Artificial intelligence (AI) is leveling the playing field in accounting services, giving small and medium-sized business (SMB) owners access to robust tools once reserved for large enterprises.

Traditional client accounting services — which include labor-intensive, often manual tasks like bookkeeping, payroll and financial reporting — are being modernized by automation and data analytics. For example, Intuit on Tuesday (July 22) debuted AI agents in its Enterprise Suite that can handle routine accounting tasks, among other things.

“AI will amplify the value of accounting services for SMBs,” said Ariege Misherghi, senior vice president and general manager of accounts payable, accounts receivable and accountant channel at Bill.

“Once routine tasks like data extraction and invoice processing are automated, accountants will be freed up to focus on higher value advisory work that only humans can provide: applying judgement, guiding SMBs through complex financial decisions and delivering strategic insights,” Misherghi told PYMNTS.

For SMBs, AI is leveling the playing field, Misherghi said. In Bill’s survey of 1,000 SMB executives, 67% said AI would improve financial forecasting and planning, while 65% said it would help with cost management.

But only 21% are using AI tools to manage accounting and financial operations, according to a separate small business survey from Verizon.

Lisa Huang, senior vice president of product management at Xero, said many accounting systems remain manual even as external pressures mount for the industry.

“The accounting and bookkeeping industry is at a turning point,” Huang told PYMNTS. “Many professionals are overworked and under-resourced, facing increasing client demand and rising pressure from evolving regulatory and compliance requirements.”

“At the same time, the profession is undergoing a generational shift, with more practitioners exiting the workforce than entering it, creating a looming talent shortage,” Huang said. “Despite all this, the systems many accountants rely on remain heavily manual, reducing their capacity to offer high-value advisory services and strategic guidance to clients.”