Beyond the numbers: How agentic AI and MTD empower strategic advice 

Making Tax Digital (MTD) for Income Tax compresses the compliance calendar for many clients and their accountants. What was yearly becomes quarterly. 

Significant work is underway across practices to try and meet this new demand.  

While there might be more admin, technology has supplied a solution for both clients and their accountants or bookkeepers: agentic AI.  

What’s new about agentic AI? 

The next step in AI’s breakthroughs over recent years, agentic AI automates tasks while also adapting and anticipating. It works 24/7 in the background, as well as supporting you in real time. 

Here’s what Steve Hare, CEO of Sage, says about agentic AI, which can increasingly be found across the range of Sage products: 

“These agents will perceive, reason, act, and learn both independently and as part of your finance team. They’ll forecast cash flow in real time, flag risks before they hit, and make sure your money is always in the right place at the right time.” 

While agentic AI is about solving problems, it’s also about freeing up resources, as Hare acknowledges: 

“You want to spend your time looking forward, not creating historic records—your windshield should always be bigger than your rearview mirror.” 

Training reimagined: AI and experience 

For the incoming generation of professionals, AI is fundamental to their success. They will walk in lockstep with it throughout their careers.  

Those already within the profession can learn much from this perspective on AI.  

Accounting experiences from day one in the profession are being rebuilt to focus much more on problem solving, strategic advice, and accountability. These have always been core skills, of course, but they’re being given new wings thanks to AI.  

Data backs the shift. Younger accountants are particularly enthusiastic with 84% of those aged between 18 and 35 saying that it improves accuracy and efficiency, according to a recent AAT survey. 

Simultaneously, the next generation of accountants are both intensely tech-curious while also focussing on developing very human skills, such as demonstrating empathy for clients and understanding their needs and motivations. This is where value now lies. 

Choosing the right AI tool 

Selecting the best AI tool has become a crucial skill for accountants. 

For MTD, that’s where the Sage MTD Agent comes in, announced recently at Accountex Summit Manchester. It’s the only example of agentic AI applied to MTD tasks, further enhancing Sage’s leadership in this area. 

The Sage MTD Agent streamlines the entire MTD process by automating complex, interconnected tasks. For example, it anticipates needs, organises data, and highlights anomalies—without you needing to ask. 

According to Sage, practices can save an average of five hours per week and focus more on strategic work. It significantly reduces admin by up to 80% with features such as auto-generating quarterly submission reports, proactive document chasing via multiple communication channels, and a 40% reduction in manual invoice handling.  

The future is powered by AI 

The world is changing, and fast.  

It’s time to take action. It’s time for accountants at all stages of their career to embrace AI breakthroughs, in order to bring in a different era of accountancy.  

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