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TWR Podcast Episode 94: Exploring the Future of Accounting with David Hartley

Matt Raebel
Posted by Matt Raebel on Sep 4, 2024 3:00:52 PM

Discourse about new tech innovations always includes some degree of scrutiny. While some may find it tiresome, asking questions like, “Will this new innovation be a game-changer or cause more problems than it’s worth?” is not an ancillary part of driving innovation—it’s part of the process of determining how it should best fit within our lives.

Few new tech products in recent memory have been as hot a discussion topic as artificial intelligence (AI). The question is, how will applying AI in accounting change the industry?

Heather Satterley recently sat down with David Hartley, CPA and leader of the advisory practice at Anders CPA + Advisors, on The Woodard Report Podcast (sponsored by RightWorks). Together, they took the opportunity to discuss the future of not just AI in accounting, but its relationship with technology in general.

Hartley’s early career and passion for technology

Hartley talked about how he channeled his love for cutting-edge tech selling IBM computers while attending college at Southern Illinois University, Carbondale. “I’ve always been a technologist,” he said.

He later began a position as a CPA at a Big Six accounting firm (now Big Four), later transitioning into a technology leadership role for a public company. His experience as both a service provider and a client shaped his understanding of the complexities of adopting new technologies in accounting. Currently, Hartley leads Anders CPA + Advisors, a 400-person firm based in St. Louis, MO, where he heads five advisory service lines.

The challenges of implementing new technology

During the episode, Hartley emphasized how, although technology is increasingly vital for accounting professionals, implementing new tech solutions with agility can be challenging.

He acknowledged that implementing change can be easier in smaller firms than in larger ones due to the interconnected nature of departments in bigger organizations, creating a “domino effect” that requires months of work adjusting a company’s infrastructure. As Satterley put it, “It’s easier to turn a small ship than it is a cruise liner.”

Hartley agreed but added that some modern firms with more employees utilize a decentralized structure that makes implementing tech solutions take a comparable amount of time to smaller firms.

“Similar to what you see in smaller organizations, I'd say that we have things within the firm that can also go by that timeline,” he said.

AI adoption in accounting

A common fear surrounding the rise of AI is its threat to human jobs. The fear is not unfounded—in 2024, Fortune and Bloomberg reported that thousands of U.S. employees were laid off due to AI-related business decisions in Q1 alone. This, combined with the tendency for AI tools to convey inaccurate information, has caused many to question its usefulness.

“The one thing I would say is people have to remember that AI is the worst today that it will ever be,” Hartley said. He suggested that accounting AI tools should be approached as means to enhance productivity, not a replacement for human expertise. He also recommended that firms experiment with accounting AI tools in low-stakes environments to get comfortable with the technology and reduce fear.

Satterley agreed, adding that firms must balance embracing innovation while ensuring quality controls via thorough validation by human experts.

Embracing a leadership mindset

Hartley stressed that accountants at all stages of their careers must take an active role in shaping the future of the profession—whether that means helping shape how artificial intelligence fits in accounting practices, or any other concern for professionals in the industry.

“I think as a leader, our responsibilities are to take that genuine interest in our team members, understand what their definition of success is, learn about them as a person, and then help develop that,” he said. “And I think that's all of our responsibilities. And if we do that and start thinking differently about the profession, I think in the end, it's going to be a much better outcome. I think we're going to get better people into the profession.”

To hear the rest of this discussion, listen to The Woodard Report Podcast on your favorite streaming platform!

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Topics: Modern Practice, Business Technology, Podcast, Artificial Intelligence


 

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