Technology is revolutionising almost, if not every industry, and tax is no exception. From tax preparation software to artificial intelligence (AI), the advancements in technology is making it easier for accountants and taxpayers alike to file their taxes accurately and on time.
While tax professionals have been somewhat using AI to an extent for a while, we’re still only beginning to scratch the surface of what’s possible.
What is AI?
In a nutshell, artificial intelligence refers to machine learning and cognitive computing. It essentially involves the computer using data and/or the internet to handle complex tasks that would usually require human intelligence. However, AI can be used to analyse a large amount of data in a short amount of time, which becomes significantly beneficial from a time-keeping perspective.
How is AI used in tax?
AI can be used to analyse financial data to identify trends, detect fraud quickly and efficiently, and improve tax compliance.
It can also be used to automate many daily tasks such as data entry, classification and reconciliation. Not only this, but accountants and tax professionals can use these tools to keep updated with tax laws and regulations by analysing new laws and their implications.
What does the future look like in tax?
AI can help to save time and money due to the automation of daily tasks, and assisting with those more complex tasks. It is also still evolving, so the possibilities of what AI can do in tax are endless.
In the future, some examples of what we could expect are smarter tax systems and more efficient detection of tax evasion and fraud. However, as AI continues to grow, accountants and businesses need to keep updated with the latest trends to ensure that they are remaining future-proof.
It’s important to learn how to use AI to make your job easier and efficient, and learn how to keep a lookout for small mistakes that AI could make. Employers may need to invest in training programmes and courses to ensure that the workplace has everything they need to use these new tools effectively. And remember, AI should be used to benefit your job and make your life a little easier, but it’s not a replacement for the work that you currently do.
The future of tax and artificial intelligence (AI) promises a transformative shift in how governments and businesses approach taxation and financial compliance. AI technologies, including machine learning and natural language processing, are poised to streamline tax administration, enhance compliance, and improve tax collection processes.
Tax authorities can harness AI to detect anomalies, combat tax evasion, and efficiently process vast amounts of data, leading to fairer and more accurate taxation. Additionally, businesses will benefit from AI-driven tools that simplify tax planning, reduce errors, and automate reporting, ultimately saving time and resources. However, ethical and privacy concerns, along with the need for robust regulatory frameworks, will be critical considerations in this evolving landscape to ensure the responsible and equitable use of AI in taxation.
Final thoughts
AI has the potential to transform tax, mainly by simplifying and automating many tasks. It can help accountants work more efficiently and stay up to speed on changes in tax laws and regulations.
As accountants continue to evolve, the possibilities of what AI will do in tax are endless, so it’s extremely important to stay up to date with relevant trends and developments so that you can continue to provide high-quality services to your clients.
Future-proof your business
At Kaplan, we offer bespoke in-house training which will provide your workplace with the skills, knowledge, and tools needed to excel and remain future-proof in the world of tax.
Some of our course tuition includes topics such as FinTech and digital transformation, machine learning, and AI in finance. Get in touch with our team to find out more about our in-house training, get a quote, and gather more information on how we can help transform your business.
We also offer a variety of different courses to get into tax, while your team can gain industry-recognised qualifications such as ATT and CTA.