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Episode Summary:

In this enlightening episode of the Mr. R Show, hosts John and Chris dive deep into the transformative power of AI in the tax and accounting industry, featuring industry thought leader John Higgins. Against the backdrop of returning from a brief hiatus, they explore the future of tax practices and the significant role of artificial intelligence. John kicks off the conversation emphasizing the necessity for harmony between work and life while achieving profitability, a central theme of the show.

John Higgins sheds light on his journey from traditional CPA roles to becoming a tech and AI strategist. With the rise of AI, particularly generative AI like chat GPT and Microsoft Copilot, John discusses how tax professionals can leverage these tools to improve efficiency and client advisory services. The conversation touches on concerns about AI causing intellectual laziness but overwhelmingly favors the positive impacts on the industry. They share practical insights on using AI to automate Excel tasks, enhance tax planning, and even streamline PowerPoint presentations, emphasizing the substantial time savings and improved quality of work.

About the Guest (John Higgins): John Higgins is a well-regarded figure in the accounting and CPA profession, with a career spanning several decades in technology and professional education. He began his career at a local CPA firm in Michigan before founding Computools, focusing on accounting systems and local area networks. John later worked with BDO as a national partner and co-founded CPA Crossings, providing CPE programs on technology. In 2020, he sold CPA Crossings and started Higgins Advisory, where he continues to educate and consult on emerging technologies like AI. He's an ice hockey enthusiast and engages actively in sports like golf and pickleball.

Key Takeaways:

• Leveraging AI in Tax Practices: Tax professionals can use AI tools like chat GPT and Microsoft Copilot to automate routine tasks, enhance advisory services, and improve client interactions.
• Generative AI Explained: Generative AI analyzes massive datasets to predict and generate content, facilitating tasks from creating tax planning recommendations to automating Excel macros.
• Evolving Technology Landscape: The shift from traditional on-premise software to cloud-based solutions is accelerating, with newer tech firms innovating and incorporating advanced AI functionalities.
• Embracing Technology and Overcoming Resistance: Older and more traditional firms need to overcome resistance to change, understanding the ROI and productivity gains from incorporating advanced technologies.
• Opportunities for Young Practitioners: Emerging tax professionals starting fresh have the advantage of building a tech-forward practice, leveraging cloud-based and AI-driven tools right from the start.

Notable Quotes:

1. "Is AI going to replace tax practitioners? No, but tax practitioners who use AI will replace tax practitioners who don't." - John Higgins
2. "Chat GPT can be a great tool for automating your Excel spreadsheets." - John Higgins
3. "Your practice is going to run exactly how you've engineered it to run. If you don't like something, you're in control of how it occurs." - Chris
4. "The quality of my presentations has gotten better by using AI. It's not about replacing expertise but augmenting it." - John Higgins
5. "For many firms, the value proposition for cloud technology is strong. It's mainly an education issue when there’s reluctance to adopt it." - John Higgins

Resources:

• Higgins Advisory
• Standford Tax: An emerging tool for document organization in tax practices.
• Microsoft Copilot: AI tool for enhancing productivity within Microsoft 365.
• Chat GPT: OpenAI's generative AI tool used widely for content automation and productivity. 

Dive into the full episode to gain deeper insights into how AI is revolutionizing the tax and accounting landscape, and stay tuned for more enlightening content from the Monthly Recurring Revenue Institute.

• (00:05) - AI's Impact on the Future of Tax and Accounting Practices