Will accounting be the first industry replaced by AI?

How is AI used in accounting?

To understand whether AI will replace accountants, you first need to see how it’s being applied today.

AI in accounting isn’t about vague promises of machine intelligence—it’s practical, real-world automation that removes human labour from time-consuming tasks. Here are a few ways AI is already embedded in modern accounting tools:

1. Expense categorisation
AI-powered systems like Thriday can scan receipts and bank transactions to confirm GST and classify expenses into tax categories automatically. Instead of manually sorting line items into accounts, the software applies machine learning models trained on thousands of transactions.

2. Reconciliation
Matching bank transactions to invoices, bills, and payments has traditionally been one of the most repetitive jobs for bookkeepers. AI tools now perform this automatically, flagging anomalies for review.

3. Tax calculations
Tax obligations vary by business structure and deductions. AI accounting software can apply the right tax rules to every transaction in real time, calculating GST, PAYG withholding, or income tax without manual intervention.

4. Reporting and forecasting
AI doesn’t just record history—it can analyse trends, predict cash flow, and generate management reports with minimal human oversight.

5. Compliance monitoring
By scanning data patterns, AI systems can detect compliance risks—like missing invoices or suspicious transactions—early, reducing the risk of penalties.

While some of this technology has existed in basic forms for years, the new generation of AI models is significantly more sophisticated. With cloud infrastructure, machine learning, and real-time data integrations, platforms like Thriday can now perform many of the core tasks of a professional accountant—faster and more affordably.

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Is AI replacing accountants?

The short answer: not completely. But the boundaries are blurring faster than many expected. Traditionally, accountants have provided two categories of services:

• Transactional processing: Bookkeeping, BAS preparation, tax lodgment, and compliance reporting.
• Advisory: Business strategy, tax planning, financial coaching, and structuring advice.

AI is already well on its way to replacing the first category. Tasks that once took hours of data entry and checking can now be completed in seconds by an algorithm. Thriday, for instance, offers automated BAS and tax lodgment to the Australian Taxation Office (ATO) for as little as $59—a fraction of the $400+ many businesses pay their accountants.

When the transactional workload disappears, accountants must rely increasingly on their value as advisors. That’s a seismic shift for a profession where compliance has historically underpinned revenue.

Michael Nuciforo, CEO and founder of Thriday, puts it bluntly:

"You don’t hire a travel agent to book a flight anymore. You don’t ring up a stockbroker to buy shares. So why are people still hiring accountants just to lodge a BAS?"

It’s a comparison that resonates. Travel agents didn’t vanish overnight - they pivoted to niche services, complex itineraries, and luxury experiences. But most routine bookings moved online, never to return. Accounting appears headed down the same path.

What AI tool is best for accounting?

With so many platforms entering the market, it’s natural to wonder which AI tool is actually best for small business owners. The answer depends on what you need:

• General accounting software with AI features: Tools like Thriday have added AI-powered categorisation and reconciliation. Incumbent platforms like Xero and MYOB still require manual oversight and don’t always handle tax lodgment end to end.
• Specialised AI tax lodgment solutions: Thriday is one of the only platforms offering fully integrated banking, bookkeeping, and direct tax submission to the ATO. For Australian small businesses, this creates a seamless workflow that traditional accounting software can’t easily match.
• AI-powered forecasting tools: Apps such as Fathom specialise in predictive reporting, scenario planning, and KPI tracking, often integrating with accounting software.

If your goal is to remove as much manual work as possible, a dedicated AI platform like Thriday is hard to beat. It not only automates the record-keeping and compliance but also integrates banking transactions directly, reducing the need to juggle multiple systems or rely on a professional intermediary.

How Thriday is automating accounting

Thriday represents one of the most advanced examples of AI in accounting—and perhaps the most provocative sign of where the industry is going.

Founded in Melbourne, Thriday has developed a platform that brings banking, bookkeeping, and tax into a single AI-powered experience. Here’s how it works in practice:

1. Automated categorisation: Every time you spend or receive money, Thriday automatically categorises the transaction according to ATO rules.
2. Real-time tax calculation: GST and other tax liabilities are calculated on the fly.
3. Instant reporting: You can see your profit and loss, cash flow, and tax obligations without waiting for an accountant to prepare reports.
4. Direct lodgment: When it’s time to submit your BAS or tax return, Thriday files it directly with the ATO - no separate tax agent required.
5. Bank integration: Instead of exporting bank statements to accounting software, your banking and bookkeeping happen together.

This level of automation is what sets Thriday apart. Rather than building incremental AI features onto existing systems, the company has reimagined accounting as an integrated, intelligent process.

The impact is dramatic. Small business owners save hundreds of dollars per BAS lodgment, reclaim hours of administrative time, and gain immediate visibility over their financial position.

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Are accountants using AI already?

Absolutely. Most modern accounting practices have embraced some form of AI. Many bookkeepers and accountants use tools like:

• OCR (Optical Character Recognition) to extract data from invoices and receipts automatically.
• Rules-based transaction coding to categorise expenses.
• AI reconciliation engines to match bank transactions to invoices.
• AI forecasting tools to project cash flow and detect anomalies.

In many ways, accountants are becoming technology managers as much as financial advisors. Their role increasingly focuses on interpreting the output of AI systems and delivering insights rather than manually entering data.

Still, even with widespread adoption, the challenge remains: if a platform like Thriday can deliver compliance outcomes automatically, does every business still need a human accountant for basic services? The profession’s future may depend on how effectively accountants can pivot from compliance to value-added advisory.

Why accounting may be the first profession fully replaced by AI

While AI is transforming industries across the board, accounting stands out as uniquely susceptible to full-scale disruption. Here’s why:

1. ‍High volume of repeatable tasks: Accounting workflows often involve structured, rules-based processes that can be mapped by algorithms.‍
2. Clear regulatory frameworks: Unlike professions with subjective decisions, accounting relies on codified rules (for example, ATO compliance requirements) that AI can learn.‍
3. Shrinking talent pipeline: With fewer graduates entering the field—just 2,278 new accounting graduates annually in Australia—demand is quickly outstripping supply.‍
4. Low perceived value in transactional work: Many business owners see compliance as a necessary evil rather than a value driver. That makes it easier to switch to an automated alternative.‍
5. Proven consumer behaviour shifts: Just as people stopped hiring travel agents for routine bookings, small business owners are increasingly comfortable trusting AI and software for compliance.

When you combine these factors, it’s not hard to imagine a tipping point where AI doesn’t just augment accountants - it replaces them for the majority of small business work.

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What comes next?

Of course, it’s important to remember that not every aspect of accounting can, or should, be automated. Strategic advice, complex tax planning, and nuanced business guidance still require human judgement. For now, AI is best suited to the repetitive, rules-driven aspects of accounting.

But the shift is undeniable. As more small businesses adopt platforms like Thriday, the expectations around speed, cost, and convenience will change permanently. Traditional accountants who rely on transactional revenue will feel the pressure to adapt or risk becoming obsolete.

If you’re a small business owner, the emergence of AI-driven accounting is good news. It means more affordable compliance, faster processes, and fewer headaches. If you’re an accountant, it’s a call to evolve - embracing technology and focusing your skills on the areas where humans still have the edge: empathy, judgement, and strategic thinking.

Final thoughts

So, will accounting be the first industry replaced by AI? In many ways, it already is. Thriday and other AI innovators have proven that compliance can be automated end to end. The profession is undergoing the same transformation that travel, banking, and retail have already experienced. What was once the exclusive domain of professionals is becoming an accessible, technology-driven service.

But accounting isn’t disappearing. It’s evolving. AI will take over the repetitive work, freeing accountants to become true advisors. For the businesses who embrace this change, the benefits are clear: faster, smarter, more affordable financial management.

The only question left is whether the profession is ready for the disruption that’s no longer coming - it’s already here.