AI could grow your firm (or kill it) this year

Two more days until tax season is over, at least until October. When you’re ready to take a breather this week, get inspired by strategic planning tips for May, find out how the most productive employees are really using AI and start courting new prospects with an easy framework for industry-specific proposals. 

But first, check out the latest celebrity tax gossip. The IRS recently delivered a knockout punch to Floyd Mayweather, filing a lien in Las Vegas for the boxing legend’s $7.3 million in unpaid taxes.

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Best in class: The employees who are best with AI have these four traits in common

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Tax season is demanding enough without technical hiccups. At RingCentral, we help accounting firms stay organized when volume peaks. Our cloud-based system ensures your staff stays connected to clients from any device while maintaining the professional standards your practice requires:

Even if your firm doesn’t solely focus on one niche, Jon Hubbard of Boomer Consulting argues that you can (and should) create industry-specific go-to-market strategies when approaching new leads. His four-pronged framework is simple: analyze the political, economic, social and technological conditions that most impact your potential client. From there, you can create a relevant value proposition for that target market with a much better chance of securing their business.

Why this matters: Running a PEST analysis on a prospect immediately separates your proposal from every other firm's. Clients at this stage aren't just buying services, they're deciding whether you understand their world. This framework gives you a concrete way to show that you do before you've billed a single hour. (CPA Practice Advisor)

The answer probably depends on the size of your firm. Hillarie Diaz, CPA, breaks down the latest U.S. Future Ready Accountant report from Wolters Kluwer. Overall, the results reveal that as of last year, evolving tax laws and regulatory changes are the top challenge for accounting firms. But there’s more nuance when you look at the data by firm size. Micro firms (up to four employees) cite compliance and capacity bottlenecks as the biggest issue, while small firms (5-to-19 employees) are concerned about growth without burnout. 

Why this matters: If you're a micro firm, compliance drag is quietly capping your capacity—and it's a solvable problem. If you're in the 5-to-19 person range, growth is already happening; the question is whether your structure can absorb it without burning out your best people. The report gives each firm size a different starting point, which is more useful than blanket advice. (Wolters Kluwer)

The current quit rate of U.S. employees, representing a decade low (HR Dive)

All tax prep firms are subject to the same safeguard rules, regardless of size. Jatin Narang, CEO of Verito, warns against using AI recklessly because the scale of noncompliance fines ($10,000 per violation for individuals and $100,000 per violation for firms) is large enough to wipe out a smaller practice. Narang recommends creating a written protocol for how your team can use AI tools, including which systems they can use. Also, include your AI policy in client engagement letters and confirm whether or not your E&O insurance policy covers AI-related mistakes.

Why this matters: At five- and six-figure violation fines, a single misstep by one staff member using an unsanctioned AI tool could exceed your annual profit. A written AI policy—one that names approved tools, sets boundaries and makes it into your engagement letters—isn't a compliance formality. It's what keeps one bad shortcut from becoming an existential event. Get that AI policy written ASAP, or revisit the one you have. (Forbes)

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The Net Gains is written and curated by Lauren Ward and edited by Bianca Prieto.