AICPA sets guidelines on AI in accounting

Accountants have strong opinions this week, from the CPA who shares why she fired three clients to a rundown of what works on a firm website catering to — wait for it — Pokémon card traders.

You’ll also find how to categorize different types of AI in your tax work and how the AICPA thinks you should implement technology guardrails.

But first, ever dream about shedding your CPA designation and doing something totally crazy? This accounting graduate traded in his cushy Deloitte job when his sourdough Instagram account took off in New York City and beyond.

Boss move: Not all clients are a good fit; here are three refunds one unapologetic accountant isn’t afraid to hand out

Narrative swap: Instead of focusing on how to improve existing services, think about what your clients actually want in the delivery process

Collaboration station: How building (and maintaining) an inclusive culture can strengthen accounting firms

More mileage: Maximize your firm’s marketing efforts by using strategic themes to get the most out of your content

Gotta catch ‘em all: See what marketing copy works for a hyper-niche firm focusing on Pokémon fans

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Maybe not any AI, but according to Thomson Reuters, there are several options for incorporating it into your firm’s tax work. The simplest, of course, is generative AI, which uses prompts to execute straightforward research and strategy planning. Agentic AI, on the other hand, creates a workflow sequence, including execution and review. 

Why this matters: Both types of AI can help increase productivity during tax season. Generative AI can speed up individual tasks, while agentic AI has the potential to automate larger portions of the workflow. However, always be careful when putting client information into an online tool. (Thomson Reuters)

Finding the right way to describe your firm can help cement your reputation and attract the right type of client. One common branding trap accounting firms fall into? Calling yourself “full-service” — even if you are. Choose a more specific type of expertise and splash it everywhere, from LinkedIn posts to association events. Clear positioning can naturally evolve alongside your firm without worrying about logos or name changes.

Why this matters: Your firm’s branding should reflect its strengths and, for growing firms, that likely won’t stay the same for very long. Revise your brand focus regularly and update your talking points with any changes in focus your firm has experienced. (Inside Public Accounting)

Number of small businesses without reserves to survive a month of late payments (CPA Practice Advisor)

The Council on AI Risk in Tax, or CART, is developing a framework to help tax firms strategically choose where to use AI and how to feel confident in the information it delivers. The first recommendation is to define the scope of what an AI program can or cannot do. These firm-wide rules can then shed light on what else needs to happen in terms of human oversight, the review process and more. 

Why this matters: Setting clear boundaries on how your firm does and doesn’t use AI provides a solid foundation for determining where human review and additional controls are needed. (MyCPE)

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