Category: Time Management/Productivity

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

Still Manually Sending Invoices? Here’s How to Save Hours Every Week

If you’re still manually creating invoices, chasing payments, or reminding clients to pay by email, it’s time to rethink your billing process. These small tasks may not seem like a big deal—but over time, they drain hours of your week, fragment your focus, and create unnecessary stress.

I used the same thing. Fortunately, I had my wife involved in the practice and she does the billing. I have also had my admin employees do this as well. It really should be anyone but you. This would also include collections.

Billing doesn’t have to be this way. With the right tools and automation systems in place, you can eliminate most of the manual work, reduce overdue payments, and maintain a more professional image—all while protecting your cash flow.

Here are 8 strategies to automate and streamline your billing process as a tax resolution pro:

  1. Use Practice Management Tools with Built-In Billing

    Tools like TaxDome, Practice Ignition and Karbon integrate client communication, task tracking, document management, and billing—all in one system. These platforms allow you to:

  • Generate invoices automatically from engagement templates
  • Collect payments securely via ACH or credit card
  • Send recurring bills or one-time charges
  • Monitor payment statuses from a centralized dashboard

If you’re using multiple tools or spreadsheets for billing, switching to a platform with built-in billing features can eliminate redundancy and improve turnaround time.

  1. Set Up Recurring Invoices for Ongoing Clients

    Have clients on monthly retainers or long-term resolution plans? Don’t manually create an invoice every month. Set it once, and let your system send recurring invoices automatically.

Most platforms let you choose the frequency (monthly, quarterly, annually), apply sales tax if needed, and even auto-charge saved payment methods—so you don’t have to follow up repeatedly.

  1. Automate Payment Reminders (and Stop Chasing Clients)

    Even good clients forget to pay. Rather than sending awkward “just checking in” emails, let your invoicing system handle this for you.

Set up automated reminders to go out:

  • 3 days before the invoice due date
  • On the due date itself
  • At regular intervals after a missed payment (e.g., every 5–7 days)

This alone can drastically reduce the number of overdue invoices.

  1. Combine E-Signature with Upfront Payment Collection

    Want to improve cash flow and reduce non-payment? Require payment at the same time clients sign your engagement letter. Best way to deal with Accounts Receivable is to never have Accounts Receivable. Get paid in advance before work is to be completed.
     With

… Continue reading