The 2024 Tax and Accounting Technology Innovation Awards Announced

Origins of the Award

In the latter 1990s, the connectivity of the newly adopted internet quickly started to transform how the accounting profession operated within firms and served clients. Where, at first, these effects were mostly felt in communication and research, the turn of the century and the first decade of the 2000s saw firms more rapidly embrace suites of integrated tax, accounting and firm management systems.

In 2004, under the editorial leadership of Gregory L. LaFollette, CPA, CPA Practice Advisor, developed its inaugural Tax and Accounting Technology Awards in an effort to recognize new or recently-enhanced technologies that benefit tax and accounting professionals and their clients through improved workflow and efficiencies, increased accessibility, enhanced collaboration, greater accuracy, or other means. The publication and online technology resource was founded in 1991 as The CPA Software News, and has evolved technologically along with the profession.

In the 20 years since, technologies for accounting professionals have progressed even more rapidly, continuing with greater integration, then moving to full adoption of cloud technologies that enabled an emergence of remote staff with full access to professional systems. The advancements then led to greater streamlining of processes and functions such as optical character recognition, with automation becoming the driving force until the pandemic caused a seismic change in firm and client operations.

Since the pandemic, firms have broadly accepted remote and hybrid workforces, and the technologies supporting these functions have seen significant advancement, increasing productivity, while giving staff enhanced work-life balance. The advent of artificial intelligence and machine learning have also started to have a dramatic impact on the practice of public accounting and business management, and we are continuing to see an increased adoption of practical operational uses for these professionals. as they promise to dramatically improve client services, firm management, small business accounting and many other areas of operations.

As in 2023, AI systems were again dominant among the winners of the 2024 Tax & Accounting Technology Innovation Awards, presented annually by CPA Practice Advisor, a technology and practice management resource for public accounting firms.

“CPA Practice Advisor has been recognizing and rewarding technology innovation that benefits the accounting profession for 21 years, and yet it still seems like we’re always on the brink of exciting new developments,” said editor-in-chief Gail Perry, CPA. “One of the best parts of reporting on this area is being able to watch the change and see how it truly impacts the way we accountants do our work, respond to change, and serve our clients. Ever open to new opportunities, accountants have the privilege of embracing new solutions and introducing them to their clients and to the workplace in general. It’s an honor to share all of these new technologies with our readers each year.”

Perry also manages a tax practice and is the author of more than 30 books, including Mint.com for Dummies, Surviving Financial Downsizing, and Idiot’s Guide to Introductory Accounting.”

The winners of the CPA Practice Advisor Tax and Accounting Technology Innovation Awards are selected from nominated products by an awards committee, which includes thought leaders and professionals engaged in various practice specialties across the accounting profession. Products must be either 2 years old or newer, or have undergone significant enhancements in that time.

CPA Practice Advisor provides a variety of independent digital and print resources for accounting professionals, including practice resources, podcasts, reviews of practice technologies, interactive tools, and content that helps firms achieve greater productivity. Award winners are listed in alphabetical order.

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2024 Award Winners:

Batch Extensions, from HubSync

Tax season is a battlefield for CPAs. The pressure to process a surge of extension requests by the April 15th deadline often leads to a frustrating bottleneck. Traditionally, preparing extensions has been a manual, time-consuming process requiring individual attention for each client. This inefficiency cripples productivity and limits CPAs’ ability to focus on higher-value tasks.

Enter HubSync’s Solution: Batch Extensions — HubSync’s Batch Extensions tool is a game-changer, empowering CPAs to conquer tax season with unprecedented efficiency. Here’s how it streamlines the extension process:

• Effortless Automation: This innovative solution automates repetitive tasks associated with extension preparation. Gone are the days of manually entering data for hundreds or even thousands of clients.
• Time-Saving Integration: Batch Extensions integrates seamlessly with existing compliance software via API. This eliminates the need for time-consuming data transfer, saving CPAs 1,000’s of valuable hours.
• Proactive Preparation: Unlike traditional methods, Batch Extensions allows CPAs to prepare & submit extensions during slower months like January. This frees up their time during peak season to focus on tax return preparation and client service.

Impact: Measurable Results — HubSync’s Batch Extensions isn’t just innovative; it delivers tangible benefits:

• Increased Efficiency: Our tool reduces the time spent on extension preparation by a staggering 90%, allowing CPAs to focus on higher-value activities.
• Reduced Errors: Automation minimizes the risk of human error inherent in manual processes, ensuring accuracy and consistency.
• Improved Client Service: By freeing up time, CPAs can dedicate more resources to client communication and personalized service.

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Fieldguide Insights

Fieldguide, the AI platform for audit and advisory firms, recently launched Fielguide Insights, the first end-to-end analytics solution for CPA and consulting firm leaders. Fieldguide Insights’ dashboards and reports bring actionable information in real time, including personalized recommendations for saving time on engagements. Fieldguide Insights charts existing firm time savings, upwards of 25% across all engagements, and provides recommendations on areas where firms can unlock additional efficiency across the engagement workflow, often doubling their total time saved.

With Fieldguide Insights, firms can see where time is most spent across engagements, and proactively identify areas for improvement. According to Fieldguide research, firms reported that improving client requests contributed to nearly 30% of total efficiency for an engagement.

Key features include:

• Time Savings Insights. From planning to closing, firm leaders can see how much time they are spending across different phases of each engagement, and view personal recommendations on how to save additional time. For example, Fieldguide has helped identify use cases and users that can more broadly leverage automating requests and evidence collection to save an additional 10 to 15 hours per engagement.
• Practice Insights. Fieldguide’s analytics identify client responsiveness to requests, tracking client time to respond, requests with multiple changes and other potential project delays. Practice leaders can quickly see which types of client requests are the most time intensive and implement changes to reduce review cycles and accelerate project timelines.
  Time Tracking Insights. Equip firms with detailed time tracking on how team members are spending time throughout an engagement, helping manage resources, identify potential bottlenecks and surface coaching opportunities.
  

Forwardly

Forwardly exemplifies innovation in accounting as the first B2B real-time payment solution in the USA, transforming financial management for small businesses and accounting professionals. Our cutting-edge platform, which is the only accessible business payment solution powered by the FedNow Service® and RTP Network®, processes transactions in 60 seconds, 24/7/365, dramatically improving cash flow management. Our innovation has been widely recognized, winning “Accounting Tech of the Year” at the 2023 US FinTech Awards and “Best Real-Time Payments Solution” at the PayTech Awards USA 2023.

While competitors are only now catching up with “instant” payments, often relying on misleading digital wallet solutions, Forwardly offers genuine instant payments through direct bank-to-bank transfers. We stand out as the most affordable option in the market, with instant payments priced at just 1% and capped at $10 for all received transactions with no fee to send. For receivers whose banks don’t support instant payments, we provide free same-day ACH bank transfers.

Our unique 4-way sync technology – an industry first – revolutionizes invoice management by automatically synchronizing transactional data across QuickBooks Online, Xero, FreshBooks, and Zoho Books. For example, if an accountant uses Forwardly to create invoices for their client payments due, clients whom they have also signed up for Forwardly, Forwardly will create the bill in the clients’ accounting software and then reconcile both invoice and bill once the payment is complete. This new feature ensures accurate, up-to-date financial records for accountants, their clients, and their vendors. By eliminating tedious repetition, we aim to seriously reduce the busy work that often weighs down accountants.

Forwardly’s automated payment processes, including bill payments, invoice management, payment reminders, and reconciliation, significantly reduce manual tasks. Our customizable payment approval workflow feature enhances control and oversight of payments and is free, potentially saving accountants hundreds of dollars per year when switching from costly approval tools.

By automating routine tasks, Forwardly empowers accountants to transition from bookkeeping to higher-value tasks. On average, high-volume Forwardly users save 5 hours per week on manual reconciliation and 14 hours on payment follow-ups thanks to our auto-payment features. These savings give professionals time to focus on strategic advisory services, delivering greater value to clients and driving practice growth.

Forwardly’s commitment to innovation is changing small business finance across the USA. By combining real-time payment technology, automation, and a smorgasbord of leading accounting systems, we are empowering American accounting professionals with the latest technology available.

MakersHub

MakersHub demonstrates innovation in the fields of tax and accounting by transforming traditional accounts payable processes through the integration of advanced AI and automation. This innovative tool addresses the common frustrations of manual data entry and disconnected systems.

QuickBooks ProAdvisor Patrice Diana’s experience highlights the significant impact of MakersHub on efficiency and productivity. Before using MakersHub, Patrice was bogged down by time-consuming, error-prone manual tasks that detracted from her ability to focus on strategic, high-value activities for her clients. However, with MakersHub’s automation capabilities, Patrice has eliminated these manual processes entirely. The seamless two-way integration with QuickBooks ensures that all data is automatically synced, reducing the risk of errors and providing real-time visibility into financial data.

One of MakersHub’s standout features is its ability to drastically reduce the time spent on accounts payable tasks. Patrice reports saving up to 16 hours per month—a substantial amount of time that can be redirected towards more critical tasks, such as advising clients and growing her practice. This time-saving capability directly translates to improved productivity and efficiency, allowing accounting professionals to manage their workloads more effectively.

The enhanced accuracy and visibility provided by MakersHub lead to better decision-making and strategic planning. By automating routine tasks and providing instant access to up-to-date financial information, accounting professionals can focus on delivering higher-level advisory services to their clients. This shift enhances the value provided to clients and contributes to the practice’s overall profitability.

In addition to improving operational efficiency, MakersHub’s innovative approach fosters a more streamlined and collaborative work environment. By reducing the burden of manual data entry and ensuring accurate, timely information, accounting professionals can work more collaboratively with their clients, providing them with insights and guidance that drive business growth.

MakersHub’s innovative integration of AI and automation in accounts payable processes exemplifies how technology can significantly improve efficiency, productivity, and profitability for tax and accounting professionals. By freeing up valuable time and enhancing the accuracy and visibility of financial data, MakersHub enables professionals to focus on delivering high-value services, ultimately benefiting both their practices and their clients.

StanfordTax

StanfordTax significantly reduces the time needed to collect and organize tax information from clients. In fact, many firms using StanfordTax have reported a time saving of 50% or more.

Many automation solutions come at the expense of a personalized client experience. However, StanfordTax automates the collection of tax information without sacrificing a personalized client experience. It does this by leveraging clients’ prior year tax info, directly from the firm’s tax filing software. StanfordTax works with the following tax filing software: CCH Axcess, CCH ProSystem fx, UltraTax, Lacerte, ProSeries, Drake.

StanfordTax is able to understand clients’ prior year tax information and uses this information to generate a personalized questionnaire and checklist for each client. The questionnaire guides clients through their specific tax situation, and reminds clients of specific forms they need to submit, prior year numbers, etc.

Once a client submits their tax information via the questionnaire, StanfordTax compiles the information and documents into an organized workpaper, which contains all the information needed to prepare the client’s return.

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2024 Award Finalists

AuditFile Advanced AI

The company that was first to bring audits into the cloud continues innovating by bringing AI into audits. AuditFile AI is a growing new feature incorporating artificial intelligence into the audit in the following areas:

– the ability to automatically classify a trial balance with just one click
– the ability to seamlessly rollforward an engagement
– the ability to automatically generate financial statements
– the ability to help complete attest procedures
– the ability to identify potential risks
– the ability to help create workpapers
– the ability to automatically prepare audit procedures and create audit workpapers

AuditFile AI is a new product from AuditFile that incorporates artificial intelligence and machine learning algorithms to help auditors complete audits faster and with less risk. Our goal is to deliver easy-to-use, cloud-based tools that give audit professionals the flexibility to incorporate artificial intelligence seamlessly.

AuditFile was recently awarded patent 10,891,294 by the United States Patent and Trademark Office (USPTO). The patent covers the application of artificial intelligence to financial statement audits.

AuditFile AI enables auditors to roll forward audits seamlessly from year to year, while gracefully handling updates to pronouncements and professional standards. It also enables auditors to classify a trial balance and build financial statements with just a click of a button, saving weeks of time.

Research on the techniques used for AuditFile AI began over a decade ago while the founder, Steven Bong, was employed at the UC Berkeley Department of Statistics. “Artificial Intelligence” is no longer a buzz word, it’s being used by actual AuditFile AI customers today on six continents. AuditFile now possesses the world largest and most complete database of audit data, and new insights are being discovered through the application of machine learning every day! AuditFile AI is like the self-driving car of auditing. Audit software not incorporating artificial intelligence is now obsolete.

Canopy Insights

Canopy’s practice management software offers accounting firms an easy way to manage all of their work in one place. With the addition of Insights, Canopy’s reporting tool, firms now have the ability to house their data and data analysis tools in one place.

Insights help you make data-driven decisions. Without data, you’re shooting in the dark and there’s no knowing how your business decisions are helping or hindering your firm. With insights on clients, tasks, billing, and time, you can dive deep into any area of your business.

Insights highlights exactly what is going on with your firm at any time. It allows you to:
– Spend less time analyzing data (recommended visualizations, drill downs, filters)
– Build real time reports (live data, no exporting, search)
– Keep a finger on the pulse of your practice (trending data, scheduled reports, alerts)

Generating reports can also be done through natural language processing with AI. If you don’t know exactly what you’re looking for? That’s okay. Type a question or statement and the software will look for the most likely data points and present a recommended visualization. Give the tool feedback by letting it know if its recommendation answered your question. The more you train it the better it gets.

Insights lets you dive deep into your firm’s data to find out where you’re most profitable, where you’re losing money, who’s the most efficient on your team, and more. Imagine a world with no more blind spots, you can use your data to quickly identify more revenue earning activities or areas to change. Overall it allows you to make better business decisions.

Fieldguide for Financial Audit

Fieldguide, the only AI platform for audit and advisory firms, recently launched one of its most impactful innovations this year: Fieldguide for Financial Audit. Built on the same innovative technology and expertise that powers advisory services for many of the top 100 accounting firms, Fielduide for Financial Audit brings AI-powered automation to the entire audit lifecycle. This newest solution combines Fieldguide’s cutting-edge AI capabilities with end-to-end engagement automation, enabling firms to work faster with increased efficiency and smarter with higher accuracy and productivity.

Key features include:

– AI-Powered Technology. AI-assisted risk assessment and testing procedure selection highlights potential issues and ensures the right work is performed.

– End-to-End Audit Efficiency. AI-powered trial balance mapping and data extraction, coupled with intuitive one-click generation of financial statements, helping firms save time and boost productivity.

– Higher Quality Audits. Leverage trusted methodologies, audit libraries, templates and workflows in an intuitive modern experience ensuring rigorous standards are met. Real-time collaboration on working papers provides additional quality control.

– Insights. With end-to-end analytics, firms have better visibility across the audit lifecycle, increasing engagement efficiency, resource utilization and client satisfaction.

With the talent shortage continuing to impact the industry, more than 40 of the top-100 CPA firms are implementing Fieldguide to improve efficiency, save time and increase profitability. Customers now report saving nearly 50% of time on an engagement when utilizing the Fieldguide platform.

Instead Pro from Corvee

Instead.com is a groundbreaking tax platform that exemplifies innovation in the tax and accounting space. By leveraging AI, Instead empowers businesses and individuals to easily identify and claim a wide array of tax deductions and credits, leading to significant tax savings and improved financial efficiency.

Instead’s AI-driven platform streamlines the process of navigating complex tax positions. For businesses, it simplifies claiming common deductions like home office, meals, travel, and vehicle expenses. Instead also helps with more specialized tax strategies like the R&D tax credit, depreciation, and entity changes. This allows businesses to maximize their tax savings with minimal effort.

For individuals, Instead makes it easy to claim energy credits like the clean vehicle credit. It also helps real estate owners take advantage of unique tax rules like the Augusta rule for tax-free rental income. By making these tax positions accessible to the average taxpayer, Instead levels the playing field.

What sets Instead apart is its AI documentation capabilities. Instead AI generates the detailed documentation needed to substantiate tax positions like the R&D credit in minutes. This eliminates hours of manual work and reduces audit risk.

Instead also provides an all-in-one platform for accounting firms called Instead Pro. This enables firms to easily manage key tax positions for their clients, shifting from simple tax preparation to high-value advisory services. By empowering firms to proactively find tax savings for clients, Instead helps them attract and retain business.

In summary, Instead is revolutionizing tax management for businesses, individuals, and accounting firms alike. By combining an intuitive platform with powerful AI, it makes complex tax strategies accessible, automates burdensome documentation, and enables proactive tax planning. This leads to improved efficiency, productivity, and most importantly – profitability through maximized tax savings. Instead is truly innovating how taxes are done.

IRS Advance Notice

Advance Notice (IAN), a revolutionary feature of IRS Solutions Software, is redefining the landscape of tax management. This groundbreaking tool addresses a critical industry need by providing accountants with unprecedented early insights into IRS actions, often weeks before official client notifications.

Key Innovations:
1. Predictive Analytics: Utilizes advanced algorithms to anticipate IRS actions based on real-time transcript analysis.
2. Automated Vigilance: Continuously monitors client IRS transcripts, significantly reducing manual oversight and potential oversights.
3. Proactive Client Management: Enables accountants to address potential issues before they escalate, transforming reactive practices into proactive strategies.
4. Industry-Leading Notification System: Delivers alerts an average of two weeks before official IRS communications, setting a new standard in the field.

Measurable Impact:
• Client Satisfaction: Firms report up to 40% increase in client retention rates.
• Revenue Growth: Top-performing firms have seen revenue increases exceeding $300,000 annually.
• Efficiency: Users report saving an average of 10 hours per week on compliance monitoring.

Implementation and Best Practices:
IAN’s user-friendly design allows for seamless integration into existing workflows. The system provides comprehensive guidance on implementation and optimal usage, ensuring firms can maximize the tool’s potential.

Transforming the Industry:
By empowering accountants with foresight and efficiency, IRS Advance Notice is not just improving individual practices—it is elevating the entire accounting profession. This tool represents a paradigm shift in how tax professionals approach IRS interactions, setting a new benchmark for proactive, client-centered service in the digital age.

IRS Advance Notice stands at the forefront of accounting technology, embodying innovation, efficiency, and excellence in tax management.

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