Accounting
Boomer’s Blueprint: Artificial intelligence in the 2025 tax season
As CPA firms prepare for the 2025 tax season, artificial intelligence is transforming how they manage tax returns, communicate with clients and handle administrative tasks.
AI can improve efficiency, accuracy and client experience, helping firms streamline processes and reduce manual work. By utilizing AI-powered tools like SafeSend, TaxCaddy, and Aiwyn, firms can optimize tax workflows, improve financial management and deliver the advisory services clients increasingly demand.
Whether you prepare returns internally or outsource them, AI drives innovation across the board.
Automating data aggregation
The process of gathering tax-related documents from clients has long been a bottleneck. AI tools like SafeSend and TaxCaddy are designed to automate and streamline this process.
- SafeSend Returns: SafeSend Returns helps automate the assembly, delivery and approval of tax returns. Automating the collection of signatures (such as Form 8879) and securely delivering returns to clients removes the need for repetitive manual follow-up. The platform integrates e-signature capabilities, ensuring tax returns can be reviewed, signed and submitted electronically, reducing delays and human error.
- TaxCaddy. TaxCaddy makes the document collection process smoother by providing clients with a secure platform to upload their tax forms (W-2s, 1099s, K-1s, etc.). Its AI-driven data extraction capabilities automatically capture relevant information from uploaded documents, eliminating the need for manual data entry. AI also helps TaxCaddy send reminders to clients, ensuring they submit all necessary documents on time and reminding them to make estimated tax payments.
Both SafeSend and TaxCaddy are equally effective for internally prepared and outsourced returns. They provide consistent, efficient workflows, reducing time spent on administrative tasks and allowing firms to handle a higher volume of returns with greater ease — in other words, they increase capacity.
Streamlining delivery and e-filing
Once the firm prepares returns, AI-driven solutions play a critical role in automating the review, delivery and filing processes:
- AI-powered review. AI algorithms can quickly review tax returns, flagging missing forms, potential errors or discrepancies. This step ensures tax returns are complete and accurate before they’re sent to clients, reducing the risk of IRS notices or audits.
- Smart delivery systems. AI tools like SafeSend automate the delivery of tax returns to clients. These platforms can securely send the completed returns for client review, allowing for real-time updates and approval status tracking. Clients can sign electronically, accelerating the process and filing returns promptly.
- Automated e-filing. After client approval, AI systems can automatically trigger electronically filing returns with the IRS. Integrating AI into the e-filing process reduces the manual steps, ensuring faster, error-free submissions. It also reduces the administrative burden on staff so they can focus on more complex tasks.
Automating extensions and 7216 compliance
Filing tax extensions can be a time-consuming process when it requires manually tracking deadlines and client readiness. AI simplifies this process by automating extensions and compliance with legal requirements:
- Automating extensions. AI systems can automatically identify clients who are likely to need an extension based on incomplete documentation or prior filing patterns. The system can automatically generate the necessary forms, such as Form 4868 for individual returns or Form 7004 for businesses. Then, it can submit those forms electronically to reduce the risk of missed deadlines.
- Compliance with IRS Code 7216. IRS Code 7216 requires firms to obtain client consent before sharing taxpayer information when outsourcing tax return preparation to third-party providers. AI can streamline this compliance process by generating and managing the necessary consent forms. It can also automate engagement letter creation, ensuring the firm obtains all legal disclosures and client consents, reducing the risk of penalties for non-compliance.
By automating critical compliance steps, AI helps firms mitigate risks and maintain legal standards while outsourcing work.
Enhancing billing and financial management
AI isn’t only revolutionizing tax preparation; it’s also transforming how CPA firms manage billing, collections and overall cash flow. Tools like Aiwyn use AI to automate and optimize these processes:
- Packaging and pricing services. Aiwyn’s AI-powered platform helps CPA firms bundle services and develop dynamic pricing strategies. By analyzing historical data, AI can suggest optimal pricing for tax services, ensuring that firms maximize profitability while staying competitive.
- Automated billing and invoicing. Aiwyn automates the billing process, reducing the time between service delivery and invoice generation. AI can monitor work in process and generate invoices based on completed tasks, helping firms reduce the time it takes to send invoices and collect payments.
- Improving cash flow. AI also assists in the collections process by sending automated reminders for outstanding invoices and following up with clients. By reducing accounts receivable and minimizing overdue payments, firms can improve their cash flow and reduce the administrative burden on staff.
Elevating client experience
As firms automate routine tasks through AI, they can focus more on delivering what clients genuinely value — advisory and consulting services. Clients today expect more than tax preparation; they want personalized advice and strategic planning. By freeing up time through automation, firms can provide higher-level services that help clients achieve their financial goals.
AI also enhances the client experience by improving communication and transparency. Tools like SafeSend and TaxCaddy offer real-time updates, automated reminders and secure communication channels, giving clients a more seamless, efficient interaction with their advisors. This elevated client experience builds trust and long-term relationships, which are essential for firm growth.
AI is reshaping the tax practices of CPA firms, providing powerful tools like SafeSend, TaxCaddy and Aiwyn to automate data collection, return preparation, delivery, compliance and billing. These technologies help firms streamline their workflows, reduce errors and improve cash flow, while allowing team members to focus on higher-value services like advisory and consulting. By adopting AI-driven processes, CPA firms can handle tax season with greater efficiency, enhance the client experience, and deliver the strategic guidance clients expect in today’s fast-evolving business landscape.
Firms integrating AI now will be well-positioned for success in the 2025 filing season and beyond. The AI train has left the station. It is time to embrace AI, as it will only accelerate. The transformation triangle requires change management, process management and project management. All of which are driven by leadership and the firm’s vision.
Think — plan — grow!
Finance platform
Essentially, the solution delivers Rho’s cash and spend management capabilities, with the added benefit of providing accounting partners a consolidated view of their entire book of business.
Users can:
- Manage team access to client accounts with fixed roles for security and efficiency;
- Request client account access, set user permissions, and manage connections from a single dashboard;
- Invite clients to Rho and track status with real-time updates for onboarding clients with minimal friction;
- Use two-factor authentication to access the portal;
- Chat, email or talk on the phone with dedicated points of contact; and,
- Access a consolidated snapshot of the team, and which accounts they can access.
Rho developed the portal in response to feedback from accounting partners, who talked about the challenges of provisioning users in and out of client accounts as staffing changes, especially if they cannot self-serve the process.
Firms wanted a simple repeatable way to get their clients onboarded to the solution they are recommending, as errors or lack of guidance in the onboarding phase start a relationship on a weak note.
The security measures, such as two-factor authentication, were added in response to feedback from accounting partners, as they wanted to ensure data is protected during the onboarding process and that the right permissions are granted at the onset without having to chase specific people or reuse shared credentials that are vulnerable to exploitation.
“The Rho Partner Portal marks the latest step in our commitment to building the finance platform that accountants love—one that makes it easier for partners to introduce staff and new clients to Rho and deliver more client value faster,” said the company’s
While the feature is called Partner Portal for Accountants, a spokesperson said Rho intends for more than just accountants to use it in the long term.
The International Accounting Standards Board is looking for feedback on some targeted improvements it’s proposing to make to improve the requirements for recognizing and measuring provisions on corporate balance sheets.
These provisions are usually liabilities of an uncertain timing or amount, so investors would like to see more transparent and comparable information about companies’ provisions for assessing future cash flows and financial positions. The IASB’s targeted improvements aim to help companies apply the requirements more consistently and give investors more useful information.
The
“Our proposals clarify the accounting requirements for provisions, helping companies provide better information for investors,” said IASB chair Andreas Barckow in a statement Tuesday.
The IASB is presenting the proposals in three documents:
The IASB is asking for feedback on the proposed amendments by March 12, 2025.
Accounting
Navan releases dedicated travel and expense solution for accounting firms via virtual cards and dashboards
Travel and expense solutions provider
The centralized dashboard handles spend management for accounting firms that support multiple clients, users and products. It can enable accounting firms to standardize client spend processes, regardless of clients’ existing bank and credit card partners. This means, for users, that they will not need to face tradeoffs between becoming resellers of others’ cards or manually reconciling transactions of any number of clients’ card providers. The solution instead consolidates multiple card feeds into a single dashboard. Combined with Navan’s travel and expense management platform, the automated experience enables accountants to advise clients on T&E spend and focus on other higher-value tasks.
“This feature lets firms’ clients maintain their current banking relationships and credit card rewards,” said a
Beyond support for spend management, the dashboard provides a centralized view of all clients, including onboarding status, and has the ability to invite, assign and manage accountants and their access to specific clients. It also supports distinct roles for Console Admins and Console Users with appropriate permissions and the ability to log in as clients with role-specific permissions. The solution also features aggregated monthly billing for all clients, with options for customizable payment responsibilities as well as the ability to view individual client pages showing account information, assigned team and monthly platform fees
The Navan Accountant Console also enables firms to standardize spend management with dynamic spend policies, real-time transaction feeds, and direct GL integrations, including with NetSuite, QuickBooks and Xero.
“Navan works side by side with accounting and finance teams across our customer base and has for years listened to their frustrations with the options available to them,” said Navan Expense CEO Michael Sindicich in a statement. “Most expenses come from travel, and with the breakthrough tech of Navan Connect, CPAs and accounting firms can now automate expense reconciliation across their clients’ various banking and corporate card programs using a single dashboard, saving days of work.”
Navan Accountant Console, as part of Navan Connect, is currently available in 140 countries across North America, Europe, Asia-Pacific and Latin America. The technology supports 100 different currencies and more than 250 global banks, including Citi, regional banks like Citizens, and fintechs such as Brex and Rho. For more information,
Rho offers Partner Portal for Accountants, for client management, onboarding
Exxon CEO says Trump won’t be able to ‘unleash’ new energy production
IASB proposes to tweak requirements for provisions
Are American progressives making themselves sad?
U.S. Beneficial Ownership Information Registry Now Accepting Reports
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
-
Technology1 week agoAI for Business Transformation and its Disruptive Impact in 2025 and Beyond
-
Technology6 days agoHow Small and Midsize Businesses Can Harness AI for Growth
-
Economics1 week agoA much-watched poll from Iowa points to a Harris landslide
-
Finance1 week agoAffirm expands buy now, pay later service to the UK
-
Personal Finance1 week agoETF strategies heading into the U.S. presidential election
-
Finance5 days agoChina expected to announce highly anticipated fiscal stimulus package
-
Economics5 days agoDemocrats suffer in statehouse races, too
-
Technology23 hours agoAI Use Cases: Retail, Finance & Healthcare Solutions