AI and automation are here to stay. It will likely increase over the next 5 years. How much of our accounting industry will become infiltrated with AI? At this time, the answer is unknown.
What we do know is AI and automation are becoming increasingly prevalent in our society. For our accounting profession, tax returns and financial statements will be able to be automated. Computer systems are becoming increasingly sophisticated. There is even some progression in AI dabbling into tax advisory. Should we be worried?
It is important to realize that our profession is evolving/transitioning, that there are less CPAs in the workforce, and that the younger ones are able to embrace technology.
As a CPA firm owner, you must be ready to embrace technology and find ways to integrate automation into your workflow.
Tom interviewed Mike Goldsby on his podcast, and Mike provided some insight on how to design your business and how to view AI as an opportunity instead of a threat.
For the past several years, Tom has been stating that automation will take over some facets of our profession. This can help with your productivity and allow you to provide your clients with the services they value the most, namely tax advisory and tax consulting. Tax returns and financial statements provide relatively little value to your clients, and the process of doing these will become automated. This will allow you to charge more for services that provide value to your clients. And as your client’s trusted advisor, you will be able to provide tax advisory and consulting with human interaction, which AI can never replace. AI is becoming more sophisticated and trying to provide tax advisory. While we don’t know how your clients will react to this, it is likely that most of your clients will not trust it and want to speak with you directly because they will continue to want human interaction when it comes to receiving advisory services.
It is essential to start familiarizing yourself with various AI tools. We know AI doesn’t perform math well right now. However, there could be a tax software company that develops one that will. The transition is going to be hard for us CPAs. Mike suggests testing AI with some of your clients to discover what they like and don’t like as well as attending workshops to become better educated in how to use AI. He emphasized that using AI could speed up processes, allow you to take on more clients, and improve your firm’s productivity.
Mike points out the need to evaluate AI to discover if it could be an asset to your business and provide you with opportunities.
For instance, by automating tax returns, AI can provide you with more time for planning as you’ll only need to verify the tax return. By using AI, you can reduce the number of people on your staff. Furthermore, AI can allow you more time to focus and plan. AI may generate ideas for you, and you can build on them and connect them to your individual client’s situation.
Now’s the time to start being aware of technology in our industry. Spend time evaluating how you can use new technology your business and put it to the test to see what kind of results you get with it. When you do this, you’ll have better clients, a better practice, and a better life.
To find out how joining TFW Advisors® can lead to getting better clients, a better practice, and a better life, book a call with our team today!