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Are you still relying on manual reviews and spreadsheets to finalize returns? According to CPA Practice Advisor, only 8% of tax and accounting firms had adopted generative AI in 2024. By 2025, that number jumped to 21%, and another 25% plan to follow. By 2027, nearly 80% expect to be fully integrated.
If you’re wondering what this shift means for your workflow, your clients, and your firm’s growth, keep reading.
How Can AI Optimize Workflows For Tax Season?
The sheer volume of work, tight deadlines, and administrative burdens can feel overwhelming during demanding tax seasons. This is where Artificial Intelligence (AI) offers powerful solutions to optimize workflows and alleviate common tax season pressures. Instead of simply working harder, AI enables firms to work smarter.
Here’s how AI can streamline your tax season processes:
- Automate Data Intake and Extraction: Imagine significantly reducing manual data entry. AI-powered Optical Character Recognition (OCR) tools can automatically scan client documents—W-2s, 1099s, brokerage statements, receipts—extract relevant data accurately and populate it directly into tax software or digital work papers. This cuts down hours of tedious input and minimizes transcription errors.
- Intelligent Document Management: Drowning in client files? AI can automatically categorize and organize uploaded documents within your system or client portal. This means less time spent searching for specific forms or pieces of information, making the review and preparation process much more efficient.
- Streamline Client Data Collection: Reduce the endless email chains and follow-up calls. AI can power client portals that send automated, personalized document request lists based on prior-year returns or client type. These systems can also track submissions, send reminders, and provide a secure platform for clients to upload information, improving the client experience and ensuring you get what you need faster.
- Accelerate Preparation and Review: AI assists directly in the preparation phase by performing initial calculations, flagging potential errors or missing information in real-time, and comparing current-year data against prior years to spot anomalies. This allows preparers and reviewers to focus their attention on more complex issues and judgment calls, rather than routine checks. AI-powered research tools also provide instant answers to tax questions, saving valuable time during peak season.
- Enhance Workflow Visibility: AI-driven practice management tools can offer real-time dashboards tracking the status of returns, identifying bottlenecks in your workflow, and even suggesting task prioritization. This provides partners and managers with better oversight and allows for more effective resource allocation during the busiest times.
By integrating AI into these key areas, firms can transform their tax season workflow. The result isn't just increased efficiency and capacity, but also reduced stress for staff, improved accuracy on returns, and more time available to handle complex client needs – setting the stage for a more manageable and productive tax season next year.
How Can AI Tax Preparation Improve the Way You Use Tax Software?
What specific tax tasks can AI handle better than manual methods?
AI isn’t just a buzzword—it’s becoming a practical part of daily tax workflows. AI-powered tax preparation software handles repetitive tasks better than any human, without sacrificing accuracy.
Here’s where AI handles the heavy lifting:
- Year-over-year tax return comparisons are generated automatically, highlighting unexpected changes.
- Data entry errors are caught in real time by comparing information across forms and reports.
- Audit triggers are flagged based on IRS patterns, improving risk assessment.
- Filing options are analyzed to maximize deductions and reduce state tax exposure.
It’s not just automation—it’s artificial intelligence that evolves with each client scenario.
How does AI reduce risk in US tax filings?
AI acts like your silent partner—never tired, never distracted. It reduces human error, strengthens compliance, and offers built-in knowledge of the latest IRS regulations.
- Flags HSA overcontributions or underreported income based on Form 1099 data.
- Evaluates complex filing strategies for sectors like commodity trade finance and export finance.
- Offers instant guidance on deduction eligibility or filing status scenarios.
It’s like giving your professional process an AI-powered tax advisor that’s laser-focused on accuracy and risk reduction.
Further Reading: Free vs premium tax filing services
Why Is Reviewing Returns Still So Critical Even With AI?
What mistakes does AI help catch before the partner review?
Reviewing returns is still important. AI doesn’t replace you, it enhances your professional review process. It automatically checks what might take you hours:
- Missed deductions or credits based on client history.
- Data inconsistencies that could impact IRS filings.
- Unusual year-over-year changes that don’t match actual business activity.
When you’re preparing hundreds of returns, AI helps ensure nothing gets through unchecked—especially during peak season when fatigue can lead to mistakes.
How does AI streamline the return review process?
AI turns reviewing returns into a faster, more accurate final step. Here’s what it does:
- Builds a structured review summary with all the key tax return insights.
- Flags outliers, like large charitable donations or mismatched income.
- Suggests actionable next steps: verify, ask the client, or adjust before finalizing.
This streamlined process cuts down on back-and-forth, reduces rework, and speeds up partner approval.
How Do Clients Benefit When You Use AI in Their Tax Prep?
What questions should clients be asking about AI in tax preparation?
Your clients are curious—and rightfully so. Help them feel confident by being ready to answer real concerns:
- “Can this AI actually improve the accuracy of my return?”
- “Does this automated software help avoid an IRS audit?”
- “Is my data safe?”
The answers? Yes. Yes. And yes.
How does AI increase client trust and satisfaction?
Clients love fast answers and accurate filings. AI helps you provide both:
- Reduces the risk of errors that lead to amended returns or IRS notices.
- Speeds up response time with real-time insights into their tax situation.
- Delivers a more professional experience backed by smart technology.
It’s about more than efficiency—it’s about showing clients you’re invested in giving them better results, not just faster returns.
What’s the return on investment for AI tax tools?
If your firm handles hundreds of returns during tax season, AI is no longer optional. It’s essential.
- Saves hours per return by automatically catching errors, flagging risks, and completing tedious data entry.
- Reduces the time spent fixing issues or calling clients back for clarification.
- Ideal for accounting firms dealing with large amounts of export finance data or ECAs.
That’s real saving time and reducing cost.
Further Reading: Learn about the penalties for failing to file your taxes on time
Unlock Your Firm’s Full Potential With TXF Intelligence
You didn’t get into this business to spend all day cross-checking returns. You’re here to lead, to grow, and to give solid advice to your clients.
That’s exactly why TXF Intelligence was built. It uses generative AI and artificial intelligence to:
- Automate reviews, catch patterns, and generate summaries instantly.
- Identify compliance risks in sectors like export credit agencies, commodity trade finance, and more.
- Deliver insight, speed, and clarity—without burning out your team.
It’s not just new software. It’s your next strategic move.
Join the waitlist today and see what’s possible when your workflow is powered by TXF Intelligence.
