Fully integrated automation is the new competitive differentiator. As the tax and accounting profession evolves, the question is no longer whether to adopt an automated workflow solution, but how to maximize its effectiveness.
While many firms use automation tools in isolated areas, fragmented solutions can actually exacerbate existing bottlenecks and inefficiencies. The real competitive advantage lies in building an integrated ecosystem where every stage of the 1040 workflow flows together — from the first client touchpoint through preparation, review, and delivery.
With 2025 bringing new regulatory complexities and further stressing staffing shortages, having a highly efficient tech stack is more important than ever. Unfortunately, manual data gathering and entry can still account for the majority of return preparation time. It’s not uncommon for firms to rely on manual input for a portion of source documents. For firms handling hundreds of returns, the costs of this disconnection are especially significant — not only in hours lost, but in missed opportunities to strengthen client relationships and deliver higher-value advisory services.
If you’re a firm leader, partner, or technology decision-maker who’s ready to move beyond fragmented automation, this playbook presents practical steps for turning isolated processes into an AI-powered tax workflow with fully integrated automation.
Central to this transformation is the connected suite of tax automation solutions from Thomson Reuters — UltraTax CS, SafeSend, and SurePrep — which collectively deliver the most productive 1040 workflow available today. With these powerful tools, your firm can save time on every return, streamline staff collaboration, and deliver a premium client experience that sets your services apart in a competitive market. Your automated, integrated, and highly productive tax workflow starts here.
Why it’s time to go beyond piecemeal automation
If your firm is like most, you’ve probably implemented automation in some form, whether through optical character recognition (OCR) tools, digital organizers, or e-signature platforms. However, these solutions often operate in isolation, requiring your staff to manually transfer data between systems or monitor progress across multiple platforms.
According to the 2025 State of Tax Professionals Report, approximately 49% of firms have automated less than half of their tax workflows. This statistic indicates that nearly half of tax firms still rely heavily on manual processes, limiting their efficiency and capacity to scale operations.
While basic automation may reduce certain manual tasks, it stops short of delivering the level of efficiency today’s firms need. The difference between piecemeal automation and true integration is the difference between fixing a few pain points and completely transforming the way tax work gets done.
When fragmented systems don’t talk to one another, staff spend valuable time:
- Reconciling mismatched data
- Duplicating entries
- Tracking down missing documents
By contrast, fully integrated solutions ensure that data flows seamlessly from one stage of the workflow to the next, which leads to staff saving valuable time:
- Reducing errors
- Eliminating redundant steps
- Easily referencing organized documents
Firms using end-to-end integration have reported extensive time savings per return compared to firms using fragmented solutions. For firms processing hundreds or thousands of returns, these time savings translate into significant gains in capacity, profitability, and client service.
Further, with qualified tax professionals increasingly difficult to find and retain, firms must use technology to manage workloads more effectively. True integration not only reduces manual effort but also enables existing staff to focus on higher-value work, improving both productivity and job satisfaction. This shift is especially critical in the tax and accounting profession, where efficiency has become essential for core business operations.
Integration is about far more than technology. It’s about building a workflow ecosystem that provides long-term support for your firm and your staff. Continuing to rely on isolated automation puts your firm at risk of losing business to competitors who can do higher quality work with fewer resources. Let's explore how embracing these innovations can equip firms to navigate the complexities of today's tax environment with confidence and precision.
Modernizing document collection
Requesting and gathering client documents is the most critical stage of the tax preparation process. For many firms, this stage is the source of significant frustration, as clients often delay submitting the necessary information.
Traditionally, firms have tried to solve this issue with paper organizers, portals, or file-sharing services. While each of these methods modernizes client collaboration, these methods also introduce new inefficiencies. Digital tools are a step in the right direction, but end-to-end workflow integration is the ultimate leap needed to drive efficiency for today’s firms.
Integrated document collection is the foundation of the connected 1040 workflow. By enabling information to flow directly from clients into your firm’s ecosystem, you can eliminate redundant steps and manual intervention. Of course, this saves your staff significant time and the headaches involved during the gathering phase.
From a client perspective, integrated document collection offers a superior experience. Instead of juggling paper organizers, portals, or scanning, your clients can simply upload documents directly from any PC or Mac.
With automatic categorization and secure transfer, you can reduce errors and confusion. By emphasizing end-to-end integration over standard modernization, your firm can transform document collection from a bottleneck into a value driver.
| Traditional modernization tools | Full integration with SafeSend and UltraTax CS |
|---|---|
| Portals, PDFs, or file-sharing services still require multiple manual steps | SafeSend Gather enables clients to securely upload documents from their PC or Mac — no printing, scanning, or uploading hassles |
| Staff must track submissions manually and re-enter data into tax software | SafeSend Gather transfers documents directly into 1040SCAN for auto-categorization and validation, eliminating manual data entry |
| Organizers require manual setup and tracking | UltraTax CS streamlines the organizer creation process to align with SafeSend |
| Requires staff to download provided documents, move them, and upload them to OCR to extract data | Creates a connected foundation where document collection flows seamlessly into preparation, review, and final delivery or e-filing |
Collaborating and communicating
Communication is key. You’ll want to find a solution that allows clients to collaborate, share, and communicate with the firm from anywhere on any PC or Mac.
Features and functionalities to consider:
- Automatically create Document Request Lists customized to each client
- Sending documents for e-signature, custom questionnaires, fillable organizers from UltraTax CS, and document request lists that fit individual client needs
- Managing and viewing all open and completed tasks for every client in one comprehensive view
- Sorting and categorizing common source documents with Document Recognition AI
- Filling out and uploading client information on mobile, making it as easy as possible to get their information to you
Properly introducing clients to such a solution can significantly improve the adoption rate. For example, you could mail clients a letter in November and send them an email announcing the new technology in December. For higher-value clients, you may even want to follow up those written communications with a personal phone call to see if they have any questions.
Ensuring your clients are well prepared and fully aware of the upcoming changes is critical. Both proper communication and thorough preparation are keys to a smooth transition and sustained growth. Modernizing how a firm collects client data and leveraging the right client collaboration tools saves time. It also sets preparers up for success when preparing tax returns.
Intelligent data processing: Where AI meets automation
When it comes to data processing, tax preparation has evolved far beyond traditional OCR. Today, AI-powered document processing uses machine learning to interpret a wide variety of client documents automatically. It organizes them into standardized workpapers that match the tax return, adapting to non-standard forms and dramatically reducing the need for manual work.
Is your firm among those still manually putting together workpapers? Are you canning documents at the end of the process just for document storage or not scanning at all? Maybe you have administrative staff scanning documents, converting them into PDFs, and then manually dragging the thumbnails to create an index?
In any case, the process of manually putting workpapers together:
- Lacks standardization
- Is highly inefficient
- Increases the risk of errors
Firms can significantly mitigate these issues by implementing AI-powered research tools that integrate with tax preparation software. Such tools can help standardize processes, increase efficiency, and reduce errors by providing instant access to accurate, up-to-date information.
Machine learning also helps improve accuracy across the entire workflow. Auto-verification can confirm a large portion of standard documents, and optional verification services provide extra assurance. The system continuously learns from exceptions, refining its validation rules to prevent recurring errors and reducing the need for human checks.
Here, the integration advantage is significant. Data validation and export happen automatically between connected systems, allowing information to flow unimpeded from collection to preparation. This automation eliminates bottlenecks and redundant steps, giving your staff accurate, organized workpapers without manual reconciliation.
Plus, real-time validation and error prevention are built into the workflow. As documents move through the system, discrepancies are flagged, enabling quick corrections before errors propagate. The result is a smoother, more accurate tax preparation process that saves time, boosts staff efficiency, and strengthens confidence in the final return.
Finding the right scan-and-populate solution
It is vital to leverage the right technology, especially a scan-and-populate solution that will help automate data entry. To do so, firms should implement a robust solution that uses AI and machine learning to improve results.
Why? Traditional OCR relies on fixed templates that tell the computer where to look for data. But advanced scan-and-populate solutions:
- Use AI to create dynamic templates, making non-standard documents OCR compatible — a functionality that traditional OCR can’t match
- Use machine-learning to establish rational thresholds for expected values — that means the OCR solution will learn to catch its mistakes before human oversight is needed
It’s important to remember that OCR solutions require some human verification. Humans must ensure the data extracted from the documents — W-2s, 1099s, K-1s — is accurate before exporting it into the tax software. While AI and machine-learning capabilities certainly improve results, firms that truly want to automate and streamline the preparation phase can also use a verification service where staff will validate the accuracy of all OCR data.
Features and functionalities to consider:
- Creating allocation worksheets
- Displaying all relevant information simultaneously on multiple monitors
- E-filing and e-signature for a paperless experience
Patented auto-verification technology at work
1040SCAN is a solution that bookmarks and organizes source documents into a standardized workpaper index following the order of the UltraTax CS tax return.
Furthermore, 1040SCAN reduces repetitive and manual time-consuming tasks by:
- Recognizing four to seven times as many tax documents as competing solutions, allowing for maximum document coverage
- Auto-verifying up to 65% of standard documents with patented text-layer matching
- Supporting an optional verification service to fully eliminate firm staff verification
The system processes documents and sends them directly to the preparer, elevating their role to conducting the first level of review. It automatically assembles the workpapers, eliminating the need for the preparer to handle data entry or verification. By the time the preparer receives the documents, a significant portion of the data is already populated in UltraTax. Integrating scan-and-populate technology with robust tax software is also essential for optimizing workflow.
Firms aiming to automate and streamline their preparation phase are using tools like 1040SCANverify, the outsource verification service. This approach eliminates the need for data entry and verification tasks within the office.
Revamping the review process
The review stage has traditionally been one of the biggest bottlenecks in the 1040 process. Reviewers bill time at the highest rates, which makes inefficiencies in this phase especially costly. But with the right technology, your firm can turn review from a pain point into a powerful accelerator.
Establishing connected review workflows
In an integrated tech stack, tax returns are automatically populated and organized as they move from preparation to review. Instead of spending time reconciling documents or chasing missing information, reviewers are presented with structured workpapers that align directly with the return. This seamless handoff reduces manual effort and ensures that the review process begins on solid footing.
Let’s take a closer look at the review process. Overall, what happens during review depends on the actions that precede it:
- How does the firm gather documents?
- How were those documents prepared?
- Is the firm reviewing paper-based workpapers or PDFs?
Reviewing paper-based workpapers is difficult and inefficient. Even firms that are reviewing electronic workpapers — PDFs, Excel spreadsheets, or Word documents — have vital factors to consider, such as:
- How are documents managed?
- Are documents in a document management system with version control?
- Can you download the PDF or open it and edit it? Is there something that prevents someone else from editing it at the same time?
- Are there multiple levels of sign-offs in the document management system? For example, can the preparer sign off on a work paper, and then a reviewer sign-off on the work paper?
- Does the document management system integrate with AI-powered research tools that can quickly provide relevant tax codes, regulations, and case law to support the review process?
While considering these key factors for selecting a document management system, it's also worth exploring how integrating AI-powered research tools can bring significant advantages. For example, implementing these advanced solutions can significantly streamline the review process. Such user-friendly tools can help reviewers quickly access relevant tax research and guidance, especially when dealing with complex tax situations or needing to support positions taken on returns.
Minimizing review time and increasing staff leverage
The right workpaper management solution pays big dividends. With SPbinder, firms can minimize review time and ensure standardization by automatically bookmarking and organizing tax documents in a workpaper index that follows the flow of a 1040 return.
SPbinder enables smooth and efficient reviews with well-documented workpapers that feature:
- Tick marks
- Annotations
- Notes
- Hyperlinked cross-references with up to four sign-off levels
Furthermore, the right workpaper solution can help increase staff leverage. Partners can review more work from managers, and managers can review more work from staff. Adopting this high-leverage model allows firms to boost profitability.
Your blueprint to smoother delivery and better client experiences
Today’s clients expect more than a completed tax return. They expect a connected, digital-first experience that mirrors the convenience they encounter in other areas of their lives. Forward-looking firms are shifting beyond once-a-year tax preparation work to year-round client advisory services. This requires continuous engagement, proactive communication, and the delivery of strategic insights that provide lasting value.
Integrated solutions also unlock competitive differentiation by enabling data-driven decision-making. A seamless experience with personalized insights not only builds client loyalty, it positions your practice as more than a traditional tax preparation service. Firms that invest in integrated technology can justify higher fees and strengthen their reputation as trusted advisors for their clients.
One of the most impactful shifts is the enhanced tax return delivery enabled through UltraTax CS and SafeSend integration. Return data is automatically mapped and organized, making the delivery process faster, more accurate, and more secure. Clients can review, e-sign, and file without unnecessary delays. With automated e-filing, returns are transmitted directly to the tax authority as soon as the client provides their signature, eliminating manual intervention and reducing turnaround time.
Client-facing tools also play a critical role in transforming the client experience by reducing the need for phone calls and emails. SafeSend integration ensures secure, compliant e-filing of tax documents with knowledge-based authentication (KBA) for e-signatures. This simple process gives clients confidence in security.
Finally, integrated solutions go beyond compliance and enable future growth. Automated payment processing and engagement tools streamline billing and encourage early onboarding for the following tax season. At the same time, data mining and analytics uncover advisory opportunities, which can help your firm identify clients’ needs and proactively offer services that strengthen relationships. By weaving together these capabilities into one connected workflow, you’ll deliver accurate tax returns and an exceptional client experience that drives retention, growth, and long-term success.
The integrated tax software advantage
In the workplace, silos tend to create obstacles, bottlenecks, and unknowns. Your work needs to flow. Your software needs to communicate to expedite your accounting efforts. That’s why Thomson Reuters continues to build the most integrated, automated tax workflow in the market. Designed to drive efficiency and deliver a user-friendly experience, the Thomson Reuters tax workflow unifies preparation, review, and delivery into a single streamlined process.
By the numbers: What fully integrated tax automation looks like today
Before embracing automation, Scottsdale CPAs faced the same operational bottlenecks that plague many mid-sized firms — manual data entry, seasonal staffing challenges, and paper-heavy workflows. These inefficiencies were both frustrating and costly.and costly.
In response, the firm adopted a phased technology strategy built around three fully integrated tax automation solutions, UltraTax CS, SafeSend, and SurePrep. This decision was much more than a tech upgrade. For Scottsdale CPAs, this was a strategic shift that transformed their practice. The results speak for themselves.
Operational efficiency
- Eliminated two to five seasonal staff
Reduced dependency on temporary labor and reallocated resources to higher-value tasks
- Decreased processing time to less than three minutes
Enabled faster turnaround during peak season
How to build your software integration roadmap
Building a connected tax workflow doesn’t happen overnight. It requires a deliberate strategy, thoughtful planning, and a clear understanding of where your firm stands today. By creating a structured integration roadmap, you can maximize the value of your existing tools while moving confidently toward a fully automated ecosystem.
1. Start with an honest assessment of your automation maturity
Firms often begin with isolated solutions (e.g., document collection tool, e-filing system) that solve specific problems, but don’t connect with each other. The first step is to evaluate how well your current tools integrate.
Ask yourself:
- Are client documents flowing directly into preparation software?
- Are review signoffs connected to delivery and e-filing?
This assessment establishes your baseline and helps identify opportunities to streamline.
2. Identify integration gaps and opportunities
Once you know where your firm stands, the next step is to highlight where manual processes are slowing you down.
Common gaps include:
- Redundant data entry between systems
- Paper-heavy review processes
- Client delivery methods that don’t connect back to the workflow
Identifying these gaps not only uncovers efficiency opportunities but also highlights areas where client experience can be significantly improved.
3. Adopt a phased approach
Full integration may be your ultimate goal, but it’s often best achieved in stages. Before layering in broader workflow automation, start with quick wins, such as connecting document collection to preparation software. Incremental improvements build confidence, create immediate value, and help teams adjust more easily to new processes.
4. Know if you’re an ideal candidate for fully integrated automation
Firms handling more than 500 returns annually, with at least six employees and a clear division of labor, see the greatest ROI from a fully connected workflow. These firms benefit most from role specialization, where every preparer, reviewer, and client-facing staff can maximize the advantages of automation.
5. Plan for change management and staff role elevation
Technology adoption is about systems and people. As automation reduces manual data entry and administrative tasks, your staff can shift to higher-value activities, such as client engagement, advisory services, and strategic tax planning. Top firms prepare employees for this transition with clear communication and training.
Pro tip. Partnering with a technology provider that offers consulting and guidance alongside a blueprint for shifting to an advisory services business model boosts your success during tech stack changes.
6. Measure ROI with tangible results
Integrated systems should pay for themselves through time savings and improved client service. By tracking concrete metrics, such as hours saved per return, turnaround time, and client retention, your firm can demonstrate a clear return on investment and continually refine your integration strategy.
What fully integrated automation means to your firm’s talent
Staffing continues to be one of the greatest challenges facing accounting firms, and integration is emerging as a powerful solution. By automating routine, repetitive processes, integrated workflows can reduce burnout and free your staff to focus on more meaningful, higher-value work. Instead of spending hours on manual data entry or chasing client documents, they can engage in tasks that demand judgment, collaboration, and strategic insight.
Role elevation is at the heart of this shift. When manual bottlenecks are removed, tax preparers and support staff can take on expanded responsibilities in review, client interaction, and advisory services. This not only enhances productivity but also provides employees with opportunities to grow their skills and advance their careers.
According to the 2025 State of Tax Professionals Report, attracting and retaining quality talent remains a leading concern for firms. In addition, 75% of respondents say their clients strongly desire more tax and business advice beyond just tax preparation. Prioritizing technology and automation can create a work environment that meets both needs by eliminating grunt work, fostering career progression, and enabling a strategic focus on client advisory services.
Empowering your hardworking team with world-class automation
The shift to a fully integrated tax workflow represents more than operational improvement. It's about empowering your team to deliver exceptional value while building a sustainable, future-proof practice. By connecting every aspect of the tax workflow — from initial document collection through delivery — your firm can redefine what professional growth, client satisfaction, and a competitive advantage look like.
Thomson Reuters has an integrated ecosystem of UltraTax CS, SafeSend, and SurePrep represents the most productive 1040 workflow available today, enabling your team to focus on the bigger picture:
- Fostering meaningful client relationships
- Launching strategic advisory work
- Building the practice of tomorrow
This isn’t about another technology upgrade. The future belongs to firms that embrace automation as a pathway to elevating every role, enriching every career, and exceeding every client expectation.
Your journey to harnessing automation with a fully integrated tax workflow starts today. The technology is proven and the roadmap is clear. It’s time to thrive in the age of AI-powered tax automation.
