Accounting firms are not thinking about the possibility of millions of loss accountant jobs when it comes to artificial intelligence (AI). They are welcoming the idea that after all of these years they no longer will need to perform those mundane repetitive tasks. Gone are the days of just crunching numbers and time to start providing some real financial insight to their clients. Accounting firms are noticeably reaping the benefits of AI technology.
Before getting into the detailed ways of how accounting firms are taking advantage of AI technology lets first cover what AI is. AI is basically the ability for a computer to perform tasks with reason instead of just typical input and output programming. This technology is able to learn and get better at analysis and decision making each time it completes a certain process. This ability is extremely helpful for the rote tasks involved in accounting and allows firms to operate more efficiently.
How Accounting Firms Benefit From AI
- Automating Accounts Payable and Accounts Receivable. AI solutions automate and optimize the data collection involved with these processes and present it in a way that is easy to interpret. This gives accountants a quick and thorough understanding of the data and allows them to make better decisions. Through machine learning a AI system can recognize patterns in ledger codes and the structures of different invoices to know what pertinent data should be extracted. This not only saves numerous hours of manual labor time but also allows for real-time data analysis and decision making.
- Financial Auditing. AI audit solutions like MindBridge AI auditor use statistical methods and decision rules when analyzing transactions and monetary flows between accounts to detect anomalies. This is lightning fast and way more accurate than CPA’s randomly sifting through financial records. Using the AI system, triggered risks have rankings from high to low when it spots an irregular transaction. Exact details of the triggered event (like if a company sending $25,000 instead of the normal $160,000) are provided in an intuitive interface for managers to investigate further. Accounting firms are also using this technology when deciding whether or not to take on a new client after submitting their ledger into the AI system and analyzing the risks.
- Tax Purposes. Using the machine learning form of AI, a system can instantaneously process a complex business transaction and decide whether it qualifies as a tax deductible expense. No more burning man hours for fishing through accounts seeking tax liabilities, all of this is done more accurately in no time by using AI. AI systems can provide the most accurate forecasting by using tactics that detect trends on annual, quarterly and on a monthly basis. Using corporate data and seasonal changes the AI algorithm forecasts sales and the impact it will have on required taxes for accounting firms clients.
The use of AI in accounting firms has already proven to be the way of the future and for good reasons. It takes away the requirement for accountants to spend countless hours of combing through thousands of invoices and other records to produce financial reports. Data collected during auditing and tax preparation will be done without human error.
The next step for AI in the accounting sector is having a system provide advisory services. By processing advisory and consulting data a AI system can be trained on how to work with clients and advise them on business solutions. In the end, AI creates new opportunities for accounting firms. While accountants are starting to take on new and more important roles the future for both AI and the accounting industry looks very promising.