A year ago at AICPA Engage, I heard a prediction that the future of accounting would be a technology company that just happened to do accounting. Today, that future is becoming a reality.
In this episode, I talk with Rob Hamilton, Head of Go to Market for Digits, about how AI is automating the tedious parts of bookkeeping, reconciliation, reporting, and the month-end close.
What stood out to me is that AI doesn’t make accountants less important. It changes where they provide the most value. When technology handles more of the repetitive work, accountants have more time to apply judgment, guide clients, answer meaningful questions, and become the trusted advisors business owners need.
AI Is Changing Accounting. Here’s Why the Human Role Matters More
For years, accountants have spent a large part of their time entering transactions, reconciling accounts, reviewing reports, and preparing for the month-end close.
Artificial intelligence is beginning to handle much of that work.
That can feel unsettling, especially for accounting professionals who have built their careers around managing the details. But AI isn’t eliminating the need for accountants. It’s changing where accountants provide the most value.
In this episode of the Financially Fit Business Podcast, I spoke with Rob Hamilton, Head of Go to Market for Digits, about how AI is changing accounting and what firms can do to prepare.
Removing the Tedium from Accounting
Digits is an accounting platform with artificial intelligence built directly into its general ledger.
The platform can help automate many of the repetitive activities involved in accounting, including:
- Bookkeeping and transaction categorization
- Bank and credit card reconciliation
- Accrual accounting
- Quality reviews
- Anomaly detection
- Financial reporting and analysis
Instead of accountants reviewing every transaction individually, the technology continuously processes the information and identifies the items that need human attention.
This changes the month-end close from a large monthly project into an ongoing process. Accountants can spend less time checking routine transactions and more time reviewing exceptions, identifying patterns, and helping clients understand what their numbers mean.
The Accountant’s Role Is Shifting
Rob compared the changes happening in accounting to what software engineers are experiencing.
AI can now write portions of software code. Engineers are increasingly managing, reviewing, and improving what the technology produces rather than writing every line themselves.
The same shift is beginning to happen in accounting.
If the primary value an accountant provides is entering debits and credits, automation will create a difficult transition. But when the accountant’s goal is helping a business owner make better decisions, AI can become a powerful tool.
The accountant moves from doing every part of the work to governing the work.
That includes:
- Reviewing the accuracy of AI-generated information
- Applying knowledge of the client’s business and industry
- Recognizing unusual patterns or exceptions
- Explaining what the numbers mean
- Helping the client decide what to do next
AI can process transactions, but it can’t replace judgment, accountability, context, or trust.
Human Oversight Still Matters
A business owner could upload bank transactions into an AI tool and ask it to categorize them. The problem is that the business owner may not know whether the information was categorized correctly.
That’s why accountants will remain an important part of the process.
Someone still needs to verify the information, make judgment calls, understand compliance requirements, and stand behind the final financial statements.
The technology can identify something unusual. The accountant determines whether that unusual activity makes sense based on the business, the industry, and the owner’s goals.
Better Information Creates Better Client Conversations
One interesting result of more interactive financial technology is that clients become more engaged with their numbers.
Instead of receiving a static profit and loss statement each month, clients can explore their financial information, review transactions, and begin answering some of their own questions.
That doesn’t necessarily reduce communication with the accountant. It improves the quality of the communication.
When clients understand the basic information, they can bring more meaningful questions to their accountant. The conversation can move beyond “What is this transaction?” and toward questions such as:
- Why did our margins decline this month?
- Can we afford to hire another employee?
- Which expenses are growing too quickly?
- What should we change before cash becomes tight?
This is where accountants have the opportunity to become true financial advisors.
Accounting Firms May Need to Rethink Pricing
More client engagement also creates a business issue for accounting firms.
When clients can easily ask questions within an accounting platform, the amount of communication may increase significantly. That’s positive for the relationship, but it may not fit the firm’s existing pricing model.
Firms will need to decide how advisory conversations, ongoing questions, and deeper financial support are included in their services.
Technology may reduce the time required to complete routine accounting work, but clients may expect more access, interpretation, and guidance.
That additional value needs to be reflected in the firm’s service packages and pricing.
Advisory Skills Will Become More Important
The transition won’t happen automatically.
Accountants who have focused primarily on bookkeeping, tax preparation, or compliance may need to develop new skills. They’ll need to become more comfortable discussing business performance, identifying trends, and helping clients evaluate possible decisions.
The good news is that AI can also support that transition.
Accounting platforms can surface changes, anomalies, and financial trends that may be worth discussing with a client. These insights can give accountants a starting point for more valuable conversations.
The most important step is becoming familiar with the technology. Fear often comes from not knowing what a tool can do. Using these platforms makes it easier to understand where they help, where they fall short, and where human expertise remains essential.
The Future of Accounting Is Built on Trust
AI will handle more categorization, reconciliation, reporting, and basic analysis. But the most valuable parts of the accountant-client relationship will remain human.
Business owners still need someone who understands their goals, applies judgment, asks good questions, and helps them make responsible decisions.
The technology may do more of the accounting work, but the accountant becomes the trust layer that makes the information useful.
Listen to the full episode to hear my conversation with Rob Hamilton and learn how accounting firms can begin preparing for this transition.
Frequently Asked Questions
Will AI replace accountants?
AI will automate many repetitive accounting activities, but businesses will still need accountants to review information, apply judgment, maintain compliance, and provide guidance.
Which accounting tasks can AI automate?
AI can assist with transaction categorization, bookkeeping, reconciliation, anomaly detection, financial reporting, quality reviews, and portions of the month-end close.
How will AI change the role of accountants?
Accountants will spend less time processing transactions and more time reviewing exceptions, interpreting results, advising clients, and governing the quality of financial information.
Why is human oversight still necessary in accounting?
AI doesn’t fully understand a company’s circumstances, goals, industry, or unusual transactions. Accountants provide the judgment, accountability, and context needed to verify the results.
How can accounting firms prepare for AI?
Firms can begin testing AI-enabled accounting tools, training team members in advisory skills, reviewing their pricing models, and identifying repetitive work that can be automated.