Purchasing Guides / Tax Return Data Entry & Workpapers

Tax Return Data Entry & Workpapers

A guide to buying an AI workflow that turns client tax documents into draft entries and workpapers for your preparers to check.

Yearly running cost

Assuming 600 returns a year

By hand
$20.3K / year
450 hours of work
Hosted service
$29.4K+ / year
This workflow
$281 / year
Machine usage only; setup, hosting and review are extra.
Should it enter figures into your tax software?

Prepare an entry worksheet, or also import approved figures into your tax software.

One return includes up to 25 source documents and 60 pages.

Your preparers and reviewers decide tax treatment, complete the return and sign. It never takes a tax position, files a return or contacts a client.

What is included

Read the figures from the supported forms, place each one in the matching tax software input with its document and page, flag differences from last year and missing recurring payers, and draft the workpaper.

Start with the forms you want covered, your tax software’s input fields, your workpaper layout and past returns with their source documents. The connected option imports the approved entries into your tax software and files the workpaper in your document system.

How reliable should the entries be?

Set targets for reading figures correctly, mapping them to the right inputs and flagging prior-year differences.

How these standards are measured

Test on held-out past returns with their source documents and the figures your preparers entered, including corrected forms, consolidated brokerage statements, several payers of the same kind, joint returns and poor scans. Measure figure reading, field placement and prior-year flags separately. A figure without a document and page counts as a failure.

Targets for your selected standard
What is checkedTarget
Figures read correctlyFigures such as wages, withholding, interest, dividends, proceeds, basis and partnership amounts that match the labelled value on the document, divided by all labelled figures in the test returns. A figure marked unreadable for the preparer is not counted as wrong.≥98%
Figures in the right input fieldCorrectly read figures that are placed in the right tax software input field for the right taxpayer, form and payer, divided by all labelled figures.≥97%
Prior-year differences flaggedLabelled differences from last year’s return above your threshold, and recurring payers missing this year, that are flagged, divided by all such labelled items.≥95%
Figures with document and pageEvery figure in the worksheet must cite the source document and page it came from.≥100%

Prepared entries are work for a preparer to check, not a completed return. Your preparers and reviewers still decide tax treatment, complete the return and sign it.

How quickly should a return’s entries be ready?

Choose how soon after the documents are ready the entry worksheet and workpaper are available. Preparer and reviewer time is separate.

Timing details

Time from a complete document set to the drafted worksheet and workpaper, including reading pages, mapping, prior-year comparison, queueing and retries. Very large packets may need agreed limits. Confirm peak-season volume and hardware with your provider.

The target applies to at least 95% of agreed test runs, with 4 in progress at a time.

How much do you want to spend per return?

Set the AI processing budget for preparing one return's entries.

Cost details

Includes model calls, retries and a shared hosting allocation. Tax software licences, your preparers’ and reviewers’ time and the calling agent are separate. Re-running a return after new documents arrive is another run.

Reference machine cost: $0.87 – 1.67 per return at 50 returns a month. The selected cap is a target to test, not a replacement for this estimate.

Where do you want it to run?

Run it in your cloud or on your own server. Choose whether document pages may go to an approved AI service.

Data and access details

Runs in a cloud account your firm controls, with access by staff role and access logs.

Only the document pages for a return go to the selected external model. Agree retention and confirm this fits your security plan and client consent.

Keep client documents, prior returns and workpapers inside your environment, in line with your written information security plan. Send only the pages needed for a return to the approved model, under agreed retention terms. Private model only keeps taxpayer data on your hardware; the connected option still reaches your own tax software.

How do you want to use it?

Choose where you want to use it. You can select more than one.

Anything else your provider should know?

Optional. Your choices are included automatically.

Common questions

Do I need this if we already use an AI tax preparation service?

Not necessarily. If a hosted tax preparation service already prepares your returns well enough and your security plan allows it, use it. Buy a workflow when taxpayer data must stay in your environment, you need a private model or your forms and workpapers need checks a service does not offer.

Does it prepare and file the whole return?

No. It prepares entries and a workpaper for the forms you choose. Your preparers decide tax treatment, complete the return, and your reviewer signs and files it.

How is this different from checking which documents a client sent?

Document intake checks tell you what arrived and what is missing. This workflow starts from a complete set and prepares the figures for entry.

Can we run it without sending taxpayer documents to an external AI service?

Yes. Choose a private model and supply your own hardware. Measure reading quality and running cost during the pilot.

What happens when a page is hard to read?

The figure is marked for the preparer with the page, instead of a guessed number.

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