Artificial intelligence (AI) has moved from hype to reality in the accounting sector. In 2025, venture capital funds aren’t just investing in technology start‑ups; they’re acquiring entire accounting practices and equipping them with AI‑driven tools. A standout example is Crete Professionals Alliance, backed by Thrive Capital. Crete has grown to more than $300 million in revenue and plans to invest over $500 million to acquire dozens of U.S. accounting firms:contentReference[oaicite:0]{index=0}.
Why Are Investors Interested in Accounting Firms?
Accounting services are sticky and subscription‑based, which makes them attractive to investors seeking recurring revenue. By consolidating independent practices, roll‑up platforms create economies of scale while introducing technology that small firms might struggle to afford on their own. Crete’s acquisitions allow partners to retain minority stakes while benefiting from collective resources:contentReference[oaicite:1]{index=1}.
The Role of AI and Automation
What sets Crete apart is its partnership with OpenAI. By deploying generative AI tools, the group says it is saving hundreds of hours per month on tasks like audit planning, document review and data analysis:contentReference[oaicite:2]{index=2}. This aligns with wider industry trends. Research from INAA Group predicts that investment in AI for accounting will grow at a compound annual growth rate (CAGR) of 42.5% through 2027:contentReference[oaicite:3]{index=3}. AI isn’t just eliminating manual entry; it’s enabling richer insights, better fraud detection and more personalised advisory services.
Implications for Small and Mid‑Tier Firms
- Competitive pressure: Roll‑ups bring technology and marketing budgets that smaller firms may struggle to match.
- Opportunity to exit: For ageing partners or firms lacking succession plans, selling to a platform like Crete can provide liquidity while ensuring clients are served with modern tools.
- Strategic partnerships: Firms unwilling to sell can still partner with tech providers. Many AI solutions are now available as plug‑ins for popular cloud platforms.
Client Advisory Services Still Matter
While AI automates routine tasks, human expertise remains central to business advice. INAA notes that 80% of accounting firms report increasing client demand for advisory services such as financial planning and business strategy:contentReference[oaicite:4]{index=4}. Firms that embrace AI can spend more time on advisory work, driving growth and deepening relationships.
The Bottom Line
AI‑powered roll‑ups demonstrate that the value of accounting firms extends beyond ledger work. For owners thinking about selling, partnering with an AI‑centric platform could unlock higher valuations. For those staying independent, now is the time to invest in automation, differentiate your niche and build advisory capacity. The future of accounting is smart, data‑driven and client‑focused.