If artificial intelligence (AI) conjures the image of Sarah Connor etching “NO FATE” in the Terminator 2: Judgment Day, as she contemplates a world where machines take over, you are probably not alone.
The faceless tool is quickly infiltrating our world, for better or worse. It’s everywhere. It’s in your Gmail (Gemini), Microsoft (Copilot), Apple (Siri AI Assist), ChatGPT to name a few. Have you heard of Moltbook? It is a Social Media platform for AI where they have conversations with each other.
Like most industries bookkeeping is not immune from the AI evolution. Accounting and bookkeeping firms are rapidly investing in AI tools to automate bookkeeping workflows.
According to BOMCAS Canada Canadian bookkeeping platforms claim they can now automate 70–80% of manual bookkeeping work. This is a huge advantage in today’s fast-paced business landscape.
While embracing new technology can be important, doing so without human oversight can be costly. A recent survey by Dext reported 50% of accountants have seen businesses lose money after relying too heavily on general AI tools, for bookkeeping and tax advice. Reported issues included penalties, overpayments, missed deductions, and incorrect filings.
At Homeroom, we are big believers in evolving with technology to streamline processes and make life easier for our clients. While we have embraced the benefits AI can bring to our software solutions, we also believe human oversight is irreplaceable to avoid costly mistakes. We see AI as a new intern who assists us. It’s not running the show but working alongside us.
How AI is streamlining the bookkeeping industry
This year, Dext launched “AI Assist” in Canada, an AI system designed to automate repetitive bookkeeping decisions while still keeping humans in control.
QuickBooks also introduced new AI-powered accounting tools for Canadian firms to help automate administrative tasks like financial summaries, transaction categorization, and workflow management.
Several Vancouver-based firms are increasingly positioning themselves as “AI-powered” or automation-first accounting practices.
According to the Globe and Mail, the Bank of Canada recently stated that AI is not causing widespread job losses, but is instead transforming jobs and improving productivity.
The businesses seeing the best results today are not choosing between AI and human expertise — they’re using both together.
While the trend of AI being integrated into our daily lives is accelerating It can be difficult to warm up to new technologies without dispensing some critical thinking and questioning its purpose.
What AI Does Extremely Well
AI is excellent at handling repetitive, time-consuming tasks. Today’s bookkeeping software can already:
- Capture receipts automatically
- Categorize transactions based on patterns
- Match bank feed transactions
- Flag duplicate entries
- Generate financial summaries
- Process invoices faster than manual entry
Where AI Still Falls Short
- Building relationships
- Lack of professional judgment
- Security is still an issue: According to Dr Shaanan Cohney, a senior lecturer in cybersecurity at the University of Melbourne, how to control AI and prevent security risks is still an unknown. It’s important NOT to hand over control of financial information, SIN numbers, etc. to AI without human oversight.
- AI is only as good as the humans who contributed to the information it has access to, at times the information is factual, at times faulty.
- Bookkeeping is more than just data entry.
- AI lacks human judgment
- It lacks understanding of unusual transactions
- It cannot correctly handle complex situations
- Cannot spot missing information
- Understanding industry-specific nuance
- Asking follow-up questions
While AI can process transactions faster, it still takes a human to understand the story behind the numbers.
Why Human Bookkeepers Still Matter
A good bookkeeper does much more than categorize transactions.
They:
- Notice when numbers look unusual
- Ask questions AI would miss
- Understand your business goals
- Help prevent CRA issues
- Identify cash flow concerns early
- Keep records audit-ready
- Provide reassurance during stressful periods
When it comes to AI there are still a lot of unknowns and room for error which is why we have no intention of letting AI take the wheel. We are embracing it to help us streamline repetitive tasks, improve efficiency, and give our team more time to focus on what matters most—delivering exceptional service to our clients.
Especially in Vancouver’s business environment — where industries like construction, film, restaurants, e-commerce, and real estate professionals all have unique bookkeeping challenges — human experience still matters.
And with it, perhaps we’ve reached our own version of Judgment Day.