Boomer's Blueprint: 4 ways algorithms can improve your accounting firm

Boomer's Blueprint: 4 ways algorithms can improve your firm

June 9, 2025 10:00 AM

As CPA firms grow into the $10 million to $100 million revenue range, operational complexity increases, especially during peak periods like tax season. Leadership must prioritize strategies to reduce friction, improve efficiency, and enhance the client and staff experience. Algorithms, defined as systematic processes designed to solve specific problems, are a key enabler in achieving these goals.

By automating repetitive tasks, algorithms can save hundreds of hours during the busiest times, allowing staff to focus on high-value activities and improving client satisfaction.

Four specific examples of areas where algorithms can help firms are described below, but no matter the area, adopting algorithms requires deliberate planning and execution:

1. Identify opportunities

Assess pain points in tax, audit, scheduling, and advisory workflows.
Identify routine tasks that consume excessive time during peak periods.

2. Gather and analyze data

Evaluate the availability of client and internal data to support automation.
Determine additional data needs and acquisition strategies.

3. Experiment and iterate:

Pilot small-scale solutions, such as automating a single tax form process or scheduling tool.
Refine based on results and user feedback.

4. Scale and integrate:

Implement successful pilots across teams or departments.
Provide staff training to maximize adoption and effectiveness.

5. Measure and optimize:

Use key performance indicators such as time savings, error reduction, and client satisfaction to assess the impact.

Quick wins for immediate impact

To build momentum, start with high-impact initiatives:

Tax workflow automation: Automate the completion, e-signature, and filing of forms like 8879 and 4868, and notify clients of estimated tax payments due via an automated communication system.
Audit data preparation: Use algorithms to download client data, generate trial balances, and perform risk analysis.
Scheduling optimization: Implement an algorithm-driven scheduling tool to automate meeting coordination, resource allocation, and deadline tracking.

Conclusion

Algorithms are transformative tools that empower CPA firms to operate more efficiently while delivering enhanced value. By automating routine tasks in tax, audit, scheduling, and advisory services, firms can save significant time, improve accuracy, and foster stronger client relationships. The key to success lies in adopting a strategic roadmap — identifying opportunities, running experiments, and scaling solutions. Mindset is paramount.

For CPA firms navigating the challenges of growth and complexity, algorithms represent a critical investment in operational excellence, enabling staff to focus on what truly matters: delivering exceptional client experiences. Think — plan — grow!

Transforming tax practices with algorithms

jd-photodesign - stock.adobe.com

Tax season places immense pressure on CPA firms. Automation of routine processes such as completing, signing and filing IRS forms like the 8879 (e-file signature authorization) or Form 4868 ("Application for Automatic Extension of Time to File") can significantly reduce manual work. Algorithms can also provide automated notifications to clients regarding upcoming estimated tax payments. TaxCaddy and SafeSend are proven applications that can enhance the client and staff experiences.

As an example, an algorithm can automate the preparation and electronic submission of Form 8879, ensuring timely filing while reducing staff intervention. By streamlining these tasks, firms can drastically reduce turnaround times, minimize errors, and alleviate client frustrations during the busy season.

Enhancing audit efficiency

Workflow software survey art - flowchart

Tadamichi/tadamichi - stock.adobe.com

Audit practices can benefit greatly from automation, especially in data-intensive tasks. Algorithms can facilitate the downloading of client financial data, preparation of a trial balance, and risk analysis through prior-year comparisons.

For example, by automating the collection and organization of financial data, an algorithm can generate trial balances and flag high-risk transactions for further review. This not only saves valuable hours for auditors but also ensures a more thorough and accurate risk assessment, improving overall audit quality.

Optimizing scheduling

Monster Ztudio - stock.adobe.com

Scheduling is a significant pain point during peak seasons, with competing priorities such as client meetings, data aggregation, staffing, and deadline management. Algorithms can help firms effectively allocate resources and reduce human intervention in scheduling decisions.

Client meetings: Algorithms can optimize meeting schedules by analyzing client availability, staff workloads, and project deadlines, minimizing scheduling conflicts.
Data aggregation: Automated workflows can ensure client-provided data is captured and shared with the appropriate team members without manual follow-up.
Staffing assignments: Resource allocation algorithms can match staff skills and availability to specific tasks, ensuring balanced workloads.
Due date management: Algorithms can track project milestones and send reminders to staff and clients, reducing the risk of missed deadlines.

Efficient scheduling reduces administrative burdens, improves resource utilization, and ensures critical deadlines are met, all while enhancing the client experience.

Driving advisory growth with data-driven insights

Creating an advisory workflow in the cloud

ismagilov/Getty Images/iStockphoto

Client advisory and consulting services are a growing revenue stream for CPA firms, but many firms struggle to transition from transactional to advisory and consulting relationships. Algorithms can support this transition by identifying client needs and opportunities for additional services.

For example, a checklist algorithm can analyze client data and past interactions to recommend advisory services, such as financial planning or strategic tax consultations. This proactive approach strengthens client relationships and increases revenue while minimizing the time required to identify new service opportunities.