ai-impacts-tax-function

The tax function can access the power of AI's predictive functionality to facilitate more accurate forecasting for tax calculations, including the forecasted effective tax rate for interim financial reporting. Data sets can be created to capture appropriate general ledger account details with rules applied to calculate tax amounts. A simple example is the treatment of meals and entertainment expenses where several general ledger account details are aggregated based on tax requirements, with the 50% deductibility limitation then applied for tax purposes. For finance and tax, AI and machine learning capabilities can produce "bots" that mimic human behavior and, with the appropriate rules applied, can perform routine tasks, freeing up humans for higher-risk, higher-value activities.