In episode 156 of the Woodard Report Podcast, Joe Woodard and Heather Satterley deliver timely insights on tax season developments, artificial intelligence (AI) in accounting, and the importance of professional boundaries in client service. The conversation sets the tone for the new year by diving into recent news, leadership strategies, and the evolving technology landscape shaping the accounting profession.
Heather opens the news segment by discussing the return of the IRS Free File program, which allows eligible taxpayers to file their taxes at no cost through partner software providers. While beneficial in theory, the program has received criticism for its reliance on third-party vendors and the elimination of the IRS's own Direct File system, which had shown promising growth in adoption rates.
Joe voices concern over the IRS acting as both regulator and service provider, suggesting that subsidizing tax preparation through rebates for low-income taxpayers might offer a more balanced and sustainable solution. Both hosts agree on the value of independent, charitable solutions like the Volunteer Income Tax Assistance (VITA) program, which provides tax help for underserved communities.
Joe introduces a significant development from RSM, a top ten accounting firm, which has launched a proprietary generative AI tool called "Ask Luca." More than just a chatbot, Luca represents a broader AI strategy at RSM. Designed for internal auditor use, the tool leverages a tightly controlled dataset of client workpapers to deliver highly accurate, context-specific outputs.
Heather notes the broader implications for the profession, highlighting how such innovations will eventually trickle down to smaller firms. She also points out that the future of accounting tech involves aggregating data across platforms like Shopify and Google Analytics to create richer insights. These advancements reinforce the need for firms of all sizes to remain engaged with emerging technologies.
A recurring segment in the podcast features movie and TV quotes that offer practical insights. Heather draws from the latest Wake Up Dead Man: A Knives Out Mystery: ‘You start fighting wolves, and before you know it, everyone you don't understand is a wolf.” This quote emphasizes the danger of viewing everyone as a threat and the importance of curiosity and open-mindedness in leadership.
Joe echoes this with a reference to the series "Your Honor," with this quote: "I would do anything for my child. That's what scares me." This reflects the risks of over-identifying with clients and the fine line between advocacy and codependency.
Both Joe and Heather stress that while empathy is crucial, professionals must maintain healthy boundaries to serve clients effectively without compromising their own well-being or the integrity of the engagement.
Heather shares findings from higher education's approach to AI usage, explaining how colleges are adopting hybrid policies that leave enforcement to individual professors. This mirrors the current state in the accounting profession, where standardized AI policies are still developing. Disclosure, transparency, and education emerge as central themes for ethically incorporating AI in both academic and professional settings.
Joe adds that AI use should be acknowledged much like sourcing in research papers: with proper citations and honesty. The profession must prepare for a future where AI is not only a tool but an integrated part of every accounting engagement.
Shirley Koss spotlights Jennifer and Chris Scott of HireEffect, a Woodard member firm that has tripled its revenue in one year by blending enterprise-level HR, tech automation, and client accounting services. Their commitment to accountability, ideal client alignment, and employee well-being reflects the principles discussed earlier in the podcast.
Their recognition as a top Woodard advisory firm and a U.S. Chamber of Commerce honoree underscores how culture and strategy go hand-in-hand for firm growth.
Heather highlights a recent article from The Woodard Report: "AI Education for Accounting Professionals." This article looks at how AI is showing up in accounting and points readers to resources that work whether you are just getting started or already experimenting. It includes practical learning options, tips you can apply right away, and guidance on using AI responsibly.
Joe closes by pointing listeners to The Jolt Effect, which is all about what to do when clients get stuck and do nothing. His approach is simple: cut down the options, make the value obvious, and lower the “what if this goes wrong” feeling that keeps people frozen. Heather backs that up with what she has seen in real firms, especially how clear packaging, pricing, and expectations can move clients from hesitation to a decision.
They end on a forward looking note: accounting is heading toward a bionic model, where human judgment works side by side with AI. The firms that do well will be the ones that stay curious, hold tight to their standards, and keep adjusting as the tools and expectations evolve.
🎧 Listen to the full episode at woodard.com/podcast.
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This article was written with the assistance of AI and edited by a human.