How AI is shaping the future of accounting firms
Whether you're an accountant, a lawyer, or an entrepreneur, it requires more than just technical know-how—it involves developing leadership, adopting new technologies, and understanding the broader business landscape. For Jody Padar, the journey from a traditional accounting firm owner to a trailblazer in AI-driven accounting highlights the importance of adapting to the changing needs of the industry. In her conversation on After the First Million, she shared her insights on AI, cloud technology, and the future of accounting, offering valuable lessons for entrepreneurs at any stage of growth.
From Traditional to Tech-Forward
Jody’s transformation started with a simple yet powerful idea—using technology to improve the way accounting firms operated. Back in 2010, she helped shape what we now know as the "cloud firm" model. Her focus was on creating efficiency and transparency within accounting practices, which led to a fundamental shift in how firms operated.
“The cloud didn’t just change how we store data—it changed the business model, it allowed for real-time transparency and forced the accounting profession to change. It’s about a business model, not just the tech."
By embracing technology, Jody helped redefine the accounting landscape, proving that innovation wasn’t just about using the latest tools, but about adapting the whole business model. She emphasizes that the future of firms, especially in industries like accounting, isn’t just about staying current—it’s about anticipating what's next.
The Shift to AI: A New Frontier
Jody’s next frontier is AI, and she’s leading the charge on what an "AI-first" firm should look like. She’s not just implementing AI for the sake of technology, she’s making it accessible to professionals and firms by focusing on how AI can enhance the client experience, improve efficiency, and ultimately empower accountants to become strategic advisors.
"AI is here and you have to figure out how to work with it. You can't put it back. The reality is that with the technology, with the tools, with the business model shift, hopefully, you're going to be able to build a phenomenal firm with not a lot of labor, with a lot of tools."
This shift, she believes, is critical for accountants who want to remain relevant in the evolving business world. With AI automating routine tasks, accountants have the opportunity to focus on higher-level work, like strategic planning and business growth, making their role far more impactful in their clients’ lives.
The Power of a Growth Mindset
One of the key takeaways from Jody’s journey is the importance of a growth mindset. Whether you’re working within a large firm or running your own business, embracing change and learning to adapt is essential.
“I think accountants are so stuck in, ‘I have to know it all before I start.’ That’s just part of the risk averse mindset. And so if you come in it with a growth mindset, I think you’ll be okay.”
By approaching new technology with curiosity rather than fear, accountants can transition from simply executing tasks to using AI as a strategic tool for problem-solving and decision-making. It’s about understanding that growth is a process, and sometimes that means learning as you go.
Creating a Future-Proof Firm
Jody’s vision for the accounting profession extends to the year 2030, and she’s helping firms prepare for the future. The key to future-proofing a firm, according to Jody, lies in combining the best of human expertise with the power of technology.
“Accountants should focus on outcomes, not hours. When you start selling outcomes, you're able to scale efficiently without sacrificing quality."
She’s helping accountants move beyond traditional business models and embrace the tools that allow them to focus on what matters most—building meaningful relationships with clients and driving business success.
Lessons for Entrepreneurs in Any Field
Jody’s journey offers valuable lessons for any entrepreneur:
- Embrace technology as a tool for growth. Just like cloud technology revolutionized accounting, AI is transforming how businesses operate. The key is to use technology to solve real business problems.
- Adopt a growth mindset. Be open to learning and change. If you're not adapting, you're falling behind.
- Focus on outcomes, not tasks. Shifting from transactional work to outcome-based services can open up new revenue streams and enhance client relationships.
- Prepare for the future. Building a business that’s adaptable and tech-driven is essential for long-term success.
The Bottom Line
Jody Padar’s work is a testament to the power of innovation in the accounting industry and beyond. By embracing new technology, cultivating a growth mindset, and focusing on outcomes, she’s shaping the future of accounting and helping entrepreneurs build sustainable, future-proof businesses.
Want to hear more of Jody’s insights? Tune in to my conversation with Jody Padar on After the First Million for more on the future of AI in accounting and how to embrace technology for growth.
