Artificial intelligence and tax advice in e-commerce

While the opportunities and risks of artificial intelligence (AI) are being discussed, the first harbingers have already made their way into our everyday lives. Whether assistance systems in cars, chatbots in customer service, Siri or Alexa - everyone has already become accustomed to the convenient support provided by AI. Now the first AI projects can also be observed in tax firms. After all, this technology helps to automate and simplify processes, not least in an industry that, like everyone else, is struggling with a shortage of skilled workers.

But don't worry - AI will not destroy jobs, but rather ensure that mindless activities are eliminated and tax advisors and their teams can once again turn their attention to more exciting tasks. For this transformation to succeed, it must be ensured that the systems are "fed" with the right data. After all, AI can only be as intelligent as you "make" it. This makes it all the more important for law firms to get to grips with the possibilities and added value of this technology at an early stage.

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Advantages of AI in tax consulting

Automation and increased efficiency

AI can be used to automate routine tasks in tax consultancy. This increases efficiency and gives tax advisors more time for other tasks.

Intelligent support for the tax consultant

AI does not replace anyone, but supports employees in law firms: Data is processed faster and patterns that are difficult for humans to identify are recognized.

More precision

The use of AI minimizes errors and increases the accuracy and validity of tax returns. This in turn forms the basis for better advisory services.

More valuable forecasts

AI helps to analyze historical data and enables more reliable and faster forecasts.

Modern customer interaction

AI-based chatbots can also be used in client support to relieve the burden on advisors on the one hand and to provide clients with the best possible information on the other.

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The use of AI could therefore be particularly interesting for tax firms whose clients come from the fast-moving e-commerce sector. Just like AI, e-commerce is characterized by its adaptability and dynamism, but also brings new challenges with it.  

Big Data  

Compared to brick-and-mortar retail, for example, e-commerce businesses trigger many times more processes. This is synonymous with an increase in data that needs to be recorded and evaluated, for example incoming and outgoing invoices, PayPal statements, collective payments, etc. With so many payment options alone, it's easy to lose track. The crux of the matter: the more successful an online store is and the more sales increase, the more complicated the management becomes. This flood of data makes it difficult for eCommerce entrepreneurs to consolidate all online transactions. However, as entrepreneurs are legally obliged to prepare their accounts properly, managing these processes is an enormous challenge, not least when the tax consultant is involved.  

This is where integrative platforms can help. They are able to automate accounting processes and thus simplify the overall process. API interfaces can be used to automatically import invoices and payments, for example, without clients or tax advisors having to take action. This means that all relevant data is available to them at all times and no one has to wait for monthly reporting.

The better the database - the better for the law firm

Once time-consuming processes have been automated, accountants and tax consultants automatically have more time to analyze and evaluate the data. This is particularly helpful when it comes to identifying patterns and recognizing trends based on the data records. Law firms that make use of the possibilities offered by AI have the advantage that this process is many times faster, allowing the tax advisor to get involved in the consultation much earlier and more intensively. Thanks to the available information and time, it is also easier for them to develop a holistic view of the client's company in order to incorporate business aspects into their advice.

AI therefore ensures that tax advisors can focus much more intensively on their advisory role again instead of spending time on tedious and time-consuming data maintenance. Thanks to AI, they are not only able to deliver and interpret analyses more quickly, but they can also use their findings much more extensively - to the benefit of their clients. Companies therefore benefit from valid financial analyses that help them to identify challenges at an early stage, avoid risks and lay the foundations for stable business operations. 

Conclusion

AI supports tax advisors so that they can make the best possible use of their expertise - in the interests of their clients, but also for the well-being of their own firm. AI is the powerful tool that automates processes, improves analyses and provides tax experts with the best possible database for their advisory work. However, the added value for the client is only tangible when the tax advisor interprets the available data with their knowledge, creativity and strategic thinking - AI alone cannot achieve this, it still requires people with their individual skills.

Authors

Lumir Boureanu
eurodata Management Board

Nadja Müller
Tax consultant and fynax manager