As Artificial Intelligence (AI) has done for almost every other industry, it’s poised to make a significant impact in the world of accounting and finance. AI-powered systems for accounting and finance help save money so that their firms stay competitive. AI will be incorporated into accounting training modules in most accounts training institutes in the coming years.
MIT-Boston Consulting Group stated as per their recent surveys, 85% corporate people believe that AI leads to competitive advantage, and 79% believe that technology increases the productivity of the company.
What actually is AI?
AI extends the capabilities of computing to a whole new level. Just like humans, AI powered entities would gradually ‘learn to think’, predict and make alternations are deemed fit. It enables computers to perform machine-based learning, which earlier was left to humans.
How can AI help in Accounting
In the accounting profession people deal with mundane tasks. Thus, AI is a ready replacement of human efforts for the better.
Artificial intelligence is being used by many accounting firms where it analyzes a large volume of data at lightning speeds, something which would not be feasible for humans.
Most accounting firms are now moving to a new typed of workforce to help them with complicated tasks. This is owing to increasing demands in the industry. This new chain of support will help companies with the most complex tasks without asking for a monthly salary. That’s because this new workforce isn’t human, but robotic.
It is said that AI could reduce costs by 80 per cent and the time it takes to perform tasks by 80 or 90 per cent.
As per Accenture Consulting, great results will be achieved by robotic process automation. For accounting professionals to deliver services their clients will demand increasing efficiency from their end. Thus they should begin to deploy artificial intelligence to their advantage.
Accounting Tasks Which Can Be Automated
Along with freeing up humans from simpler tasks, AI would also help businesses improve their operations.
Those accountancy professionals looking to deploy the latest innovations in technology will gain valuable skills. This would make them valuable in business process transformations. They can also undergo accounting training for more complex tasks, leaving the mundane ones for the AI machines.
1. Closing Procedures
The sooner you get the numbers, the more time your company has to create strategies about what can be done with the numbers. AI can provide you data from various sources, consolidate, and merge it. This would help in speeding up the processes which are done monthly. It would also be more accurate because of the involvement of machines.
2. Procurement of Inventory
The tracking and procuring method for many companies is filled with paperwork and use different file formats which may not be compatible with each other.
Having said that, API (Application Program Interface) can be integrated and their data paired. This makes the procurement process paperless and easier. Changes in price across different suppliers can be easily tracked with the help of AI.
3. Accounts payable/receivable
The existing system already has an AI-powered invoice management process which can make accounts payable/receivable processing more streamlined with the help of digital workflow. Accounting codes for the corresponding invoices can be easily learned by the artificial machines.
Digitalization of accounts books tracks which file was accessed by whom and when, which increases the security of data and files. If this is employed, auditors would not longer need to search file cabinets for documentation as they can easily have access to the digital files.
This would substantially increase the efficiency of audits and make it possible to audit the whole of the firm’s financial transactions rather than mere samples.
5. Managing expenses
Reviewing and approving all the expenses to make sure that they are compliant with the company’s policies can be a time-consuming process. AI powered bots are able to review expenses, check receipts, review expenses and give timely warnings in case of discrepancies.
6. Query resolving using AI chat-bots
AI powered chat-bots can resolve queries from users like what the latest account balance is, when are bills due and other other miscellaneous information on accounts.
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