What accountants need to know about AI
In recent years, AI has become a transformative force across various industries — and the tax and accounting profession is no exception. For accountants, understanding the implications of AI is not just beneficial but essential for staying competitive and providing top-tier client service.
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In recent years, AI has become a transformative force across various industries — and the tax and accounting profession is no exception. For accountants, understanding the implications of AI is not just beneficial but essential for staying competitive and providing top-tier client service.
A look at the tax research
Today, tax and accounting professionals face a variety of headwinds. From a complex regulatory environment to growing client demands and a shrinking talent pool, many are struggling with capacity constraints, limited resources, and an intense need to upskill junior staff quickly.
Undoubtedly, the most time-consuming part of tax research today is the research initiation stage which includes figuring out which Code sections apply, building foundational knowledge of a topic, and efficiently formulating an effective answer or strategy for a client or organization.
Because tax research is a skill often learned on the job, junior staff in particular are typically not trained to conduct tax research and struggle with well-formed searches, especially when working in unfamiliar areas. They often default to using Google because that’s where they’re comfortable.
However, we know relying on answers from across the internet can be problematic for a variety of reasons. In addition, a Google search is often not enough on its own due to how fast and frequently tax policy is changing.
Understanding the benefits of AI for tax and accounting professionals
From a tax and accounting perspective, the benefits of AI are significant especially when it comes to automating routine tasks, enhancing data analysis, and improving accuracy and compliance.
One of the most immediate impacts of AI in tax and accounting is the automation of routine, time-consuming tasks. AI-powered tax solutions can handle data entry, invoice processing, and basic bookkeeping with greater accuracy and speed than manual methods.
Together with an AI-powered tax research solution, accountants can transform tax research challenges with easy-to-digest answers synthesized from trusted resources and vetted sources, along with citations for fast verification.
In short, AI can enable tax and accounting professionals to:
- Save time with internal processes. Accelerate workflows by relying on generative AI as an efficient research tool. Vet tax positions, tackle questions, and empower junior staff to find answers.
- Increase productivity. Conquer complex tax questions faster than ever. Bolster your tax and accounting knowledge without poring over multiple references and layers of content.
- Improve communication. Answer questions in real-time while providing timely and accurate insights, enhancing the way you deliver information and decision making.
- Upskill staff by giving them a better way to start their research.
While AI offers numerous benefits for the tax and accounting industry, it cannot do everything. Instead of replacing human professionals, AI simply enhances capabilities and frees up time previously spent on mundane tasks. This allows tax and accounting professionals to focus on higher-value activities, such as providing data-driven insights to clients, offering strategic advisory services, and strengthening essential human connections.
A deeper look at how AI can transform tax research
An AI-enabled tax research tool early can significantly enhance efficiency, accuracy, and competitive edge by not only streamlining complex processes but also providing deeper insights into data, enabling better decision-making.
By harnessing the power of AI, tax and accounting professionals can quickly upskill entry-level staff by streamlining their access to accurate information. This capability not only speeds up the research process but also ensures that they are working with the correct data right from the start.
As a result, even junior staff can quickly become proficient in their roles, effectively using technology to boost their skills and confidence in handling client requests—without having to vet answers through senior colleagues.
How AI can enhance client service
AI has an amazing capability to analyze data. From a tax and accounting perspective, advanced analytics like predictive modeling and forecasting can help anticipate future trends and outcomes based on historical data. This enables tax and accounting professionals to identify potential risks, opportunities, and market trends for clients.
With this ability comes a shift in mindset for tax and accounting professionals – one that harnesses AI to handle routine tax preparation tasks and focuses on providing clients with meaningful insights and personalized advisory services. This is an invaluable strategic advantage in an increasingly competitive landscape.
Are you ready to harness the power of AI?
On the surface, integrating AI into your daily workflow can seem complicated and overwhelming. Yet, when it’s broken down, AI has the power to transform the way your firm does research, giving you faster, better results, and more time for higher-value tasks.
It’s never been a better time for your firm to take advantage of new ways to explore tax questions and ensure you’ve got the best information to make informed decisions.
