Artificial intelligence has had a significant impact across various industries in a short period. Accounting is no exception, and there has been speculation about whether AI would replace professionals in the field.

In a recent PaymentsJournal podcast, Ted Callahan, Accountant Leader at Intuit, and Albert Bodine, Director of Commercial Payments at Javelin Strategy & Research, discussed key findings from the 2024 Intuit QuickBooks Accountant Technology Survey and their implications for the accounting sector – including how accountants are utilizing AI. The survey collected insights from 700 accounting leaders to evaluate the impact of AI and technology on their firms.

Contrasting the Narrative

Respondents identified the top challenges for accounting firms as maintaining compliance with regulations and tax laws and driving profitability for both their firms and clients in the face of high interest rates and inflation.

“What was surprising was that in contrast to a common narrative, accountants don’t view AI as competition,” Callahan said. “Only 9% of the respondents said they were concerned about AI replacing their job. Instead, they felt that embracing technology would help them boost their efficiency and improve their client service.”

“In addition, 71% of the surveyed firms said accounting technology solutions were the driving factor in the increased profitability of their clients,” he said.

Another key insight from the report revealed that 30% of respondents identified the biggest competitive advantage of technology as its ability to enable customized services and advice through data analysis.

“There can be a bit of fearmongering with AI and, in some cases, it can be justified,” Bodine said. “However, I look at areas like cash flow analysis, which can be one of the most difficult things to forecast. As AI tools become more prevalent and integrated into accounting platforms, they can deliver substantial benefits, especially if an organization doesn’t have the staff to perform that kind of analysis.”

The Top Priority

Due to staffing challenges, the accounting industry has widely adopted AI – with 98% of respondents actively using the technology to enhance client service. Nearly as many (95%) stated that adopting new technology is just as crucial as traditional accounting skills for success as an accountant today.

AI is also the top priority for new technology investments, according to accounting firm leaders. However, there are three main concerns hindering full-scale AI adoption: security, accuracy, and cost.

“Firms are primarily concerned that effective data and security safeguards are in place,” Callahan said. “When implementing new technology, accountants must always conduct stringent checks to ensure the process inputs are valid and the outputs are accurate. Concerns also exist around pricing and the rollout cost, especially as more experiences become automated.”

A Vertical Leap

To tackle these challenges, the broader accounting community can collaborate with clients to drive change through AI. Since the pandemic, there has been a significant increase in demand for accounting services among small and mid-market businesses.

“During the challenging times of COVID, the government provided assistance to prevent businesses from closing due to staffing shortages,” Callahan noted. “The complexity of client queries escalated because of reporting requirements to government entities, and client needs grew substantially. With inflation and rising interest rates, the queries are becoming more sophisticated again.”

Accountants have embraced AI to meet the growing demands of their clients, from data entry and processing to fraud prevention. AI excels in detecting irregularities in data and offering real-time financial insights.

On the firm side, accounting leaders are increasingly using AI in their operations – with roughly 65% of firms in the study reporting using AI to manage client portfolios and communications.

The Talent Gap

One reason accounting firms have turned to technology is to enhance efficiency and accuracy amidst staffing shortages. Over the past few years, there has been a significant shortage of qualified graduates in the accounting industry. While AI can help address some of these challenges, an optimized technology platform can also assist firms in attracting and retaining talent.

“Education and skills development can assist a firm in winning the talent battle, especially as more digital natives enter the workforce,” Callahan said. “A firm’s culture can be a strategic differentiator for attracting candidates, particularly non-traditional prospects. A robust training program that incorporates AI, along with a positive culture, helps a firm retain its talent.”

Instrumental to Success

Fears that AI might replace accounting firms seem unfounded. While accountants will increasingly integrate AI into their operations with increasing sophistication, AI will always complement human expertise rather than replace it.

However, the growing complexity of accounting platforms might cause concern among CEOs and business owners seeking the right partner for their organization. Thankfully, there are platforms that provide non-financial professionals with valuable insights into their company’s financial operations, which can be essential to a company’s success.

“Our goal is to see businesses succeed,” Callahan emphasized. “We’re striving to make the QuickBooks platform a comprehensive place where business owners can manage their finances seamlessly. It’s designed to be an integrated, AI-driven end-to-end experience, providing data insights accountants can leverage to assist their clients and tools their clients can use independently.”


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