In recent years, small and medium-sized tax and accounting firms have increasingly adopted automation as a key strategy to streamline their operations.

Originally, automation efforts focused on routine manual tasks, tax preparation, and back-office functions. But with the advent of AI, these benefits are only amplified. Let’s explore how tax and accounting professionals can prepare for tomorrow’s challenges and stay one step ahead.

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The transformative impact of AI on accounting productivity

One of the key benefits of integrating AI into your company’s daily workflows is that AI-powered tax software can analyze massive amounts of financial data in a fraction of the time it would take a human accountant – accurately identifying patterns, anomalies and trends.

In addition, AI-powered tax research can help employees find targeted search results in less time. By providing professionally summarized answers, complete with citation links to relevant editorial content and source materials, even junior employees can answer complex customer questions quickly and confidently.

Assessing the mood regarding the power of AI

According to Thomson Reuters’ 2024 Future of Professionals report, 77% of professionals believe AI will have a major or transformative impact on their careers, up from 67% last year. This enthusiasm for AI is palpable, given the tremendous value and time savings AI-powered technology can bring to the workplace. Survey respondents predict that AI could save up to four hours per week within a year.

In addition, the majority of survey respondents across all industries believe that AI can be a force for good – as many as 82% of tax and accounting professionals. However, some concerns remain about ensuring that AI is used ethically and without compromising sensitive data, which is a particular concern for accountants.

Strategic trends for tax professionals

For accountants, AI’s unique ability to analyze data can be a transformative force. Advanced analytics such as predictive modeling and forecasting can help predict future trends and outcomes based on historical data. This allows tax and accounting professionals to identify potential risks, opportunities, and market trends for clients.

With these expanded capabilities comes a shift in mindset. By harnessing the power of AI, your business can expand its focus from traditional tax compliance to providing meaningful insights and personalized advisory services to clients. In an increasingly competitive environment, this is an invaluable strategic advantage that leads to a more profitable and sustainable value pricing model.

Using AI to increase productivity in the tax and accounting profession

Regarding current AI adoption and use, 50% of respondents said that new AI-powered technologies usually provide a basic starting point, but that they still need to do most of the work themselves. Another 28% said it is a good starting point and they just need to make changes.

When it comes to tax research, AI offers significant benefits. Professional tax research typically involves multiple searches, careful review of relevant materials, and the creation of a cited summary that is straightforward and understandable. This can often take hours, especially for junior staff who need to have answers reviewed by more experienced colleagues.

But with an AI-powered tax research solution, accountants can save time and overcome the challenges of tax research with easy-to-understand answers from trusted resources and verified sources, as well as citations for quick verification.

The importance of responsible use of AI

Despite all the benefits, the enormous potential of AI is tempered by concerns about data security and ethical use. To address these realities, clear principles and guardrails for responsible use of AI are needed.

Building trust in AI requires transparency, benchmarking and standards. Educating your employees on the ethical use of AI and only using industry-specific AI-powered tax solutions can help bridge this gap while ensuring the accuracy, security and professional safeguards required for tax and accounting firms.

The role of AI-driven productivity in a collaborative future

When survey respondents were asked what percentage of the work currently performed by their team is done using AI-powered technologies, the results indicated rapid adoption of AI in the workplace, with technology providers being the main influencers.

On average, professionals expect that over half of their work will involve at least some new AI-powered technology over the next five years. Thomson Reuters believes that within the next five years, all professionals will likely have a generative AI assistant to assist them in their daily work.

The future of AI for accounting firms

By integrating AI-powered tax technology, accounting firms can not only increase their operational efficiency but also provide better service to their clients with meaningful, data-driven insights that improve financial health and strengthen relationships.

As AI continues to shape the future of work, accounting firms that invest early in AI can gain a competitive advantage by staying ahead of the learning curve and achieving a faster return on investment.

Ultimately, integrating AI represents a transformative opportunity to increase productivity, gain new insights, and improve the customer experience. By leveraging AI-driven technologies, your organization has the opportunity to lead the way in creating value and meaningful growth for both your customers and your business.

For deeper insights and strategies to stay ahead, read the Future of Professionals 2024 report below.

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