Right now, every accounting firm, no matter how big or small, should be thinking about an AI strategy. From automating routine tasks to uncovering deeper client insights, a clear AI strategy for your accounting practice offers tremendous opportunities, unlocking a faster, more accurate, and more strategic way of working.
But with this rapid, constant change as AI technologies continue evolving, many firms are unsure where to start their journey.
This article outlines a practical, phased approach to developing and implementing an AI strategy that aligns with your firm’s goals.
What is an AI strategy in accounting?
“I would strongly encourage accountants to have AI as part of their future, just like I’d heavily encourage everyone to have the cloud as part of their future, if they’re not there already.
Accountants should ask themselves, ‘how are we going to support this? Are we going to build this ourselves? Are we going to go to the market and have a look at what’s cutting edge?’”
David Boyar, General Manager of ChangeGPS
Before jumping into tools or platforms, take the time to understand how AI can be applied within the accounting industry. Common applications currently include:
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Automated data entry
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Predictive analytics
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AI-powered tax preparation and compliance checks
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AI agents to assist with client communication
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Writing client letters
Understanding what you’d use AI for is a helpful starting point. From here, it’s about ensuring that it works in a way that aligns to your business goals and objectives.
This is where an AI strategy comes in. The strategy you would develop for your firm is a high-level plan that outlines AI use cases, develops solutions, addresses any potential risks or challenges and articulates the value that AI could bring to your firm.
The depth and detail you go into will vary depending on your firm’s size, goals and how well-versed you are with AI solutions. Regardless of this, defining your AI strategy is a great step to make sure your AI efforts have a purpose and a business alignment.
For a more holistic look at strategising for your accounting practice, read our article on a growth strategy for your firm.
Is my accounting firm ready for AI?
Not all firms are equally ready to implement AI. Assess your accounting firm’s current state to set a clear baseline.
You should also evaluate:
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Your current technology infrastructure: Do you have accounting practice management software, is it cloud-based? What integrations does it have?
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Your firm’s experience with AI to date: Have you experimented with AI accounting software or generative AI tools, such as ChatGPT, for accounting tasks?
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Data quality and accessibility: AI is only as good as the data it learns from. Are your data assets reliable and secure?
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Team mindset: Are your staff open to tech change, or is there resistance that needs to be overcome first?
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AI skills: As you begin formulating your strategy, review the core skills in your business to help you identify your AI maturity.
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Client expectations: Think about your target audience. What are your clients looking for in their service with you? For example, if they are looking for a faster service, AI tools could help you give them the answers much quicker.
Identifying use cases for your practice
Mapping out use cases for your practice based on your firm’s internal processes and operations can help you identify areas where AI can step in.
AI is at its strongest in accounting where it is automating manual tasks, generating new insights from practice data or enhancing human decision-making.
The main use cases you land on will further the strategic objectives of your firm, and you should prioritise those that you deem to be the highest value.
See how Access Evo could work for your practice
Selecting the right tools for your AI strategy
“The strategy that I think accountants might want to adapt is to go to all the big players and go out to the critical vendors that you’ve got in your mix and ask, “what do you have that’s coming down the pipeline that I need to be aware of?” From here, the decision criteria can become how they’re going to respond to this and question whether they want this to be part of their firm’s future.”
David Boyar, General Manager of ChangeGPS
The next generation of software for accountants is with integrated application suits that address the challenges of fragmented workflows and data silos that practices often face. AI is embedded into these applications; making it easy to surface actionable intelligence and drive productivity.
OpenAI systems on the other hand, can pose risks to confidentiality and data security when used by individuals who do not understand how these systems process information.
Additionally, you should consider:
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Local support and training
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Transparency of AI outputs
If you’re unsure where to start, reach out to vendors or industry bodies to find out more about the best-in-class AI accounting solutions that others are using.
Operationalising your AI strategy
At this stage, you’ll be ready to commit to a rollout plan for your AI approach. Continued stakeholder engagement is important through this phase, to ensure that everyone is aligned.
Technology adoption fails when staff feel threatened or confused. If you are facing resistance, there is several ways you can bring your team along for the journey:
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Explaining how AI will assist, but never replace them;
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Running internal training or workshops;
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Encouraging feedback and AI strategy iteration.
How to measure your AI strategy
Your AI strategy isn’t a one-and-done project. It should evolve as:
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New tools emerge
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Your accounting firm grows
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Your clients' needs change
Regularly track your analytics, tying them to strategic objectives or business KPI’s and quantifying the return on investment (ROI) brought about by implementing AI tools into your business.
You can also include qualitative measures such as employee satisfaction and cultural shifts to analyse how your firm is tracking from an AI maturity standpoint.
Reassessing your performance every 6 to 12 months is normally advised to see how you’re tracking.
Final thoughts
“Firms sit on gigabytes, terabytes of critical data. How do we get all that data in one place to update AI engines, so anything you want to do is made easier rather than connecting it piecemeal from all these silos? Can we have it in one place so that we can query it? How does a firm get this information now? It’s often expensive subscriptions, or it’s a lot of time spent searching a largely tough to search database on the ATO website.
Now, you can search it through Copilot, so anyone in your team can ask a question about firm policies, engagement letter requirements., whatever you can think of. You can basically create your own help desk inside your firm. Once it can work out the context of the question that it’s being asked, it’s pretty exciting”
David Boyar, General Manager of ChangeGPS
You don’t need to be working with a huge budget or an IT team. What you do need is the willingness to experiment with AI tools, and you can learn, and adapt.
By taking a strategic and incremental approach, your accounting firm can stay competitive, boost productivity, and provide better value to your clients.