Dan Henn CPA
Dan Henn CPA

The Time to Embrace AI in Your Tax Practice Is Now—Here’s Why

For licensed tax professionals, artificial intelligence has moved from theoretical threat to practical reality. It’s automating workflows, transforming client expectations, and fundamentally disrupting the foundational services that have sustained many practices for decades. The question facing practitioners today isn’t whether to adopt AI—it’s whether you’ll integrate it strategically now or be forced to react desperately later.

The stakes have never been higher, and the window for proactive adaptation is closing. Here’s why waiting is no longer an option.

The Disruption Is Already Underway

While many tax professionals debate whether to adopt AI, well-funded technology companies are already deploying it to attack the most profitable segments of the traditional practice model. Tax preparation, bookkeeping, and payroll services—the bread-and-butter offerings that generate consistent revenue for most firms—are being rapidly transformed by AI-powered platforms that promise faster turnaround, lower prices, and 24/7 availability.

Consumer tax preparation software now incorporates sophisticated AI that can interview users, identify deductions, and prepare returns with minimal human intervention. Small businesses that once needed a bookkeeper can now use AI-driven accounting platforms that automatically categorize transactions, reconcile accounts, and generate financial statements. Payroll services have become increasingly automated, with AI handling calculations, compliance updates, and even employee inquiries through chatbots.

These aren’t incremental improvements—they represent fundamental disruptions to traditional service delivery models. A solo practitioner spending four hours on a straightforward corporate return is competing against AI platforms that complete similar work in minutes. A firm charging premium rates for monthly bookkeeping faces AI tools that cost a fraction of the price and work continuously without breaks.

The competitive threat is real and immediate. Clients comparing options increasingly ask why they should pay traditional professional fees when AI-powered alternatives promise equivalent accuracy at significantly lower costs and faster speeds. For routine compliance work, they have a point.

The Strategic Response: Beat Them at Their Own Game

If AI is disrupting tax preparation, bookkeeping, and payroll services, the answer isn’t to ignore it or hope clients remain loyal despite better alternatives. The answer is to deploy the same technology in your own practice, achieving the speed and efficiency advantages that make you competitive while preserving your profit margins.

Incorporating AI into your workflow allows you to match or exceed the efficiency of technology-first competitors while maintaining the professional judgment and relationship advantages that pure software cannot replicate. When you can prepare returns faster, handle bookkeeping with greater accuracy, and process payroll more efficiently, you … Continue reading

The Time Management Trap: Why Most Tax Pros Stay Stuck (and How to Break Free)

If you’re a licensed tax professional, there’s a good chance you’re constantly behind. You’re bouncing between client calls, chasing missing documents, answering last-minute emails—and by the time tax season ends, you’re burned out, behind on billing, and wondering where your time went.

Sound familiar?

You’re not lazy. You’re not disorganized. You’re stuck in the Productivity Trap—a cycle where the volume of work, client expectations, and your own high standards make it impossible to grow without exhaustion.

But here’s the good news: there’s a way out.

The Real Problem: You’re Running a Volume-Based Business

Most tax professionals prepare returns for hundreds of clients every year. While that keeps the calendar full, it creates a false sense of productivity. What it really means is:

  • You’re constantly reactive, not strategic
  • You’re pricing based on time, not value
  • You’re in survival mode every February through April (and again August to October)

And worst of all? Your business likely depends on volume, which makes it hard to scale, raise fees, or build in time for training, marketing, or rest.

The Solution: Shift from Low-Fee Prep to High-Value Representation

Imagine handling fewer clients each year—clients who:

  • Desperately need help with IRS problems
  • Are willing to pay $3,500 to $5,000+ per case
  • Aren’t just looking for a fast refund—they want peace of mind

That’s the world of IRS representation—helping individuals and businesses resolve tax debt, respond to audits, and deal with complex IRS/state tax notices.

It’s not just more profitable. It’s more manageable.

How to Regain Control of Your Time

To break free from the time trap, you need both a strategic mindset and structured systems. Here’s where to start:

1. Time Block Like a CEO

Reserve focused hours for case work, client calls, and marketing. This is for Revenue Generating Activities. Don’t let your calendar be ruled by chaos.

2. Automate Admin Tasks

Use tools like CRMs, e-signatures, and scheduling links to cut out the back-and-forth and free up hours each week. This is not only for you but for your staff (assuming you have them).

3. Ditch Time-Based Billing (or even per form billing)

Hourly rates limit your earning potential. Flat or value-based pricing aligns with outcomes, not minutes.

4. Say No to Bad-Fit Clients

Not every collections/exam case, tax return, bookkeeping client, or tax planning/tax consulting work is worth your time (or the stress or grief it may provide). Prioritize clients with real problems—and the … Continue reading

Why Every Tax Pro Needs a Stronger Community

Being a licensed tax professional can feel like a lonely grind. You’re juggling tax returns, chasing down documents, answering panicked client calls—and still trying to keep your business afloat during the off-season.

You’re not alone.

Across the country—and even worldwide—tax professionals are facing similar struggles:

  • Overwhelming workloads
  • Seasonal income fluctuations
  • Difficult and/or underpaying clients
  • A constant need to stay updated on IRS rules and procedures

For many, the missing piece isn’t just technical knowledge—it’s support, strategy, and a strong professional community.

Representation Work: A Smarter Path Forward

More tax pros are discovering the value of specializing in IRS representation (Collections and Exam/Audit)—helping individuals and businesses who owe the IRS, are being audited, or have received scary notices.

Unlike routine tax prep that is seasonal, representation work is:
– Year-round as people owe, get notices, or have to respond to notices all year
– High-value as you can earn large revenue to support your practice
– Deeply rewarding as clients are very appreciative of fixing their problem.

Whether it’s negotiating an installment agreement, handling a lien subordination, or walking a client through an audit or notice reply, this work positions you as a trusted advisor, not just a seasonal number-cruncher.

Best of all? These clients are ready to pay you what you’re worth—because the stakes are high.

You Can Serve Well and Succeed Financially

Some tax professionals worry that becoming profitable means sacrificing integrity. But in reality, the most effective firms are those that combine:

  • Competent, responsive, and ethical service
  • Efficient systems and processes
  • Smart marketing strategies

Yes, it’s possible to represent clients skillfully and still run a profitable, scalable firm. But that doesn’t happen by accident—it takes intention, business acumen, and often, learning from others who’ve walked the path.

Why Community Matters

No one builds a great practice in isolation.

Surrounding yourself with like-minded professionals—those who value growth, competence, and collaboration—can elevate your career in ways that courses and books alone never will.

A strong community helps you:

  • Stay current on IRS changes
  • Discover new tools and systems
  • Share wins, challenges, and solutions
  • Avoid costly mistakes others have already made
  • Feel less alone in a high-pressure profession

Whether it’s through formal networks, online peer groups, or certification groups, building those connections can transform your mindset and your results.

Continuous Learning Is Non-Negotiable

Representation isn’t static. The IRS changes procedures, issues new notices, and revises compliance protocols often. Staying sharp means … Continue reading