How severe is AI’s growing impact in accounting, the positive changes it brings and its shortfalls in service?
This article is by Xolo, which combines human support and AI tooling to serve the accounting needs of thousands of Estonian e-resident businesses.
Artificial Intelligence (AI) has grown rapidly over the past few years. Businesses across industries are finding new and unique ways to integrate artificial learning into their services.
Does that mean your next accountant will be a robot?
Likely not the case, but AI might still be a fresh addition to your accountant’s or accounting platform’s toolbox.
A great accountant knows local laws, can solve complex problems and advise global entrepreneurs. The hybrid accountant, custom-fit with their own AI model, may do all that and more, for less. But that’s not replacing the human with a metallic Account-bot 2000. That’s your accountant working smarter.
But why not replace all accounting work with artificial intelligence? Because automation alone isn’t enough.
Let’s unpack how accounting is becoming a new hybrid service model and what solopreneurs and digital founders need from their accounting providers in the age of AI.
Accounting is as old as time, with practices dating back as far as money itself has existed.
Technology has always played a vastly important role in improving accounting, from the abacus to the sliding counter to Texas Instruments’ first digital calculator in 1967.
Today’s AI drive may appear different, but in many ways it’s exactly the same. Choi Xie says in their 2025 study on how AI is here to do the ‘boring’ side of accounting:
Choi Xie, Assistant Professor of Accounting at MIT“In order to support each client, accountants have to pull information, connect bank transactions, track vendors - a lot of prework. AI assists with that setup, which means they can serve more clients, more efficiently.”
And it’s true. AI has been adopted by accounting service providers to solve problems like:
It may mean that your bookkeeper can spend fewer billable hours on tasks that can be automated. That’s time saved, or spent on high-impact planning, consulting or advising.
Much of the AI bubble has been fairly subject to bursting. “AI” itself has been almost universally slapped onto 100s of products and programs just to see if it sticks and in most cases, it hasn’t.
Accounting service providers deal with global, local, and personal situations, all of which change constantly. Customers in this industry cannot afford a mistake through automation; they can’t rely on something untrustworthy.
Bookkeepers, even in the modern age of ‘Everything AI, all the time, all at once,’ remain in an eye contact and firm handshake industry.
As Thomson Reuters shows when discussing the challenges of implementing AI in accounting,
“Misunderstandings about what AI can and cannot do can lead to unrealistic expectations and, ultimately, dissatisfaction.”
To client and provider alike, money is at the core of every problem and solution. There’s little to no reason to remain with a provider who breaks your trust when it comes to money.
Why should you? AI isn’t worth the risk when it comes to context and faith, and any misunderstandings about how it may play a role in your bookkeeping won’t make it worth a shot.
If you asked AI to auto-generate a standard report and trained it to do so, you’ve saved a solid chunk of time without worry.
Modern accounting has discovered this balance. AI solutions are now being used to successfully automate repetitive tasks in accounting – a powerful solution to time-consuming tasks.
If you’re one of the 133,000+ e-residents with a borderless business or are thinking of being one, you’re likely to need an accounting provider.
As you, the founders, solopreneurs, and freelancers, navigate these local and international markets, you’ll discover a literal world of legal obligations. Optimising for efficiency and ensuring compliance are mission-critical to sustaining your business.
Unlike major corporations or medium enterprises, you likely don’t have a finance team for the big and the mundane. Trust in your tools and service providers becomes paramount to your success.
This new era’s AI and human accounting hybrid is still growing. But there are many possibilities on both regional and global scales when you’re ready to find a provider.
It’s important to remember:
While it may sound simple, know what you pay for and know that accounting services don’t have to break your bank.
Accountants themselves are among the most strategic, tech-savvy pros on the planet in today’s rapid digital evolution.
AI isn’t here to replace your accountant, though it probably tried, and failed. AI is here to empower them to serve you harder, better, faster and smarter than ever before.
AI knocks out repetitive tasks. Human experts ace the rest.
For solopreneurs growing businesses across the globe, that’s a winning combo. Having an expert accountant on hand who isn’t bogged down by routine tasks? Now that’s a genuine, competitive advantage.
Xolo, built for freelancers and e-residents, has recently been named the #1 accounting company in Estonia.
We know that the service side of accounting is a clear limitation of AI’s value, but its practical applications enhance our service to you. Take it from our COO, Piret Kerem:
Piret Kerem“Xolo’s focus is not automation ‘at any cost; instead, we value the role of human support throughout the entire process… technology helps with repetitive tasks, but we want to be a business partner, not just an accounting tool.”
Discover why thousands of solopreneurs choose Xolo to manage their accounting as e-residents.
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