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Corporate Transparency Act

Featuring Charles Wismer, CEO, FincenFetch
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Charles Wismer leads FincenFetch and oversees the growth of its Corporate Transparency Act solutions for accounting and law firms. With experience in the regulation two years prior to its enactment, he is acknowledged as an authority in the field and conducts CPE courses for various state CPA societies.

Q Are CPAs offering Corporate Transparency Act filing services? 

A Many CPA firms now offer Corporate Transparency Act filing services. Initially, in early 2024, there was hesitation due to practice-of-law concerns and insurance uncertainties. However, recent state attorney general opinions and Financial Crimes Enforcement Network (FinCEN) recommendations have clarified that CPAs can assist with filings. Additionally, state CPA societies are offering FinCEN CPE courses, and many insurers now cover these services. We’ve seen a shift in our new signups: About 70% of the hundreds of firms using FincenFetch today are accounting firms, moving away from primarily law firms earlier in the year. 

Q How much are CPAs billing for FinCEN beneficial ownership information (BOI) report filing?

A CPAs typically bill $350 to $450 for an initial FinCEN BOI report this year. Starting in 2025, many plan to introduce an annual service fee covering data storage, client dashboards, recordkeeping, and updated report reminders to help clients avoid FinCEN’s $591 daily penalties. Annual fee structures 

Q What are the steps and time requirements of each BOI report? 

A Filing a BOI report is a nine-step process for CPAs: informing clients of requirements, collecting information, explaining new definitions, obtaining ID copies, reviewing submissions, filing the report, sharing transcripts, storing records, and reminding clients about updates. Typically, this process takes about two hours per report. However, BOI reporting software automates these steps, reducing the time to under five minutes per report and enabling automated reminders and client education. 

Q How can CPAs reduce their liability around BOI reporting? 

A CPAs should ensure client signoff on reports before filing, minimize data transfer errors, and establish engagement terms. Software automates these tasks with features that record acceptance, autofill data to reduce typing errors, and allow e-filing. Additionally, reminder systems are important to keep clients informed about ongoing reporting requirements and identify triggers that start the 30- day timer for updated reports. 

Q How large is this compliance market for 2024 and future years? 

A BOI reporting revenues are expected to reach about $6.4 billion in 2024 ahead of the Jan. 1, 2025, deadline. This estimate is based on 40% of 40 million reporting companies filing with firms and paying around $400 per report. From 2025 onward, the market will shift to a recurring-revenue model, generating an estimated $1.5 billion annually from updated reports. Annually, 35% to 45% of companies using CPAs are likely to file updated reports, due to having more owners and triggers for updates. This substantial market size is leading many firms to adopt strategies and reporting software well ahead of the deadline to support their clients and grow revenues in this new market.

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FincenFetch is a leading Corporate Transparency Act filing platform for CPAs and attorneys. The company offers SOC 2-certified solutions trusted by hundreds of firms, including many of the top 100. FincenFetch features integrate seamlessly into CPA processes, allowing accountants to offer their clients secure, automated, and easy BOI reporting.