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Episode 65

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Published on:

27th Oct 2023

The Future of Accounting and Revolutionizing Tax Filing with AI

How is the rise of AI and advanced technology reshaping the landscape of accounting? 

In this episode, Damien and Penny sit down with Jody Padar. Sharing her journey, Jody detailed her transition from joining her father's traditional firm to establishing her brand, "the Radical CPA", leveraging cutting-edge tech. She talks about April, an AI-powered tax software aiming to streamline the tax process by melding human expertise with AI's efficiency. While technology, especially AI, may seem intimidating, it stands as an aid rather than a threat. Professionals are encouraged to view AI as a tool for efficiency, much like how marketers have adapted to social media. 

Tune into this episode to uncover the nuances of AI in accounting and grasp the transformative impact of technology on modern accounting practices.

[00:00 - 08:37] The Transitioning from Traditional to Cloud-based Accounting

  • Accounting and bookkeeping professionals need to build practices with intention. This means taking a proactive approach to avoid common pitfalls and mistakes in the industry.
  • Jodie shares her experience and early adaptation to technological shifts. Though initially seen as 'radical', her proactive embrace of cloud technology paved the way for her firm's success and influenced the broader accounting industry.


[08:38 - 19:56] How April is Revolutionizing the Landscape of Tax Filing

  • Jody talks about how April represents the shift towards integrating AI in tax filing, making the process more efficient.
  • April is primarily aimed at consumers but does so through a B2B2C model, highlighting the changing paradigms in software distribution.
  • The use of AI allows GetApril to swiftly adapt to tax law changes, a vital aspect in the fast-paced tax environment.
  • By automating mundane tasks, GetApril gives CPAs the chance to focus on providing more valuable advisory services to clients.


[19:57 - 29:29] How is AI will Impact the Traditional Roles and Responsibilities of CPAs

  • AI should be seen as an enabler, assisting in making tasks more efficient, not as a replacement for human jobs.
  • Technology expenses should be seen as operational necessities, aligning them with labor costs for more effective financial management.
  • Embracing AI can address the existing shortage in the accounting industry, offering solutions to high work demands.
  • Firms have a choice in how they want to evolve – they can grow extensively or intensively.


[29:30 - 40:52] How is AI will Impact the Traditional Roles and Responsibilities of CPAs

  • How middle managers justify productivity and efficiency over billable hours
  • Technology in accounting is not about reducing billable hours but increasing overall efficiency and client reach.
  • Successful adaptation to technological advances requires a shift in mindset, not necessarily in age.
  • Humanizing the tax preparation process by using relatable language can enhance client engagement.
  • The value of a CPA is not just in tax prep but also in advisory roles that tech cannot replace.
  • Closing up! 


Connect with Jody Padar on LinkedIn 

Visit: https://www.getapril.com

Read Jody’s Book! The Radical CPA

Visit: https://theradicalcpa.com 


Tweetable Quotes


"One of the things that we're trying to do is help business owners, practitioners in the business of accounting and bookkeeping, avoid the pitfalls and the mistakes that we've made along the way." – Jody Padar


“We don't know what we don’t know. Our jobs are going to change, but they're not going to be any less. They're just going to be different.” – Penny Breslin


"Billable time might be going down, but the technology is allowing them...to do more work." – Jody Padar


"Technology is not an age thing. It's a mindset thing." – Jody Padar


“I can be worried about technology, or I can embrace it, evolve, build my skills, and look at ways in which I can change the relationship or add more value to the relationship with my clients.” – Damien Greathead


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Websites: https://moneypennyllc.com/

LinkedIn: https://www.linkedin.com/in/damiengreathead/

Twitter: @Damien_GH

LinkedIn: https://www.linkedin.com/in/penny-breslin-0228b81/

Twitter: @pennyb57

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About the Podcast

Strategy and the Virtual Controller
Helping accounts and bookkeepers build the firm they want, their way
Your hosts Penny Breslin and Damien Greathead have more than 30 years of combined experience in the accounting industry. This podcast is to share their experiences of working in, and consulting to accounting and bookkeeping firms of all sizes, helping them grow.

Nothing discussed will be rocket science, instead they'll be discussing 'how' firms have successfully, and not so successfully, pursued growth. Penny and Damien will be sharing their insights on how firms can be successful by focusing on their people (clients included), their technology, and their processes and systems.

Ultimately how successful an accounting business will be depends largely on how the owners manage change, which alongside taxes appears to be the only constant.

We do want to acknowledge David Maister's great read Strategy and the Fat Smoker: Doing what's obvious but not easy as the inspiration for our title. Buy it on Amazon - https://amzn.to/3dhcUFC

Subscribe today for an upbeat and practical conversation about what's working and what's not in accounting businesses around the world.

About your hosts

Penny Breslin

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Penny Breslin is the founder of MoneyPenny, a consulting firm specializing in helping accounting firms and other businesses embrace the power of technology to simplify their operations and increase their profit margins.

Drawing on her years of experience and her knowledge of what it takes to run a successful business, Penny oversees the development of back office processes for her client firms. From the initial evaluation of the firm’s workflow, to technology selection, and assisting in the on-boarding of the firm’s clients, Penny works with her clients to maximize the benefits of a paperless and cloud-based firm.

Damien Greathead

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Damien has been working in the accounting industry for more than 15 years. In addition to getting his hands dirty preparing tax returns and doing bookkeeping, but the bulk of his experience comes from consulting to both accounting firms and the technology companies that serve the industry.

He set up 2020 Group USA which was a membership group for small and medium sized accounting firms and then went on to set up Receipt Bank (now Dext) in North America.

He regularly speaks to industry bodies on technology, marketing and change management.