Wolters Kluwer Set to Deliver New AI-Enabled Capabilities to Tax and Accounting Professionals (2024)

FAQs

Will AI replace tax CPAS? ›

However, the question remains: will AI eventually replace accountants and bookkeepers with automation? The quick answer is, no — not any time even remotely soon. But accountants and bookkeepers need to understand both AI and automation in order to do their jobs as effectively as possible. Keep reading to find out more.

Automate every step of the tax prep process, from obtaining client data, to preparing and reviewing returns, to delivery of the finished tax return to the client and invoicing. Easily manage all your accounting functions online, from invoicing to management accounting, with AI-enabled automations.

AI can explain tax changes in plain language and create tailored client communications based on the tax event and client data to proactively alert clients to potential issues.

In fall 2023, Intuit, which produces the popular TurboTax do-it-yourself software, announced a generative AI financial assistant called Intuit Assist.

Accountants aren't going away—why you don't need to worry

As an accountant, the roles you play in business are vital. You just need to embrace these inevitable changes.

The Big 4 accounting firms, KPMG, PwC, EY, and Deloitte are leading AI adoption for upcoming generations. These organizations have heavily invested in technology and are leveraging the same to offer perfect solutions to their clients with more advanced and insightful services.

Currently, IRS uses both manual processes and AI to help select taxpayers claiming refundable credits, such as the Earned Income Tax Credit, for audit. Beginning this year, IRS plans to use a new AI model to help it identify taxpayers for audit that are more likely to owe additional taxes.

Tax research and compliance: Generative AI can assist in keeping track of evolving regulatory requirements and ensuring that financial practices comply with the latest standards. This helps in reducing the risk of non-compliance.

Ethics plays a critical role in accounting. Decisions often need to be made that involve ethical judgments, such as fairness, honesty and integrity. While AI can be programmed to follow ethical guidelines, it lacks the ability to understand the moral and ethical considerations that often arise in the accounting world.

How can CPAS use AI? ›

Document review: Firms use AI to summarize key points from contracts, invoices, and receipts and can quickly identify anomalies that require further investigation. This capability not only speeds up the review process but also enhances the accuracy and reliability of financial audits and compliance checks.

The biggest misconception is that AI will replace accountants and auditors. It will not replace us but elevate us to the higher level of thinking and service.

AI will not replace the auditor's assessment of interviews, decisions, and judgment. Instead, it improves their performance by providing them with advanced tools and prospective outcomes.

It combines data from H&R Block's world-class The Tax Institute with the power and efficiency of artificial intelligence to provide 24/7 tax filing assistance — all backed by H&R Block's guarantees, including audit support, maximum refund and 100% accuracy.

Can AI replace actuaries? AI is unlikely to completely replace actuaries. While AI and machine learning (ML) can automate certain tasks, such as data processing and preliminary analysis, the role of actuaries involves complex decision-making, strategic planning, and ethical considerations that require human judgment.

Will Accounting Automation be Enough to Replace You? The answer depends on your ability to adapt to the changing world of accounting. A report by Oxford University concluded that there was a 99% chance that tax preparers' jobs would be automated and a 98% chance that it will happen to bookkeepers and accountants.

While some may fear that automation will replace human tax preparers, the reality is quite the opposite. AI and automation are tools that complement the expertise and judgment of tax professionals, enabling them to deliver higher-quality services more efficiently.