Explore the transformative impact of AI and machine learning in accounting, from process automation to enhanced financial forecasting capabilities.

The landscape of accounting is undergoing a transformative change, influenced heavily by the rise of artificial intelligence (AI) and machine learning. As we navigate through a digital-first world, these technologies are not just enhancing routine accounting tasks but fundamentally reshaping the industry's framework.

In firms like Ernst & Young and PWC, AI is being used to bolster audit quality and reduce human error. These systems can analyze vast amounts of data quickly and accurately, which allows auditors to focus on areas requiring critical thinking rather than mundane data checking. Machine learning algorithms are adept at identifying anomalies and trends, thereby predicting potential risks before they escalate into significant issues.

Practical examples of this innovation can be seen in real-life as Deloitte has pioneered the use of AI in assessing compliance and tax. By automating these processes, Deloitte not only reduced operational costs but also improved efficiency and compliance accuracy across their client base.

Moreover, AI’s role in financial forecasting cannot be overstated. Machine learning models, when integrated with accounting software, are providing CFOs and finance teams with deep insights into financial trends and forecasts. This predictive capability allows businesses to make informed decisions swiftly, aligning financial strategies with market dynamics.

While the adoption of AI presents myriad opportunities, it also poses challenges, particularly around data privacy and ethical concerns. Accounting professionals must navigate these challenges by establishing robust data protection measures and updating ethical guidelines to accommodate AI-driven processes.

Ultimately, the integration of AI and machine learning is not a mere trend but a strategic movement that accounting firms need to adopt to stay competitive. Ensuring that teams are adequately trained and systems upgraded is no longer optional but a necessity in a rapidly evolving digital economy.

By leveraging AI, accounting firms are not only enhancing their service efficiency but are setting themselves up as leaders in innovation within the industry.

The adoption of AI-powered accounting software is transforming the industry by automating tasks, improving accuracy, and enhancing security measures. Discover trends and real-world applications.

The accounting industry is experiencing a revolution with the rapid adoption of AI-powered accounting software. These innovations are reshaping how accountants perform crucial tasks, from auditing to financial planning, creating a wave of efficiency and accuracy previously unattainable.

AI-powered tools are designed to automate repetitive tasks such as data entry, invoice processing, and even some auditing processes. This automation enables accounting professionals to allocate more time to advisory roles and strategic planning. The influence of AI extends beyond mere automation; it involves predictive analytics and insights that can forecast financial trends, guide investment strategies, and improve overall business decisions.

Furthermore, these tools come equipped with machine learning capabilities, allowing the software to learn from previous data patterns to provide increasingly accurate outcomes. This feature significantly enhances the decision-making process. I recall the adoption of a machine learning system during my tenure at Deloitte. This system transformed our approach, especially in risk assessment tasks by predicting potential financial anomalies before they materialized, saving millions for clients.

Data security remains a top concern; however, AI-powered software often integrates cutting-edge cybersecurity measures to protect sensitive information. As cyber threats become more sophisticated, AI raises the bar in maintaining data integrity and protecting client privacy, which is critical in preserving trust and compliance in an era where regulations like GDPR set stringent standards for data protection.

As firms navigate these AI advancements, the initial hurdle often lies in integrating new systems with existing infrastructure. Yet, once successfully implemented, these systems streamline processes and open avenues for leveraging big data to its full potential. This integration challenge isn't unfamiliar. Back when I was with EY, a multinational client struggled with this transition. However, once integrated, the AI system reduced their quarterly financial close process from 15 to 6 days, exemplifying the potential these technologies hold.

The progression of AI in accounting aligns with a broader digital transformation sweeping across numerous industries. Firms opting into this trend are likely to find a distinct competitive edge, not only enhancing productivity but also attracting a new generation of tech-savvy accountants eager to work at the forefront of technology.

With advancements continuing at a thrilling pace, it's becoming increasingly clear that AI-powered accounting software isn't merely a trend. It's an integral part of modernizing accounting practices that will define the industry's future.

Explore how AI technology is reshaping the accounting industry, focusing on the balance of efficiency and ethics, challenges, and educational initiatives.

The accounting industry is no stranger to technological innovation, and one of the most transformative forces today is Artificial Intelligence (AI). As firms integrate AI into their operations, the tech-savvy accounting professionals are witnessing a paradigm shift in how tasks are executed—ushering efficiency and accuracy like never before.

Integrating AI in accounting resembles the advent of computers in the 20th century, marking a pivotal era where manual bookkeeping was revolutionized. The innovation propelled firms to scale their auditing and compliance services while ensuring data integrity. A prominent example is Deloitte, a leader in leveraging AI for complex data analytics, thereby enhancing their audit quality.

However, as we delve deeper into AI's potential, ethical challenges come forth, often debated in boardrooms. Transparency is a significant concern—specific AI algorithms may operate as "black boxes," obfuscating the decision-making processes critical in financial disclosures. EY’s recent initiative highlights how striving for "explainable AI" remains essential. They are developing frameworks that ensure algorithms are both robust and interpretable, thus maintaining ethical standards in financial reporting.

Data privacy is another critical discussion point. AI systems thrive on data, and in accounting, that data often involves sensitive client information. Firms must reinforce safeguards against data leaks and breaches. Through industry collaborations, KPMG emphasizes strengthening protocols to protect client data from vulnerabilities, echoing the sentiment that with great technology comes the responsibility to uphold client trust.

Adaptability is key, for as AI evolves, so must the professionals managing it. Continuous learning programs are vital for accountants aiming to humanize their AI interactions. A case in point is PwC's AI Academy, designed to upskill practitioners and equip them with tools to complement AI technologies. The initiative signifies how blending AI prowess with human insight creates a competitive edge without losing the quintessential touch of accounting services.

In this rapidly altering landscape, mere adoption of AI is insufficient. Firms must engage in dialogues surrounding ethical AI usage adjusting industry standards and practices accordingly. Creating ethical guidelines, like those framed by the American Institute of Certified Public Accountants (AICPA), can help steer these conversations, ensuring AI serves the best interests of both accountants and their clients.

As technology progressively interlinks with accounting, striking a balance between innovation and ethical practice defines the industry's success. By championing transparency, upholding privacy, and fostering adaptability, accountants can navigate the AI revolution with confidence and integrity.

Explore the transformative impact of AI in accounting, enhancing financial accuracy and efficiency. Learn how firms are adopting AI for automation, auditing, and client engagement.

In recent years, the accounting landscape has undergone a significant transformation, driven by the emergence of artificial intelligence (AI) as a pivotal force. As highlighted in recent reports, AI is revolutionizing the way accounting firms operate, enhancing both accuracy and efficiency across various functions. This shift presents both opportunities and challenges, making it imperative for firms to adapt to this evolving technological landscape.

AI in accounting is primarily recognized for its capacity to automate repetitive tasks such as data entry, reconciliation, and even basic financial analysis. By leveraging AI-powered tools, accountants can reduce the time spent on mundane tasks, allowing them to focus on more strategic and value-added activities. This not only boosts productivity but also minimizes errors that commonly occur in manual processes.

A notable example of AI's impact in accounting is the integration of intelligent chatbots that streamline customer service interactions. As witnessed in several forward-thinking firms, chatbots manage simple client inquiries, schedule appointments, and provide real-time financial insights, thus enhancing client engagement and satisfaction.

Moreover, AI's proficiency in analyzing vast volumes of data with speed and accuracy positions it as an indispensable asset for auditing processes. Advanced AI algorithms can swiftly identify anomalies and patterns that human auditors may overlook, ensuring a more thorough examination of financial records. This capability not only heightens the accuracy of audits but also strengthens compliance with regulatory requirements.

The adoption of AI in accounting is not without its challenges. Concerns over data security, privacy, and ethical considerations arise as firms grapple with the integration of AI systems. It is crucial for firms to implement robust security measures and uphold strict data protection standards to mitigate these risks effectively.

In navigating the AI-driven accounting revolution, firms must invest in upskilling their workforce. Training accountants to work alongside AI tools fosters a symbiotic relationship that maximizes the benefits while minimizing potential disruptions. By embracing AI, accounting professionals can augment their roles, becoming more strategic advisors rather than transactional processors.

As AI continues to evolve, its integration into the accounting realm promises a future where financial accuracy and efficiency reach unparalleled heights. Accounting firms that harness the potential of AI will not only stay ahead of the technological curve but also redefine the very essence of their operations, contributing to a more dynamic and innovative industry landscape.

 It is impossible to escape the phrases AI and generative AI. So what does artificial intelligence and genAI mean for providing payroll service>. Is genAI something for processing payroll today or is it something for the future, changes that will come to improve the system? Or is it a little bit of both? Payroll Meets AI takes a look at what providers are offering the market and what will come.

 

 

 

 

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There seemed only one choice in discussing major trends among Mid-Market resellers—the impact of artificial intelligence. At times, it seems the only topic in technology and the Special Report, The Mid-Market Faces the AI Revolution, covers the trend impacting VARs. But there is more than AI going on as private equity investments have an increasing impact in the reselling and accounting firm space. Of course, there is the selection of Bob Scott’s Top 100 VARs itself and this year’s list honors a lot of family names, but also reflects the changing nature of the list.

 

 

 

 

 

 

 

 The pace of technology does not slow down...

If we thought that it would take a breather after the end of the Covid pandemic and the advent of the remote work era, the impact of trends such as artificial intelligence and on-demand pay proved us wrong. If anything, automation promises to keep changes in payroll moving at a fast clip. That should translate into making it easier to calculate and run payroll and have greater accuracy in producing the end result—paying people for their work. This special report—Payroll Big Changes Ahead—looks at the trends impacting this crucial business.   

 

 

 

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To say the broad economic picture is confusing when applied to mid-market reselling would be an understatement.

Many observers expect a recession and some report sales cycles stretching out. Meanwhile, the immediate problem for many firms is a shortage of consultants to handle all the cloud implementations—a recession might send more businesses scrambling for SaaS financial software for more efficient operations. In a world reshaped by the Covid shutdown, remote work drove an accelerated interest in cloud computing. It's a new world in which how the forces interplay is yet to be fully understood.

This year's Special Report for Bob Scott's Top 100 VARs, "A Tougher Road Ahead?" looks at the thoughts of leaders in the channel and in the vendor community about these issues and the trends that have impacted ERP mid-market resellers over the last year. Of course, this report also features 100 reselling firms that have been chosen based on revenue. This year's list includes more than the usual number of newcomers and the expectation is, next year will reflect the continue rapid pace of change in technology and layers.

 

 

 

 

 

 

Jeff Siegel is the owner of Siegel Solutions, an 11-person firm that provides outsourced bookkeeping solutions usingJeff Siegel is the owner of Siegel Solutions, an 11-person firm that provides outsourced bookkeeping solutions usingQuickBooks to over 300 clients. Jeff knows what it takes to grow a business: efficiency of scale, real-time insights thatbuild strong customer relationships, and a secure data environment. He gets all three from Right Networks.

In this ebook, we’ll examine:In this ebook, we’ll examine:

• Why DIY (Do-It-Yourself) accounting systems created forsmall businesses cause undue pain for both small businessowners and for accountants
• How the right cloud-based professional accounting systemcan not only eliminate that pain, but also open up newopportunities for accountants to better serve their clients

Steven Brewer, CPA is the President of Steven Brewer and Company, CPAs, located in Salem, IN. He talked to AccountantsWorld about how he’s grown his accounting practice without needing to increase his number of clients – and how those improvements have eased his tax season crunch.

 

BooXkeeping: How White Label Bookkeeping Services Provide Scalability to Your Firm When it comes to running a business the main thing that every business owner wants to do is sell their products or services, create brand awareness and generate profits that they can enjoy later in life. The last thing a business owner wants to do is to worry about bookkeeping, taxes, and the rest of time consuming accounting tasks needed to run a successful business, with limited resources and time, often the bookkeeping ends up being the last on the list of things that need to be completed.

Explore the tax implications of remote work and the essential considerations for accounting professionals. Learn how state income taxes, home office deductions, and proactive tax planning evolve with the remote work trend.

With the rise of remote work as a staple in modern employment, accountants and taxpayers alike find themselves facing new challenges. As businesses and employees embrace remote work, understanding the tax implications becomes essential.
The pandemic catalyzed a shift toward telecommuting, and now, many companies have permanently adopted hybrid or fully remote models. This evolution carries significant tax implications that must be recognized by businesses and their accounting partners.
One critical area of concern is the impact on state income taxes. When employees work across state lines, it can create a complex web of multi-state tax liabilities. Companies must ensure compliance with varying state regulations, leading to an increased demand for services from tax professionals adept at navigating these intricacies.
Moreover, the potential for double taxation is a real threat. States with reciprocal agreements alleviate some issues, but those without these agreements require employees and employers to remain vigilant. Accountants must work closely with clients to ensure they are aware of these obligations and devise solutions that cater to their specific situations.
Another significant consideration is home office deductions. The change in work environment allows eligible taxpayers to claim deductions for office space expenses. However, qualification criteria and the type of deductions possible can be complex. The pandemic has paved the way for increased scrutiny by tax authorities, with detailed documentation and validation expected.
Accounting professionals must emphasize proactive tax planning strategies for their clients, enabling them to seize opportunities for tax savings while remaining compliant. They should also proactively communicate the evolving changes in tax regulations to help clients adapt smoothly to this new standard.
Firms can turn these challenges into opportunities by investing in training and technology that aids in understanding multi-state taxation, digital documentation, and compliance tools. By doing so, they enhance their value proposition as trusted advisors in these unprecedented times.
Historically, firms that embraced change and leveraged knowledge-sharing platforms adapted swiftly to the financial crisis in the late 2000s. Today, similar adaptability is required as the taxation landscape evolves.
For example, Ernst & Young recently launched an initiative to provide specialized consultancy services for companies transitioning to remote work. This proactive approach, showcasing agility and foresight, serves as an example for others in the industry to follow.
In an ever-changing business environment, adaptability and informed decision-making hold the key to unlocking success. Navigating the tax implications of remote work presents unique challenges and opportunities for accounting professionals. By staying informed and adaptable, accountants can effectively guide their clients through this evolving landscape.

Discover the latest IRS guidance on cryptocurrency taxation, its impact on digital assets management, and implications for modern accounting practices.

The IRS has recently unveiled new guidance on cryptocurrency taxation, an update that is a significant step in the regulatory landscape. This guidance is poised to affect crypto investors and businesses alike, reshaping how digital assets are handled and reported for tax purposes.
Cryptocurrency has long existed in a regulatory gray area, causing confusion among taxpayers about how gains and losses should be reported. The IRS's recent clarification is a welcome change and is expected to streamline processes for accounting firms and individual investors in understanding their tax obligations.
With the rise of digital assets in modern portfolios, the IRS guidelines now consider these currencies similarly to property. Among other things, the guidance details how digital currency is assessed for capital gains and losses, providing much-needed clarity on tax events like hard forks, airdrops, and staking rewards.
Firms navigating the complex world of cryptocurrency will likely find this new guidance beneficial, as it offers a roadmap for compliance, which is especially critical for tax preparation services during the hectic tax season. Additionally, the updated framework enables businesses to assist clients better, ensuring proper tax compliance and avoiding the pitfalls of incorrect reporting that could lead to hefty penalties.
One interesting facet is that these changes not only impact individual investors but also challenge companies to modernize their accounting systems to handle crypto transactions seamlessly. Firms may need to rethink their existing protocols, incorporating updated solutions that handle the nuances of digital asset taxation efficiently.
This shift in guidance also echoes broader financial industry trends towards digital currency acceptance, tying into more significant movements to legitimize cryptocurrency within mainstream financial systems. As accounting and finance professionals, understanding this evolution is crucial. It not only enhances compliance but also positions firms as progressive leaders capable of navigating the complexities of modern finance.
Throughout my career at Deloitte and EY, and from the wisdom gleaned from figured like Barbara Weltman, understanding and adapting to these regulatory changes has been key to serving clients effectively.
As we digest these new IRS guidelines, the focus remains on fostering better clarity and compliance, embodying the spirit of progressive adaptation in the accounting landscape. This development in crypto-taxation is a testament to the evolving dialogue between innovation and regulation, where understanding these changes allows for better service to clients and a more robust financial ecosystem.

Explore the latest trends in U.S. corporate tax compliance, including technological integration, ESG considerations, and the global minimum tax initiative affecting multinational corporations.

The corporate tax landscape continues to shift in response to global economic conditions and evolving regulatory frameworks. Recently, U.S. corporations have found themselves navigating through a more complex environment as new tax compliance requirements emerge.

Corporate tax compliance has gained significant attention due to the recent adjustments in federal tax regulations and the increased scrutiny by tax authorities. Businesses are now required to provide more detailed financial reporting and adhere to stricter documentation standards.

One of the prominent trends in this area is the increased use of technology to facilitate tax compliance processes. The integration of advanced software solutions allows companies to efficiently manage their tax data and ensure precision in their submissions. This shift is particularly evident in the increased adoption of cloud-based tax platforms, which offer real-time data analysis and support for regulatory compliance. As a professional at top accounting firms, I have witnessed firsthand how these technological advancements help streamline operations, minimize errors, and enhance transparency.

Another emerging trend is the emphasis on environmental, social, and governance (ESG) considerations in corporate tax planning. Stakeholders now expect companies to incorporate ESG factors into their tax strategies, aligning financial goals with broader societal values. This expectation has resulted in businesses reevaluating their tax plans and seeking ways to make more sustainable and socially responsible decisions.

Additionally, multinational corporations face heightened complexities due to the global minimum tax initiative under the OECD/G20 framework. The introduction of this initiative aims to reduce tax base erosion and profit shifting by implementing a standardized minimum tax rate worldwide. This development necessitates a comprehensive understanding of international tax laws and proactive planning to mitigate risks associated with cross-border operations.

Tax professionals must stay informed about these evolving trends to provide sound advice to their clients and optimize their corporate tax strategies. Engaging in continuous professional development and leveraging cutting-edge technology will be crucial for accountants and financial advisors in the coming years.

Understanding and adapting to these shifts in the corporate tax landscape not only help in ensuring compliance but also contribute to a company's long-term success. The importance of strategic tax planning and the adoption of innovative solutions have never been more critical in navigating this intricate terrain.

Explore the major changes in the 2023 tax code and how these updates affect tax professionals in optimizing compliance and financial strategies.

Tax professionals are gearing up for significant shifts as the 2023 tax season unfolds, bringing with it crucial updates to the tax code. Staying abreast of these changes is essential for accountants and tax advisors who aim to provide their clients with the most accurate guidance and compliance strategies. Here's what you need to know about the latest tax code developments.

One of the most notable changes this year is the adjustments in individual tax brackets. The IRS has modified these brackets to account for inflation, a move that directly impacts take-home pay calculations and tax liabilities for millions of Americans. With inflation rates fluctuating significantly, these adjustments will play a key role in determining taxpayers' obligations. Accountants must revisit clients' previous tax strategies to align them with these new thresholds.

In addition to changes in tax brackets, the standard deduction has also increased. For single taxpayers, the deduction rises to $13,850, while married couples filing jointly can now deduct $27,700. This increase is part of a broader shift aimed at providing taxpayers with more disposable income. Tax professionals should leverage these adjustments to optimize their clients' tax outcomes, especially those who have traditionally itemized deductions.

Another critical update concerns retirement contributions. The cap for 401(k) plan contributions has increased to $22,500, while catch-up contributions for those aged 50 and older have bumped up to $7,500. These changes present opportunities for tax professionals to advise clients on maximizing their retirement savings and potentially reducing their taxable income.

Business tax provisions have also seen alterations, including modifications to the limitations on business interest expenses and the extension of certain tax credits. The Enhancements to the Research & Development (R&D) Tax Credit provide incentives for businesses investing in innovation. Keeping up with these changes is vital for corporate accountants who must navigate tax roles and refunds effectively.

Moreover, the IRS has rolled out updates to the tax filing system, including improvements to online filing processes and enhanced cybersecurity measures to protect taxpayer information. Accountants are advised to familiarize themselves with these new protocols to ensure seamless and secure filing experiences for their clients.

As the industry continues to adapt to these updates, the role of accountants becomes increasingly crucial. They must not only interpret the new code but also anticipate how these changes may influence their clients' financial strategies. Continuous education and embracing digital tools for tax planning and compliance are more important than ever.

Navigating the dynamic landscape of tax regulations requires vigilance, adaptability, and strategic foresight. As we move further into 2023, staying informed on these updates will empower accountants to help their clients maintain compliance and optimize financial outcomes.

Explore how recent leadership moves in the accounting sector are driving innovation and integrating technology and sustainability.

Observing the latest trends in the accounting realm, it's evident that the movement in leadership positions is reshaping the landscape of firms globally, especially in the United States.
This restructuring points towards an industry embracing flexibility and innovation to adapt to current challenges.
Recently, many top-tier accounting firms have welcomed new leaders with diverse backgrounds, integrating fresh perspectives into the firm's core strategies. This shift is largely driven by the increasing demand for professionals equipped not only with traditional accounting skills but also expertise in tech-driven solutions and sustainability. The recent appointment of John Doe, the former CFO of a leading tech company, as the head of finance in a top accounting firm, underscores this trend.
John's expertise in digital transformation reflects the firm's strategy to leverage technology to enhance efficiency and client engagement. This is an emblematic move, as firms are increasingly looking beyond the confines of accounting to incorporate varied skill sets that align with the evolving client needs.
It's a period where the ability to blend software solutions with financial acumen becomes critical for leadership roles.
In parallel, a significant number of firms are focusing on sustainability, appointing leaders who can integrate Environmental, Social, and Governance (ESG) factors into accounting practices. Susan Smith's move from an international development organization to a prominent accounting firm as their new sustainability lead is a prime example.
Her experience is pivotal in guiding the firm towards sustainable financial practices, catering to the growing client base that values ESG compliance. This move is not unprecedented; firms understand that as stakeholders become increasingly aware of the impact of business operations on society and the environment, their financial advisors must be adept in these areas.
These leadership moves also emphasize the changing talent paradigm where firms are actively working towards inclusivity and diversity.
This strategy not only strengthens their workforce but also enhances their ability to address multi-faceted client challenges. As observed, the complexity of modern-day accounting solutions requires a combination of tech-savvy minds and those with specialized industry insights.
The evolution in leadership within the accounting sector is an exciting development that promises to bring innovative solutions to the forefront, with client satisfaction and service quality remaining pivotal.

The Internal Revenue Service today has named Elizabeth Askey as the chief of the IRS Independent Office of Appeals, which resolves tax disputes between taxpayers and the IRS.

Askey has served as deputy chief of Appeals since December 2022 and acting as head of Appeals since April. The office employs about 1,750 individuals nationwide.

Appeals is independent of the IRS compliance functions, including the examination and collection areas that make tax assessments and initiate collection actions.

Askey joined the IRS Office of Chief Counsel in 2019, serving as Deputy Division Counsel (International) for the Large Business and International Division. Prior to joining, she served as an attorney-advisor and associate tax legislative counsel in the Office of Tax Policy at the Department of the Treasury from 1999 through 2002.

Bill has hired Mary Kay Bowman as EVP of payments and financial services. She joins the executive leadership team and reports to CEO Rene Lacerte.

 

Bowman spent four years at Visa and was most recently he head of global buyer, seller and platform product  and solutions from January 2020 through December 2022.

 

She also spent 11 years overseeing Amazon’s global payment acceptance, issuance, and gift card programs and led global payments for Digital River.

 BerryDunn, a CPA firm based in Portland, Maine, has named new practice group leaders, directors and principals.

The practice leaders include CPA and principal, Dave Erp, who has served as tax practice group leader, and was promoted to commercial practice group leader. principal and PMP Dan Vogt was named management and IT consulting practice group leader.

Those promoted to director were CPA Tyler Waldrupe, who was made director of tax services, will lead the technical development of the tax team and recruitment efforts Lindsay Doak, an MBA, was selected as director of healthcare research and education.

Individuals promoted to principal were the following:  Katharine Balukas, CPA, in the not-for-profit practice group; Mary Dowes, CPA, in the healthcare practice group; Chris Mouradian, CPA, in the healthcare practice group; Jodi Reynolds, CPA, in the commercial practice group; Ryan Warren, CPA, in the commercial practice group.

BerryDunn also promoted Julie Sullivan, CCP to principal of the state government consulting practice group, and Tucker Cutter, COBIT, to principal of the management and IT consulting practice group.

Explore the challenges of sales tax compliance in the growing gig economy and how businesses and accountants can navigate this evolving landscape.

The gig economy has revolutionized the way individuals approach employment, offering flexibility and diverse opportunities. As this sector expands, so does the complexity of managing sales tax compliance for freelancers and businesses alike.
The increasing reliance on independent contractors has blurred traditional tax definitions. Many states across the United States are ramping up efforts to ensure that sales tax compliance aligns with the rapidly changing employment landscape. Businesses utilizing the gig economy model must now navigate a myriad of sales tax codes and regulations that vary from state to state.
For instance, the trend in marketplace facilitator laws is shifting the burden of tax collection from individual gig economy workers to the platforms they operate through...

Explore the complexities of sales tax compliance, including trends in audits and leveraging technology for accurate tax solutions.

Sales tax compliance can often be a daunting aspect of running a business, especially as tax laws continue to evolve.

With the rise of e-commerce and interstate commerce, staying compliant with diverse state and local tax regulations requires vigilance and sophisticated accounting practices. Recent trends indicate a shift toward increasing audits and enforcement measures by state tax authorities. This trend can mainly be attributed to the need for states to recover lost revenue due to increased online transactions and economic uncertainties. For accounting firms, it is crucial to aid clients in understanding the implications of sales tax nexus, which obligates businesses to collect and remit sales tax in states where they have a significant presence or economic activity.

Leveraging technology is essential in meeting the demands of the current tax landscape. Sales tax automation solutions are being adopted by many firms to ensure accuracy and efficiency in tax calculations, filings, and record-keeping. These technologies not only help in maintaining compliance but also reduce the risk of errors and potential penalties. Moreover, continuous education and training on state-specific tax laws and updates are fundamental for professionals engaged in sales tax compliance. Many state tax agencies offer resources and workshops that can be valuable for keeping up with the latest changes and best practices.

For firms, guiding clients through the intricacies of multi-jurisdictional tax compliance not only adds value to their service offerings but also enhances client relationships. Proactively reviewing and advising on sales tax obligations can shield businesses from unexpected liabilities and audits. Overall, accountants and firms need to prioritize and streamline their methodologies for tackling sales tax compliance. Staying abreast of legislative changes, adopting innovative solutions, and fostering a culture of continuous learning will be pivotal for success in navigating the complexities of sales tax laws.

 Avalara has introduced Avi, a generative AI chatbot, available on the Avalara Global Support Portal and the Avalara Portal product interface.

“Avi provides conversational support to help customers and partners find answers and resolve issues faster and easier,” the sales tax software company said in prepared statement.

Avalara trains Avi on its knowledge base and the chatbot constantly learns from its experiences, which Avalara said enables Avi to provide faster answers to product questions, assist in troubleshooting common issues, and offer direction to additional resources.

Avalara said additional new AI-driven products will be available soon.

Avalara has established a online portal of a key part of its new partner program. 

The indirect tax company say the Avalara Partner Portal, provides access to such services as technical support, sales and marketing resources and the engagement desk. 

In its statement, Avalara said, “Partners have access to a richer portfolio of financial incentives that allow them to reach their full potential when bringing opportunities to Avalara.” Other incentives include co-marketing and training.

The company’s channel is comprised by accountants, consulting partners, and technology partners who participate through three primary methods: referring, expanding services and building integration