Tax automation is crucial as client expectations shift toward more streamlined services. Firms must adapt to meet those expectations and, as a finance leader, you are responsible for both adopting new tech and reimagining how your teams work and deliver value to your clients.
With AI integration, firms can approach tax preparation, client communication, and workflow management in new ways.
On this episode of the Reshaping Finance podcast, John McGowan, founder and CEO of HubSync, shared how AI tools and multi-agent systems are affecting workflows, client experience, and the very nature of the profession.
McGowan's company, HubSync, a tax and accounting platform, aims to change how CPAs work and how clients interact with CPA firms. Before founding HubSync, McGowan served as the global chief information officer at KPMG and previously led the Strategic Tax Application Center at Deloitte.
His experience in both accounting firms and founding a tech company provides valuable insight into tax work, AI, and the transition from manual tasks to expert advisory roles.
Going from data entry to advisory services
Traditionally, tax workflows have required hours of manual data entry and document handling. But AI tools are changing how and what work is done.
The profession is moving from manual data entry to a world where, as McGowan said, ‘The tax return is going to become a lot more commoditised … really allowing [professionals] to become more of an adviser to their clients’.
‘AI lets professionals shift from data wrangling to being true advisers’, McGowan said.
With AI tools like Cursor and Claude, developers at HubSync can build faster, and AI co-pilots assist with coding, automate repetitive tasks, and allow professionals to focus on strategic insights.
‘I honestly wish I’d started HubSync now instead of six years ago. Our developers are building faster than ever, co-piloting with AI tools like Cursor and Claude’, McGowan said.
Automation strengthens efficiency for clients and firms
Significant pain points in tax have typically included fragmented client experience, multiple touchpoints, missing documents, and long wait times. Firms are now looking to AI tools for solutions on how to optimise client experience and increase efficiency.
‘A lot of the conversations that we’re having with CPA firms are not just about drawing hours out and making things more efficient for the firm professional but, frankly, the clients are frustrated with the number of touch points that they have to have at their CPA firm to complete a tax return’, McGowan explained.
By using AI agents — a type of AI system that relies on machine learning and natural language processing to tackle a wide range of tasks — firms are changing the narrative. Streamlined workflows for firms mean improved client experience.
AI agents can manage document collection, automate reminders for missing paperwork, and trigger workflow updates, reducing the number of touchpoints needed to complete a return and making the process smoother for both firms and clients.
‘Imagine an AI agent that follows up with clients for missing W-2s. That’s not the future, it’s happening now’, McGowan said. ‘We’re not just drawing hours out of the process; we’re transforming how clients interact with their CPA firms’.
McGowan highlighted a significant win for one firm: ‘For the first time in 103 years, [a client’s] tax partners were done with their tax returns two days before the filing deadline. That was a great story and a great compliment, showing how technology can really free time up and make people more efficient’.
Security and trust are non-negotiables when using AI. ‘You can’t have an AI strategy that’s not married to security, privacy, and compliance’, McGowan said.
At HubSync, client data is isolated, encrypted, and never used to train public models. ‘Security-first AI is non-negotiable’, he said. HubSync uses isolated infrastructure, encrypted data, and platforms like Amazon Bedrock to ensure the security of its LLMs and models, as well as the protection of client data.
Using AI as an enabler, not as a replacement
A common and growing concern among professionals is that AI tools will lead to job losses.
‘AI is not going to replace your job’, he assured. ‘It’s going to make your job better. It’s going to make your job easier. It’s going to take all the mundane stuff you and I used to do as staff accountants and automate it’.
McGowan highlighted that professionals will supervise automation rather than be replaced by it, freeing up time for work that requires problem-solving and strategic thinking.
As AI takes over manual tasks, skills like communication, advisory, and strategic thinking become even more valuable.
According to McGowan, technological advancements also create a real opportunity to attract new talent.
‘A lot of the kids coming out of college now just don’t want to do this, so there is a talent problem in this [profession] in terms of attracting people, and if we can tell someone coming out of college that they’re not going to be hand-punching data into tax return software and that AI is going to help them do that, they’re going to be an adviser to their client’.
Hear the whole conversation with John McGowan on ‘Transforming Tax with Automation and Insights,’ on the Reshaping Finance podcast.
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