not a game on Steam? :(

We've been on this train of not caring about the details for so long but AI just amps it up. Non-deterministic software working on things that have extremely precise requirements is going to have a bad outcome

A company may be OK with an AI chatbot being so bad it results in 5-20% of customers getting pissed off and not having a 5-star experience. The SEC and DOJ (and shareholders) are not going to be happy when the books are off by 20% or when a bridge is 5 inches too short to reach the other side

I sent this to accounting friends and this aligns with what I've been going through trying to use LLMs to create a game from scratch. Seems like the current best use case for language models (even with agent mode) is to feed it exactly what you want to get out, essentially turning it into a better auto complete. Still saves tons of time, but it isn't a panacea.

I love the site design.

> There's an obvious question looming here — if the models got so confused, how did they consistently pass the reconciliation checks we described above? It may seem like the ability to make forward progress is a good proxy for task understanding and skill, but this isn't necessarily the case. There are ways to hack the validation check – inventing false transactions or pulling in unrelated ones to make the numbers add up.

This is hilarious. I wonder if someone is unintentionally committing fraud by blindly trusting LLMs with accounting. Or even worse, I bet that some governments are already trying to use LLMs to make accounting validators. My government sure wants to shove LLMs into digital government services.

I find the same issues (though with much lower stakes) when using an LLM to determine the outcome of a turn in a game. I'm working on something called "A Trolly (problem) Through Time" where each turn is a decade starting with the 1850s, and you are presented with historic figures on a train track, and you have to chose whether to actively spare the person on your track for a potential unknown figure on the other side, or let the train run them over.

It works well as a narrative, but the second I started adding things like tracking high level macro effects of the decisions, within a couple of turns the world's "Turmoil" goes from 4/10 to a 10/10... even when the person that was killed would have been killed IRL.

Sonnet 4, o4-mini, and GPT 4o-mini all had the same world ending outcomes not matter who you kill. Killing Hitler in 1930s: 10/10 turmoil, Killing Lincoln in the 1850s: 10/10 turmoil in the first turn.

I've come to the realization, the LLM shouldn't be used for the logic, and instead needs to be used to just narrate the choices you make.

> In fact, we explicitly prompt against this behavior in no uncertain terms, but the instructions – and the entire spirit of the task – are lost in the interest of making forward progress

LLMs and humans are quite alike. :) I notice that a few models will give up instead of ignoring their instructions and that's the model I would want working on tasks like this. An LLM should be able to categorize and reconcile transactions, but if it's not sure, it should quit and give it back to the humans.

An LLM is like a jackhammer, it works very well when you hold it tightly. If you let it loose it will sort of work for a while then it starts destroying everything around it.

I guess having access to tools / running Python would make all the difference.

So there exists a 'Excel World Championship':

* https://en.wikipedia.org/wiki/Financial_Modeling_World_Cup

* https://www.cbc.ca/radio/asithappens/2024-excel-world-champi...

Can't wait for this to start having 'e-sports' tournaments. :)

This is a task where access to Python would be immensely helpful, yes? Interesting that there's not much of a difference between the "analytical" LLMs with tool use and ones that do not (...assuming o3 etc did get to use python?).

the title should be changed to "LLMs try accounting for a real SaaS and fail"

I think the first chart could be a beautiful summary of what's driving LLMs into a bubble. At first, they're amazing and will obviously be able to improve productivity if not replace employees outright: C suites and venture capitalists around the world rejoice and begin pumping in billions of dollars of investments. But as time goes on, the demands placed on actual human employees become clear. Far from being able to replace an employee, the employee using the LLM might spend more time cleaning up its messes than had they done it themself.

Yes, LLMs have and will continue to improve. But it's that initial "holy shit, this thing is basically as good as a real accountant" without any understanding that it can't sustain it which leaves many with an overinflated view of their current value.

Remember that test where you ask a LLM whether 9.11 or 9.9 is the bigger number? [Just checked gpt-4o still gets it wrong]

I don't think you'll find many sane CFOs willing to send the resulting numbers to the IRS based on that. That's just asking to get nailed for tax fraud.

It is coming for the very bottom end of bookkeeping work quite soon though, especially for first draft. There are a lot of people doing stuff like expense classification. And if you give an LLM an invoice it can likely figure out whether it's stationary or rent with high accuracy. OCR and text classification is easier for LLMs than numbers. Things like concur can basically do this already.

My first impression was a game where you role-play as Sam Bankman-Fried.

Reading through the LLM log entries, it's just astounding the amount of depth current models are capable of. It's almost hard to comprehend that this is even possible. Yeah the current ones mess up after a while, but ... the future is going to be very interesting.

I wonder if this is a case similar to chess, where LLMs kinda suck, but other models might be viable.

Absolutely love the UI!

But can't it, literally, hallucinate raw data at any point in the run?

Hey all, member of the benchmark team here! The goal for this project was to see how LLMs well could do bookkeeping without an overly opinionated scaffold. We gave them access to processed transaction records and code execution tools, but it was up to them to choose exactly how to use those.

Claude and Grok 4 did reasonably well (within CPA baselines) for the first few months, but tended to degrade as more data came in. Interestingly, the failures aren’t exclusively a context length problem, as we reset the context monthly (with past decisions, accruals/deferrals, and comments available via tool calls) and the types of errors appear to be more reward hacking vs pure hallucinations.

Accounting is very interesting in an RL-first world as it is pretty easy to develop intermediate rewards for training models. We are pretty sure that we can juice the performance more with a far more rigid scaffold, but that’s less relevant from a capabilities research perspective. We’re pushing down this research direction and will see how it goes.

Let us know if you have any questions!

A serious problem for many accounting start ups who so far faked it till it will work. In other words, they still need to do more manual labor than they thought. They will never be profitable and it will take years, if ever, until AI will substitute the local accountant.

Hmm will openAI dogfood their own accountability with software like this ? Curious to know if they’ll be able to take this bet on their own money related software

> Ledger balances are calculated by summing all transactions per account. The differences should be as close to zero as possible, with small differences allowed for pending transactions such as weekly Stripe payouts.

That's not quite right. I'm not an accountant, but pending transactions (posted, but not cleared) should be factored into the balance of account, or at least the "available balance" - which is more important the the "current balance".

The idea that you can "allow" accounting discrepancies as "those are probably pending" is wild.

> But they do make categorization mistakes, which is a common source of errors.

> Claude misclassifies a hosting cost (which counts as COGS) as a software subscription.

This is simply asking too much of the agent. Your accountant is not responsible for knowing all the intimate details of your business. You need to tell them!

> What's Vercel?

>> That's a hosting service.

> Ah, so it goes to Cost of Goods Sold?

>> Yeah, I guess.

The mistake here was on the operator, allowing the agent just make up categories as it liked.

From the prompt:

> (1) You have properly categorized every transaction, and all journal entries are sitting in the correct accounts. It is better to take longer than to mis-categorize a transaction.

This is insane! How is it supposed to know?

> Needless to say, a human accountant would never behave in these ways. In fact, we explicitly prompt against this behavior in no uncertain terms, but the instructions – and the entire spirit of the task – are lost in the interest of making forward progress. Claude and Grok keep trying until they find some way to get past the checks, even if it explicitly violates their instructions and the core goal.

I recently read a similar thing here on HN. There the model was making commits with some problem like tests failing, then the human added a pre-commit hook, then the model started editing the hook to make forward progress, then the hook was made read-only, then the model was trying to make it writeable...

To me it feels like the model clearly does not have an understanding of what is happening, what the goal is and if it is really making progress towards the goal. And this lack of understanding is an actual problem. You can paper over it for a short while, but as here and in the other article, over a longer experiment it results in failure.