How Fintech is Shaking Up the Tax World
Bringing Transparency and Efficiency to Accountants and Clients
Let’s face it – traditional tax software has struggled to keep up with what accountants actually need. It’s expensive to build, adoption has been slow, and with tax laws constantly shifting, getting a handle on it all is no easy feat. But the landscape is finally changing, and fintech is leading the charge!
Innovative fintech startups have burst onto the tax scene in recent years, aiming to make top-notch services accessible to everyone. This is something I got to experience firsthand during my role as senior tax advisor at april. But what do all these start-ups have in common? A goal to make tax easier, faster, cheaper and more transparent than ever before. And fintech is the magic ingredient bringing it all together.
Making Data Work for You
Most people have financial data scattered across various platforms – think banks, investments, tax forms – all siloed and separate. Fintech’s goal is to connect these data dots. Imagine being able to tap into all your financial info in real-time, year-round, not just when tax season rolls around. That’s what this tech revolution promises.
With the right tools, taxes could shift from a dreaded annual task to a valuable, even enjoyable, part of your financial life. Imagine a world where taxes aren’t just less painful but actually insightful. Something you might even look forward to managing throughout the year.
Now’s the Time for a Tax Revolution
The tax industry has been waiting decades for a shakeup. Taxes have only grown more complicated, while technology has advanced by leaps and bounds. With venture funding flowing into this historically stagnant space, fintech’s disruptive potential is through the roof. And tax tech isn’t just for consumers. It’s set to transform the work of tax pros, too.
Fintech isn’t going to replace CPAs; it will make your job more impactful. Many CPAs find that handling straightforward returns like 1040s isn’t profitable anymore given the time and labor involved. But with fintech handling the basics, CPAs can focus on what they do best: providing top-notch advisory services.
Plus, in a tight labor market where talent is hard to come by, tech can help fill the gaps. With fewer hands available, firms that leverage fintech solutions can still stay competitive and meet demand, especially during crunch times.
Peeking into the Future
The next couple of years are going to be thrilling. Imagine taxes driven by machine learning that personalizes every detail to your unique financial picture. Whatever direction fintech takes, one thing is certain: it’s bringing transparency, accessibility and a whole new level of value to the tax world.
This is our chance to reimagine how we think about tax – to make it simpler, smarter and more human. The tax revolution is here, and it’s opening doors to an exciting new era.
AI, Automation and Future Ready Firms
Don’t miss my discussion with Rebekah Olson, CPA, CEO of the MACPA, on Nov. 15 from 10-11 a.m. We’re having a fireside chat to talk about how traditional firms are transforming into modern practices. Learn more about this MACPA Town Hall session and how you can join in.