Many tax professionals already use digital intake, electronic signatures, and tax preparation software. The next opportunity is to make those tools work together more effectively—and use artificial intelligence where it can help move work forward.
A faster task has value. A smoother process can carry that value across the practice. When information is easier to find, the next step is clear, and preparers spend less time repeating administrative work, firms can create room for additional clients, more planning conversations, or a more manageable tax season.
Growing with AI and connected products starts with a practical question: Where could your team accomplish more if less time went into moving work from one step to the next?
AI and workflow automation serve different purposes.
AI can help interpret information, extract data from supported documents, or explain a diagnostic message. Workflow automation follows configured rules, such as updating a return’s status or assigning a task when work reaches a particular stage.
Connected tax software links supported activities across products. The value depends on the specific integration: what information moves, what triggers an update, and what still requires staff action.
Together, these capabilities can help firms address two recurring demands: completing the work and coordinating the work. That creates an opportunity to expand capacity, provided the firm also manages review, staffing, and client expectations.
Start with the moments that slow growth
Before adding another tool, follow a typical return through your practice.
How does a client submit documents? Who confirms that the file is ready? How does the preparer know what is missing? What happens when the return reaches review?
Look for places where staff repeatedly search for information, enter the same data, or ask someone else for an update. These are useful starting points for tax workflow automation because the business problem is specific enough to measure.
Make document intake easier to move into preparation
An uploaded document becomes more useful when the preparer can find it and use it in the preparation process.
For example, Drake SmartExtract™, currently documented as a beta feature, extracts information from supported tax forms for import into Drake Tax®. The Desktop workflow also supports extracting files from Drake Portals® when the required single sign-on setup is enabled. Preparers can compare imported information with source documents during review.
This illustrates where AI and connected products can work together: document collection feeds a supported preparation step. Staff still verify the data, resolve missing information, and determine the correct tax treatment.
Give preparers a clearer starting point for review
An unfamiliar diagnostic can interrupt progress while a preparer works out what the message means and where to investigate.
Assistant in Drake Tax Desktop, currently in beta, can explain rejects and diagnostics in plain language, prioritize issues that prevent e-filing, and suggest screens or fields to review. It offers guidance rather than changing return data automatically.
For firms evaluating AI tax preparation software, this is an important distinction. Assess whether assistance helps the preparer understand and resolve the issue while preserving professional review.
Keep handoffs moving
A completed task can still leave a return waiting if the next person does not know it is ready.
Drake Workflow® provides a centralized view of the return pipeline, automatic status updates based on activity across supported Drake tools, and task assignment by status. These capabilities can help firms coordinate work as returns progress.
To put that visibility to use, define who owns each stage and what must be complete before a return moves forward. Consistent handoffs make it easier to identify a growing review queue or a return waiting on client information.
Turn additional capacity into a growth decision
Time recovered through tax practice automation needs a purpose.
A firm preparing to expand may use that capacity to onboard more clients. Another may dedicate it to tax planning, staff development, or faster responses to existing clients. A practice facing a crowded review queue may first use it to make deadlines more manageable.
Choose the outcome before measuring success. Useful questions include:
- Can we serve additional clients without creating a larger review backlog?
- Can preparers spend more time on client questions and planning opportunities?
- Can we reduce administrative effort while maintaining review standards?
- Can clients complete their part of the process with fewer follow-ups?
Technology can create room for growth. Pricing, demand, staffing, and service design determine how the firm uses it.
Build an AI adoption plan around one workflow
A focused pilot gives your team a way to test value before expanding.
- Choose a recurring bottleneck. Select a task such as entering supported source-document data or coordinating the move from preparation to review.
- Record a baseline. Measure the current time, follow-up effort, and corrections for a comparable group of returns.
- Confirm the product setup. Check supported forms, required settings, user permissions, availability, and pricing.
- Define the review step. Specify who verifies AI-assisted output and how exceptions are handled.
- Evaluate the complete process. Include setup, review, corrections, and handoffs when comparing results.
For example, if a pilot saves a net five minutes per comparable return across 600 returns, that represents 50 hours of capacity. This is an illustrative calculation, not a product performance claim. Your results will depend on document quality, return complexity, staff experience, and how the tools are used.
Keep data security part of the connected practice
Adding AI to a tax practice also calls for a clear process for evaluating how taxpayer information is handled.
The IRS states that tax professionals need a written information security plan and should maintain it as their business changes. Its guidance addresses risk assessment, employee training, safeguards, and service-provider arrangements.
As you evaluate connected products, review data handling, access controls, retention terms, and your firm’s policies for approved use. Give staff specific instructions about which tools they may use with client information.
Integrated AI does not replace your firm’s security program or professional responsibilities.
Explore your next opportunity with Drake Intelligence®
The next step in tax practice growth may begin with one process your team is ready to improve.
Explore Drake Intelligence to learn about AI-powered capabilities across Drake products, then identify where those capabilities could support your firm’s preparation and review workflows. Pair that evaluation with a look at how your team manages documents, task ownership, and return progress.
Start with a measurable problem, confirm the available connections, and build on what works.
Disclaimer:
This article is for informational purposes only and not legal or financial advice. AI-generated output may be inaccurate and requires independent review. Tax professionals remain responsible for verifying information, applying professional judgment, and reviewing returns before filing. Product features, supported workflows, beta status, availability, and pricing may change. Consult current product documentation and applicable terms. This article provides general information and does not constitute tax, legal, or security advice.
Sources
Primary Source
- Internal Revenue Service — IRS Tax Tip 2026-49: Written Information Security Plans are essential for tax pros. Relevant sections: “Create a WISP,” “WISP requirements,” and “Maintain and update.”
Frequently asked questions about AI and connected tax software
How can AI help grow a tax practice?
AI can support tax practice growth by reducing manual effort in tasks such as extracting supported tax-document data and interpreting diagnostic messages. Firms can use any capacity recovered for additional clients, planning services, or client communication. Growth depends on how the firm uses that capacity and maintains review quality.
What is connected tax software?
Connected tax software allows supported information or activities to move between products used for preparation, document collection, workflow management, or other firm processes. Connections vary by product and setup, so firms should verify exactly what transfers or updates automatically.
What is the difference between AI and tax workflow automation?
AI can help interpret information or generate suggested guidance. Tax workflow automation uses rules and triggers to carry out defined actions, such as assigning a task when a return changes status. A connected tax practice can use both.
Can AI tax preparation software replace preparer review?
AI assistance does not remove the need for preparer review. Tax professionals must verify extracted data against source documents, evaluate suggested guidance, and confirm that the return reflects the client’s facts and applicable tax rules.
How do Drake products support a connected tax workflow?
Drake products offer supported connections across preparation, document collection, and workflow tracking. Examples include SmartExtract’s documented Drake Portals extraction workflow and Drake Workflow’s status updates and task assignments. Required settings and supported activities vary, so check the current product documentation.
Which metrics should a firm track when adopting AI for tax preparation?
Track total time per comparable task or return, corrections, follow-up effort, and time spent waiting between stages. Include review and exception handling in the measurement. Compare similar work before and after adoption to understand whether the complete process improves.
How should tax professionals evaluate AI tools for client data?
Review the provider’s data handling, retention, access controls, and contractual terms alongside your firm’s security policies. Establish approved uses and review responsibilities before staff use client information. Revisit the firm’s written information security plan as technology and business processes change.
