Automation has become a lot more powerful with the advent of artificial intelligence (AI). Find out what AI-powered automation can help your firm accomplish in 2024.
The state of staffing in 2024
Tax and accounting firms are faced with a dilemma. Longtime professionals are retiring while graduation rates for accounting majors continue to fall. These concurrent events have left the industry with insufficient staff to meet the demands of the market.
If your practice is among the many struggling to fill positions and survive busy season, it’s time to get creative. Tax technology has made astounding breakthroughs in recent years and can now automate many tasks that eat up billable hours. More and more firms are leveraging this development to supplement their staffing shortages.
Here are some examples of how automation solutions can elevate your tax practice and provide relief for your staff.
Streamlining tax preparation
Preparers are the engines that keep firms cruising along. So, why concentrate the bulk of their valuable time on manual tasks that software can accomplish? Scan-and-populate solutions decrease preparation time by automating labor-intensive tasks, such as data entry, workpaper indexing, and even data verification.
Reduced data entry
Advancements in Optical Character Recognition (OCR) technology enable broader tax document recognition by accurately converting various tax documents into editable text. This allows practices to automate a higher volume of data entry, reducing manual strain on preparers and boosting turnaround time.
Auto-indexing
Certain scan-and-populate solutions also automatically organize tax documents into a standardized workpaper index, ensuring they follow the logical flow of the tax return. With the help of AI, some products can even auto-index complex non-standard documents that traditional OCR technology can’t recognize.
The output enables preparers to jump straight into the pre-indexed binder and focus on what they do best: workpaper preparation.
OCR verification
Firms that use 1040SCAN receive additional assistance with the software’s patented auto-verification technology. This feature uses AI and text-layer matching to validate the accuracy of extracted OCR data on 65% of standard documents.
The remaining data is highlighted and hyperlinked throughout the return, making it easy for preparers to validate without having to search.
Improving accuracy and reducing errors
Even the most adept accountant can still commit occasional errors. Miscalculations and data entry mistakes have long been accepted as inevitable speedbumps in the preparation process.
Technology, on the other hand, isn’t susceptible to fatigue or oversight. It follows programmed rules/algorithms to ensure compliance with tax regulations, reducing the likelihood of errors in calculations and data entry.
Personalizing client services
Email automation tools can significantly streamline client communication for accounting firms by automating routine tasks like sending invoices, reminders, and updates. This saves time and reduces human error. Additionally, these tools enhance personalization by using client data to tailor messages, making clients feel valued and understood.
Enhanced data analysis
Newer tax technology equips accountants with advanced data analytics tools, allowing them to efficiently analyze large volumes of financial data.
These technologies offer features like real-time data processing, visualization, and predictive analytics, providing deeper insights into financial trends and patterns. Accountants can identify discrepancies, optimize tax strategies, and forecast future tax liabilities more accurately.
This enhanced capability enables better decision-making, risk management, and strategic planning, which ultimately improves the quality of client services and helps businesses make more informed financial decisions.
Getting more out of your tax team
By automating these time-consuming processes, firms can handle a higher volume of work with the same or fewer resources. This efficiency frees up staff to focus on more value-added activities, such as strategic tax planning, client consultations, and complex problem-solving.
Consequently, automation not only boosts productivity but also enhances the quality of service, allowing tax professionals to leverage their expertise in ways that drive greater client satisfaction and business growth.
SurePrep leads the tax space in 1040 automation. But does it make sense for your firm? Take our 6-question fit assessment to find out.
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