Accounting Tomorrow: Embracing AI, Stablecoins, and Enhanced Advisory Roles

In September’s edition, we take a dive into some of the most pressing and transformational topics in the accounting industry. From the IRS harnessing the power of AI for tax compliance to the digital strides being made by Visa, the landscape is rapidly evolving.?

It’s a perfect blend of the latest news, expert insights, and innovative challenges tailored for the modern accountant.

1. Industry News

IRS Embraces AI in Landmark Push for Tax Compliance: The IRS is setting its sights on wealthier individuals and large partnerships in a bid to ensure tax compliance. With the backing of the Inflation Reduction Act and the integration of AI, the organization is gearing up to clamp down on high-wealth tax evaders and streamline the tax system for the general populace.

• AI-Driven Enforcement: Leveraging artificial intelligence, the IRS plans to discern patterns and trends among large partnerships, aiding the detection of potential non-filers, particularly those with hefty sums in overseas banks.
• Targeting Wealthy Non-payers: The IRS aims to pursue 1,600 high-net-worth individuals who owe at least $250,000 each in unpaid taxes. This follows a previous drive where the IRS, targeting 175 millionaires with overdue taxes, managed to recover tens of millions from 40 of them.
• Shifting Focus to Large Partnerships: Using AI, the IRS will commence audits on 75 major partnerships, each possessing assets averaging over $10 billion. Additionally, they will notify hundreds of partnerships with over $10 million in assets of discrepancies detected in their annual financial reports.

Read the full article here.

Visa's Digital Leap: Revolutionizing Global Payments with Stablecoins: Visa is making waves in the world of digital finance. In a groundbreaking move to redefine cross-border payments, they've ventured deeper into the stablecoin territory. Here's a snapshot:

• Strengthened Alliance with Stablecoins: Visa is diving deeper into its relationship with Circle’s USDC stablecoin, launching new pilot programs with Worldpay and Nuvei to elevate the efficiency of global transactions.
• Harnessing Solana's Power: With the Solana blockchain, Visa aims to boost payment settlement times dramatically, boasting an impressive capability of handling 400 transactions per second.
• A Nod to the Past, Eyes on the Future: Tracing back to a successful 2021 pilot with Crypto.com, Visa's recent advancements are set to bypass traditional hindrances like extended currency conversions and steep international transfer fees. They're not just stopping here; further pilots with Worldpay and Nuvei are on the horizon.

Read the full article here.

2. Practice Management

Explore September's curated guide on practice management—Master These 6 Essential Workflows for Every Accounting Firm:

1. Gathering Documents
2. File Organization
3. Invoicing and Payments
4. Project and Due-Date Management
5. Time Tracking
6. Knowing Your Metrics

This video highlights crucial elements to establish a practice that's not only efficient but also well-organized and productive. Click the link to gain comprehensive insights into the future of streamlined operations.

3. Accountants Ask

What are the 3 essential things to do when you start offering advisory services?

Advisory services represent a fantastic avenue for accountants to provide even more value to their clients. Making the transition from traditional accounting to offering advisory can be intricate, but with the right steps, it can prove fruitful.

?Here are the three essential things to consider:

Training & Education: Before diving into advisory services, equip yourself with the necessary knowledge. Attend specialized training, earn relevant certifications, and familiarize yourself with the advisory landscape. This not only bolsters your credibility but ensures you're providing sound advice rooted in expertise.

Here are the courses that we selected for you. Click here and here to open.

Choose the Right Tools: Advisory services often require a different set of tools than traditional accounting. From financial forecasting software to performance metrics tools, invest in technology that can assist in data analysis, visualization, and client reporting. These tools not only streamline your advisory process but can provide actionable insights for your clients.

Here is an article that will help you to get an insight into the best financial advisory tools.

Client Communication & Positioning: Define clearly what your advisory services encompass and how they differ from your regular accounting services. Effective communication is crucial. Engage with your clients to understand their pain points and showcase how your advisory services can address them. Remember, this is about adding value, so position your services in a manner that aligns with your client's goals and objectives.

In essence, venturing into advisory services is about leveraging your accounting expertise in a more consultative manner. With the right training, tools, and communication strategy, you can seamlessly make the shift and become an invaluable strategic partner for your clients.

4. AI in Accounting

We challenge you to redesign the offer to your clients and become an industry Leader. Here’s a prompt to inspire you to embrace innovative solutions.

"I am an [Accounting/Bookkeeping practice owner]. My goal is to integrate cutting-edge technology to streamline processes, enhance data integrity, and offer innovative solutions to my clients. Specifically, I want to improve client communication and build a robust process for it.I specialize in working with [write the niche]. “

Outline a roadmap to introduce these technologies into your practice. Identify potential challenges, training needs, and client communication strategies."

What’s new in the NextGen

Interview Series: As a September special, we prepared a bonus for this edition.

In the last couple of months, we have been working and creating partnerships with experts from the Accounting World that have an immersive experience. We developed an Interview Series that will provide you with a unique and very personal point of view.?

Our Interview Guest was Christy Shepherd Ervin. Read the full interview: https://nextgencompany.eu/accounting-world/?

P.S. NextGen turns 4!?

With that being said, we wanted to share our gratitude thoughts with you - Thank you for being a valuable part of our NextGen community. In case you missed the celebration gathering, here is a video.?