Practical uses of AI for productivity & client work

Tax and accounting is undergoing a significant transformation, with artificial intelligence (AI) emerging not as a threat, but as a powerful ally for firms seeking to enhance productivity and strengthen client relationships.

A recent panel discussion featuring H. Randy Hughes III, CPA, EA, of Counting Pennies LLC and Seven Figure Profits, and Nick Boscia, CPA, EA, of TheBalancedCPA and partner at Boscia & Boscia PC, discussed practical AI applications, and how professionals can integrate these tools into their daily operations. The session, moderated by Langley Barth, senior product marketing manager on ProTax team, emphasized moving beyond AI hype to discuss more tangible-use cases that help tax and accounting professionals learn how to use AI in their firms.

The shifting landscape: From buzzword to business imperative

For many, AI has transitioned from being a mere buzzword to a critical component of modern business strategy.

“When you’ve been doing something and you’ve had some success doing it a certain way, you’re wondering if this thing I’m hearing is this just the next shiny light or is there really something to this?” asked Hughes.

His perspective shifted dramatically when he witnessed AI’s practical application in an accounting and tax context.

“I asked a question through AI on something that was tax-related, and was blown away at the thoroughness of the answer that I got back,” he said, likening the experience to the excitement of getting his first Nintendo.

Boscia shared a similar “light bulb moment.” Initially believing AI was “just for tech people,” he attended a conference where a friend demonstrated its real-world application in an accounting firm. The astonishing growth rate of AI adoption, with ChatGPT reaching 100 million users in just two months compared to Instagram’s two and a half years, underscored the urgency for Boscia.

“When the session started with that statistic, I knew I was already behind and realized that AI was no longer just for early tech adopters.”

Practical AI applications in accounting and tax

The group discussed specific ways they are leveraging AI to streamline operations and enhance client service.

Automating client communications

One of the most immediate and impactful applications discussed was using AI for email correspondence. Boscia, in particular, highlighted its power in handling difficult client interactions.

“I’ll admit, sometimes I write an email and it doesn’t sound the way I want it to—maybe it’s a little too emotional.,” said Boscia.  “So I’ll ask ChatGPT to rephrase it professionally. It helps me communicate clearly, especially in tough situations like late payments or missing documents. AI allows firms to take the emotion out of business and be more clear.”

Boscia also uses AI to tackle what he refers to as “laundry lists of questions” from clients, efficiently generating comprehensive and concise responses. He emphasizes the importance of “prompting”—giving clear instructions to the AI—to get the desired output, whether it’s a bullet-point answer or an elaborate explanation. While acknowledging that AI isn’t always perfect, Boscia stresses the time savings, but “Always read the emails. I’m always reading through the full email, making sure that everything’s accurate before I click send.”

Financial analysis and reporting

Hughes shared a compelling example of using AI for financial analysis. He witnessed a demonstration where an accountant copied and pasted data from QuickBooks Online into ChatGPT, prompting it to perform a financial analysis.

“I was blown away. Just a couple of strokes of the mouse and the button, and it was done almost instantaneously,” he said. “This allows firms to quickly identify anomalies and generate Key Performance Indicators (KPIs). We become rock stars because we can deliver insights much faster.”

Enhanced marketing and messaging

Hughes also discussed AI’s role in refining marketing and messaging.

“By providing AI with information about the firm’s core values and ideal client criteria, AI can then go out and identify individuals or post public forums, where that ideal client is making certain comments, voicing certain struggles, and describing challenges they are having,” he said. “This allows the firm to craft highly targeted communications, so now when we have a presentation, sound bite, sending out an email, or social media, we’re able to speak in the language of our ideal audience because AI has learned who that ideal client is.”

Automated meeting notes

Both panelists highlighted the utility of AI-powered note-takers for meetings. Hughes uses Fathom, which he said acts almost like another participant sitting in the meeting, listening to the conversation.

“This tool captures discussions, identifies moments of excitement or mentioned struggles, and helps build proposals or provide meeting summaries to clients,” said Hughes.

On the other hand, Boscia uses Otter.ai, which summarizes key points and identifies action items for the client and the professional. He appreciates how it automatically provides follow-up prompts, such as when he needs to research complex questions.

Streamlining tax planning and research

Hughes detailed a sophisticated application of AI in tax planning.

“Our firm has primed our GPT on what we wanted to spit out when we give it certain information, using a questionnaire to gather client data. By inputting anonymized client profiles, AI generates a tax plan that includes strategies, definitions, relevant IRS publications, estimated savings, and action items.”

This process significantly reduces the time required for complex tax planning, transforming a 12- to 14-hour task into less than two hours. While he said the AI does the heavy lifting, Hughes emphasized the CPA’s crucial role in reviewing and tweaking the plan.

“My responsibility as the CPA and enrolled agent is to now go through that plan, making sure that it’s accurate. That’s where my value comes in.”

Ensuring security in AI

When it comes to any AI discussion, a common concern among professionals is data security. Boscia advises treating AI tools, “the same way when you’re sending an email. You want it to make sure you redact anything that is confidential.”

He also pointed out that paid team plans, such as ChatGPT, are often SOC 2 Type 2 compliant, meaning data remains secure and is not used to train external models. 

Hughes echoed this. “Whatever system you’re using, you want to make sure it would hold up under IRS scrutiny if you needed to defend your use of it.”

Regarding the fear of AI replacing human accountants, both panelists were optimistic.

“Does it replace individuals in the office?,” asked Hughes. “I’ll be honest. It hasn’t replaced anybody in my office. What it has done is it’s been like an assistant; it’s like everybody in the office having on a jetpack.”

Hughes believes AI will accelerate firms’ transition to advisory services and noted that technology has been introduced to the industry for decades without replacing accountants.

Boscia agreed, asserting that AI is making him a better accountant and a better firm owner.

“AI is a launchpad to add more value to our clients and give them a better experience by eliminating low-value tasks. We know clients will still prefer to consult their trusted professional rather than relying solely on Google or AI for complex questions.”

Get started with AI

For firm leaders intrigued, but hesitant about AI, Hughes advised considering the timing. The period outside of peak tax season—May to December for tax firms—is ideal for improving processes, attending continuing education, and exploring new tools.

“Take some type of action,” he said. “Go to OpenAI and open a free account. Test it out. Let it start writing some emails. Get a notetaker if you don’t have one. Just do something.”

Boscia encouraged starting with personal applications, such as planning a vacation or researching healthy foods, to become familiar with the technology. “The most important thing is to take the first step,” he said.

To integrate AI with entry-level staff, Hughes suggested leveraging tech-savvy team members. This approach not only educates staff, but also allows them to identify how AI can specifically benefit their daily tasks.

The consensus from the panel is clear. AI is a transformative force that, when strategically implemented, can significantly boost efficiency, allow professionals to focus on high-value advisory work, and ultimately provide a superior client experience. It’s not about being replaced, but about being empowered to achieve more.