Julia Chirkova
Wolters Kluwer Tax & Accounting has announced a significant advancement in tax return preparation with the integration of agentic capabilities into its cloud-native CCH Axcess Tax system. This new feature aims to revolutionize how accounting firms manage tax workflows by automating repetitive tasks, thereby increasing firm capacity and providing tax professionals with a more robust starting point for their reviews. The technology, powered by Expert AI, is designed to handle the initial preparation and calculation of individual Form 1040 returns, flagging exceptions for professional attention before the critical review phase. This allows firms to process more returns efficiently while ensuring that tax professionals retain control over decision-making and can dedicate more time to strategic analysis and client engagement.
The introduction of agentic tax preparation marks a pivotal shift in the tax and accounting industry, moving beyond simple automation to a more intelligent, coordinated approach to tax work. Cathy Rowe, Executive Vice President and Segment Leader for the U.S. Professional Market at Wolters Kluwer Tax & Accounting, emphasized the transformative nature of this development. "CCH Axcess is the agentic platform for tax and accounting, redefining the experience for both professionals and their clients," Rowe stated. "Agentic tax preparation marks a significant shift in how tax work gets done. It helps firms create more capacity without sacrificing quality or control, so professionals can focus their expertise where it matters most." This integration is poised to address longstanding challenges faced by accounting firms, such as the time-consuming nature of manual data entry and document review, thereby enhancing productivity and profitability.
From Manual Processes to Enhanced Review Efficiency
Traditionally, tax professionals dedicate substantial hours to gathering source documents, manually entering data, and meticulously checking for errors before the review process can even commence. This manual workflow often creates bottlenecks, limiting the number of returns a firm can handle during peak seasons. Agentic tax preparation in CCH Axcess Tax differentiates itself by orchestrating these tasks across multiple stages of the return preparation process, rather than automating isolated functions. Leveraging prior-year tax information and current source documents, the Expert AI agents within the system are designed to:
- Gather and extract data: Automatically collect relevant information from various source documents, reducing the need for manual data input.
- Prepare the initial return: Populate tax forms with extracted data and apply relevant tax laws and regulations.
- Perform initial calculations: Compute tax liabilities and credits based on the prepared information.
- Identify and flag exceptions: Proactively pinpoint discrepancies, missing information, or areas that require professional judgment and clarification.
- Advance work for review: Present a nearly complete return, with all identified exceptions clearly marked for the tax professional’s attention.
This streamlined process provides firms with a much clearer overview of their workflow, highlighting which returns are ready for expert review and which require further attention. Tax professionals can then focus their efforts on resolving complex issues, applying their expertise to nuanced situations, and ensuring the accuracy and compliance of the final tax filings. This shift allows for a more strategic allocation of human capital, where the unique skills of tax professionals are applied to higher-value tasks, such as strategic tax planning and client advisory services.
Seamless Integration into the CCH Axcess Ecosystem
A key differentiator of Wolters Kluwer’s approach is that the agentic capabilities are not offered as standalone products but are intrinsically built into the CCH Axcess platform. This means that agentic tax preparation operates seamlessly within CCH Axcess Tax, the same environment where returns are prepared, calculated, and reviewed. This integration ensures a connected workflow, from the ingestion of source documents through preparation, calculation, review, and final delivery.
Firms already utilize CCH Axcess for critical functions such as collecting client documents, extracting valuable data, managing workflow processes, and identifying opportunities for advisory services. The Expert AI agents can now leverage this existing infrastructure, drawing upon the firm’s own data, Wolters Kluwer’s authoritative CCH content, and each firm’s specific permissions and controls. This allows the AI agents to efficiently move work forward, preparing, checking, and advancing tax return components. The tax professionals, in turn, maintain their oversight, making the final decisions and approving the completed returns. This holistic integration minimizes the disruption of introducing new technologies and maximizes the utilization of existing investments in the CCH Axcess platform.
The Evolution of Tax Preparation: A Technological Leap
The introduction of agentic tax preparation represents a significant technological leap in the accounting software landscape. While Robotic Process Automation (RPA) has automated individual tasks, agentic technology goes further by coordinating multiple steps in a complex process and making informed decisions based on context and prior knowledge. This is particularly relevant in the field of taxation, where the volume of data, complexity of regulations, and need for accuracy are exceptionally high.
According to industry reports, the global accounting software market is projected to grow significantly in the coming years, driven by the demand for cloud-based solutions and automation technologies. For instance, some market analyses predict the global accounting software market size to reach over $20 billion by 2028, with a compound annual growth rate (CAGR) of approximately 6-8%. This growth underscores the industry’s commitment to embracing digital transformation. Agentic preparation, by enhancing efficiency and capacity, directly addresses the needs of firms looking to capitalize on this market growth. It allows them to scale their operations without a proportional increase in staffing, a critical factor in addressing talent shortages and managing costs.
Expert AI Agents: Empowering Professionals, Not Replacing Them
The concept of "agentic" technology, particularly as applied to AI, signifies systems that can act autonomously to achieve specific goals. In the context of CCH Axcess Tax, these Expert AI agents are designed to augment, not replace, the expertise of tax professionals. They handle the heavy lifting of data processing and initial preparation, freeing up human professionals to concentrate on tasks that require critical thinking, complex problem-solving, and client interaction. This symbiotic relationship ensures that the technological advancements enhance the human element of tax practice.
The implications of this shift are far-reaching. For accounting firms, it can translate into:
- Increased Throughput: Processing a greater volume of tax returns during peak periods.
- Improved Accuracy: Reducing the incidence of human error in data entry and initial calculations.
- Enhanced Capacity: Allowing firms to take on more clients or offer additional services.
- Focus on Advisory: Shifting professional time from compliance tasks to higher-value strategic planning and client advisory services.
- Better Work-Life Balance: Potentially reducing the intense pressure and extended hours often associated with tax season.
The core principle remains that tax professionals retain ultimate authority and responsibility. The AI agents prepare, check, and advance the work, but it is the professional who reviews, makes critical judgments, and approves the final submission. This ensures that the ethical and professional standards of the accounting profession are upheld.
CCH Connections 2026: A Glimpse into the Future
Wolters Kluwer plans to provide further insights into the evolving capabilities of CCH Axcess at its upcoming CCH Connections 2026 conference, scheduled to begin on October 26 in Orlando. This event is expected to showcase how CCH Axcess is continuously enhancing its functionalities across tax, planning, and audit functions, demonstrating the company’s commitment to innovation and its vision for the future of professional accounting software. Such conferences serve as crucial platforms for industry leaders to share advancements, discuss emerging trends, and network with peers, fostering a collaborative environment for technological adoption and professional development.
For firms interested in learning more about the agentic tax preparation capabilities within CCH Axcess Tax, detailed information is available on the Wolters Kluwer website. The availability of such advanced tools underscores the ongoing transformation within the tax and accounting profession, driven by technological innovation and the pursuit of greater efficiency and client value.
For more information, visit the CCH Axcess Tax website.
