Traditional client accounting services -- which include labor-intensive, often manual tasks like bookkeeping, payroll and financial reporting -- are being modernized by automation and data analytics. For example, Intuit on Tuesday (July 22) debuted AI agents in its Enterprise Suite that can handle routine accounting tasks, among other things.
"AI will amplify the value of accounting services for SMBs," said Ariege Misherghi, senior vice president and general manager of accounts payable, accounts receivable and accountant channel at Bill.
"Once routine tasks like data extraction and invoice processing are automated, accountants will be freed up to focus on higher value advisory work that only humans can provide: applying judgement, guiding SMBs through complex financial decisions and delivering strategic insights," Misherghi told PYMNTS.
For SMBs, AI is leveling the playing field, Misherghi said. In Bill's survey of 1,000 SMB executives, 67% said AI would improve financial forecasting and planning, while 65% said it would help with cost management.
But only 21% are using AI tools to manage accounting and financial operations, according to a separate small business survey from Verizon.
Lisa Huang, senior vice president of product management at Xero, said many accounting systems remain manual even as external pressures mount for the industry.
"The accounting and bookkeeping industry is at a turning point," Huang told PYMNTS. "Many professionals are overworked and under-resourced, facing increasing client demand and rising pressure from evolving regulatory and compliance requirements."
"At the same time, the profession is undergoing a generational shift, with more practitioners exiting the workforce than entering it, creating a looming talent shortage," Huang said. "Despite all this, the systems many accountants rely on remain heavily manual, reducing their capacity to offer high-value advisory services and strategic guidance to clients."
See also: Panel: Small Businesses Want Control, Automation Gives It to Them
Ben Alarie, CEO of Blue J, a generative AI tax research platform, said smaller firms have long been at a disadvantage in accounting services.
"Historically, accounting practices and SMBs have been underserved by legacy tax research tools, which have been costly, complex and ultimately misaligned with the realities of SMB workflows," Alarie told PYMNTS. "Generative AI, especially purpose-built platforms, flip this dynamic."
Generative AI gives practitioners instant access to clear, citation-backed answers, "dramatically reducing manual research time and levelling the playing field for firms that can't afford large research teams," Alarie said. The result is "higher-quality work with fewer resources."
More specifically, "AI can transform accounting for SMBs by automating rote manual tasks, surfacing actionable real-time financial insights like 'you're spending double on subscriptions last quarter,' and monitoring systems for out-of-pattern spending," Jonathan Bailey, CTO of B2B payments firm Extend, told PYMNTS.
But it's not just about automation. With the advent of agents, "AI will continue to enable more personalized experiences, more automation of complicated or tedious workflows, more insights and intelligence and -- importantly -- greater security and compliance," Bailey said.
Kevin Akeroyd, CEO of tax compliance software provider Sovos, told PYMNTS that AI is also shifting accounting "from a reactive process to a more proactive one for SMBs." Instead of chasing down discrepancies or filing reports after deadlines, SMBs can use AI to spot issues early and make faster decisions.
What's more is "you no longer need a technical team to ask complex questions or spot issues," Akeroyd said.
Two things are essential for proper harnessing of AI in accounting services: "clean data and trusted software," Fergal Glynn, CMO and AI security advocate at Mindgard, told PYMNTS.
"The modern platforms offer transparency -- they show their work and allow you to verify important details. With the right setup and a human eye on critical decisions, AI becomes not just a tool, but a trusted partner in running a leaner, smarter business," Glynn said.
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