What are APIs, and why are they important to accountants and CPA firms?

APIs enable connectivity by providing a way for applications to work together. But what exactly is an API, and why should you care about the API policy of your accounting software and solution vendors?

What is an API, exactly?

APIs (or application programming interfaces) create connectivity to increase efficiency, automate tasks, and improve staff retention by helping tax and accounting applications work together. One way to think about APIs is to imagine a restaurant diner sitting at a table with a menu in front of them. 

Back in the kitchen, you have a team of chefs. In the middle, you have someone who takes the guest’s order, relays it to the kitchen, then delivers the meal when it’s done. Think of that server as an API.

Why are APIs and open integration important to accounting firms?

Some tax and accounting firms are using 40 or more applications. Imagine the duplication of work that’s involved with that many applications. 

With APIs and integrations that ensure the applications work together, your staff can avoid inaccuracies and eliminate time spent on mundane data entry tasks. Those benefits save money and improve the customer experience, but those aren’t the only benefits. 

APIs allow you to build a better, happier staff. Firms have always had talent challenges, and looking at the accounting pipeline, it doesn’t look like the staffing shortage experienced by many firms will go away any time soon. APIs and their associated integration gains help drive a better employee experience. Because staff are spending less time on monotonous and repetitive work, they gain the capacity to focus on high-value work. In short, your staff can work at the top of their capabilities.

APIs: The gateway to agentic AI

APIs don’t just enable integrations; they lay the foundation for the next generation of automation: agentic AI. These intelligent systems rely on structured, real-time access to data to make decisions and take action without human intervention. CCH Axcess APIs provide access to the digital core at the center of the CCH Axcess platform, making it available for the new generation of agentic solutions.

Imagine an AI assistant that:

• Monitors tax return statuses using e-file APIs and triggers follow-ups automatically
• Uses Staff APIs to onboard new hires, assign them to teams, and configure permissions
• Leverages Workflow APIs to reschedule tasks when deadlines shift

Without a digital core and comprehensive APIs, these capabilities aren’t possible. By adopting an API-first approach today, firms position themselves to take advantage of AI-driven automation tomorrow, reducing manual oversight and enabling smarter, faster workflows.

Tried and tested technology

APIs will continue to play a significant role in a firm’s technology ecosystem, ensuring that you have the ideal tech stack for your firm. And though the technology may be new to some in the accounting industry, it’s not new to us. 

Wolters Kluwer has offered APIs on the CCH Axcess™ platform for over a decade Our APIs are tried and tested, and most importantly, reliable.

How your firm can leverage APIs

The way firms can use APIs is almost endless. We have firms currently using APIs to automatically transfer data into tax returns, automate roll forwards, and do batch extensions. 

To determine how your firm can leverage APIs, you first need to catalog all the applications used in your practice. Once you’ve done that, ask yourself:

• Where are there potentially duplicative processes 
• What part of your current workflow could lead to inaccuracies
• What administrative tasks does your staff a significant amount of time working on

There’s potential that an API could potentially perform that activity to drive significant efficiency gains or reduce inaccuracies.

Start small, scale smart

When firms begin exploring APIs, the temptation is to tackle the biggest problem first. But the most successful implementations start small. Automate a single repetitive task, like return printing or K-1 imports, before moving on to complex integrations.

This approach delivers quick wins, builds confidence, and helps your team understand how APIs work behind the scenes. Once you’re comfortable, you can scale up to larger projects, like syncing client data across systems or building custom applications. Think of it as laying bricks for a foundation that supports long-term transformation.