabouts. Then comes this:
It took me 42 years to make my first million.
This next part made me laugh. Kiplinger asked if the partner celebrated when they got to that first million:
Lastly, here’s the piece of advice they would have given their younger self. Some of you might need to hear this.
Money is an important piece of your life’s quest, but it’s not the whole picture. Take moments, and spend some money, to enjoy the journey.
Money provides the opportunity to explore what happiness means for you and those with whom you choose to share your time, energy and love.
So the job market sucks in Singapore. According to Business Times, professional services firms are definitely still hiring graduates:
Professional services firms in Singapore are keeping graduate hiring steady – or even raising it – in 2025, defying broader concerns about a softening job market for fresh university graduates.
Big Four firm EY is looking to recruit about 500 fresh graduates this year, with roughly 75 per cent expected to come from Singapore’s autonomous universities.
The hiring figure marks a “steady increase over the years”, said Liew Nam Soon, EY Asean regional managing partner and Singapore country managing partner.
He specifically mentions that EY is interested in grads with tech backgrounds. “In particular, we are now hiring more candidates with technology degrees such as computer science and data science to meet client demand, as well as those with coding skills, for consulting in addition to accounting and tax roles,” he told BT.
Given how tough the computer science job market is right now, that’s good news for those graduates.
That’s all I have for today. We’re keeping our eyes open for Big 4 revenue announcements in coming weeks, Deloitte is usually first to report some time in September then EY or PwC and KPMG last around December.
As always, you are welcome and encouraged to reach out via email or text if you have a tip, read something you think we’d like, or just want to complain. Tipsters are always anonymous. Have a good week!
