The Future of Accounting: AI, Human Connection and Innovation

In episode 195 of The Woodard Report Podcast, Joe Woodard is joined by Brad D. Messner, PhD, EA, Vice President and enrolled agent at Messner & Fox, LLC. Their discussion looks at the future of accounting through the lens of AI, changing client expectations, regulation, communication skills, and technology innovation.

The future of accounting

Brad expects accounting to change significantly over the next five years, but he does not expect the human role to disappear. Instead, he sees practices becoming more proactive and using AI to stay connected to client data throughout the year rather than relying primarily on periodic reporting.

That could allow accounting professionals to identify issues earlier, recognize new opportunities, and take a more active role in the client relationship.

Communication skills will matter more

Joe and Brad discussed how the profession has traditionally attracted people who are comfortable with technical, task-oriented work. Communication and relationship skills will become more important as more of that work becomes automated.

Brad said he is already seeing universities respond by adding more writing, communication, marketing, and sales skills to accounting programs. He also expects practices to create more specialized roles for professionals who are especially strong at communicating with clients.

Joe shared that he has also seen accounting students pair their studies with areas such as psychology and philosophy. They discussed how emotional intelligence, judgment, and the ability to understand what matters to a client could become a larger part of accounting work.

Watch Episode 195 here  

Regulation and credentialing in an AI era

The conversation also turned to the role regulation may play as AI becomes more deeply embedded in accounting.

Brad shared that he recently joined an AICPA committee focused on developing a framework for AI use and protecting client data. Joe and Brad discussed how future rules could place more limits around the work that AI is allowed to do and potentially increase the importance of professional credentials.

Bringing technology into the boardroom

Brad also shared some of the ideas behind his upcoming book on technology and leadership. He explained that organizations have traditionally treated technology decisions as separate from executive leadership, often leaving IT teams to implement new technology without enough strategic direction.

As AI changes quickly, Brad believes that separation will become harder to maintain. “There needs to be an elevation of somebody at that technological level into the boardroom,” Brad said.

Joe expanded on the role of leadership, explaining that executives need to be more involved in how technology is implemented, including developing the people and processes involved, rather than just evaluating the results afterward.

What accounting can learn from other industries

Brad offered a simple way to think about where accounting technology may be headed. He said, “If you want to see where accounting is going, look at any other industry.”

Accounting has historically relied on legacy systems and slower technology changes, partly because of regulation. Other industries, however, have invested heavily in user experience and tools that make it easier for customers to interact with businesses. Brad believes accounting practices will need to make similar investments.

They discussed how many clients are not necessarily frustrated because their accountant fails to respond, but more so because the process of working with the practice can feel difficult.

A different look at AI

Brad also shared a project he started while attending a conference. He's currently writing a satirical picture book for adults about a child who builds an AI and becomes friends with it while the technology gradually begins taking over the world.

He explained that the book uses humor to explore some of the bigger issues surrounding AI. Joe invited him to return to the podcast once the book is published to talk more about it.

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Thank you to our show sponsor, Digits!

Digits is the world's first agent general ledger accounting software that works for you. Designed for the AI era, Digits automates bookkeeping and month-end processes and shifts your team from data entry to review and advisory. Visit digits.com to get started today.

This article was written with the assistance of AI and edited by a human.