KPMG just removed humans from audit testing

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A former CPA's platform that automates 90% of tax return data entry across 92+ document types, mapping every number directly to its source. Why it matters: A 2–3 hour return drops to 7–10 minutes at roughly $45 per return — the economics work even for solo practitioners in peak season. Catch: It layers on top of your existing software, and business returns aren't supported yet. My take: The "clear box" design is the differentiator — every figure links back to its source in a side‑by‑side view, making AI validation fast and defensible. With 500 firms and mid‑seven‑figure ARR, this is real traction. [Read more →]

AI‑Powered Fraud Rings Target IRS Filings — Criminals are using a four‑step AI pipeline to steal identities, form real LLCs, obtain EINs, and file fraudulent returns that look legitimate to banks and the IRS. Why it matters: Client identities can now be weaponized to create convincing fake businesses — identity verification at onboarding is now table stakes. [Read more →]

IRS Finalizes Tips Deduction List — Accountants Excluded — The IRS approved 70+ occupations for the OBBBA tips deduction, including Santa Claus impersonators, while explicitly excluding accountants and tax preparers. Why it matters: Clients will ask why their CPA doesn't qualify when their holiday Santa does — be ready with the explanation. [Read more →]

Grant Thornton: 78% of Firms Can't Pass an AI Governance Audit — Nearly 1,000 US leaders report low confidence in passing an independent AI governance audit within 90 days, and most are deploying autonomous AI without a tested failure‑response plan. Why it matters: If you advise on controls or risk, this highlights where firms are exposed — and where advisory demand is rising. [Read more →]

Before You Buy Any AI Tool — Ask These 4 Questions First — A consultant who evaluated 200 AI vendors warns most fail when pushed past the demo; the criteria that matter are accounting-specific expertise, data governance, implementation depth, and proven results. Why it matters: firms getting burned right now bought on demo quality alone — general-purpose AI routinely misses tax code nuances any experienced preparer would catch. [Read more →]

Before signing any AI vendor contract, ask specifically what happens to your client data after it's processed — whether it's used to train their model, and which sub-processors touch it. Most firms never ask. [Read more →]

Entry‑level roles are compressing faster than firms are adapting — Big 4 Transparency data shows salary growth reversing as AI absorbs execution work, while new grads struggle to land first roles and reviewers become the scarce resource. Why it matters: If your talent model still assumes a wide base and narrow top, it's time to reassess. [Read more →]

Warning: AI is quietly shifting when — and why — clients call their CPA — SMBs are handling compliance work longer on their own as AI tools mature, meaning that by the time clients reach out, they either need significant cleanup or are ready for strategic advisory; 87% of accounting firms say they plan to expand into new services in response. Why it matters: firms still positioned around annual compliance work are at risk of being contacted too late — or not at all. Read more →

That's it for this week. Good luck with the final push — April 15 is tomorrow.

—Alex

📬 Know an accountant drowning in manual bookkeeping? Forward this.