How AI Can Help Tax Professionals with Tax Planning

AI is revolutionizing various industries, and tax planning is no exception. As new language models emerge, we continuously discover innovative ways AI can simplify our lives. In the accounting and tax sector, firm owners are increasingly recognizing the potential of AI-driven tax planning to enhance efficiency and drive revenue growth.

But what if AI could transform the way you approach tax planning?

In this blog, we’ll dive into exactly that—exploring how AI can optimize tax strategies, streamline workflows, and create new opportunities for tax professionals.

Table of Contents

• Understanding Tax Planning

• Tax Planning vs. Tax Preparation: Which is Better for Your Firm?

• Leveraging ChatGPT for Tax Planning

• Top AI-Powered Tax Planning Tools for Professionals

• Exploring Additional Tax Planning Solutions

• Final Thoughts & Key Takeaways

1. Understanding Tax Planning
Tax professionals help clients stay compliant by preparing and filing taxes on time. However, tax planning goes beyond compliance—it focuses on optimizing financial decisions throughout the year to minimize tax liability.

While tax preparation is essential, tax planning is what clients truly value. In fact, you may already be offering tax planning services without realizing it. If a client asks for advice on reducing their tax burden, you're engaging in tax planning.

By structuring your services to highlight tax planning as an advisory offering, you can create pricing packages that reflect the true value you provide.

At Credfino, we connect firms with skilled offshore tax preparers while offering additional strategic support. Schedule a call to learn how we can assist you.

2. Tax Planning vs. Tax Preparation: Which Is Better for Your Firm?
The distinction between tax planning and tax preparation is significant.

• Tax Preparation is a reactive process. It involves reviewing past financial activities and ensuring accurate reporting to comply with tax laws. Most tax professionals focus on this aspect, helping clients file returns correctly and on time.

• Tax Planning takes a proactive approach. It involves assessing a client’s financial situation in advance and implementing strategies to minimize their tax burden legally.

Clients want to maximize their income and minimize taxes. When they see the potential savings tax planning can offer, they’ll gladly invest in it.

Unfortunately, many accounting firms primarily focus on tax preparation. By the time tax season ends, professionals are too exhausted to focus on planning. However, the true value lies in strategic tax planning—helping clients save money and reach their financial goals.

3. How ChatGPT Can Assist with Tax Planning
ChatGPT and similar AI-powered tools are transforming various industries, including tax planning. However, their effectiveness depends on how they are used.

While ChatGPT can provide general guidance, it has limitations:

• Lack of Personalization – AI-generated advice isn’t tailored to individual financial situations.

• Potential for Inaccuracies – AI models rely on pre-existing data, which may not always be current or precise.

• Complex Tax Situations – Advanced tax strategies require expertise beyond AI’s capabilities.

Despite these challenges, ChatGPT can still be a valuable resource for tax professionals by assisting with research, automating routine tasks, and offering general tax insights. However, it should complement—not replace—expert human judgment.

4. AI Tax Planning Tools for Tax Pros

A. Introducing TruePrep AI

TruePrep AI is an advanced tool crafted specifically for tax professionals, designed to streamline tax preparation and boost efficiency in managing client data. One of the standout features of TruePrep AI is that it has all the IRS data integrated into its system.

Unlike general language models, which can pull information from various sources (sometimes leading to inaccuracies), TruePrep AI relies on data directly from the IRS—considered the ultimate authority on tax filing. This ensures that the output is not just reliable but also aligned with the most current tax regulations.

Holistiplan

Holistiplan provides automated tax return analysis and tax-saving strategies, enhancing client engagement. With its comprehensive tax-saving reports, accountants can offer valuable insights to clients. Priced from $999 per year, it supports PDF-based tax return uploads and complies with SOC 2 security standards for data protection. This tool is ideal for professionals looking to improve tax planning services and maximize client savings through detailed analysis.

BNA Income Tax Planner

BNA Income Tax Planner specializes in comprehensive tax liability calculations, including federal and state support. It is designed for managing complex returns and multi-year forecasts. While pricing details are not specified, it allows manual input and tax data import for seamless operations. With a strong focus on regulatory compliance and data security, BNA helps accountants maintain accurate records and manage client tax obligations efficiently.

Tax Planner Pro

Tax Planner Pro integrates with QuickBooks, enabling real-time tax projections and quarterly tax payment optimization. Priced at $1,299 per year, it equips accountants with tools to enhance client tax strategies. Supporting QuickBooks data integration, it simplifies data management and ensures security with basic encryption and data protection. This software is a valuable asset for optimizing tax positions while maintaining compliance.

Corvée Tax Planning

Corvée Tax Planning offers customizable tax strategies tailored to individual client needs. Though pricing information is unavailable, the tool facilitates tracking tax strategies and client-focused planning. It automates data entry from tax returns and follows SOC 2 security protocols, ensuring data privacy. Corvee helps accountants develop strategic tax solutions, guiding clients through complex tax matters while optimizing financial outcomes.

Lacerte Tax Planner

Lacerte Tax Planner supports tax liability projections and provides federal and state tax planning with multi-year scenario analysis. As part of the Lacerte Unlimited package, costing $324, it allows accountants to manage prior-year tax data efficiently. It also adheres to industry-standard encryption for data security. Lacerte empowers accountants to enhance tax planning accuracy and compliance while assisting clients in navigating their tax responsibilities.

TruePrep AI

TruePrep AI leverages artificial intelligence to automate tax research and data analysis, streamlining tax preparation workflows. With pricing starting at $50 per month, it offers a web app-based interface and advanced data privacy measures. Compliant with SOC 2 security standards, TruePrep AI enhances efficiency and ensures secure data handling. By utilizing AI technology, it enables accountants to provide high-quality tax services while improving overall productivity.

Final Thoughts

While AI and tax planning tools can’t replace the expertise of tax professionals, they can significantly enhance efficiency and accuracy.

Platforms like TruePrep AI automate client data collection, while tools like Corvee offer thousands of tax strategies to help clients save money. For firms offering tax preparation, integrating tax planning as an additional service can create new revenue streams and increase client value.

If you’ve been considering expanding into tax planning, these tools provide a strong foundation to get started.

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