by Angela Pinon
Last month’s article focused on how artificial intelligence can support tax research and financial reporting. Understanding these benefits is only the first step; the next is moving from conceptual understanding to practical implementation.
Transitioning to implementation requires a careful approach. The next step is not to adopt as many tools as possible. It is selecting the right tools, assigning them a clear role, and using them in ways that support better business decisions.
For most small businesses, the challenge is not access to AI; it is knowing where AI fits in the workflow. Business owners are hearing about new platforms, add-on features, and software updates at a rapid pace. Some tools may be useful; others create more noise than value when not tied to a specific need.
To ensure AI adoption is effective, implementation must begin with the process, not the product.
In many cases, the first AI tools business owners encounter are general-purpose platforms, such as ChatGPT Business, Microsoft 365 Copilot, and Google Workspace with Gemini. These solutions can summarize information, organize notes, review documents, draft internal communications, and streamline routine work. They are particularly useful when preparing for meetings, reducing repetitive tasks, and turning scattered data into more organized starting points.
Building on those general platforms, specialized AI features are now integral to many small businesses’ financial processes. In financial reporting, the most useful AI tools are often the ones built into accounting and bookkeeping workflows. Platforms such as QuickBooks, Xero, and Dext now include AI-supported features that assist with transaction categorization, receipt and invoice capture, workflow support, and broader financial visibility. AI is increasingly embedded in financial processes rather than functioning as a separate tool.
Embedding AI into workflows offers distinct advantages. Timely reporting leads to more informed decisions. With cleaner, up-to-date information, management can more easily spot margin pressure, unusual spending, or emerging cash-flow issues before they escalate. AI’s role extends beyond saving time; it also strengthens decision-making.
The same principle extends to tax research. Many owners already use general-purpose AI to summarize tax concepts, organize follow-up questions, review emails or spreadsheets, and prepare for discussions with their CPA. That can be helpful when tackling new issues or evaluating options, because AI minimizes time spent sorting information and highlights matters worth further review.
Still, it’s important to recognize the limits of general-purpose AI in tax work. A general-purpose AI assistant may be helpful for early-stage research, drafting questions, or organizing information, but it may not be sufficient for technical tax law, jurisdiction-specific compliance issues, or multistate tax analysis. In those situations, value comes from specialized platforms and advisors who know how to use them effectively.
For businesses with more complex tax needs, the tools are often more specialized and tied to compliance or professional research. Platforms such as Avalara, Thomson Reuters CoCounsel Tax, and Bloomberg Tax are increasingly being used to support technical research, multistate tax work, and compliance-related workflows.
Recognizing these distinctions is essential when selecting from a variety of available tools. The best AI tool is not always the newest or most advanced. It is the one that fits the task, supports the workflow, and produces information that can be reviewed and used effectively.
To move from understanding to action, three practical steps stand out. First, identify where delays or inefficiencies are already occurring. Second, evaluate the systems already in place before adding anything new. Third, establish a consistent, meaningful review process. If AI helps draft a report explanation, summarize a tax issue, or flag an unusual trend, someone still needs to verify the information and determine whether the conclusion makes sense. These steps ensure AI tools are used effectively and intentionally.
Ultimately, the businesses that see the greatest return from AI will be those that integrate it into their operating processes rather than treating it as a stand-alone solution. Success comes not from simply using more AI, but by using it with clear intention and purpose. By strategically selecting and integrating the right tools, business owners can turn AI into a vital resource to drive operational efficiency, gain financial clarity, and make smarter, data-driven decisions that create long-term business value.
Angela Piñon (apinon@stcpa.com) is the Outsourced CFO & Advisory Services Manager at Schmersahl Treloar CPA. She can be reached at 314.966.2727.