The Future of Bookkeeping and Accounting: Artificial Intelligence (AI) and its Impact on Small Business Accounting/Bookkeeping
Timothy Hollis 1/20/2026- There is no denying that Artificial Intelligence (AI) is changing how accountants, bookkeepers, and small businesses manage their financial workflows. While many late adopters are skeptical about AI’s ability to improve the efficiency of small business finance professionals, the benefits of the proper use of AI are undeniable. However, first it is important to define what AI is, what it is not, and dispel some common myths regarding the technology.
First, let’s define what specifically this article refers to when using the term AI, or artificial intelligence. According to a continuing education course offered by Intuit the company that offers software specifically tailored to small business accounting— QuickBooks, “… Artificial Intelligence is a broad term used to describe any technology that enables computers to perform tasks that normally require human intelligence.”[1] The technology itself is not new, some early examples include “computer-controlled” enemies or opponents found in video games that react to user inputs and, my personal favorite— showing my age, Clippy the Microsoft Word assistant that Microsoft launched back in 2000.
Despite the length of time AI has been around, with the first chat bot being created back in the 60’s, there are still many persistent myths or misunderstandings regarding how the technology functions and its capabilities. For example, machine learning is the most common method of achieving the human-like feel of many of today’s common chatbots— such as ChatGPT and Gemini. However, AI’s outputs are only as useful as the data provided by the user or outside sources. AI cannot replicate human consciousness or make complex decisions that require human intuition and advanced, non-systematic analysis. In layman’s terms, AI does not “think for itself,” instead it uses algorithms— or complicated mathematical formulas— to recognize patterns in data and make inferences using the recognized patterns found in the data. The second myth I think it is important to address is the myth that AI will replace accountants and bookkeepers completely. While it is true that AI can make small business finance professionals more efficient and able to complete repetitive tasks much more quickly, AI is not able to replicate what humans are able to do, namely exercise judgement, build trust, and deliver nuanced advice in complex situations (Intuit Inc., n.d.).
For example, incorrect usage, or overuse, of AI can lead finance professionals to the incorrect conclusions regarding a client’s financial data. Due to AI’s blind spots— it does not know what it does not know— AI may confidently suggest conclusions that are based on biased or incomplete information. This is where professional judgment, experience, and the concept “trust but verify” is paramount in providing quality, actionable insight to clients.
To wrap up, let us discuss how AI can, and should, be used by small business finance and accounting professionals to provide clients with valuable, accurate, and actionable insights derived from their financial statements. First, AI is a powerful tool for accounting professionals performing research or searching for authoritative guidance regarding how to classify or handle a specific transaction or report. For example, the American Institute of CPAs has created “… an artificial intelligence-enabled too, Josi, that provides secure, direct access to the AICPA’s professional standards, authoritative guidance, and related information.”[2] While many of these professional standards, especially regarding the accounting rules applicable to public entities, are not relevant to small businesses, this is a great example of how bookkeepers and accounting professionals can use AI as a search tool to find guidance that may be helpful in clearing up ambiguities regarding how to handle specific transactions. Personally, I’ve used this frequently by uploading .PDF copies of various authoritative sources and asked AI to provide verbatim the sections addressing the specific topic I’m looking for. While searching for the term manually is an option, AI can perform the same function much faster than I could do manually and provides the information in a digestible format that makes reviewing the information quick and easy. This is just one anecdotal example of how AI can be used to improve efficiency, which translates into more time spent working with clients on how to interact with and interpret their financial data. A second example is QuickBooks’ ability to match transactions (e.g. transactions found in the automatically synchronized bank feed with invoices sent to customers or sales receipts). By saving time matching these transactions accurately, I can quickly review the matches and post them, making bank reconciliation and financial statement generation much easier during the period close process.
I hope this short article provides you, the reader, with helpful information regarding how AI can be useful in managing your small business’ bookkeeping and accounting functions. If you’d like to find out more about how AI can be leveraged to enhance your business’ accounting and bookkeeping workflow, please consider reaching out to me at Timothy.Hollis@hollis-bookkeeping.com or through the contact form provided on our website, www.hollis-bookkeeping.com/contact for a free consultation to see if working with us may benefit your small business. I’ve included some additional, helpful resources for those interested in further review of the topic— AI’s Impact on Small Business Bookkeeping and Accounting Professionals. Thanks for reading and please share if you found this information helpful!
Why Should You Trust me with Your Business’ Books?
Possessing over seven, almost 8, combined years of experience serving in roles such as Staff Accountant, Grant Accountant, Assistant Controller, and Senior Financial Analyst, as well as having been awarded a Bachelor of Business Administration and a Master of Business Administration- accounting minor, I possess the experience and educational background to help your small business thrive. My educational background consists of coursework specifically focused on data-driven decision making for businesses and advanced accounting courses— giving you peace of mind that you’re in good hands.
Helpful References for Further Research
Roessner, J. J. (2025, November 1). A new frontier: CPAs as AI system evaluators. Journal of Accountancy. https://www.journalofaccountancy.com/issues/2025/nov/a-new-frontier-cpas-as-ai-system-evaluators/
Association of International Certified Professional Accountants. (2025, October 27). GenAI research tool offers information and insights from AICPA’s professional library. AICPA & CIMA. https://www.aicpa-cima.com/news/article/genai-research-tool-offers-information-and-insights-from-aicpas-professional
Teneva, I. (2025, August 6). AI in accounting and finance: Navigating rapid change. AICPA & CIMA Insights Blog. https://www.aicpa-cima.com/professional-insights/article/ai-in-accounting-and-finance-navigating-rapid-change
Duong, Q. “S.” (2024, January 29). The impact of artificial intelligence on accounting and finance. Institute of Management Accountants (IMA). https://www.imanet.org/research-publications/ima-reports/the-impact-of-artificial-intelligence-on-accounting-and-finance
Institute of Management Accountants. (n.d.). AI best practices for management accountants. Strategic Finance (IMA Today). https://www.imatoday.org/courses/ai-best-practices-for-management-accountants
Intuit Inc. (2025, December 12). The latest innovations in QuickBooks on the Intuit platform. QuickBooks Product Updates. https://quickbooks.intuit.com/r/product-update/ai-agents-innovation/
Intuit Inc. (n.d.). AI and accounting: How will it change the industry? QuickBooks (Accountants & Bookkeepers). https://quickbooks.intuit.com/au/blog/accountants-and-bookkeepers/accounting-ai/
Holmes, A. F., & Douglass, A. (2022). Artificial intelligence: Reshaping the accounting profession and the disruption to accounting education. Journal of Emerging Technologies in Accounting, 19(1), 53–68. https://doi.org/10.2308/JETA-2020-054 (Open-access landing page) https://digitalcommons.trinity.edu/busadmin_faculty/192/
Stancu, M. S., & Duțescu, A. (2021). The impact of artificial intelligence on the accounting profession, a literature’s assessment. In Proceedings of the 15th International Conference on Business Excellence (pp. 749–758). https://doi.org/10.2478/picbe-2021-0070 (Open PDF) https://reference-global.com/pdf/10.2478/picbe-2021-0070
Azman, N., Mohamed, A., & Jamil, A. (2021). Artificial intelligence in automated bookkeeping: A value-added function for small and medium enterprises. JOIV: International Journal on Informatics Visualization, 5(3), 224–230. https://doi.org/10.30630/joiv.5.3.669 (Journal landing page) https://joiv.org/index.php/joiv/article/view/669
[1] Intuit Inc. (n.d.). *Understanding AI* (Intuit ProAdvisor Learning Academy course). https://quickbooks.intuit.com/accountants/training-certification/learning-academy/
[2] Association of International Certified Professional Accountants. (2025, October 27). GenAI research tool offers information and insights from AICPA’s professional library. AICPA & CIMA. https://www.aicpa-cima.com/news/article/genai-research-tool-offers-information-and-insights-from-aicpas-professional
