Artificial intelligence (AI) is anticipated to greatly impact the accounting profession, although it is not yet a top strategy among firms identifying as innovators or early adopters, as per Wolters Kluwer Tax & Accounting’s Future Ready Accountant Report.
Only 27% of tax and accounting professionals currently use Generative AI, with another 22% planning to adopt it within the next year.
Despite AI’s potential benefits such as task automation and cost reduction, concerns about data security, accuracy, and implementation costs remain.
Only 25% of firms have established AI policies, but those with policies report a more positive attitude towards AI (84%) compared to those without (44%).
The report also highlighted the benefits of technology integration for accounting firms, revealing that 63% of firms with at least 75% technology integration have registered “significant” revenue growth.
Technology is becoming increasingly accessible to firms of all sizes, enabling the effective use of “advanced” tools.
With 62% of firms using cloud technology, 57% achieving significant tech integration, and 74% utilising over half of their tech capabilities, the industry is making notable progress, the report said.
Regulatory complexity also continues to be a significant challenge, cited by 41% of firms as their top issue.
Micro firms feel this most acutely (52%), while larger firms cited it as their third top concern.
To adapt, 39% of firms are investing in staff training, and 36% plan to use AI for tax, accounting, and audit research.
The survey also highlights a focus on attracting and retaining talent.
Firms aim to meet increasing client demands for personalised service by rethinking talent strategies, fostering a positive culture, and improving work-life balance.
Talent shortages pose challenges in meeting client demands and maintaining a healthy work-life balance, with 45% of firms identifying this as the most significant talent-related issue.
To address talent concerns, firms are offering flexible work arrangements (37%), more professional development (35%), and enhancing company culture (32%). Technology also plays a crucial role, creating capacity for more engaging work (61%), shifting the industry’s perception (52%), and attracting tech-savvy professionals (35%).
Accounting firms are advancing their use of technology to streamline operations, improve client engagement, and offer more flexible work experiences.
More than half of accounting professionals (57%) believe AI advances will impact the profession, though adoption remains in its early stages.
Companies intend to enhance their digital capabilities by expanding document collection (33%), automating workflows (26%), and strengthening cybersecurity and data privacy protections (20%).
The industry is evolving, offering strategic guidance and insights beyond traditional services.
The report says technology and data analytics are crucial to this transition, enabling firms to provide deeper insights and precise forecasts.
Currently, 83% of firms offer advisory services as a core service (49%) or upon request (34%), with 20% planning further expansion.
Wolters Kluwer Tax & Accounting CEO Jason Marx said: “Evolving client needs and increasingly complex regulations are converging, driving the need for more strategic insights, bespoke advisory services, and enhanced value in client relationships.
“Moreover, the talent crunch continues to challenge firms to foster environments that attract, develop, and retain the best minds in the field. At the same time, the rapid evolution of advanced technology is levelling the playing field, giving firms of all sizes access to transformative operational and analytics capabilities.
“Firms willing to adapt and embrace these new tools and technologies will be able to streamline tasks, analyse data, and discover new avenues for efficiency, innovation, and revenue growth.”
