The Rise Of The AI Agent

The accounting profession is no stranger to change. From handwritten ledgers to Excel spreadsheets and now cloud accounting, each shift has redefined how accountants manage data and deliver insights. Today, the next big leap is here – AI Agents – and they are set to reshape the industry in profound ways.

For accountants, this means new opportunities, smarter workflows, and a chance to focus on what they do best: providing strategic insights and building client relationships. But it also calls for new skills and a mindset shift to thrive in this AI-driven landscape.

WHAT EXACTLY IS AN AI AGENT?

Think of an AI Agent as your smart assistant – designed to analyse, understand, and act on accounting data with minimal human input. Unlike traditional automation tools that require strict rules and mapping, an AI Agent adapts, learns from patterns, and improves over time.

For example, an AI Agent can:

• Read invoices, receipts, and contracts in multiple languages and currencies
• Categorise transactions based on past behaviour
• Spot unusual activity and flag errors
• Publish entries directly into accounting platforms like Xero or QuickBooks, complete with source documents attached

AI Agents go beyond simple automation – they make decisions intelligently, just like an experienced accountant would.

WHY THE ACCOUNTING INDUSTRY NEEDS AI AGENTS NOW

The need for smarter solutions isn’t just a luxury – it’s becoming a necessity. Consider these pressing challenges:

• Error Rates in Manual Bookkeeping: According to an ACRA audit of 412 listed companies, there were 22,051 audit adjustments across 55,415 line entries – 85% of which were due to incorrect classifications or factual errors.
• The Talent Gap: The number of accounting graduates has fallen drastically in key markets¹
  • Singapore: Down 10% in five years
  • Australia: Down 50% in 10 years
  • UK: Down 30% in five years
• Rising Costs: With talent in short supply, accounting firms are under pressure to raise salaries, driving up operating costs. In Singapore, Big 4 firms now offer non-audit starting salaries of $4,100 – a sharp increase in recent years.

In this climate, AI Agents offer a powerful solution to reduce manual work, improve accuracy, and support firms stretched thin by resource constraints.

HOW AI AGENTS ARE CHANGING ACCOUNTING WORKFLOWS

The power of an AI Agent lies in its versatility. Here’s how AI is set to transform key accounting tasks:

• Bank Reconciliation: AI can analyse historical data, identify transaction patterns, and auto-match entries – no rules or mapping needed. This means faster reconciliation with fewer errors.
• Invoice Processing: AI Agents read invoices, extract key details, and categorise expenses automatically. Some tools even attach the original invoice directly in Xero for easy reference.
• Contract Management: Imagine processing lengthy agreements filled with recurring costs or subscription terms. AI Agents can extract these details, break them into line items, and ensure transactions are posted accurately to the correct period.

Now imagine an AI Agent processing and finalising your monthly reporting (from document processing until finalisation) in just a few clicks!

REAL-WORLD EXAMPLE: HOW AI IS ALREADY DELIVERING RESULTS

At SimpleAI, we received a case where a healthcare company was facing challenges processing complex invoices from multiple clinics and doctors. Using an SimpleAI-driven solution, they achieved:

• Fast learning of unique invoice formats
• Automated tagging of entries by hospital, clinic, and doctor
• Accurate classification of recurring charges and transaction types
• One-click review and bulk publishing of approved entries

This solution not only improved accuracy but also saved their accounting team hours of manual work each week.

THE AI-READY ACCOUNTANT: WHAT SKILLS WILL MATTER?

As AI Agents take on more manual and repetitive tasks, accountants will need to focus on higher-value skills. Here’s what will matter most:

1. Prompt Writing Skills

Knowing how to guide AI tools effectively is crucial. Crafting clear, precise prompts helps AI deliver accurate results – just like writing a strong query in Excel or coding an efficient formula.

2. Data Interpretation

AI can generate insights, but accountants will still need to interpret those findings, assess trends, and advise clients on financial strategy.

3. Advisory Skills

As AI handles transactional tasks, accountants will spend more time advising clients on cash flow, investment strategies, and financial growth.

4. Tech Proficiency

Accountants who understand AI systems and how they integrate with accounting platforms will stay ahead of the curve.

5. Communication Skills

As accounting becomes more advisory-focused, accountants must effectively explain financial insights to clients and stakeholders.

PREPARING FOR THE FUTURE: STEPS TO STAY AHEAD

1. Upskill in AI Tools

Familiarise yourself with AI-driven accounting solutions. Understanding how to leverage these tools will boost your efficiency and credibility.

2. Adopt a Growth Mindset

AI is evolving rapidly. Staying open to learning and adapting to new technologies will ensure long-term success.

3. Embrace Collaboration

AI Agents aren’t replacing accountants – they’re supporting them. Focus on partnering with AI tools to deliver deeper insights and strategic advice.

WHY AI IS BECOMING A HABIT – NOT A HYPE

AI is no longer a futuristic concept – it’s already woven into our daily lives in ways we may not even notice:

• Your Phone’s Camera: Features like auto-focus, portrait mode, and low-light adjustments use AI algorithms to enhance image quality.
• Google Search: Predictive text, auto-complete, and search result ranking are all powered by machine learning.
• Email Inbox: Tools like Gmail automatically sort priority emails, flag spam, and suggest quick replies – all AI-driven.

In accounting, this shift is happening too. AI solutions like SimpleAI operate quietly in the background, ensuring transactions are categorised, errors are flagged, and financial data is always up-to-date. You may not notice AI at work – but you’ll definitely notice the difference it makes.

EMBRACING CHANGE WITH CONFIDENCE

Adopting AI doesn’t mean accountants become less relevant – it means they become more valuable. By handing over repetitive tasks to intelligent systems, accountants can focus on strategy, insights, and client relationships – the very things that clients value most.

The future of accounting isn’t about replacing professionals – it’s about empowering them to do their best work with smarter tools by their side. AI Agents are here to stay, and those who embrace them will find themselves better equipped to thrive in an industry that’s changing fast.

KEY TAKEAWAYS FOR ISCA MEMBERS

• AI Agents are transforming accounting, moving beyond data entry to decision-making and analysis.
• Skills like critical thinking, client communication, and tech literacy will become increasingly important.
• Leveraging AI tools can improve accuracy, efficiency, and client value – positioning accountants for growth in a rapidly changing industry.

In short – AI isn’t just the future; it’s your next natural step.

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Bryan Sng is Co-Founder and Chief Operating Officer, SimpleAI.

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¹ Based on ACRA audit from 2018 to 2020