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AI analytics for tax and accounting

A client turning over four million pays 6,500 a year against a firm median of 12,000, took 13,400 of time last year, and shows three advisory triggers in its accounts with no conversation logged. AI analytics reads the practice, time and deadline files, and answers the partner's question: where is the firm under-priced, and where is advice waiting to be sold.

Ask it in your own words

These are the questions accounting firms ask. Each one maps to a measure our tools compute from your files. The AI model chooses the measure and explains the result; the arithmetic is done by our code, and every total is checked.

The questionThe measure behind itWhat comes back
Which clients pay well below the norm for their size?Fee per client against size normFee against the firm median for the client's turnover band, with realisation on the engagement.
Which clients use one service line where similar clients use three?Service lines per client against normService lines per client against the norm, with the fee gap valued at the firm's own rates.
Which advisory triggers in this year's accounts have not been acted on?Advisory triggers acted onTriggers such as a new entity, a threshold approached or a director's loan, by client, with whether a conversation is logged.
Who is overloaded this season?Deadline load per managerDeadlines by manager by week against capacity, with the peaks.
Where is realisation lowest?Realisation by clientFees billed over time at standard rates, by client, with write-offs listed.
Which clients are slow to pay, and slow to be billed?Lock-up by clientWork in progress and debtor days by client, with the ones over threshold.

A conversation, with the figures

Every figure below was computed by a tool from the rows and checked before it was shown. The lines sum; the percentages match; each line opens to the rows that make it.

Where are we under-priced against our own norms?

Fees below the firm's median for each client's size band total $1.0m a year across 3 offices, on engagements where realisation is also below 60 percent. Main office holds $520k, 51% of it.

Main office$520k51% of the total
North office$310k30% of the total
Riverside office$190k19% of the total
The 3 lines sum to$1.0m0 unexplained

Which main office clients?

3 clients hold $14k of the $520k gap at the Main office, 3% of it. Each has advisory triggers in this year's accounts and no advisory conversation logged.

Fairfax Engineering$5.5kfee 6.5k against 12k median; realisation 49%; 3 triggers
Redwood Care$4.8kfee 7k against 11.8k; new entity formed
Linden Foods$4.2kfee 8k against 12.2k; audit threshold approaching
These 3 are$14k3% of Main office

What do the partners do before next year's engagement letters?

Re-price at renewal with the time record in hand, and open the advisory conversation the accounts are already asking for. The manager owns the client call; the partner owns the price.

Client managersRaise the advisory triggers with Fairfax, Redwood and LindenThis month
PartnersRe-price the three engagements at renewalBefore renewal
Operations partnerReview fee against norm and realisation quarterlyQuarterly
Which clients pay well below the norm for their size?Which clients use one service line where similar clients use three?Which advisory triggers in this year's accounts have not been acted on?Who is overloaded this season?

The measures behind the answers

Each measure has one formula, one source and one meaning. They are computed per manager and partner and in total, and every one carries an identity that must hold before it is shown.

MeasureFormulaFromWhat it tells you
Service lines per client against normService lines with fees ÷ median for clients of the same type and sizePractice management; billingCompliance-only clients who need more
Fee per client against size normAnnual fee ÷ median fee for the client's turnover band and complexityBilling; client masterThe under-priced book, ranked by gap
Season watchClients whose records, start or draft are later than their own usual date by more than a stated marginWorkflow dates, current and prior yearsLate clients and quiet departures, early
Deadline load per managerHours of work due per week, per manager, against hours availableFiling calendar; budgets; capacityThe crunch, weeks ahead
Advisory triggers acted onTriggers with a logged conversation within 60 days ÷ triggers foundClient accounts and returns; CRMAdvice the data called for and nobody offered
Realisation by clientBilled ÷ time at standard, per client, with trendTime and billingFixed fees that no longer cover the work
Retention by feesPrior fees of clients retained ÷ prior fees; losses by reasonBillingWhether the clients leaving are the large ones
Lock-up by client(Work in progress + debtors) ÷ average daily feesLedgersClients the firm is financing
Scope creep on fixed feesHours on work outside the engagement letter, per client, billed and unbilledTimesheets with work codesExtra work given away
Onboarding timeDays from engagement to first deliverable; information requests outstandingWorkflow recordsNew clients stalling before they start

Each measure is worked through, with the export it comes from and what to drop, in Practice KPIs for tax and accounting firms.

What the AI model does, and what our tools do

The AI model chooses the measure

From your question and the measures declared for tax and accounting, the model picks the one that answers it, and the period and comparison the question implies.

Our tools do the arithmetic

Deterministic code reads the rows, computes the measure, and checks the identities below. The same question on the same data gives the same answer, every time.

The AI model explains, and cites

The AI model writes the sentence around the result, naming the manager or account behind it. It states no figure that is not in the result, and every figure links to its rows.

The identities that must hold

RealisationTime at standard = billed + written off + work in progress
Deadline loadFilings due = filed + in progress + not started; every filing has one manager
RetentionOpening fees + new − lost ± fee change = closing fees
TriggersFound = acted on + declined + open

What it reads

The exports accounting firms already produce. Column names are mapped once and the mapping is reused. A file is the way in; scheduled delivery and connections to your systems come with the plan, and every source is listed here.

  • Practice management
  • Billing
  • Client master
  • Workflow dates, current and prior years
  • Filing calendar
  • Budgets
  • Capacity
  • Client accounts and returns
  • CRM
  • Time and billing
  • Ledgers
  • Timesheets with work codes
  • Workflow records

Who owns each answer

An answer is a list with an owner and a cadence, or it is a chart nobody works.

MeasuresOwnerCadence
Season watch; deadline loadManagers; operations partnerWeekly in season
Advisory triggers; onboardingClient managers; partnersMonthly
Realisation; scope creep; lock-upPartners; financeQuarterly
Fee against norm; service lines; retentionManaging partnerAnnually, before fee letters go out

Questions accounting firms ask about AI analytics

How is the size norm set?

From your own client base: the median fee for clients in the same turnover band, computed from the practice file. A client paying half the median is a fact; whether the engagement is simpler than its peers is the partner's judgement, made with the time record beside the fee.

What is an advisory trigger?

A fact in the client's own data that usually leads to advice: turnover approaching a threshold, a new entity, a large director's loan, a change of ownership. You define the list; the tool finds the triggers in the accounts data and checks whether a conversation is logged in the CRM. Nothing is inferred by a model.

Can it help with season planning?

Deadline load per manager by week is computed from the deadline file against each manager's capacity, so the peaks are visible in advance and work can be moved. The tool does not move it; it shows where the overload will be.

What files does a firm need?

The client and fee file, time at standard rates, the deadline list, and the CRM log. Accounts data by client adds the advisory triggers. Client names can be replaced with identifiers before upload on Enterprise.

See it on your data

Bring a few thousand rows. The data map opens next, every column mapped once, and the first question is answered in minutes. Free, in your browser, no account.