As CPA firms prepare for the 2025 tax season, artificial intelligence is transforming the way they manage tax returns, communicate with clients and perform administrative tasks.
AI can improve efficiency, accuracy and customer experience, helping companies streamline processes and reduce manual work. By leveraging AI-powered tools like SafeSend, TaxCaddy, and Aiwyn, companies can optimize tax workflows, improve financial management, and deliver the advisory services customers increasingly demand.
Whether you prepare returns in-house or outsource, AI drives innovation across the board.
Automation of data aggregation
The process of collecting tax-related documents from customers 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 signature collection (such as Form 8879) and delivering returns securely to customers eliminates the need for repetitive manual follow-up. The platform integrates electronic signature capabilities, allowing tax returns to be reviewed, signed and filed electronically, reducing delays and human errors.
- TaxCaddy. TaxCaddy makes the document collection process smoother by providing customers with a secure platform to upload their tax forms (W-2s, 1099s, K-1s, etc.). Its AI-powered data extraction capabilities automatically capture relevant information from uploaded documents, eliminating the need for manual data entry. AI also helps TaxCaddy send reminders to customers to ensure they submit all necessary documents on time and remind 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 companies to process a greater volume of returns more easily – in other words, they increase capacity.
Streamlining delivery and e-filing
Once the company has prepared the returns, AI-driven solutions play a crucial role in automating the assessment, delivery and filing processes:
- AI-powered review. AI algorithms can quickly review tax returns and flag missing forms, potential errors or discrepancies. This step ensures that tax returns are complete and accurate before they are sent to customers, reducing the risk of IRS notices or audits.
- Smart delivery systems. AI tools like SafeSend automate the delivery of tax returns to customers. These platforms can securely send completed returns for customer review, allowing for real-time updates and approval status tracking. Customers can sign electronically, which speeds up the process and allows returns to be filed quickly.
- Automated e-filing. Once approved by the customer, AI systems can automatically activate the electronic filing with the IRS. Integrating AI into the e-filing process reduces the need for manual steps, ensuring faster, error-free filings. It also reduces the administrative burden on staff, allowing them to focus on more complex tasks.
Extension automation and 7216 compliance
Filing tax extensions can be a time-consuming process when deadlines and client readiness must be manually tracked. AI simplifies this process by automating extensions and meeting regulatory requirements:
- Extension automation. AI systems can automatically identify customers likely to need a renewal based on incomplete documentation or previous filing patterns. The system can automatically generate the necessary forms, such as form 4868 for individual returns or form 7004 for companies. It can then submit these forms electronically to reduce the risk of missed deadlines.
- Compliance with IRS Code 7216. IRS Code 7216 requires companies to obtain permission from their customers before sharing taxpayer information when outsourcing tax return preparation to third-party service providers. AI can streamline this compliance process by generating and managing the necessary consent forms. It can also automate the creation of engagement letters, allowing the company to obtain all regulatory disclosures and consents from customers, reducing the risk of non-compliance penalties.
By automating critical compliance steps, AI helps companies mitigate risk and maintain regulatory standards while outsourcing work.
Improving billing and financial management
AI isn’t just revolutionizing tax preparation; it also changes the way 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 prices for tax services, allowing companies to maximize profitability while remaining competitive.
- Automated billing and invoicing. Aiwyn automates the billing process, reducing the time between service delivery and invoice generation. AI can monitor work in progress and generate invoices based on completed tasks, helping businesses reduce the time it takes to send invoices and collect payments.
- Improving cash flow. AI also helps with the collections process by sending automated reminders for outstanding invoices and following up with customers. By reducing accounts receivable and minimizing overdue payments, companies can improve their cash flow and reduce the administrative burden on staff.
Taking customer experience to the next level
As companies automate routine tasks through AI, they can focus more on delivering what customers really value: consulting and advisory services. Clients today expect more than tax preparation; they want personal advice and strategic planning. By freeing up time through automation, companies can provide next-level services that help customers achieve their financial goals.
AI also improves the customer experience by improving communication and transparency. Tools like SafeSend and TaxCaddy provide real-time updates, automated reminders, and secure communication channels, giving clients more seamless, efficient interactions with their advisors. This enhanced customer experience builds trust and long-lasting relationships, which are essential to business growth.
AI is reshaping CPA firms’ tax practices, providing powerful tools like SafeSend, TaxCaddy, and Aiwyn to automate data collection, return preparation, delivery, compliance, and invoicing. These technologies help companies streamline workflows, reduce errors and improve cash flow, while allowing team members to focus on higher-value services such as consulting and consulting. By adopting AI-driven processes, CPA firms can handle tax seasons more efficiently, improve the client experience, and provide the strategic guidance clients expect in today’s rapidly evolving business landscape.
Companies that integrate AI now will be well positioned for success in the 2025 filing season and beyond. The AI train has left the station. It’s time to embrace AI because it will only accelerate. The transformation triangle requires change management, process management and project management. These are all driven by leadership and the vision of the company.
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