A Top Technology Initiative Article – April 2025
Agentic AI is poised to significantly impact Public Accounting. Firms must adopt the right tools, governance strategies, and implementation approaches to successfully integrate Agentic AI into public accounting. Below, I outline specific AI tools available today and actionable steps for firms looking to embrace autonomous AI solutions.
- Read More: Experiences 2025 – Agentic AI – Part 1: Opportunity
- Read More: Experiences 2025 – AI Search
As a reminder, Agentic AI refers to artificial intelligence systems that operate autonomously and can perceive, reason, plan, and take action to pursue goals. These AI agents can interact dynamically with their environment, adapt to changes, and sometimes make decisions without direct human intervention. Brian Tankersley and I have discussed the integration of AI into products, including agents in the Accounting Technology Lab podcasts. Prepare now to incorporate AI Agents into your practice.
Implementing Agentic AI in Public Accounting: Tools & Strategies
To successfully integrate Agentic AI, accounting firms should take a structured approach to implementation:
Phase 1: Assessment & Strategy (0-3 Months)
- Identify automation gaps. Review current processes to determine where AI can create efficiencies (e.g., audit, bookkeeping, compliance).
- Select pilot AI tools. Start with AI platforms complementing existing systems (e.g., QuickBooks, Xero, Sage Intacct).
- Establish AI governance. Define policies on AI ethics, transparency, and data privacy.
Phase 2: Pilot Implementation (3-6 Months)
- Test AI on real use cases. Run limited AI automation trials in CAS, tax prep, or audit procedures.
- Monitor AI accuracy. Review AI-driven outputs to ensure compliance with AICPA and PCAOB standards.
- Adjust workflows. Modify firm processes to accommodate AI-driven efficiencies.
Phase 3: Full AI Integration (6-12 Months)
- Expand AI adoption. Roll out AI-driven automation across multiple client accounts.
- Train staff. Ensure accountants understand how to collaborate with AI agents rather than replace human judgment.
- Evaluate ROI. Track efficiency gains, cost savings, and client satisfaction.
Phase 4: Scaling & Optimization (12+ Months)
- Adopt advanced AI agents. Deploy AI-driven predictive analytics and autonomous advisory tools.
- Refine AI-human collaboration. Balance automation with human expertise in decision-making.
- Ensure compliance with AI regulations. Stay updated on AI-related laws and standards impacting accounting.
Key Benefits for Public Accounting Firms
Increased Efficiency
- Reduce manual data entry and reconciliation.
- Automate financial reporting, compliance checks, and transaction processing.
Stronger Risk & Fraud Detection
- AI can detect accounting anomalies in real-time.
- Continuous audit monitoring ensures better compliance with regulatory standards.
Improved Advisory Services
- AI-generated financial forecasts allow firms to provide proactive client insights.
- Accountants can shift from transactional tasks to strategic consulting.
Higher Client Satisfaction
- AI personalizes financial insights and automates compliance tracking.
- Clients receive faster, data-driven decision support.
Challenges And Solutions
| Challenge | Solution |
| AI Bias & Accuracy | Ensure AI models are trained on high-quality accounting data. Validate AI decisions with human oversight. |
| Regulatory Compliance | Adopt AI systems that comply with IRS, PCAOB, and AICPA standards. Conduct regular AI audits. |
| Cybersecurity Risks | Implement strong encryption and access controls to protect client financial data. |
| Change Resistance | Train accountants on how AI enhances their role rather than replacing them. |
Implementing Agentic AI in Public Accounting Firms: A Step-by-Step Guide
Agentic AI is an autonomous AI that can take initiative, make decisions, and execute accounting tasks with minimal human intervention. Unlike traditional AI tools that only assist accountants, Agentic AI can:
- Automate bookkeeping, audits, and compliance.
- Enhance tax planning with real-time updates.
- Detect fraud and financial anomalies instantly.
- Provide advisory insights using predictive analytics.
Why Public Accounting Firms Should Care
Public accounting firms face increasing client demands, compliance complexity, and competition. Agentic AI helps:
- Reduce time spent on manual tasks (data entry, reconciliations, audits).
- Improve financial accuracy & fraud detection through real-time AI monitoring.
- Enhance client service with personalized, proactive financial insights.
- Boost profitability by shifting accountants’ focus to advisory services.
Step 1: Assessing AI Readiness in Your Firm
Before implementing AI, firms should assess their current operations by asking these key questions:
- What are our most significant inefficiencies? (e.g., manual reconciliations, slow tax filings)
- Which processes could AI automate? (e.g., bookkeeping, compliance monitoring, audit workflows)
- Do we have the right tech stack? (e.g., cloud-based accounting software, integrated ERP)
- What are our compliance obligations? (e.g., AICPA, IRS, PCAOB requirements)
AI Readiness Checklist
- Accounting system integration (e.g., QuickBooks, Xero, Sage Intacct)
- Data security policies aligned with AI (GDPR, CCPA, IRS security requirements)
- Trained staff familiar with AI tools
- Clear AI implementation goals (automation, accuracy, compliance)
Step 2: Selecting AI Tools for Accounting Automation (AI Solutions by Use Case)
| Use Case | AI Tools | Function |
| Bookkeeping Automation | Botkeeper, Vic.ai, Dext | Automates reconciliations, transaction categorization |
| Audit & Risk Management | MindBridge AI, CaseWare IDEA | AI-driven fraud detection, real-time audit monitoring |
| Tax Compliance & Filing | Avalara, Thomson Reuters ONESOURCE | Automated tax calculations, real-time compliance checks |
| Financial Forecasting | Fathom AI, Syft Analytics | AI-driven forecasting, scenario planning |
| Client Advisory & AI CFOs | Relay AI, Bizview, 4ImpactData | AI-powered cash flow management, virtual CFO insights |
Best Practice: Before expanding, start with one AI tool in a specific workflow (e.g., reconciliations, tax prep).
Step 3: Implementing AI in Phases (AI Implementation Roadmap)
| Phase | Timeline | Key Actions |
| Phase 1: AI Pilot Testing | 0-3 Months | Select AI tool, integrate with existing software, test with sample data |
| Phase 2: AI Workflow Integration | 3-6 Months | Deploy AI into one core function (e.g., bookkeeping, tax automation) |
| Phase 3: AI Expansion & Optimization | 6-12 Months | Scale AI across multiple accounting functions |
| Phase 4: AI-driven Decision-Making | 12+ Months | Implement AI for predictive advisory, automated compliance |
Best Practice: Monitor AI accuracy before scaling. Ensure compliance with GAAP, AICPA, IRS, and PCAOB standards.
Step 4: Managing AI Governance, Compliance, and Security (Key AI Compliance Risks & Solutions)
| Risk | Solution |
| AI bias in financial decision-making | Train AI on high-quality, unbiased datasets |
| Data privacy violations | Ensure AI tools comply with GDPR, CCPA, and IRS regulations |
| Lack of auditability in AI decisions | Use explainable AI (XAI) to track AI-driven financial conclusions |
AI Security Best Practices
- Implement multi-factor authentication for AI tools
- Use AI audit logs to track AI decision-making
- Encrypt financial data processed by AI systems
Step 5: Training & Upskilling Staff for AI Adoption (Training Plan for AI-Enabled Accountants)
| Role | AI Training Focus |
| Bookkeepers | AI-driven transaction matching, reconciliation automation |
| Auditors | AI fraud detection, risk-based audit automation |
| Tax Professionals | AI-powered tax filing, compliance automation |
| Advisory Accountants | AI-driven financial forecasting, virtual CFO insights |
Best Practice: Train accountants on AI-human collaboration rather than full automation replacement.
Step 6: Measuring AI Success & Scaling AI Solutions (Key AI Performance Metrics)
| Metric | Measurement |
| Time Savings | Hours saved by AI in reconciliations, audits |
| Accuracy | Reduction in financial errors from AI automation |
| Compliance | AI adherence to IRS, PCAOB, and AICPA regulations |
| Client Satisfaction | Feedback on AI-driven financial insights |
Best Practice: Track AI ROI quarterly to measure efficiency gains and identify improvements.
Future Trends in Agentic AI for Public Accounting
What’s Next?
- Fully autonomous AI CFO assistants managing finances for clients
- AI-driven continuous audits replacing periodic audit cycles
- Blockchain-integrated AI for real-time, tamper-proof accounting
The AI-Driven Accounting Firm of the Future
Agentic AI is not replacing accountants, it is enhancing their capabilities. Firms that adopt AI early will gain a competitive advantage by improving efficiency, compliance, and client services.
Final Action Plan
- Select one AI tool and test it in a core workflow
- Train staff on AI integration and compliance
- Develop an AI governance framework to ensure ethical usage
- Measure AI success metrics and optimize AI workflows
Bottom Line:Why Firms Must Act Now
Public accounting is on the brink of a massive AI-driven transformation. Firms that invest in Agentic AI will now gain a competitive edge, providing clients with more efficient, data-driven, and strategic services. Key Takeaways:
- Start small with AI pilots in CAS, tax, and audits.
- Choose AI tools that integrate with existing software.
- Focus on AI-human collaboration, not replacement.
- Monitor compliance and cybersecurity risks proactively.
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