How AI & the Accounting Industry Might Be Failing Small Businesses

I just finished reading an article titled “Death, Taxes, and A.I.: How Generative AI Will Change Accounting.” Yes, AI is going to play a key role in the development and advancement of the accounting industry, but something is missing from the narrative.??

For those unfamiliar with what is happening in today’s accounting industry, the accounting industry has been “burning at both ends of the candle” for almost a decade.?

• Since 2020, 75% of the certified accountants in the U.S. have reached retirement age, marking the end of an era of slow innovation and technological resistance.?
• The number of U.S. accounting graduates dropped 7.4% in the 2021 to 2022 year, the largest drop in a single year since at least 1994-95, and fewer and fewer new college students are selecting accounting as their degree.??

While a handful of CPA firms, investors, and software companies focus on technology-driven opportunities like A.I., very few people focus on the bigger opportunity, helping small business owners.?

A quick reminder that in the United States, small businesses are considered the bloodline of our economy. Yes, taxes are a part of life (and death), but let’s get real for a minute: business owners should be much more concerned about cash flow than taxes.??

Most business owners have such a low-level understanding of accounting that they shy away from even looking at their financial data, making it even more challenging to understand their business’ finances and make better decisions. Unfortunately, for most business owners and their CPAs, taxes are where the accounting world starts and stops.??

At a time when small business owners need more help understanding cash flow, the entire accounting industry seems to have overlooked the paying customers. The real challenge regarding the CPA shortage is that small business owners lose out on profitability, fall short on growth and savings strategies, and, as a result, often take home less money. So, what can a small business owner do instead??

A growing number of small businesses across the country are turning to a growing, 6-year-old start-up based in Philadelphia called Accounted4. With the combination of proactive bookkeeping services, one-on-one coaching, and proprietary technology that bolts right onto QuickBooks, Accounted4 clients are leaving behind the old-world model of tax-focused accounting for more confident cash flow control.?

Replacing tax-centric data with real-time, accurate cash flow data helps owners understand how much money they have and sets the stage for precise forecast projections. Accounted4’s low-cost virtual coaches then leverage the accurate financial data by educating and empowering owners to make smarter, more confident decisions.??

Accounted4 gives business owners a game-changing outcome that is unheard of within the traditional accounting model, as well as financial and mental clarity. To make the process easier for business owners, Accounted4 offers a free QuickBooks assessment for any business owner looking to understand the story their numbers tell and learn more about cash flow management.?

Click here to learn more about Accounted4 and to schedule your free QuickBooks assessment.