We’ve seen a lot of buzz around accounting and AI, especially over the last couple of years. In fact, our team started writing about it over five years ago. But a lot has changed over the years. Heck, a lot has changed within the last year.
But two things that really have me thinking are these two stats from our 2024 Accounting Firm Technology Survey:
- 73% of respondents said they’re not currently using AI in any way.
- 35% reported having no plans to incorporate AI.
We discovered that a lack of understanding about AI and how it would benefit their business prevented any sort of AI adoption. We can understand that. The less you know about something, the more nervous you are about it. Personally, I think that’s a healthy outlook, especially in the accounting profession, where data and client information can be a goldmine in the wrong hands.
There’s also the fear that AI will replace accountants. In a recent survey, Karbon found that 31% of respondents were concerned that AI would replace them. The fear is valid, but that’s unlikely to happen. Instead, we’ll likely see some version of the already-tired adage, you won’t be replaced by AI, but by someone using AI.
To help quell the trepidation about accounting and AI, we decided to use AI to run a day in our mock firm. So, here it is: A general overview of what typical tasks might look like for an accountant at a small accounting firm (around 1-4 employees).
How accounting and AI fit into a typical firm’s daily schedule
Considering that an accountant’s day-to-day life varies greatly throughout the year (especially during tax season) and that their specialties and client demands may differ, here’s what a typical day may look like and how AI can help.
The task: Check and respond to emails
Let’s look at the possible timesavings when it comes to checking and responding to emails.
- Objective: Review and reply to emails for internal communications or client requests.
- Time spent: An average of four hours per day or 24 hours per week.
- How AI can help: AI can sort emails into categories based on importance or urgency. It also allows you to create quick response templates for common client questions, prioritizing communications with clients and your team.
- AI tools to consider:
- Rightworks Spark. Purpose-built for the accounting profession, Spark allows you to quickly compose a wide variety of emails using a pre-built prompt/workflow called Sparks (i.e., “Write or respond to an email”). Need a proposal for services? Check. Have a client asking about a new tax law? Spark can compose an email in seconds.
- Superhuman. Compatible with Google and Microsoft Outlook, Superhuman lets you split your inbox to organize emails into categories. Users can also snooze emails, set up follow-up reminders and instantly unsubscribe from spam and unwanted newsletters.
- Texta.ai. Easily integrate your email platform with Texta.ai and start sorting emails, creating templates, sending automated responses and benefitting from intelligent suggestions.
Possible AI ROI
Email response times can vary significantly based on individual typing speed, the complexity of the topic and familiarity with the subject matter. Simple responses might be quick to draft, but more complex responses require more time.
AI tools have shown promising results in reducing email writing time. Email assistants, like Superhuman, claim to help users generate email drafts in just one to three minutes, saving the average professional up to one hour a day.
While the exact time savings may vary based on individual workflows and email volume, these AI tools have the potential to save users significant time each day.
The task: Team and client meetings
Let’s see where we could possibly save time with meetings.
- Objective: Attend or lead meetings with staff to discuss and prioritize ongoing projects. Meet with clients to discuss financial statements, tax plans or other financial concerns in person, over the phone or via video meeting.
- Time spent: Including prep work and creating a summary, accountants probably spend about an hour a day, on average, or five hours a week in staff meetings. Client meetings can be one to three hours per day or five to 15 hours per week.
- How AI can help: AI tools can record and transcribe meetings, as well as create summaries of meetings and action items.
- AI tools to consider:
- OtterPilot™. By connecting OtterPilot to your Google or Outlook calendar, you can auto-join Zoom, Microsoft Teams or Google Meet to take and share meeting notes, including slides being presented. After the meeting, an automated summary with action items and hyperlinks to the meeting notes is sent.
- Spark. Take a meeting transcript and enter it into Spark, asking it to create a summary of the meeting, including presenters and key points. This summary can be copied or downloaded and easily shared.
- Possible AI ROI: 91% of leaders say AI saves them 30 minutes or more a day. This suggests a potential timesavings of about 2.5 hours a week, though actual savings will depend on your meeting frequency, preparation needs and current documentation processes.
The task: Tax planning and preparation
This task could definitely benefit from timesavings. Let’s get into it.
- Objective: Prepare and review tax returns for individuals or businesses. This can include gathering necessary documentation, updating client files and ensuring tax law compliance.
- Time spent: Considering the scale of complexity when it comes to tax returns, we’ll stick with an average of 1.5 hours per return, but possibly longer if you’re manually gathering information.
- How AI can help: This is where accounting and AI really come together. AI can gather and organize tax documents from multiple sources. And it can scan tax returns for errors or inconsistencies, flagging them for further review.
- AI tools to consider:
- 1040SCAN. Use automated scan-and-organize technology to assemble tax workpapers. No data entry required.
- SmartVault Accounting Pro. Easily request client source documents and send reminders to keep timelines on track. Workflows and templates allow documents to be uploaded and automatically filed in their proper location.
- Possible AI ROI: Research shows that accountants can save hours or days during tax season using AI tools. The exact number is unknown, as tax returns can vary in complexity.
The task: Bookkeeping services
Let’s see how AI can help with bookkeeping services.
- Objective: Perform bookkeeping tasks, such as reconciling bank statements, updating ledgers and ensuring the accuracy of all financial transactions.
- Time spent: About three hours per week per client.
- How AI can help: Accounting and AI tools can automatically reconcile bank statements and identify discrepancies faster. AI can also limit data entry by inputting financial transactions into ledgers accurately.
- AI tools to consider:
- Docyt. Docyt’s AI tool categorizes transactions in real time and compares them to bank feed information for continuous reconciliation.
- Nanonets. Using AI and optical character recognition (OCR), data is automatically extracted from bank statements, invoices and receipts, and transactions can be reconciled across different systems.
- Possible AI ROI: Implementing AI for bookkeeping/data entry can save up to 30 minutes per day or 2.5 hours per week.
The task: Advisory services
Where does AI fit in with advisory services? You’d be surprised.
- Objective: Provide strategic advice to clients on topics like cash flow management, budgeting and financial planning.
- Time spent: Depending on client needs, the time spent on advisory services can range from a few hours to several days per week.
- How AI can help: This is where accounting and AI really shine together. AI can generate financial forecasts based on historical data. And it can evaluate the financial health of a business by identifying potential risks and providing actionable insights.
- AI tools to consider:
- Spark. Get your questions answered quickly with the help of predefined (e.g., firm owner, client relations, HR, marketing) or create-your-own assistants and sparks (i.e., ready-to-use prompts). See an example here.
- Rightworks Connect. Uncover opportunities where you can optimize cash flow with existing clients, and gain insights into their financial health.
- Possible AI ROI: AI can help firms save an estimated 10-20 hours per week.
Potential timesavings in accounting with AI
If you were to start incorporating AI into your accounting firm, you’d see an increase in efficiency in several ways. While we covered the main tasks performed by an accounting firm on a typical day (not including busy season), there are still more tasks that AI can shave time from.
In a recent study by Thomson Reuters, accounting professionals predict AI will save them 12 hours a week in the next five years—and four hours in the next year alone. But if you’re still on the fence about accounting and AI, maybe you’ll consider it by seeing a clear view of the timesavings that come with it.
Note: The following figures represent potential timesavings based on industry observations and early adopter experiences. Your actual results may vary significantly based on:
- Your current workflow efficiency.
- The complexity of your client base.
- Your firm’s size and structure.
- Your team’s technology adoption rate.
- Individual work patterns and processes.
Here’s how:
| Task | Average manual time | AI assistance | Average AI timesavings |
| Email management | 24 hours/week | Automated sorting, template responses | 5 hours/week |
| Team meetings | 5 hours/week | Scheduling assistance, transcription services | 2.5 hours/week |
| Client meetings | 10 hours/week | Scheduling assistance, transcription services | 2.5 hours/week |
| Tax preparation | 1.5 hours/return | Document collection, error checking | Can save hours or days per week depending on complexity |
| Bookkeeping | 3 hours per week/client | Data entry, automated reconciliation | 2.5 hours/week |
| Advisory services | Varies based on client needs | Financial projections, risk management | 10-20 hours/week |
| Payroll processing | Varies | Payroll calculations, compliance monitoring | 2.5-5 hours/week |
| Report preparation | 10-20 hours/week | Automated report generation, custom dashboards | 5-10 hours/week |
Staffing benefits from AI, too
We’ve talked a lot about how your firm could benefit from AI, as it relates to accounting and tax-specific tasks. However, it can also support other functions of your business, like staffing. From creating job descriptions to onboarding, AI can help streamline your hiring process.
- Job descriptions. Lean on AI to help generate compelling and accurate job descriptions based on input criteria, such as job title, required skills and firm culture.
- Interview questions. AI can help create interview questions tailored to the job requirements and incorporate a candidate’s background.
- Offer letters. Use AI to create personalized offer letters that include standard firm policies.
- Onboarding plans. AI can design personalized onboarding plans for new hires based on their role, experience and specific training needs.
Accounting + AI = a winning combination
As accountants, you know that time is finite. You deserve a healthy work-life balance just as much as anyone else. And AI can help with that. While the exact time savings will vary based on your firm’s specific circumstances and current efficiency levels, the potential for meaningful improvement exists.
Remember: AI is not going to replace you. It’ll empower you to focus on what truly matters—your people.
When AI handles the mundane tasks, you and your staff can achieve work-life balance while saving time, streamlining processes and staying ahead of the competition. Let AI balance the books so you can balance your life.
Start small. Give AI a chance by starting with Rightworks Spark. Sign up today!
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