Australia’s top accounting and bookkeeping practices leveraging AI for growth, not job cuts

Melbourne, Australia - 29 September 2026 - New research from Xero, the global small business platform, reveals accounting and bookkeeping practices are embracing AI to generate growth, with more than one third (35%) saying AI has allowed them to maintain or grow output without expanding headcount. Meanwhile, the majority (88%) of practices do not expect AI to reduce team numbers over the next year, and 38% expect to restructure roles and teams around new ways of working enabled by AI.

The most profitable practices - earning 2.8 times more than lower-margin firms - are also the most likely to have embedded AI in daily workflows, redirected the freed time into advisory, and moved to outcome-based pricing. These top-performing firms firms* reported AI is saving 11 hours a week within their practice compared to 8 hours for all practices, and estimate $244,000 a year in savings compared with $160,000 for all practices.

Based on a survey of more than 500 senior accountants and bookkeepers across Australia, the findings form the basis of Xero's new Modern Practice Playbook, which explores how leading firms are structuring their practices, utilizing AI and evolving their services to build more sustainable businesses.

"Accounting is regularly named among the professions most exposed to AI disruption. Our data shows practices that are making deliberate choices about where AI fits, how their people use it, and how they price the value they create are seeing the strongest growth," said Charlie Sheppeard, EGM Strategy & Operations, Australia and New Zealand at Xero.

"We conducted this research to give practices of all sizes insight into the habits of top-performing businesses so they can emulate their blueprint for success. Those choices shape how teams spend their time, how they support clients and how confidently they invest in the future."

Depth of use, not adoption, is what separates firms

AI experimentation is widespread, with 85% of practices having tried the technology. However, only 52% use it day-to-day, rising to 69% among top-performing firms.

Practices making AI part of daily work are also much more likely to have clearer ways of working: 94% rate their core business processes as well-documented, compared with 40% of practices not using AI. Clear processes make it possible to identify repetitive tasks and embed AI effectively, including through AI capabilities built into accounting workflows such as Just Ask Xero (JAX), Xero's AI finance partner.

Practices are being deliberate about where their time savings go. Across all firms, 44% are directing AI-freed capacity into higher-value advisory work (45% of accountants and 40% of bookkeepers). Beyond advisory, 40% plan to focus AI-freed capacity on innovation and new workflows, 39% on training and upskilling, and 36% into business development.

Andrew Erkins, founder of bookkeeping, advisory and payroll firm Digit, said, "For accountants and bookkeepers, the real question isn't about getting replaced; it's what our role will become. That means embracing AI and supporting our teams and clients on how to use it. They should be encouraged to learn new tools, and given guidance (and security guardrails) to build their own. The goal isn't to become coders; it's to help our industry define the shape of a problem, and see how technology could solve it differently to the way we have in the past."

Advisory and value pricing are growth opportunities

Just over half (52%) of Australian practices currently offer advisory services. Of those, almost half (48%) say advisory has increased their revenue by more than 30%, while also ranking it as their highest-earning service area, alongside tax.

Practices are also moving away from charging primarily for time. Firms bill an average of 69% of client engagements on non-hourly terms, while 43% of those using value-based pricing say it has improved profitability. Top-performing practices are also pricing with confidence, charging 34% more for advisory services than lower-margin firms.

The Modern Practice Playbook combines research with real stories, expert perspectives and practical ideas firms can apply within their own practices. Download the full report here.

ENDS

Media Contact

Xero Australia | Jess Brophy | +61 431 268 549 | [email protected]

About the Modern Practice Playbook and research methodology:

Commissioned by Xero, the Modern Practice Playbook draws on survey responses from 524 independent senior accountants and bookkeepers throughout Australia.

Responses were sourced from a third-party panel and Xero's customer database, with the data weighted to ensure equal representation of firm sizes. It combines benchmarking data with insights from practice leaders, national industry bodies, and Xero experts, along with guidance from the Institute of Certified Bookkeepers and case studies from practices.

Full methodology is available in the Modern Practice Playbook appendix.

About Xero:

Xero is a global small business platform that helps customers supercharge their business by bringing together the most important small business tools, including accounting, payroll and payments - on one platform. Xero's powerful platform helps customers automate routine tasks, get timely insights, and connect them with their data, their apps, and their accountant or bookkeeper so they can focus on what really matters. Trusted by millions of small businesses and accountants and bookkeepers globally, Xero makes life better for people in small business, their advisors, and communities around the world. For further information, please visit xero.com.

Disclaimer:

This media release includes and is in parts based on assumptions or estimates. It contains general information only and should not be taken as taxation, financial, investment or legal advice. Xero recommends that readers always obtain specific and detailed professional advice about any business decision. The insights in this release were created from the data that was available as at the date it was extracted. The data used was anonymised and aggregated to ensure individual businesses cannot be identified.