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Transforming Tax Advisory with AI: Bridging the Gap Between CPAs and Clients

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What if you could transform complex tax strategies into clear value that clients appreciate?

As a tax professional, you’ve probably spent countless hours developing strategic tax-saving initiatives, only to find that your clients don’t fully grasp the value of your work. They see only the final numbers on their tax returns, unaware of your intricate strategies to save them money. 

This disconnect can impact your firm’s profitability and hinder the growth of valuable advisory relationships. That’s why effectively communicating the value of your advisory work is more important than ever.

Transforming Invisible Tax Work into Tangible Client Value

Traditional tax practices face a big challenge: your most valuable work often remains invisible to clients. It’s buried in work papers and lost among tax compliance details. In a recent Earmark Expo, FortunAI founder Bilal Mehanna showed how AI-powered tax advisory tools make this value visible and understandable.

“We’re shifting the mindset from an expense perspective to an investment perspective,” Bilal explains. With an easy-to-use dashboard, clients can see projected income, tax due, and implemented strategies in real-time. For example, a client who invested $22,000 in advisory services saw a return of $247,000 in tax savings—a 1,000% ROI.

The system provides detailed “receipts” of value, tracking every strategy implemented and the corresponding tax savings. Quarterly reports include visual aids like 10-year projection graphs, making long-term value easy to grasp. These reports break down tax projections by quarter, show year-over-year revenue changes, and display marginal and effective tax rates—helping clients understand the immediate and long-term effects.

“Most of the time, the strategies you implement for the client are put in an Excel sheet and then forgotten after a year,” says Bilal. “Now you have a system that keeps all the records.”

AI as Your New Partner in Tax Advisory

While documenting strategies is essential, integrating AI takes your tax advisory services to the next level. As an intelligent assistant, AI learns from client preferences and history to suggest relevant tax strategies. It maintains professional standards by sourcing information from verified authorities like IRS websites and professional tax publications.

“Think about having another assistant, another tax professional helping you, guiding you into strategies, reminding you of certain things,” says Bilal. The system uses a feedback loop that learns what each client prefers. If a client is interested in oil and gas investments, the AI suggests related incentives and strategies.

This AI assistance does more than make suggestions. It helps you quickly research and understand complex strategies, offering summaries and detailed analyses—all within the platform. When you find a potential strategy, you can read a concise description or dive deeper into comprehensive research, streamlining your workflow and saving time.

“One of the biggest pain points with professionals is that the client forgot about my strategies last year, or the year before,” Bilal points out. “This is just a consistent reminder: I saved you this much money in taxes this year and last year and the year before.”

Practical Steps to Leverage AI in Your Practice

Enhancing client relationships with AI doesn’t have to be difficult. Here are the steps you can take:

  1. Implement AI-Powered Tools: Use platforms like FortunAI to automate strategy documentation and show real-time value to clients. This can make your advisory services more efficient and impactful.
  1. Regularly Communicate Value: Provide quarterly reports to keep clients engaged and informed about their tax planning progress. This creates ongoing conversations instead of once-a-year meetings, strengthening trust and satisfaction.
  1. Leverage AI for Strategic Insights: Let AI help you identify and suggest new planning opportunities that match client preferences. This proactive approach can set your firm apart.
  1. Educate Your Team: Use the platform as a training tool to share knowledge across your firm. This ensures consistent service delivery and value communication, even as your team grows or changes.

Evolving Service Delivery and Pricing Models with AI

When you demonstrate value, it changes how you structure and price your services. “People want to pay for the planning… and don’t want to pay for the compliance,” notes Bilal, highlighting the shift in how clients perceive value. By consistently showing the ROI of your advisory work, you can confidently move away from pricing based solely on compliance tasks.

FortunAI’s per-client pricing model supports this value-based approach. “If the system saves just one hour of professional time per client, it pays for itself,” Bilal explains. This affordable pricing lets firms enhance client relationships by consistently demonstrating value.

“We’re not just going to disappear on you for the whole year and tell you to pay a tax bill,” says Bilal. “We’ll send you updated reports. Those things matter to the client, and there are no surprises.”

Your Next Step: Implementing AI to Bridge the Communication Gap

The communication gap has long prevented tax practices from capturing the full value of their advisory services. AI-powered tools are now bridging this gap, allowing you to document, demonstrate, and deliver value throughout the year. By automating strategy documentation, enhancing planning with AI, and regularly communicating value, you can transform client relationships, justify higher pricing, and build stronger client loyalty.

Ready to transform how your firm communicates value to clients? Watch the on-demand Earmark Expo session to see these tools in action. You’ll earn CPE credit while learning practical strategies for implementing AI-powered advisory tools in your practice.

The Key to Overcoming Nonprofit Accounting Challenges

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Nonprofit accountants face a tough situation: they must meet strict demands from donors while not overloading their organizations with overhead. Donors want detailed tracking and reporting for restricted funds but also want to keep administrative costs low. This creates a challenge for CPAs who help these nonprofits.

During a recent webinar, Srikar Chinam, CEO of KarmaSuite, shared how accountants can assist nonprofit clients in alleviating the administrative burden of grant management with the right technology.

The Nonprofit Accounting Challenge

Traditional financial models fail in the nonprofit sector. Srikar explains, “In the nonprofit world, you can’t just calculate revenue minus expenses equals profit or loss because your revenue is restricted and might not align with your spending plans.” 

This mismatch leads to three primary challenges:

  1. Labor-Intensive Grant Management: Each donor has unique budget categories and terminology. For example, one might separate “staff salaries” and “staff benefits,” while another labels it “personnel.” Finance teams spend countless hours manually adjusting data to fit each donor’s requirements.
  2. Optimizing Fund Usage: Program teams may overspend or underspend without clear visibility into grant restrictions, causing constant reallocations. Nonprofits often scramble to spend grant money before it expires while lacking funds in other areas.
  3. Difficulty in Forecasting: Restricted revenues that don’t align with operational needs make forecasting nearly impossible. This leads to fundraising teams overfunding certain programs while underfunding others, thus resulting in unrestricted funds being used up sooner. 

These issues can lead to serious consequences. If you don’t track and document your expenses properly, you may have to return grant money. This is often accompanied by word spreading around on how your nonprofit was the reason why the donor couldn’t meet their impact goals for the year.

Transforming Grant Management with Technology

By using systems like KarmaSuite, nonprofits can simplify their compliance processes and make tracking expenses and reports much easier and more efficient.

Centralized Fund Repository

A centralized system acts as a main reference point for all information related to grants. Instead of setting up complicated sub-accounts, organizations can connect categories specific to donors with standard accounts. Srikar highlights that many government grants need clear explanations on how the money will be spent. The system automatically ensures that these guidelines are followed, making sure that funds are used correctly.

Real-Time Compliance Monitoring

Automated systems can quickly spot mistakes. In a demonstration, Srikar explained how an expense, which was mistakenly linked to a City of Oakland grant, was flagged right away because it didn’t match the related program. This kind of immediate detection helps avoid expensive errors that could be noticed later during audits.

Streamlined Reporting

Automated reporting takes the hassle out of handling data by removing the need for manual changes. This means organizations can quickly create reports tailored for individual donors, and those involved can easily access current information without changing anything, which lightens the workload for finance teams.

Automated Allocations

The only way to show the donor you’ve been compliant with grant restrictions is to manually allocate each expense to a funding source. This is extremely tedious and complex due to grant restrictions and grant expiration dates. KarmaSuite translates all grant restrictions into mathematical equations, understands the context of each expense, and allocate 100’s of expenses in seconds.  

With this automation, accountants can shift their focus from managing details to providing strategic advice. This helps their clients improve the way they manage grants and make the most of their available funds.

Enabling Strategic Decision-Making

The real benefit of these solutions is that they help people make better decisions based on data.

Quick Scenario Modeling

Imagine a board meeting where someone brings up the possibility of a $1 million grant from the county for a new location. “Previously, you’d have to get back to them in weeks,” Srikar says. “Now, you can add expenses for the new location, include the pending grant, create a scenario, run the allocations, and see your funding gap—all during the meeting.”

Visual Indicators for Funding Gaps

KarmaSuite uses color-coded indicators to highlight areas needing attention:

  • Red: Funding gaps
  • Yellow: Expiring excess funds

This level of detail helps organizations see where they have extra resources or where they might be lacking, even within the same program, due to specific rules tied to their funding.

Strategic Fundraising and Planning

Organizations can explore different future scenarios, from cautious to hopeful, helping them plan for a range of possible outcomes. This ability changes how they approach fundraising, allowing teams to focus on specific needs instead of vague targets. When they need to ask donors for adjustments, they can use clear data to explain exactly what changes are needed and why.

These tools also help accountants become better advisors, guiding their clients on how to make the most of their funds and ensure that their financial activities align with their mission.

Turning Compliance into a Strategic Advantage

By using comprehensive financial management tools, nonprofit organizations can turn the challenges of managing grants into a valuable opportunity for growth.

Benefits for Nonprofits

  • Improved Compliance: Centralized management ensures adherence to all donor restrictions.
  • Reduced Administrative Overhead: Automation eliminates manual tracking and reporting.
  • Enhanced Decision-Making: Real-time data supports strategic planning and resource allocation.

Opportunities for CPAs

  • Strategic Advisory Role: Shift from compliance monitoring to providing strategic insights.
  • Optimized Fund Usage: Help clients make data-driven decisions to maximize impact.
  • Mission Alignment: Support clients in aligning financial practices with their core mission.

Watch the Webinar for More Insights

Excited to see how KarmaSuite can change the game for you? Check out the complete Earmark Expo webinar! Learn how you can assist nonprofit organizations in managing their grants more effectively.

How an Engineer’s Approach Is Transforming AP Automation for CPAs

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An accounts payable solution now exists that seamlessly processes complex, multi-page invoices, interprets various formats, and applies intricate accounting rules without human intervention. For decades, this has been a distant dream for accountants. Traditional software often struggles with irregular documents and requires endless manual corrections. However, an unexpected innovator—a manufacturing engineer—has made this dream a reality.

In a recent Earmark Expo webinar, we explore how treating accounts payable automation as an engineering challenge enables CPAs to achieve truly hands-off processing of complex financial documents with confidence in their accuracy.

From the Manufacturing Floor to Back Office Revolution

How does someone who builds glass-dimming technology for Boeing aircraft revolutionize accounts payable automation? The answer lies in a fundamental frustration many manufacturing companies face: despite sophisticated engineering capabilities, they struggle to track and understand their costs accurately.

“Though it sounds kind of trite,” explains Charley Howe of MakersHub, “when he reduced down what the ultimate limitation was, it was back office and finance related.” Charley’s co-founder, Phong Ngo, had built a successful manufacturing company producing advanced equipment for major OEMs yet couldn’t scale the business as expected. The limiting factor wasn’t engineering capability—it was the inability to truly understand cost structures and bid competitively.

This challenge led to a crucial insight: while manufacturing processes were optimized through engineering principles, back-office processes were stuck with traditional accounting software approaches. The engineering mindset—breaking down complex problems into solvable components and building systematic solutions—had never been adequately applied to accounting automation.

Engineering Solutions for Real-world Complexity

The actual test of any AP automation solution comes when it faces the messy reality of real-world documents. Consider processing a 68-page document from Home Depot containing 63 separate bills and credits, many with faded text or handwritten notes. Traditional OCR tools would find this impossible. For MakersHub, it’s a 60-second task.

“Invoices are like snowflakes—they’re all a little different. It’s hard to do it perfectly,” says Charley. MakersHub’s engineering approach has cracked this challenge by building intelligence into the system. Rather than just looking for numbers on a page, the system understands context—distinguishing between list prices, multipliers, and net prices; recognizing when items don’t align with descriptions; and automatically validating that line items sum to totals.

What previously took hours of manual data entry and verification can now be accomplished in minutes. Users report time savings of up to 95% on complex document processing tasks. When line items don’t sum to totals or required fields are missing, the system flags these issues automatically, preventing incorrect entries in the accounting system.

A System That Learns and Adapts

Perhaps MakersHub’s most powerful aspect is how the system learns and improves over time. Unlike traditional OCR tools, which require users to draw boxes around fields and hope future documents maintain the same layout, this system uses artificial intelligence to understand document context and learn from user corrections.

Take the example of processing invoices from a glass company. When the system initially missed a surcharge field, teaching it the correct location took seconds. “That one-time fix took five seconds. And now, for the perpetuity of using MakersHub, that problem is fixed,” Charley explains. The system doesn’t just memorize field locations—it understands what the field means and can find similar information even when documents change.

Users can use an integration mapping tool to capture rules for how different purchases should be coded. Whether routing office supplies to one account and manufacturing materials to another or handling multiple expense categories from the same vendor, the system learns and applies these rules. For accounting firms handling various clients, this means maintaining different rules for each client while ensuring consistent treatment across all transactions. And if an employee leaves or is reassigned, the knowledge of how to categorize transactions stays in the system, making it easier to train their replacement.

The Future of AP Automation Is Here

Applying engineering principles to accounts payable automation represents more than an incremental improvement—it’s a fundamental shift in how we approach accounting automation. By treating AP automation as an engineering challenge rather than just an accounting problem, MakersHub has achieved what traditional software solutions couldn’t: hands-off processing of complex financial documents with confidence in their accuracy.

For accountants, this breakthrough means finally delivering on the promise of automation to clients while shifting focus to higher-value advisory services. The system’s ability to handle complex documents, learn from experience, and maintain consistent accounting treatment creates a competitive advantage in an increasingly automated profession.

See the Revolution in Action

Want to see this revolutionary approach to AP automation in action? Watch the entire Earmark Expo webinar to learn how engineering principles could transform your practice’s approach to document processing and free your team to focus on what matters most: serving clients.

Unlocking Capital: How CPAs Can Lead the Small Business Lending Revolution

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By Blake Oliver & David Leary

As a CPA, have you ever watched helplessly as a promising small business client struggles to secure the capital they need to grow? You’re not alone. In today’s complex financial landscape, many entrepreneurs are trapped in a maze of loan applications, high interest rates, and opaque decision-making processes. But what if you could guide them through this labyrinth?

Enter Lendflow, a groundbreaking platform revolutionizing the small business lending ecosystem. In a recent Earmark Expo webinar, Jon Fry, founder and CEO of Lendflow, unveiled how this innovative technology is changing the game for borrowers and opening up new horizons for CPAs.

Lendflow’s platform empowers accounting professionals to streamline small business lending. By offering efficient processes, enhanced security, and expanded revenue opportunities, it enables CPAs to provide clients with better access to capital. This isn’t just about facilitating loans; it’s about positioning yourself at the forefront of fintech innovation and adding significant value to your client relationships.

Get ready to discover how you can evolve your practice, better serve your clients, and play a pivotal role in their financial success. The future of small business lending is here, and CPAs are at its center.

Revolutionizing the Lending Process with Technology

At the heart of Lendflow’s innovation is its embedded lending infrastructure—a central hub that connects credit bureaus, lenders, banks, and factors. This interconnected network allows for a seamless flow of information, dramatically simplifying the loan application process.

This technology translates into a revolutionary experience for small businesses. Instead of submitting multiple applications to different lenders, businesses can now apply once through Lendflow. This single application is then matched with multiple lenders, increasing the chances of approval and often resulting in more competitive offers.

Consider a client who needs a line of credit to manage cash flow during seasonal fluctuations. With Lendflow, you can guide them through a single application process that connects them with multiple potential lenders. As Jon noted, “We have several options for instantaneous decisions where the client can see offers immediately.”

This unified, efficient process saves time and reduces frustration. No more juggling multiple applications or comparing disparate offers; Lendflow brings clarity and efficiency to what was once a chaotic process.

Empowering CPAs with Advanced Tools

Lendflow provides CPAs with powerful tools to enhance their advisory roles. Jon demonstrated how the dashboard offers a bird’s-eye view of all your clients’ deals, including their stages and progress. “You can click in to see available offers, review rates and terms, and help clients upload any necessary documents,” he explained. This visibility lets you proactively guide your clients, offering timely advice and ensuring all documentation is in order.

With robust customization and integration capabilities, you can tailor the lending experience to your practice and clients’ needs. You can create a custom lending marketplace, selecting which loan products to offer based on your clients’ requirements.

Integration is seamless. As Jon pointed out, “With one line of code, you can embed it anywhere.” This means you can easily incorporate Lendflow’s functionality into your existing website or client portal, providing clients with a smooth, branded experience.

Communication is key in any financial advisory role, and Lendflow includes integrated communication tools and notifications to ensure you’re always in the loop. Additionally, the platform prioritizes security and compliance. Lendflow undergoes annual SOC 2 compliance audits and regular penetration tests, ensuring your clients’ sensitive financial information is protected to the highest standards.

Expanding Revenue Opportunities

Enhancing client services is a significant benefit of Lendflow, but the platform also opens new revenue streams for CPAs. Jon explained, “You’ll be able to earn a percentage of the success of the program, and you’ll have full insights into what’s being earned.”

In practice, for every loan funded through your Lendflow platform, you’ll receive a portion of the origination fee. For example, if you help a client secure a $100,000 loan with a 2% origination fee, and your agreement with Lendflow allocates 20% of that fee to you, you’d earn $400. Over time and across multiple clients, this can add up significantly.

This model allows CPAs to monetize their role in the lending process without compromising their advisory integrity. As Jon emphasized, the incentive structure aligns with client interests. It’s not about pushing high-interest loans but about finding the best fit for each client’s needs.

Looking ahead, Lendflow has plans for expansion. “We’re seeing this being popular in a number of different industries,” Jon shared. This expansion into industry-specific solutions opens more opportunities for CPAs to specialize and add value.

Imagine offering tailored lending solutions for clients in construction or specialized financing options for tech startups. As Lendflow develops these niche offerings, CPAs can further position themselves as industry-specific financial experts.

Conclusion: Embracing the Future of Small Business Lending

Lendflow is transforming small business lending by streamlining the process, empowering CPAs with advanced tools, and opening new revenue streams. By embracing this platform, you can become an indispensable financial partner, helping clients secure capital quickly and efficiently.

This evolution allows you to offer more comprehensive services, from traditional accounting to sophisticated lending advisory, enhancing client relationships and boosting revenue. As the lending landscape changes, those who adopt innovative solutions like Lendflow will thrive.

Ready to lead the revolution in small business lending? Watch the Earmark Expo webinar to learn how Lendflow can transform your practice and empower your clients. Gain deeper insights into the platform’s capabilities and see firsthand how you can make a significant impact on your clients’ financial success.

How Modern Inventory Systems Help CPAs Unlock New Advisory Roles

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“I don’t deal with inventory clients.” If you’re a CPA, you’ve probably said or heard this before. The complexities of tracking materials, managing production processes, and maintaining accurate costs have long made manufacturing clients daunting to serve. But what if the very challenges that once deterred you could become your next big opportunity?

On a recent Earmark Expo, Kendrick Hair, Chief Evangelist at Fishbowl, showcased how accountants can help their manufacturing clients navigate their digital transformation while maintaining financial control and compliance. 

Traditional manufacturers are rapidly transitioning to omnichannel sales—selling through platforms like Shopify, Amazon, and even TikTok. Amidst this transformation, they face new hurdles in maintaining precise cost accounting and regulatory compliance. Modern inventory management systems like Fishbowl are bridging the gap between complex manufacturing processes and digital commerce, creating unprecedented advisory opportunities for CPAs. 

Understanding Modern Manufacturing Needs: From Complexity to Opportunity

Kendrick explains, “I talk to accountants all the time who say, ‘I don’t deal with inventory clients.’ The reason is they find it too difficult to handle. Inherently, inventory isn’t that hard; it’s all the moving pieces that make it complex.”

These “moving pieces” vary by industry:

  • Food and Beverage Manufacturers: Require lot codes, expiry dates, and recall reporting to meet FDA standards.
  • Healthcare Companies: Need serial number tracking and HIPAA compliance.
  • Government Contractors: Must track specialized labor costs for different task categories, with negotiated rates for tasks like welding and painting.

Understanding these industry-specific requirements for CPAs presents an opportunity to provide strategic guidance. Modern inventory systems can manage these complexities while maintaining precise financial reporting and compliance accounting records.

Enabling the Transition to Digital Commerce

The complexities of traditional manufacturing are now intersecting with new challenges as businesses expand into digital commerce. Kendrick notes, “What we’ve seen—and probably what all of you are seeing—is that folks aren’t just selling one way. Traditional manufacturers who for 20 years have done what they’ve done, now they’ve hung a shingle, and they’re selling on Shopify, Amazon, TikTok Shop—wherever and however they can promote their business.”

This shift creates new inventory management challenges. Consider a Fishbowl client who sells vintage Nike shoes. When a rare pair sells on eBay, it needs to disappear instantly from their Amazon listing to prevent double-selling. Real-time inventory management across multiple platforms requires sophisticated integration—something traditional manufacturing systems can’t handle.

Fishbowl addresses this through native integrations with major e-commerce platforms, enabling real-time inventory syncing across all sales channels. The system handles everything from order receipt to shipping label generation while maintaining the detailed tracking needed for regulatory compliance and cost accounting. Mobile integration for warehouse operations allows efficient picking and packing, ensuring accuracy across all channels.

Understanding these e-commerce capabilities is crucial for CPAs advising manufacturing clients. The transition to digital sales introduces new accounting considerations around revenue recognition, sales tax compliance, and inventory valuation across multiple platforms. Modern inventory systems like Fishbowl provide the control and visibility needed to maintain accurate financial reporting while enabling business growth.

Maintaining Financial Control and Compliance

As manufacturers expand into digital commerce, maintaining precise financial control becomes more critical and complex. This is particularly evident in how modern inventory systems integrate with accounting software like QuickBooks.

Consider a manufacturer of flight control systems for Cessna jets. Their bill of materials contains 37 levels, with each movement requiring tracking to a different asset account for bank reporting requirements. Traditional accounting software wasn’t built for this level of complexity, but modern inventory systems bridge this gap.

“We support more costing methods than QuickBooks does,” Kendrick explains. The system handles standard, average, LIFO, FIFO, and actual costing methods while maintaining detailed audit trails. This capability extends from primary distribution to complex manufacturing scenarios—even NASA’s Johnson Space Center uses Fishbowl to manage supplies heading to the International Space Station every 90 days.

This intersection of manufacturing complexity and financial control presents a strategic advisory opportunity for CPAs. While Fishbowl maintains the “inventory truth” and handles complex tracking requirements, it seamlessly posts appropriate journal entries to QuickBooks. This enables manufacturers to maintain the precise costing and compliance requirements of traditional manufacturing while embracing the speed and flexibility needed for digital commerce.

The Strategic Role of CPAs in Digital Transformation

The transformation of traditional manufacturers into omnichannel sellers represents both a challenge and an opportunity for CPAs. Modern inventory management systems are bridging the gap between complex manufacturing processes and digital commerce, enabling businesses to expand while maintaining the precise cost accounting and compliance capabilities that CPAs demand.

Understanding these systems is crucial for accountants looking to expand their advisory services. From NASA’s space station supply management to vintage shoe sellers managing real-time inventory across multiple platforms, the ability to handle traditional manufacturing complexity and modern e-commerce requirements opens new possibilities for strategic client service.

Watch the Webinar to Learn More

To see these capabilities in action and learn how you can help manufacturing clients navigate their digital transformation while maintaining financial control and compliance, watch the entire Earmark Expo.