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.
