Today, lean teams can harness AI to automate routine tasks, streamline client communication, and improve reporting accuracy. It is transforming how firms manage their practices and deliver value.
Here are a few observations of how AI is reshaping day-to-day management for small practices and why now is the time to embrace it.
One of the most immediate benefits of AI is its ability to take over repetitive, time-consuming tasks. Document sorting, data extraction from scanned forms, and even basic bookkeeping entries can now be handled by AI-powered tools. For example, some AI-driven platforms use machine learning to organize tax documents and populate returns with minimal human input.
This automation doesn’t just save time; it frees up staff to focus on higher-value services like tax planning, advisory work, and client relationship building.
AI is also transforming how firms communicate with clients. Chatbots and virtual assistants can handle routine inquiries, schedule appointments, and send reminders, reducing the administrative burden on staff. More advanced tools can even draft personalized emails or summarize client documents using natural language processing.
For firms juggling dozens of clients during peak season, these tools help maintain responsiveness without burning out the team. Many AI solutions integrate with existing customer relationship management and email platforms, so implementation is often seamless.
Mistakes in data entry or reporting can be costly – not just financially, but also in terms of client trust. AI tools trained on accounting standards and tax regulations can flag inconsistencies, suggest corrections, and even generate reports with built-in validation checks.
This is especially valuable for firms managing high-volume returns or complex client portfolios. AI-powered analytics platforms can also bring to light trends, forecast cash flow, and identify potential compliance risks, giving firms a proactive edge.
Growth doesn’t always require adding to your headcount. With AI, small firms can scale their operations without expanding their payroll. Automated workflows, intelligent document management, and predictive analytics allow firms to handle more clients efficiently.
This is particularly important in today’s labor market, where skilled accounting professionals are in short supply. AI helps bridge the gap, allowing firms to grow sustainably while maintaining quality and compliance.
For firms ready to explore AI, here are a few practical steps:
AI-driven technology is a true game changer for small accounting firms. They can now compete at scale, deliver faster service, and operate with greater precision – all without sacrificing the personal touch. By embracing AI, lean teams can transform their practice management and position themselves for long-term success in a rapidly changing industry.
Malachi Hopoate is manager of product education at Canopy, a provider of accounting practice management software in South Jordan, Utah.
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Statements of fact and opinion are the author's responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.