Artificial intelligence and automation are no longer future concepts in accounting and tax compliance — they are already reshaping how businesses operate in 2025. From IRS enforcement tools to smarter bookkeeping systems, technology is playing a growing role in how financial data is reviewed, reported, and audited. For businesses, this shift brings both opportunity and risk. Understanding how AI affects tax compliance is now essential to staying accurate, efficient, and compliant.

At ORT Consulting, we help businesses adapt to these changes by combining modern technology with decades of accounting and tax expertise.

How the IRS Is Using Technology More Than Ever

The IRS has significantly expanded its use of data analytics and AI-driven systems to identify discrepancies in tax filings. These systems analyze patterns across millions of returns, flagging inconsistencies such as:

  • Income that doesn’t match third-party reporting

  • Repeated losses or unusually high deductions

  • Payroll and contractor classification errors

  • Mismatches between business expenses and industry norms

This means businesses are less likely to slip through the cracks due to simple mistakes. Accurate reporting and well-documented records are now more important than ever.

Automation Is Raising the Standard for Accuracy

As accounting software becomes more advanced, the expectation for accurate, real-time financial data increases. Automated bank feeds, expense categorization, and payroll integrations reduce manual entry — but they also leave a clear digital trail.

When systems are set up incorrectly, errors can repeat automatically across months or even years. This is why automation must be paired with professional oversight. Businesses that rely solely on software without review may face compliance issues despite using modern tools.

ORT Consulting helps ensure automation works in your favor by reviewing setups, correcting misclassifications, and monitoring financial data for accuracy.

Real-Time Bookkeeping Means Real-Time Accountability

Gone are the days when businesses could wait until year-end to clean up their books. With real-time reporting becoming the norm, financial data is constantly updated and accessible.

This shift benefits businesses by:

  • Improving cash flow visibility

  • Supporting better financial decisions

  • Making tax planning proactive instead of reactive

However, it also means mistakes are easier to spot — by both business owners and tax authorities. Regular bookkeeping reviews and timely reconciliations are essential to staying compliant in this environment.

Compliance Is Expanding Beyond Tax Returns

In addition to tax filings, businesses are facing new and increased compliance requirements. Reporting obligations related to ownership, payroll, and contractor payments are under closer scrutiny. Missing deadlines or filing inaccurate information can result in penalties, even if no tax is owed.

Staying compliant now requires a year-round strategy, not just seasonal tax preparation. Working with a trusted accounting partner ensures nothing falls through the cracks as regulations evolve.

Why Human Expertise Still Matters

While AI and automation improve efficiency, they cannot replace professional judgment. Technology can flag issues, but it cannot interpret complex tax rules, assess risk, or tailor strategies to your specific business.

ORT Consulting bridges this gap by combining advanced accounting tools with experienced oversight. We help clients understand their numbers, stay compliant with changing regulations, and make informed decisions that align with long-term goals.

Preparing Your Business for the Future

To succeed in this new era of tax compliance, businesses should:

  • Maintain accurate, well-organized financial records year-round

  • Review automated systems regularly for errors

  • Separate business and personal finances clearly

  • Work with accounting professionals who understand both technology and tax law

By taking a proactive approach, businesses can reduce risk, improve efficiency, and stay ahead of regulatory changes rather than reacting to them.

How ORT Consulting Can Help

ORT Consulting provides comprehensive accounting, bookkeeping, and tax services designed for today’s technology-driven business environment. Whether you’re upgrading your systems, preparing for compliance reviews, or planning ahead for tax season, our team ensures your financial foundation is strong, accurate, and audit-ready.

With the right combination of technology and expertise, your business can turn compliance into a competitive advantage instead of a burden.