With filing date inching closer, entrepreneurs must initiate the process efficiently.
July 8, 2020 3 min read
Opinions expressed by Entrepreneur contributors are their own.
The way that technology has changed how we do business is fascinating, enhancing our ability to get more done with more accuracy than ever before. Artificial Intelligence (AI) and Machine Learning are paving the way to a new future that holds tremendous promise and innovation. We have seen AI utilized across the board, whether in design, accounting, engineering or even education. As we embrace this new way of doing things, we can look towards convenience in even more areas, including how we file taxes — a tedious, complicated process most entrepreneurs still dread. And while I strongly believe that machines can’t replace humans, if AI can help us spend quality time with our loved ones while expediting this annual task, it’s a win-win situation.
This year’s filing date was extended to July 15, which is now fast approaching. So in an effort to understand how entrepreneurs and businesses can make their process smoother, I spoke with international tax attorney John Anthony Castro, Managing Partner of Castro & Co. and founder of AiTax, an AI-based tax-preparation software.
Related: These 3 Strategies Will Make Your Tax Preparation So Much Easier
The right software can identify opportunities that people may otherwise miss, underscoring how the old process doesn’t cut it. “A machine can’t get tired and accidentally overlook an important detail,” explains Castro. “Because so much of tax preparation is repetitive, the data is highly recordable, and there is minimal risk for error. It’s certainly a technological development that may not necessarily replace people; however, it can make the process easier through seamless integration.”
AI’s capability to learn habits and tasks through repetition and enact them through specific algorithms can reduce human involvement, where it is more likely to produce errors. As Castro elaborates, “AI delivers a higher degree of accuracy on time-consuming tasks that may not be where our energy is best spent. It’s about freeing up human capital to do better things.”
So while we essentially “teach” machines to do things for us, we can turn our attention towards doing work that machines can’t produce, allowing us to remove ourselves from a sea of mundane tasks, including tax preparation.
Whether it’s through plugins or digital automation, every industry has been touched by AI. We’ve seen it with platforms like Microsoft AI and Google Translate and by chatting with Siri on our iPhones. AI affects our lives by bringing technology to our fingertips when we need it most, and the truth is filing taxes gets more complicated year after year.
Related: The 5 Best Tax and Financial Franchises You Can Open This Year
We are all exhausted after a trying several months, and I strongly feel that by making the right selections on forms automatically, AI can help entrepreneurs file their taxes with ease while preventing mistakes, ensuring your taxes are accurate, increasing any potential refund and avoiding an unnecessary audit.
Tax preparation can require the work of a handful of people, especially if you seek the help of a professional, but AI can cut this number down significantly, optimizing the work and time spent. If you are looking to file your taxes on your own, as many of us choose to do, then having an AI-based software on your side now and in the years ahead is highly advised.