For years, artificial intelligence in accounting was discussed mainly as a productivity tool. It could summarize tax research, draft client communications, extract information from documents and help staff move more quickly through the administrative work surrounding a tax return.
That distinction is beginning to blur.
AI systems are increasingly able to coordinate work that once required people to move manually between documents, tax software and research tools. Through integrations with specialized tax platforms, users can provide financial information and source documents through an AI interface and move much closer to a completed return than would have been practical only a short time ago.
For CPA and tax firms, that raises a question that goes beyond whether AI can save staff time.
If technology continues to reduce the effort required to prepare returns, firms may eventually compete less on their ability to produce the forms themselves and more on the broader value they provide around the client relationship.
Tax Preparation Is Becoming More Automated
Tax preparation has always involved more than filling out forms. Complex clients still require judgment, interpretation, planning and professional accountability.
At the same time, the production side of the work is changing.
Document intake, classification, data extraction, research, workpaper preparation, drafting and review assistance are all becoming increasingly susceptible to automation. As AI integrates more deeply with tax software, portions of return preparation that historically required significant staff time may become faster and less expensive to perform.
That does not mean the CPA disappears. It does, however, change the economics of the service.
“The firms that are most exposed are the ones that continue to view the completed tax return as the primary product,” said Val Kharkover, founder of Oakspring Labs. “As AI improves, the production layer is likely to become faster and less expensive. The long-term question is what additional value the firm provides when producing the form itself is no longer the hardest part of the engagement.”
Larger Firms Are Already Moving
The largest accounting and professional-services firms have spent years investing in technology designed to make traditional work more efficient.
AI is increasingly being applied to tax research, document processing, workflow management and other areas that historically required substantial professional labor. At the same time, larger firms are expanding advisory services around automation, data, AI implementation and technology strategy.
That combination has competitive implications.
If technology lowers the cost of serving a client, businesses that were once too small for a national firm may become more attractive. A larger organization can automate portions of the compliance work while using broader technology capabilities to sell higher-value advisory services into the same relationship.
Myron Kharkover, co-founder and head of technology at Oakspring Labs, said smaller firms should pay attention to that shift.
“Automation changes more than the cost of completing the work,” he said. “It gives firms more capacity and allows them to broaden the services they can offer. Regional firms do not need to become software companies, but they do need to become more differentiated and more valuable to the client.”
The competitive risk is therefore not simply that AI replaces individual accounting tasks. It is that technology-enabled firms become capable of serving more clients while providing a broader range of services.
The Client Relationship Remains the Advantage
Regional CPA firms still possess an advantage that technology alone cannot easily reproduce: long-standing relationships with business owners.
A CPA who has advised the same company for years may know where margins are under pressure, where cash flow becomes tight and where operational problems repeatedly appear. Those observations increasingly overlap with technology decisions.
A business owner complaining about headcount may have an automation problem. A company producing reports late may have a data problem. A recurring reconciliation issue may point to disconnected systems.
The CPA or fractional CFO is often already close enough to recognize those needs.
Historically, however, the technology work itself has often been referred elsewhere because most accounting firms do not employ engineers, AI specialists or implementation teams.
As technology becomes more important to business operations, repeatedly referring that work away carries a strategic cost. Outside providers begin learning the business, building relationships with management and becoming involved in operational decisions.
Over time, some of the influence that once belonged to the CPA relationship can move elsewhere.
A Technology-Enabled Advisory Model
That does not mean accounting firms need to build large technology practices internally.
For many regional firms, hiring AI engineers, technical salespeople and implementation teams would require substantial capital and management attention.
A partnership model provides another option.
Oakspring Labs works with CPA firms and fractional CFOs that want to expand the technology-enabled advisory services they offer existing clients without building those capabilities themselves.
The CPA firm remains closest to the client. Oakspring works behind the relationship to identify technology opportunities, evaluate the business case, support the sales process, design and implement systems and provide ongoing technical delivery.
The goal is not to turn accountants into software developers. It is to allow them to participate in technology needs already emerging inside their client base.
A CPA firm may identify a client spending hundreds of employee hours manually preparing reports. A fractional CFO may see that a company is poorly using its CRM. Another client may be struggling with document management, internal workflows or disconnected systems.
Each of those problems can become an advisory opportunity.
The Opportunity May Already Be Inside the Client Book
Accounting firms may not need to acquire entirely new customers to build a technology-enabled advisory practice.
Their existing clients are already spending money on software, AI, cybersecurity, automation and consultants. The question is whether the CPA firm remains connected to those decisions.
Val Kharkover has previously described participating in a Big Four client-expansion initiative that used Salesforce and AI-assisted prioritization to identify potential opportunities within an existing client base.
The important point is where those opportunities came from. They already existed within relationships the firm had built.
Regional firms often possess the same fundamental asset: years of knowledge about their clients. What they frequently lack is the technical infrastructure to turn that knowledge into a broader service offering.
Where the Durable Value May Be
AI is unlikely to eliminate the need for professional judgment, planning and accountability. What it may do is reduce the economic value of routine production work.
As that happens, the accountant’s role may shift toward interpretation, planning, strategic advice and helping clients make better business and technology decisions.
The firms that adapt successfully may still prepare returns and provide compliance services, but those services may become part of a broader advisory relationship rather than the primary source of value.
Technology can automate portions of accounting work. It cannot easily replicate years of trust between an adviser and a business owner.
For CPA firms and fractional CFOs, that may be the more durable advantage as AI continues to improve.
