In 2025 the professional services industry sees expansion of legal services by accounting firms as its most widely discussed trend. Major providers such as KPMG are launching their services in the U.S. legal field thus dissolving the traditional separation between legal and accounting practices. Accounting firms apply regulatory changes to launch their integrated legal and accounting services which transform business approaches to compliance and risk management and litigation services.

The article explains the industry-wide changes in the U.S. legal system owing to accounting company expansions together with their operational strategies and predicted market shifts.

Why Accounting Firms Are Entering the Legal Market

Since expansion of legal services by accounting firms are in the picture, the legal sector and accounting field operated separately from one another. The legal sphere of responsibility belonged to attorneys yet accountants specialized in taxes together with financial audits and consulting services. lack of distinction between accounting firms and legal services has become less clear because of expanded regulations and increased necessity for combined services.

Multiple elements stimulate accounting firms to offer legal services to their clients:

• New rules from regulators allow specific regions to expand their law service delivery beyond traditional boundaries.
• Legal and financial consulting services are being chosen by clients as an integrated one-stop approach to professional advice.
• Big Four consulting models benefit from technology-based legal operational solutions which operate efficiently.

The amalgamation of KPMG with Deloitte and PwC and EY creates a market challenge to traditional law firms through their delivery of extensive multidisciplinary legal solutions in compliance and M&A and labor law and tax litigation fields.

Expansion of legal services by accounting firms: KPMG Leads the Charge

Knowledge Process Management Group continues to show the boldest initiative in developing legal services among its Big Four competitors. KPMG generated worldwide attention in 2025 when it filed an application to hold ownership of a law firm within the United States even though it was excluded by American Bar Association regulations at the time.

The accounting industry takes an unprecedented risk by demonstrating serious commitment to their legal services expansion plans. The services KPMG intends to provide will include:

• Contract lifecycle management
• Corporate governance support
• Labor and employment compliance
• Cross-border legal advisory

KPMG implements legal experts within their consulting network to create integrated legal and business solutions which provide clients an opportunity to gain competitive advantages.

Expansion of legal services by accounting firms: Regulatory Changes

Expansion of legal services by accounting firms continue to develop legal services because law practice deregulation processes have allowed broader ownership opportunities. These reforms have enabled Arizona together with Utah to legitimize non-lawyer investment in practice ownership. Larger accounting firms now have new opportunities to develop various business branches.

• The newly implemented regulatory requirements seek these three main objectives:
• Increasing competition
• The implementation of price reductions for legal service provisions
• The implementation of better legal assistance programs should target small enterprise and new startup companies.

As the trend spreads across more states, the expansion of legal services by accounting firms is expected to accelerate further.

Benefits of Integrated Legal and Accounting Services

A combined legal and accounting service platform delivers multiple organizational benefits to clients.

Simplified Compliance

One primary benefit leads clients to receive services from a single team which handles legal and financial regulation requirements. The unified team provides both exceptional communication and complete satisfaction of tax and corporate law requirements.

Faster Decision-Making

Having legal professionals interact with financial experts enables businesses to speed up their decision-making process. The combination becomes valuable during activities such as mergers, acquisitions and restructuring.

Cost-Effective Solutions

The combined delivery of services leads to reduced staff requirements for hiring separate firms. Integrated legal and accounting services deliver benefits through dual savings of time and costs since they avoid duplicate work processes.

Stronger Risk Management

Through risk consulting services KPMG provides clients an all-encompassing risk assessment by integrating expertise from legal and audit and advisory branches.

Traditional Law Firms Show Their Reaction

Expansion of legal services by accounting firms present a critical demise for conventional law firms. The way businesses function requires reassessment from various firms. Some key responses include:

• Law firms must acquire legal technology that enables similar operational efficiency like Big Four audit companies.
• Building partnerships with consulting companies
• Expanding services beyond litigation to advisory and compliance

Several boutique law companies successfully establish their presence in legal territories which accounting professionals hesitate to enter including defense of major crimes and personal injury work.

Challenges Faced by Accounting Firms

Expansion of legal services by accounting firms face various barriers when attempting to expand their legal service offerings even though they encounter steady growth.

Bar Association Resistance

Not all jurisdictions are welcoming. The majority of state bar associations work to prevent law firms from having non-lawyers as owners.

Client Trust

Certain clients hold onto the belief that law firms demonstrate superior capability when dealing with complex courtroom matters and complex litigation.

Internal Talent Management

Accounting firms face substantial challenges when they attempt to recruit high-level law professionals along with successfully keeping them within their organization. Accounting firms maintain distinctive cultures which differ from legal firms.

The Future of Expansion of legal services by accounting firms

Integrating legal services with accounting has caused a permanent change in industry structure that will not fade away. The following ten years will show:

• Big Four accounting firms continue to found new and purchase existing legal service companies operating in the United States.
• Legal tech playing a key role in service delivery
• Increased collaboration between legal, audit, and risk teams

The experts agree multidisciplinary firms will control key legal functions including regulatory compliance and international tax law together with contract management starting from 2030.

Key Industries Impacted due to Expansion of legal services by accounting firms

Expansion of legal services by accounting firms extending their legal services create the most impact on five areas:

• Integrated services help healthcare organizations confront risk through their administration of heavy regulations and privacy standards.
• Banks together with investment firms demand legal advice and audit monitoring to fulfill their operational requirements.
• Startups choose integrated services because the integration helps them understand and adhere to IP and tax and labor law regulations.

Manufacturing industries together with trade operations benefit from receiving a single source of trade compliance and tax law guidance that operates across international borders.

Conclusion

The professional services sector enters its new era through the expansion of legal services by accounting firms provision. The U.S. legal market now welcomes KPMG and other accounting firms which provide integrated legal and accounting services that enable clients to get superior efficiency at reduced costs.

While challenges remain, this shift offers enormous potential to reshape how legal services are delivered. Whether you’re a business leader, lawyer, or accountant, understanding this trend is key to staying competitive in 2025 and beyond.