Leapfin Blog

Automating Revenue Recognition With AI: What We Learned in Our Latest Workshop

Written by Erik Yao, Co-Founder & CTO at Leapfin | Sep 18, 2025 8:48:25 PM

Spreadsheets have been the workhorse of finance for decades. But let’s be honest: they’re reaching their limits. We’ve all felt it. Too many tabs, too many formulas, too many late nights praying nothing breaks right before close. Add in ASC 606 complexity or pressure from an audit or due diligence, and the cracks are impossible to ignore.

That’s why I opened our recent webinar with a bold prediction:

Prediction: Within the next two years, AI agents will replace spreadsheets as the primary tool in the office of the CFO.

Not because Excel will disappear – it won’t. But because AI-powered automation is already proving to be faster, more accurate, and more auditable than manual spreadsheet work.

Here’s a recap of what we covered in the workshop, with examples you can take back to your own Finance team.

Why spreadsheets can’t keep up with scaling finance demands

Traditional accounting processes are breaking under modern business demands:

  • Data volume: Spreadsheets max out at 1M rows – surprisingly easy to reach especially as you scale.
  • Complex rules: ASC 606 and other accounting standards often require logic that pushes spreadsheets into brittle pseudo-code.
  • Audit trails: Every formula change or manual edit introduces risk, with little transparency for auditors.
  • Manual reconciliations: Endless back-and-forth between data sources creates what I call spreadsheet hell.

The result? Slow closes, rising error risk, and stressed Accounting teams.

Automation is no longer optional – it’s a necessity.

Level 1: Using AI chatbots for revenue recognition

Most people’s first interaction with AI is through a chatbot like ChatGPT or Gemini. In the workshop, I demonstrated how you can upload a list of Stripe invoices and ask the AI to generate a revenue recognition schedule.

It works – but with a catch. Chatbots operate on a type of logic that’s designed to not solve a problem the same way twice. For creative tasks, that’s a strength. For accounting calculations that need to be executed precisely and consistently, it’s a liability. If you run the same prompt tomorrow, you might get slightly different outputs – something no auditor will accept.

Lesson learned: chatbots are great for prototyping and learning, but not for repeatable financial processes.

Level 2: Using an AI agent to build a revenue recognition application

Here’s where things get more interesting. An AI agent is like a chatbot with “hands and feet.” Instead of just talking back, it can:

  • Write and execute code
  • Access files
  • Perform multi-step tasks

In the workshop, I used an agent to actually build a working revenue recognition app. Instead of manually generating individual journal entries or recognition schedules, I asked the agent to create a reusable tool that processes all my invoices consistently, and in an instant.

That shift is powerful: using AI once to build a precision accounting solution you can reuse. It’s a low-cost way to boost productivity, especially for lean teams experimenting with automation.

But generic agents have limits:

  • They struggle to scale beyond thousands of records.
  • Connectivity to systems of record is manual.
  • SOX compliance is nonexistent.

Good for experiments. Not enough for enterprise.

Level 3: Appreciating the value of specialized AI agents built for finance

This is where the leap happens. Generic AI agents are flexible but fragile. Enterprise Finance teams need agents that are purpose-built for high stakes revenue work and the scrutiny around it.

That’s why we built Luca, Leapfin’s specialized AI agent. Luca combines the creativity of a chatbot with the rigor of a precision accounting logic engine. Here’s what makes it different:

  • Scalability: Handles millions of transactions without breaking.
  • Connectivity: Direct integrations with payment processors, billing systems, ERPs, and data warehouses.
  • Compliance: Every action logged, reconciliations enforced, audit trails preserved. SOX-compliant by design.
  • Edge case handling: Multi-currency, blended revenue schedules, complex refund logic – these aren’t exceptions, they’re expected.
  • Transparency: We replace the black box problem with a “glass box.” Every AI decision is translated into a visible, auditable workflow.

In practice, this means Accounting teams can automate months of manual work in minutes, without sacrificing trust in the numbers.

The bigger vision: an autonomous digital workforce accelerating everything in finance

Let’s zoom out. 90% of an accountant’s time today is spent on manual, repetitive tasks – month-end close, reconciliations, audit prep. These tasks are essential, but they don’t add strategic value.

With specialized AI agents, we’re heading toward a world where:

  • Manual accounting tasks become obsolete.
  • Finance operations are run through natural conversations, not formulas.
  • Accountants spend their time as strategic partners, not data janitors.

I like to call this the rise of the digital workforce for finance. Not hype – this is already in production with customers like GoodRx, Reddit, Eight Sleep, and many more. The feedback? Equal parts awe and relief.

Where and how can you start applying AI to your finance work?

Here’s my advice if you’re considering how AI fits into your finance org:

  1. Experiment with chatbots. Upload simple exports and test prompts. See what AI can and can’t do.
  2. Build with generic agents. Try creating small tools to automate tasks you repeat monthly.
  3. Graduate to specialized agents. When you’re ready for scale, compliance, and reliability, that’s where enterprise-grade tools like Luca shine.

A special offer for readers

If this resonates with you, I’d love to help you map out your AI strategy. Right now, Leapfin is offering:

  • A 1:1 AI strategy session with me (Erik) to explore how AI can support your finance and accounting org.
  • A free 1-year MasterClass subscription if you bring your team to a Luca demo.

👉 Book here: leapfin.com/get-a-demo

Closing thought

The tools we use shape the work we do. Just as spreadsheets once redefined accounting, AI agents are about to do the same. The question is no longer if – it’s how quickly you’ll adapt.