Do we need accountants anymore?
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- Опубліковано 12 лют 2023
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If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $200,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.
How I got here…
21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit.
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.
34 yrs old: I became co-owner of Skool.com to help the many people who want to start a business online do so.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
Never quit,
Alex
FULL DISCLOSURE
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.
It now gives a generic answer and tells to go see a accountant 😂
Does it still give good answers with DAN or behind the pay wall? 5 years from now bye bye bs jobs.
damn really?!
just mask the question there is always a workaround
Someone needs to release a Chatgpt that's largely unfiltered or restrained
@@Jack-hv3uj That'd be kinda hard because than you could get away with a lot of bad shit. Like how to make meth or a bomb. Also leaving things unfiltered would probably make it less accurate.
As someone working in an accounting firm, this is the equivalent of telling people to use chat gpt as a replacement for a lawyer lol. Ain’t shit getting automated
You’re just mad that your job will be gone in a few years 😂
@@RickysPlumson gang bro projecting
@@zombiewombb yes, an employee of an accounting firm is deeply concerned about what someone on UA-cam thinks that says “on gang” I’m dying over here 😂💀
“On gang” babahahaha
@@RickysPlumsyou didn’t even respond to his point , address the fact that accounting being automated is almost the exact same as lawyers being automated
@@zombiewombbyou don’t even know what accountants do
"95% accuracy" I've always wanted an accountant with a 5% chance of sending me to prison.
They will not send you to prison over a small amount. They will just ask you to pay with penalty
Tax accounting for single payers ain't complicated
@@davidc4408haha so not true.
Depends on which 5%. Every number is not created equal. Not in Accounting and definitely not in tax.
@@albertokagbuecpa If genuine error there is just option to pay with fine . If happens repeatedly then they can question
@@davidc4408depends... They might even delay the letters as long as possible and you have a £1,200 fine from the HMRC and it's gaining interest at that point...
That's what happened to me, I contacted an accountant and they charged me £360 to sort the whole thing and I was actually due £750 refund.
I didn't enter the field of accountancy back then so I knew nothing so being in debt £1,200 excl interest vs being up £390 was well worth a chartered accountant.
“I don’t know anything about accounting, let me talk about accounting”
Yeah this is exactly what people said about Excel lol
AI will replace online influencers like this guy before it does accountants lol
@@chivimbeTrue, this guy is just waffling on a career that he doesn't understand
@@chivimbeonline influencers? You buffoon look him up
@@chivimbelmao. He's gonna be a Billionaire in 5 years. What these accountants gonna do when AI gonna replace them? They got no other skillsets. .
Sure, let ChatGPT represent you in front of the IRS.
If chatgpt is better than humans why not?
Accountants won’t be replaced 100%. I think what Alex is trying to get at is that the nature of their work will look different.
A.I recently was set to advise a defendant in a court case for the first time earlier this year.
@@wardude9161a robot isnt a human plain and simple. SIR CHAT GPT SAID YES isnt a defense in tax court or court if its a big oopsy
If my accountant has me in front of the IRS, they’re not a very good accountant
Lots of accountants aren't necessarily tax accountants either. At least in the US, all public companies will still need auditors to do their quarterly/yearly filings. That is a lot harder, not impossible, to replace due to the nature of the investigative work.
Thanks for this. On my second year in College to get my bachelor’s in accounting. Planning in doing auditing 🫡
been thinking about it too but i saw on reddit how ai is gonna replace it ..@@LATINOFAXTS
@@LATINOFAXTSdo you work as of yet, what do you do for work while studying accounting?
99% of accounting work is not tax related, I say that as a forensic accountant.
@@oldboy1955Ideally anything in payroll, audit or finance is useful but Admin can also give you experience.
Bro doesn’t know that accounting is different from tax…accounting and tax on a base level is already being replaced but software… the value add services are key here
This bro doesn’t know accounting firms have tax specialists
I genuinely don't believe he has any accountant friends.
Bro just want to get his bill paid
Wrong. Software aren't doing the job for you
As someone that actually works at an accounting firm, I think that probably the accountant was horrified on how bad chatgpt could mess up the tax returns lmao 😂
You need the CPA signature and the AI can’t provide that
He’s not saying “let ChatGPT do your taxes this year,” he’s saying “AI will probably be able to do your taxes in 5-15 years.”
1-2 years probably
I’d guess 3-5 years from now
@@HotelBravo556 Definitely this and not 15 lol. I'd say even 2 is a stretch. Now that the technology exists, it's purely application instead of invention. AI will put a lot of people out of jobs soon.
accounting is more than just taxes though. In fact, some of the more lucrative "accounting" jobs aren't in tax
The Canadian government is talking about doing it for us, people would just send in any changes/deductions etc to update
Not true. It get’s all my Acc 340 hw answers wrong
Lmao I gets my tax hw wrong too 😂
Accountants are already using software, the software will just get more and more impressive
Yes excel is great and xero, sap and sage are all great tools but if you don't know basic accountancy theory everything will be fked... ChatGPT has got things wrong and I have had to correct it at times.
In the future I do think it will be a useful tool however it needs to be able to memorize, store and verify sources of different terminology and accountancy bodies.
So impressive until the software completely replaces you
@@AdeAde0224there are counties that do the taxes for you and they got accountants still
@@AdeAde0224 The worst part is they’ll still make you do it yourself
Half of the time I'm just trying to get the software to put down the correct number or the people making the software don't understand a new law so they just want the accountant to override it. 😂
It's like using excel. It's super useful. But you have to know what you are doing.
Accounts are probably going to mostly turn into data analysts and capital managers. The grunt work will be offloaded to ai, and the high-level stuff will become the new norm.
This is true. My team does almost no data entry anymore due to ocr and automation. Now focused on f,p&a and compliance
Lol he doesn’t know what he’s talking about. Turbo tax is already free and will do any individuals taxes for free. If you own a business you need an accountant for much more than doing your taxes, and just because it can answer a tax related question doesn’t mean it can tell you why and how fincianal decisions affect your business (that’s what accountants do).
well, not yet
@@BaHuyNguyen yes it is free
Thank you, we need more wise people so we don't go extinct 😂 i never knew we had such brain dead people here. What a shame!
Accountants are terrible at business, they don't make good business men/women.
@@rickyaclickpowr2187so then why do lots of ceos start in accounting?
Accounting is not just taxes. I don't know how many times I've had to say that in my life. The day software can account for mergers, takeovers, acquisitions, managerial accounting, auditing, inventory control and fraud prevention with 100% accuracy is far, far away. You should've talked to your friend a little more before posting this.
The day that happens everyone will be out of business and not just accountants.
@@lordlopikong6940 100%
Most people and businesses even need most of those services. AI will increase productivity and increase competition for fewer jobs. Or the jobs will be paid nothing because their difficulty goes down
@@lordlopikong6940 the day it happens machines will be so powerful that everybody would be out of work. There is no real safe industry even the trades which are now so praised to be so good can be simplyfied so much that there will be no need to a lot of electrician/idraulic. And I'm saing this by being an electrician
So 15-20years maybe?
Explain To me section 721 transactions, calculate the inside vs outside basis, for a partnership which owners contributed property from a DST, which was previously transferred in by a 1031, one of the partners died, another paid the liabilities of a second partner, oh and it’s liquidating
@AryadeepDe-up9uf That's the point. I understood. There is no way our job can be replaced.
The voice of sanity. Thank you.
Why would these accounting specialists be horrified? They should be glad. AI just made their jobs 10x easier.
ok but if the people hiring them realize this then who's gonna employ them?
Exactly!
Get paid lesser too
Actually the AI is learning from the accountants that they will be replacing soon.
We aren’t horrified because we’ll get replaced; we’re horrified because we know that people will realize hard way why we aren’t replaceable.
“Boss man says we should take the aggressive position because the AI says you may qualify.” “But we don’t qualify, because the boss man didn’t consider this extenuating circumstance when asking…”
Accounting is not just tax….. that’s a very small subset of accounting. Accounting encompasses almost every aspect of business operations
Accounting is a service handling liability and risk, not about having the answer from online source. Service means clients can take more/less aggressive tax positions based on cost and tax. Liability means clients may know the answer but still don’t want to be responsible for error or a guarantee result.
the bot will not be able to do “creative accounting”
I see what you did there
It will accidently do it instead and not creatively 😂
AI will be able to analyze all countries' tax codes and create the most optimal way to set up a company using offshore accounts and where to place your headquarters depending on the style of business you operate. People severely underestimate what AI will be capable of in a few years.
The issue with ChatGPT is it’s fluency in bullshittery. Hard to tell too if your asking about something you know little to nothing about. Wouldn’t want tax advice from it and then end up in jail.
Whereas real people NEVER bullshit - especially accountants.
Thats the thing, its BS is based off HUMAN BS. Humans talk BS, are nonsensical often make things sound nice without substance.
Yeah it's good it you have intermediate knowledge about what our asking but if your illiterate to the field your going to jail
oh yeh like real people are 100 percent right?
@@phillips8366You can hold real people legally accountable, you can't do that with AI.
As an entry level accountant I can see an issue where it’s a lot harder in 5-10 years time for new accountants to enter the industry because of automation, but the ones who have experience and knowledge will become more and more valued. I’m certainly lucky to be entering the industry right now.
It worries me that Alex may not be catching some things about Al, automation, and technology, particularly high tech, in relation to people. I hope he doesn't go too heavy on the ideas. It might end up greatly hurting his branding.
Technology is always a hit or miss. Just like crypto
Completely agree, it's almost cringe worthy watching someone who doesn't know about software trying to talk about software.....
He literally wasted 5 minutes just to think of making a video like this. UA-camrs are lousy with they're research and advice. No wonder no one will hire them 😂.
@@123456ashakeit’s amazing to me how many people in the comments are throwing specific numbers out about when AI will completely take over real accountants’ jobs with no experience in the field or even AI.
I’m also curious, how do these same people visualize this? That a robot will just magically classify all of your taxes and do them while you sleep?
These videos just make people feel hopeless and scared, rather than trying to up skill or advance in their lives.
Feels like chat gpt are writing UA-cam comments 😢
Mitha
“Right enough” perfectly sums up accounting.
And to an extent, engineering.
I don't want to get 95% chance of going to jail for tax fraud lmfao
You don’t make nearly enough money for the IRS to be worried about you😂
It would be a 5% chance if what he's saying is true lol
@@thisisabot9920 the ITS doesn't bust billionaires who has teams of lawyers. They bust people who can't fight back.
Hormozi's alt @@thisisabot9920
@@thisisabot9920 noooo buttt……nothing is worth being audited by the IRS and they are petty enough to audit even the non bazillionairs like us if we seem to sus.
As an accountant, I'm not afraid lmfao. I can see a surcharge for fixing ai prepared returns in the futurre
Automation will eliminate accountant? No chance! That CPU will burn down in few hours of dealing with accounting.
- Public Accountant
Unless he's already replaced HIS CPA with AI it's kind of a non-statement. Most people who just have a W2 can file easily for free anyway
You mean W2?
@@samesame4496 you're right lol, I'll edit it
Chat GPT can’t answer my accounting homework answers correctly … also tried a W2 example with a details and also wrong every time.
Always debits or credits accounts incorrectly😭😂
As the son of a dad who owns an accounting firm since the 80s, you need your cpa and enrolled agents/tax specialists, etc.
Turbo tax is going to get a lot of people into trouble in the future when the irs audit comes around.
Blottenberger, CPA
B & B CPA
Tyler sent you 😂
We still need accountant because 95% accuracy is not good enough
I've been behind the scenes at businesses. LOTS of stuff gets misreported accidentally & intentionally. We will no doubt want the software to be 100 percent accurate nonetheless.
In the 80s Apple said their personal computer and keyboard would replace secretaries.
Being a CPA myself its more like you pay us to file your taxes because when the irs comes we can defend your return. Its the same as deciding not to have a lawyer file a legal complaint. Good luck!
They made an AI take the CPA exam and it failed. In order for a business to thrive it needs accountants because when it comes to management level you need human judgement. Even at staff level for accountants ethics are practiced everyday. There are stories of people at c suite asking to change the numbers on financial statements so they can get a higher cut or to make it look good so the company can get a lower interest rate when asking for a loan at the bank. AI cannot practice this, it’s not just numbers. Accountants have the power to say no and practice ethics or do as the company says then jump ship. Accounting is not just the language of business but the overall structure of the flow of business. Numbers can be easily manipulated, people can be ripped off AI cannot use human judgement. Someone who worked at finance for the Jaguars NFL team stole 22 million, it went undetected because there were no internal controls which is management level accounting, the accountant who was supposed to look over the sheets left so only 1 person was handling it and they were able to get away with 2 mil. Human Accountants are important.
Heads up, it's "judgment" without the 'e'. Truth be told, I'm not even comfortable when my CPA provides my financial documents and he has decades of experience. There is absolutely no chance I'd allow a CPA firm to do my accounting with all AI. If they use it internally, fine. But if I get audited, or something else, there's absolutely no way I'd allow my CPA firm to say "we can't represent you because AI did your financial statements, not us." Part of the job of the CPA firm is to be on the hook for accuracy. When I take my financial statements to a lender, they have to be reliable - by that I mean I MUST have a live person who can be held responsible if the documents are wrong. Although ultimately it's my responsibility (it's my company, it's my financial statements) I will 100% drag my CPA firm in to defend me if a lender, a business partner, a vendor granting me 'terms', and so on discovers incorrect info that led to a 'poor outcome.' "AI cannot be held accountable" just forget it then. Alex is smart enough to recognize all that, I'm 100% sure.
Wait til Quantum computing becomes easier to produce. Shits gonna get nuts
As someone who’s in college, 241 Financial Accounting, Chat GPT has WAAAAY less than 95% accuracy.
The lower the accuracy the higher the chance to end up in jail LMAO
Breakthrough technology only 5% of its customers go to prison
95% accuracy maybe for the basics😂 I’m not trusting chat gpt with my accounting at this point.
You don't try to automate the accounting, you use it as an educational tool to help you understand your own accounting (and fact check it in the actual law code.)
The advice mentioned in the video has been very practical for me and I would love to try it out and see how it goes. "
This is completely inaccurate
I asked chatgpt an accounting question. if bad debt expense is recorded, which is debit bad debt expense and credit allowance, and if the money is collected how it should be recorded. It so confidently told me to credit the expense and debit the allowance. its not even accurate in a simple journal entry.
It's the case-by-case situations that it can't handle and the professional advisory and years of dealing with client's silliness - no AI in the world can advise on handling some of these creative messes.
how is every tax return different is what has me confused, i have done takes for 100's and that's just interesting to hear
If their's an error incurred in your account or taxes you can blame the accountant or firm...but how will you blame a AI..its not a person...😮
😂 That's what they deserve for trusting a robot
It's like calling a video game god lol
It's also funny that IA will need accounting information from actual accountants from every change the IRFS does.
Yeah using AI would probably place all liability on yourself and no intelligent one would do that. When AI gets it wrong it really gets it wrong and tax fraud is taken more seriously than murder.
The 5% will be the misinformation the client gives to the accountant. We all miss something.
How would automation give an estimated market value of stock or assets?
so the computer has a CPA now
I wonder who's going to give them a medical license next
Accounts is different. Its about tallying.
Thank you for all the info my friend
5% error!!!! Out your mind…
You should see the error rate of humans
The IRS would LOVE to see you try this so they can hit you with penalties for doing everything incorrectly lol.
AI will never re-lace accountants lol. Accounting is sooo broad and complex. Plus everyone company in every industry does their financials differently. Even with tax accounting their are so many loop holes and creative ways and changes you need a person to actually do some critical thinking. So yea naw accountants have NOTHING to worry about
I swear, wisdom is literally everything.
Agreed!
Love the insights here!
I am sure this video was cut up. 20 is not a big enough sample size to determine anything.
what would be awesome is if the tax code wasn't the size of the Hogwarts series books × 10
People don’t understand that AI is a tool. Thats all it is. You can use it just like any other tool, but it’s not replacing any jobs within the next like 10 years or so.
If you've been in accounting or even touch it, you'd be surprised and how glad you'd be to have AI replace the minor works and make the accounting procces easier.
Edit. I've been using chat gpt in my accounting and I have to say. It's useless, it can't handle variable problems. It's only good for simple problem and maybe there is a concept you don't understand
People can also stay in great shape with body weight exercise.
Tax planning and filing taxes are not the same thing.
AS a CFA, I can assure you that AI cannot completely replace accountants. It might replace some overly repetitive work but human intetpretation of how to clasify things is still needed
I work in an accounting office and let me tell you most of these people don’t even know what they are reading. They don’t know what most things on the accounting side means in terms of their business. A lot of people need a hand to hold and a computer does not give them that🤷🏼♀️
Ppl are straw manning the hell outta this. He's not saying "Replace your accountant". He's saying GPT is making strides in accounting accuracy.
I actually tested this out. I took a tax test using chat gpt just to see if it was accurate and I got a fail grade…I forget the actual grade but it was in the 50’s…
It's NOT a matter of whether the return is accurate. WRONG. It's a matter of who I want sitting with me during an audit. I want my CPA and Attorney. I want my CPA to know my income statement and balance sheets, my attorney to know the law, and BOTH to keep me out of jail.
Hey, so how do you think this could impact historical consultancy? I was thinking of starting my own firm, and I’m wondering if it could be a good primer program to help me speed up/maintain a workload that could make me competitive.
So if I'm a multi-millionaire, I still have a 5% chance of going to prison for tax evasion?
I'll pay the damn accountant.
Right enough to the benefit of who is the question
Just don’t be mad when your CPA asks for a $2,500 retainer to fix prior year issues on your AI assisted do-it-yourself tax returns.
Yeah, except that 5% can cost you dearly. And how were all 20 returns different? It's very possible it was certain classifications. Tax law is extremely dense and what counts as income, expense, etc for a specific purpose can be extremely vague.
Chat GPT, is Good enough for Me! 👍🏾
Welp there goes my life
Its not scary when you need the knowledge of what to ask and why to ask. Only experience will get you to those 2 answers
You still can’t just rely on it being accurate without knowing anything about what it is doing for you. That is why you’ll still need CPAs and tax professionals to verify and interpret the work of AI
omg.. I was taking about taxes (vat to be specific) with chat today xD
Is this IRS story real? because I don't see it anywhere.
The CPA exam is accounting for increasing technological advancements in the careeer field. Like other fields of accounting its a specialization but accountants aren't going extinct, and with the way im seeing quickbooks and self prepared tax returns come in from new clients, we're not going to run out of clients ANY TIME THIS CENTURY. That 95% stat is more accurate towards how many people suck at basic finance, although thats an understatement tbf
So I work in Accounting. Coding payables would be a huge help step for AI. It didn't work. It wasn't there yet. I sat it's at least 5 to 10 years away.
Lol, lawyer tried that and it did not go well. He’s being disbarred. Your tax returns are different because of the risk tolerance (and OCD level) of each. Did they go through each expense? Did they write off only what has a receipt? Etc. Accountants know we can end up in court against the IRS, some cut corners and risk it. Others play by the book.
even if AI can do a theoretically stellar job, the quality of the output is only as good as the input, i.e. a layman may not know what to ask or how to ask it, gets a crap answer, commits fraud, goes to jail.
😂😂😂😂😂😂 they belong in jail, for real. Stupidity should be a crime now days. It's embarrassing to be human at this point
Taxation is theft and the ai don’t care so what good is it really Alex
This will NOT hold up in court. "No, Judge, I didn't use an accounting firm. I used Chat GPT.😅
I’m a CPA and a tax advisor. There will always be human judgment involved in my profession regardless of AI. Chat GBT is not that great haha.
This dude don’t know as much as he thinks he does
This dude? This is Alex hormozi buddy…
There are multiple branches of accounting, not just tax accounting. 😂
It's because nobody knows what accountants really do, so everybody thinks they're an expert just because they googled a couple of answers.
Junior software devs have a higher chance of being automated compared to accountants.
So, can ChatGPT or whatever become a CPA or a CFP? Can it become a lawyer? For the people with enough money to need an accountant, that 5% error rate could spell prison, or at least penalties and interest.
I'm not in the habit of telling strangers everything. Especially when it's too difficult for most to understand.
Plus the thing is people want to speak and be spoken to. It’s a lot easier to trust a person than a computer
Nah either way they are still fine. Accounting is more based on judgements and how the companies want their reports filed. a computer cant make perfect judgement in every circumstance for reporting financials. They can do math for taxes but reading and displaying the info is another level
Accounting and taxes are two different topics!
95% isn't good enough, not with taxt returns.
And different tax returns don't mean that there is a mistake, anybody who ever took an accounting class knows this. There are different methods that are used in different scenarios.
However, an outright mistake, can have horrible consequences, including legal consequences.
Just like there is translation software, it can never replace an actual translator. Sure, it can aid him in his work and make his work faster and more efficient, increasing overall output, but it can never replace the human.
The question is, will companies need less accountants to run their accounting firms because of this? Who knows, but it's not a certain matter, that's for sure. Same with other automation things, you can't know the effect until afterwards.
How do we know weather thr ansewars are correct or not.Exactly .we need accountants
Bro im just tryna find a path to take in college fam let me get sum kinda job😭
Let them find out that it can also answer medical question to the same accuracy lol 😂
Right enough
Lol this guy literally should just stay in his lane lol for someone who doesn’t do taxes or accountant work
Someone with lots of investments, lots of income will need an accountant to make sure they are been placed in the right tax saving incentive plans and strategies.