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In an era where technology increasingly shapes business landscapes, Your Bottom Line (YBL), a virtual accounting firm based in Ontario, has emerged as a frontrunner in harnessing artificial intelligence (AI) to streamline operations. Chief Operating Officer Mike Libbey reveals that the firm’s journey with AI has transformed from an experimental phase to an operational necessity within just a year, fundamentally reshaping their approach to client services and internal processes.
The Evolution of AI in Accounting
Initially, YBL deployed AI for mundane tasks such as data entry and note-taking. However, as Libbey explains, the influence of AI now permeates every decision-making aspect of the firm. “It influences absolutely every part of every decision that we make,” he states. The firm has implemented AI tools to assist in client experiences, automate training sessions, and generate comprehensive meeting summaries that directly feed into their customer relationship management (CRM) systems.
Recently, Libbey took a significant step by developing a tax planning application using AI tools, showcasing the firm’s commitment to innovation. “We actually just rolled out a full tax planning app that I built from the ground up,” he shares.
Recognising the Impact
Last summer, YBL was recognised for its innovative use of AI by workflow management software Karbon. Upon conducting a thorough audit, the firm discovered impressive metrics: client onboarding times improved by approximately 25%, month-end closures quickened by 30%, and preparation time for tax planning scenarios was slashed by nearly 90%. Libbey anticipates that these efficiencies have since improved further, allowing senior staff to concentrate on advisory roles rather than administrative tasks.
In a firm that began as a two-person operation in a living room ten years ago, YBL now boasts a remote workforce of 33 across Canada. Libbey emphasises that during the hiring process, the firm prioritises candidates’ technological and AI expertise alongside traditional bookkeeping skills, underscoring the increasing importance of these competencies in the accounting sector.
The Shift Towards Human-Centric Practices
As automation progresses, the accounting profession is witnessing a shift away from repetitive number-crunching towards more strategic activities that require interpersonal skills. Melissa Robertson, principal for research and thought leadership at CPA Canada, notes that this transformation is an extension of existing automation trends rather than a sudden change. She points out that organisations had already begun using less sophisticated forms of AI before the significant advancements seen in late 2022.
Robertson believes that the enhanced efficiency brought by AI allows accountants to dedicate more time to meaningful interactions with clients. “It increases the amount of time they can spend with their clients or within the organisation, having good conversations, reviewing more data,” she explains. Despite concerns over potential job losses due to automation, Robertson is optimistic, suggesting that the complexities of modern business will always necessitate human oversight.
The Balance of AI and Human Expertise
Kelvin Gieck, managing director of Calgary-based advisory firm Twenty Eighty, echoes this sentiment, arguing that while AI can significantly reduce workloads, human verification remains crucial, especially in areas requiring precision like financial management. Gieck has developed a custom AI tool to assist in generating content, which has halved his workload, though he still dedicates time to refining the AI’s output.
As the industry continues to evolve, Gieck emphasises the increasing value of soft skills, including communication and critical thinking. “In the near term, it’s very human-centred – it’s all about the relationship,” he states. Understanding clients’ goals and effectively processing data to support them will be key to success in a technology-driven future.
Why it Matters
The integration of AI into accounting practices marks a significant shift in how firms operate and interact with clients. As technology continues to advance, it is imperative for professionals in the field to adapt, prioritising both technical skills and interpersonal abilities. This dual focus not only enhances efficiency but also fosters deeper client relationships, ultimately shaping the future of the profession. As firms like YBL demonstrate, the successful marriage of AI and human expertise could redefine industry standards and expectations.