Should you get client consent before using AI?

Thinking about acquiring a firm? It’s an effective way to grow, but only if existing clients stay. This week, we’ve got a game plan to make it happen, as well as tips on how to manage client consent for AI work (and why you should ask). Plus, find out three ways you can improve relationships with those clients who can’t seem to submit their documentation on time.

But first, see how much the latest Claude model outperforms human accountants on month-end closes (or keep scrolling if you don’t want to know!).

Security check: Bookkeepers are easy prey for scammers; these two tips could protect your clients and your business

Teacher and student: Use this framework for you and your team to get the most out of mentorship 

Exit strategy: Five reasons to sell your firm, plus a preparation checklist

Starter list: A beginner checklist for jumping into advisory, according to an M&A advisor (and the comments actually agree)

Solo launch pad: Reddit gives advice to an upcoming college grad on how to start a solo CPA firm

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Although the IRS has issued some guidance on how tax firms should use AI tools, there’s no clear answer on whether entering client return information requires disclosure under Section 7216. Steven de la Fe, CPA, recommends playing it safe by having clients sign an AI consent form. If they decline, you need to enforce alternative procedures for staff to process those returns. De la Fe also outlines software requirements to look for, including how client separation is enforced to avoid answers pulling from multiple client profiles. 

Why this matters: With regulatory guidance still unclear, accounting firms should take a proactive approach to protecting client data. Establish clear consent procedures, have alternative workflows in place and vet AI tools for data security and accuracy. (CPA Practice Advisor)

Acquiring another practice can quickly take your firm to the next level, but you need a clear integration plan. Toby Kommer, owner of Haga Kommer, Ltd., has acquired 35 firms over the last 10 years and explains how to align multiple teams into one cohesive organization. The two primary changes he recommends are the firm name and technology to create a seamless identity and shared systems. But he also notes the importance of maintaining the local relationships that made the original firm successful in the first place.

Why this matters: Scaling through acquisition can be effective when executed properly. The goal is to pair centralized operations with the local service existing clients want. (Jetpack Workflow)

Number of IPA 100 firms that hire offshore employees (Inside Public Accounting)

How do you avoid last-minute returns from clients who don’t send their documents on time? Dr. Christine Gervais offers both a triage policy for when you’re in the thick of it, plus a game plan for altering your processes before next year. Long-term options include charging a late fee, pushing them beyond the deadline (even if it means incurring a penalty) or saying goodbye.

Why this matters: Now is the time to make the decisions that will set you up for success in 2027. Sending new policies to clients now gives both of you time to decide if moving forward together is the right idea. (Insightful Accountant)

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