The Future of AI in Accounting
CONTRIBUTORS
Lisa Huang, SVP of Product Management - Direct, Insights & AI, Xero
Ben Richmond, President and CEO, Wagepoint
THE ACCOUNTING AI PLAYBOOK
accountingaiplaybook.com
FIRST EDITION
2025
Lisa Huang, SVP of Product Management - Direct, Insights & AI, Xero
Ben Richmond, President and CEO, Wagepoint
accountingaiplaybook.com
2025
AI is not just accelerating accounting tasks. It is reshaping the profession. Firms are moving beyond traditional compliance work, using AI to automate routine tasks, surface real-time insights, and focus more on strategic advisory services. This shift is already changing client expectations and how firms create value.
This chapter looks at how the profession is evolving and how your firm can prepare. We’ll explore key barriers to adoption, best practices from early adopters, and three predictions for the future. You’ll also find a case study and practical tools to help you assess your readiness and chart a clear path forward.
Certain barriers are not only slowing firms down today, but also putting their future growth and relevance at risk.
Many firms are eager to explore AI, but their outdated tech infrastructure is holding them back. A 2024 survey from Rightworks found that nearly 60 percent of small accounting firms in the U.S. are not fully operating in the cloud.
Without cloud-based systems, it becomes difficult to integrate AI tools or access the real-time data needed to power intelligent decision-making. The result is a growing divide between firms that are positioned to scale with AI and those stuck managing files and processes across disconnected platforms.
In a recent Thomson Reuters study, more than half of accounting professionals said their firm was interested in AI but waiting to see what others do first.
This cautious mindset can create decision paralysis, where the fear of making the wrong move outweighs the potential benefits of experimentation. Firms that delay action may miss out on early learning opportunities and fall behind competitors who are already building internal momentum.
To move beyond hesitation and position themselves for long-term success, firms should focus on a few key strategies that have already started to separate early adopters from the rest of the profession.
Many firms begin their AI journey by automating internal tasks, hoping to gain efficiency. But this rarely leads to meaningful change. The firms seeing the greatest value start by asking what their clients need that they cannot currently deliver.
Most often, the answer is faster insight, clearer communication, and more strategic advice. These needs aren't met by simply speeding up existing workflows. By focusing on client-facing pain points, firms can choose AI tools that improve service and set them apart. For example, some use natural language tools to create clear financial summaries, or predictive analytics to flag cash flow risks early. These use cases drive growth as well as efficiency.
The real divide isn't between firms using AI and those that aren't. It's between firms that are experimenting and those still waiting for certainty. The most effective adopters take a simple approach: test one tool, choose a champion, track results, and share what they learn.
Firms that encourage experimentation tend to move faster. Whether it’s a tech-forward partner or a curious staff member, giving people space to explore leads to practical ideas leadership may not expect. Some firms even form internal AI teams to keep discovery focused. The goal isn't perfection. It's progress.
As AI automates more compliance work, clients are less willing to pay for tasks that feel routine. Many firms are shifting to fixed fees or value-based pricing tied to outcomes, not hours. These models are easier for clients to understand and help firms build more stable revenue.
At the same time, talent development must evolve. Entry-level roles focused on data entry and formatting are disappearing. Firms need to train staff to think critically, communicate clearly, and use AI to support decision-making. This requires upskilling, new coaching models, and a more collaborative culture. Firms that invest in their people will be better positioned to lead.
To stay competitive, firms need to understand how AI is reshaping expectations and services. These three predictions show where the industry is going.
As AI takes over compliance tasks, clients expect more than tax prep and bookkeeping. They want strategic insight, business guidance, and help planning for the future. This shift is already underway, pushing firms to reframe their value.
Firms that succeed will use AI to deliver advice that’s proactive, data-driven, and tailored to each client. Whether it’s identifying risks, improving margins, or forecasting cash flow, the real differentiator is how firms turn AI insights into action.
Clients are also asking for broader financial support, including budgeting help, software recommendations, and long-term planning. AI gives firms the capacity to expand into these areas without adding staff. More frequent check-ins, predictive alerts, and real-time dashboards allow firms to stay connected and build deeper relationships.
In the future, firms will not just offer advisory services. They will become trusted partners in long-term business growth.
The billable hour is becoming less relevant as AI speeds up delivery times. Many firms are already moving toward fixed fees, value-based pricing, or monthly subscriptions that reflect business outcomes rather than hours worked. These models make pricing more transparent for clients and give firms more predictable revenue.
AI tools also help firms measure their impact more clearly. For example, firms that use forecasting tools to help clients improve margins or manage risk can point to real results. Value pricing lets firms charge for what actually matters.
AI has begun to automate repetitive entry-level tasks like reconciliations, data entry, and report formatting. These tasks once served as a training ground, helping junior staff learn systems, develop judgment, and gain hands-on experience. Without them, firms must rethink how they develop future talent.
This shift requires a more intentional approach to training and role design. Firms need to give junior team members early exposure to client work, decision-making, and advisory support. Some are introducing rotational roles, assigning junior staff to work alongside advisors, or creating structured mentorship programs focused on critical thinking and communication skills.
It is also driving new roles altogether. Positions like automation analyst, AI tool champion, or client success manager are emerging to reflect how junior staff will contribute in a more tech-enabled environment.
Firms that adapt their development model now will have a clear edge in building the next generation of leaders.
MATAX, a six-person firm serving early-stage startups, was losing time and efficiency to manual admin work. Over 60% of staff hours were spent on tasks like client follow-ups, portal logins, and data formatting. Institutional knowledge was documented but hard to access, creating delays and bottlenecks, especially around the firm’s two partners.
Instead of outsourcing or adopting generic tools, MATAX built a custom AI system focused on boosting productivity and knowledge sharing. They developed over a dozen specialized AI agents, each trained to support a specific part of their operations.
AI agents are fully embedded in workflows but maintain a human-in-the-loop structure: every AI output is reviewed and enhanced by a team member before delivery to clients.
MATAX saw significant gains across efficiency, client service, and team morale, without growing headcount.
MATAX’s approach proves that AI doesn’t replace people, it amplifies their capabilities. By integrating AI deeply into operations, MATAX has built a firm that:
In an industry where many firms are chasing cost-cutting through outsourcing, MATAX demonstrates that investing in intelligence amplification leads to higher value, stronger differentiation, and a sustainable competitive edge. Their model is a compelling blueprint for firms aiming to thrive in the AI-powered future of accounting.
Use this 10-point checklist to evaluate your firm’s readiness for AI adoption.
Are your core systems (accounting, CRM, document management) cloud-based and integrated for secure data access?
Do you have clear policies to manage data privacy, quality, and usage when using AI tools (e.g., client consent, no uploading sensitive info into unvetted tools)?
Have you identified high-friction, repetitive tasks in your workflow (like data entry, invoice coding, or meeting scheduling) that are strong candidates for automation?
Does your firm encourage staff to explore new technology, pilot tools, and share lessons learned—even if some attempts don’t succeed?
Are you investing in staff training on automation, data tools, or AI fundamentals through webinars, courses, or internal sessions?
Do you evaluate potential AI use cases by how they will improve the client experience, not just internal efficiency?
Have you updated your service offerings in the past 1–2 years to include tech-enabled or advisory services (like reporting dashboards, cash flow forecasting, or virtual CFO)?
Are you experimenting with fixed fees, value pricing, or subscription packages instead of relying solely on billable hours?
Do you have a strategy for evolving staff roles and retraining employees as automation reduces manual workloads?
Are you actively engaging with software vendors, user communities, or CPA innovation networks to stay informed on AI tools and trends?
Use this guided worksheet to define your firm's 1-2 year vision across five key dimensions. This tool helps you align your leadership team, make smarter investments, and create a concrete action plan for AI transformation.
For each section, answer the prompts and write down your vision. Then identify action steps that will move your firm toward that future state.
What services will define your firm in the next two years? What new value will you deliver to clients?
Example: "We will offer an AI-powered KPI dashboard service for small businesses to monitor financial health in real time."
Action Steps:
How will your team structure change as AI takes over repetitive work?
Example: "Our bookkeepers will transition to client success managers using AI tools to advise clients."
Action Steps:
What tech or workflow upgrades will power your future services?
Example: "Deploy AI audit software and launch an internal chatbot for client questions."
Action Steps:
Who is your firm built to serve in the future? What types of clients will benefit most from your services?
Example: "By 2026, we'll focus 70 percent of our client base on dental practices with 1-5 providers."
Action Steps:
How will you price services in your future model? What new revenue opportunities might emerge?
Example: "Introduce three monthly service tiers and sunset hourly billing by 2026."
Action Steps:
Once your future vision is clear, map out key milestones. For each of the five sections above, list:
Revisit this plan quarterly or semi-annually to track progress and adjust as needed. Having a documented vision ensures everyone on your team is aligned and moving in the same direction.
AI is transforming the accounting industry, shifting firms away from manual work and toward higher-value advisory services. This chapter outlines the biggest barriers to adoption—including outdated systems, implementation hesitancy, and vanishing entry-level roles—and offers practical strategies to overcome them. Readers will find three essential best practices, three bold predictions for where the industry is heading, a real-world case study from MATAX, and two interactive tools to help assess readiness and define a future-state vision. Whether you’re leading a firm or shaping client work, this chapter provides a clear, actionable path to staying competitive in an AI-driven profession.
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