AI “Always-On” Checks for Tax Firm

The problem (and why it hurts)

Manual reviews happen late and under deadline. In 2–15 person firms, that means rework, last-minute client chasing, and avoidable delays. Every extra click and manual follow-up is hidden cost that compounds during busy season.

What “always-on” checks mean

AI-enabled platforms can run continuous checks in the background to surface exceptions early. Depending on the tool you use, these checks may include:

• Missing items (e.g., W-2/1099, bank statements, prior-year PDF).

• Identity/entity consistency (name/EIN/SSN alignment).

• GL→return mapping drift (changes since last mapping).

• Signature status (e.g., Form 8879) with automated reminders.

• Portal engagement (client hasn’t opened a link within X hours).

Result: your team reviews exceptions, not the entire pile.

Before → After (realistic scenario)

Before: A senior discovers an unsigned 8879 on e-file day. Calls, resends, waits—everything slips.
After: The system flags “8879 pending >48h” and triggers a mobile-friendly reminder. The partner sees a clean dashboard with items “on track” vs “needs attention.”

How to implement in 3 practical steps

1. Connect your data once (e.g., accounting and document sources).

2. Define rules or criteria (missing items, mapping mismatches, signature SLAs).

3. Work the exceptions queue (approve, add notes, or snooze—keeping an audit trail).

Starter checklist (what to check weekly)

• Intake completeness (KYC, W-2/1099, interest, prior-year PDF).

• Entity & identity consistency (names/EIN/SSN across systems).

• GL→return mappings after software updates or chart-of-accounts changes.

• E-signature timers at 24/48/72h with escalating nudges.

• Client portal inactivity beyond your firm’s SLA.

Metrics to watch

• % of returns with zero last-week edits (quality upstream).

• Average time to signed 8879 (from request to completion).

• Exceptions per return (trend down means rules are working).

• First-pass completion rate (no rework needed).

Common pitfalls (and simple fixes)

• All-or-nothing rules. Start narrow; expand once noise is low.

• No thresholds. Set time windows (e.g., 48h idle → nudge).

• Unclear ownership. Assign exceptions to roles (prep, review, partner).

• No feedback loop. Retire rules that generate false positives.

FAQ

Does this replace human review?
No. AI helps filter noise so seniors spend time where judgment matters.

How long does setup take?
Typically 15–30 minutes: connect your accounting and doc sources, then enable the first set of rules or criteria.

What about security and auditability?
Look for encryption in transit/at rest and a full change audit trail covering who changed what, when, and why.

What if our data changes?
With modern integrations, a single update can propagate across systems to minimize re-entry and version drift.