In episode 160 of the Woodard Report Podcast, Joe Woodard and Heather Satterley talk through what AI is changing in accounting and what is still firmly in the hands of practitioners. They start with two updates that set the tone for the conversation, the launch of the AI Native Accounting Foundation and the rapid shutdown of Botkeeper.
From there, they move from headlines to what firms can actually do with the information. The discussion touches on how services may need to evolve beyond simply working faster, why quality control becomes even more important as automation expands, and why human judgment and strong advisory skills are still what separate great firms from the rest.
Heather opens with a new initiative in the AI space: “Our good friend Kacee Johnson has teamed up with Bebe Kim, the former CEO of Basis, and launched the AI Native Accounting Foundation.” She frames it as a place for firms to learn publicly and realistically, explaining that it was created to support “these honest, hard conversations about AI and really its place within the industry.”
She also highlights that the “first award ceremony for this new organization is going to be where? Scaling New Heights.”
Joe then shifts to major breaking news: “Botkeeper has announced they're shutting down and they're doing it rather quickly.” He describes it as “pretty much a shutdown,” and notes he is avoiding speculation, saying, “I don't like to guess.”
Instead, Joe pulls back to the larger pattern and the wave of early tech-driven bookkeeping companies that have disappeared: “ScaleFactor, gone. You know, Bench, gone. Botkeeper, gone.” He connects that to a familiar line he has shared before: “If you're one step ahead, you're a leader. Two steps ahead, you're a visionary. Three steps ahead, you're a martyr.”
From there, Joe points to what he sees as the next phase, including both newer native general ledger platforms and the firms and tools that will be present at Scaling New Heights.
Heather adds a key distinction about why client service has not been easily replaced with AI: “accountants that serve clients, we're a special breed,” she says, pointing to “the heart and soul that we put into servicing our clients.”
Joe agrees, but pushes the conversation further. He cautions that it is not enough to assume speed gains will protect firms: “If you think that you can keep doing the same kind of work you're doing now and just do it faster with AI, no, that is not the future.”
He argues that the work itself will shift and that firms need real skill development in new areas: “now it's time to go out and get the financial advisory skills, the tax advisory skills, controllership services skills that you need to truly provide that value.”
Joe then emphasizes that even advisory services require something AI cannot replicate on its own: “If you don't add wisdom and judgment, right? And then I'm going to go ahead and use your word mixed in with the soul of the human… then you're going to just end up with smarter bots doing tax advisory and financial advisory.”
His conclusion is direct: “So the way to stay out ahead of these is to be intensely human.”
Heather’s quote comes from Victoria: “What of worth has ever been achieved that did not inspire fear?” She uses it to reinforce the idea that innovation requires risk, especially when the industry is evolving quickly.
Joe counters with a quote from Landman: “She chose the shortcut, which is always the longest road.” He applies it directly to firm operations, warning against rushed decisions, especially in hiring and process shortcuts, and closes the thought with a practical reminder: “Put the quality assurance loops in everything you do. The review cycle.”
Heather’s excellent thing is drawn from a Harvard Business Review piece about a new role she sees emerging, describing “the role of an AI agent manager.” In her summary, the role centers on monitoring “the safety, the accuracy, and the business alignment of the agent's work.” She connects it back to accounting firm operations and predicts firms will need someone internally to oversee agent-driven work.
Joe’s takeaway is broader and aimed at software economics. He argues “the SaaS model as a revenue model is being disrupted,” because AI reduces the need for as many human logins and seats. In his view, pricing will shift toward results: “We're paying for the outcomes that are generated by the bots.”
Heather agrees and ties it to how firms should think about their own pricing models, warning that current subscription pricing will not stay static: “That's right. And it won't be like that forever.”
Their two truths and a lie segment lands on two themes: Valentine’s Day history and AI intersecting the profession. Heather’s Valentine’s Day round ends with a correction based on the show’s research: “the earliest known Valentine's Day message dates to 1415 when Charles Duke of Orleans wrote a love poem to his wife while in the Tower of London.”
Joe’s AI themed round ends with Heather identifying the lie correctly, rejecting the idea that CPA candidates can use AI tools during the exam.
Coach Kim Petro spotlights Julie Healy and her team at Clear Cents Bookkeeping. The key shift, Kim explains, is that Julie stopped defining her niche “purely by industry” and instead focused on mindset, working with clients “who are ready to make positive changes in their business.”
Kim describes Julie’s best clients as “curious, engaged, and willing to analyze their numbers instead of avoiding them.” The impact shows up in pricing alignment too: “there is no squabble over pricing because they know they're getting exactly what they want.”
Joe and Heather tie it back to the earlier discussion of humanity and client relationships, with Joe noting, “It should be with people you enjoy working with.”
Heather picks the week’s top performing article: “My daughter went to a TurboTax store and here's what's happened.” Joe explains the premise: he sent his daughter into the TurboTax flagship location in SoHo with almost no preparation: “let her walk in cold.”
He also clarifies the independence of the experiment: “Intuit didn't have any advanced knowledge that she was coming,” and “it's completely independent.” Joe closes with a tease that matches the show’s tone: “if you're interested to know if it was a positive or negative experience, well, you're going to have to read the article.”
This episode underscores a simple point. AI will change how work gets done, but it will not replace the need for judgment, context, and client trust. The firms that come out ahead will pair smarter tools with stronger advisory skills, tighter review habits, and a deliberate focus on the human side of service.
🎧 Listen to the full episode at woodard.com/podcast.
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This article was written with the assistance of AI and edited by a human.