When firms can expand their capacity, it becomes possible to do more with existing staff and resources. That’s a tremendous benefit for small firms. With busy season upon us, this is a good time to identify how AI and automation can enable firms to provide more services for new and existing clients and — most important — reduce stress for all firm members while allowing them to take on more satisfying work.
One firm’s experience
Although many firms have succeeded in using AI for administrative purposes — such as writing emails — Nicole Davis, owner of Conscious Accounting, wanted to see how it could help minimize demands on team members’ time. She asked her firm’s data and automation specialist to design ways to make the most intelligent and effective use of technology.
Over the course of a few days, the specialist built a chatbot that could answer client questions about the One Big Beautiful Bill Act legislation. Once it was launched, the chatbot immediately reduced inbound emails and telephone calls about the new law, according to Davis, who also owns Delite Payroll and has 28 people across both firms. Clients received real-time answers to common questions without having to wait for a return call or meeting, and Davis’ team had more time to focus on higher-level work. Firms can use this same approach to address any common client questions.
This year, Davis used AI in planning for a large reconstruction of a client’s historical accounting records. Because this is not a standard service, she knew she would need more information to scope the engagement and set the fixed fees for the project. She wanted to avoid setting a price, then learning after the engagement began that there were additional issues unknown to the firm that were material to the client and that hadn’t been included in the scope.
AI identified areas that might potentially fall outside her initial scope assumptions, helping her to answer the question: What haven’t we considered? Davis used structured intake forms prepared with AI-generated summaries to identify friction points where the project might face delays or require additional services and used that information to develop a fair fee.
Making it happen
Practitioners should begin by recognizing that emerging technology is accessible to small firms. Today, many AI and automation tools are affordable, intuitive, and already embedded in software that small firms use every day. They don’t require large capital investments. Instead, they are often subscription-based and designed to be implemented incrementally.
When it comes to practice innovations, small firms can move faster, adapt more quickly, and implement smarter. With AI, that means they can test and implement new tools without layers of approval. Firms can decide quickly what does or doesn’t work and refine workflows in real-time. This agility allows them to respond to client needs and regulatory changes faster than their larger competitors.
Steps that firms can follow in using AI and automation to magnify their capacity include:
Start small. Make some quick initial tests of tools that might be of value and scale only what works.
Look at your day through a very practical lens. Map out a typical engagement — from client intake to final delivery — and identify moments where AI can take on the work. Ask:
Where does time consistently get consumed with tasks that don’t add proportional value?
What manual, repetitive, or information-heavy tasks could AI do?
Brainstorm uses that are grounded in real workflows, not abstract technology ideas. Davis recommends that firms “fix the problem that you have.” In other words, rather than buying a new tool and figuring out what it can do, it’s best to look first at the logjams or challenges in your processes and schedules and determine what technology can address them.
Tools to get you started
One of the newest offerings from the AICPA is Josi, a generative AI research tool that gives CPAs secure, streamlined access to authoritative AICPA professional materials — everything from audit and attest standards to accounting guides — and helps accelerate research and problem-solving without sacrificing accuracy.
In addition, check out:
Related CPA.com tools, including the CPA.com 2025 AI in Accounting Report.
AI and automation amplify the competitive edge that small firms already have: speed, flexibility, and close client relationships. Taking time now to explore these tools can help small firms build capacity, reduce stress, and create more sustainable practices. By starting small and focusing on real workflow challenges, firms can turn AI into a practical tool that delivers immediate, meaningful impact.
Stephanie Otero, CPA, is the Association’s Vice President—Small Firm Advocate. Have questions for Stephanie? Contact her directly at stephanie.otero@aicpa-cima.com. To stay ahead on issues affecting CPA firms, the PCPS Small Firm Success Series offers strategies on staffing, technology, compliance, and practice management. The series is free to AICPA members and provides CPE.
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