- Makeda Waterman
The Ultimate Artificial Intelligence Guide for Accounting Firms
According to a Constellation Research quote on a Microsoft article, “By 2025, the artificial intelligence market will surpass $100 billion.”
The thought of “artificial intelligence” (AI) is an obstacle some accounting professionals in the industry prefer to avoid. The Big Four firms PwC, EY, KPMG, and Deloitte, are investing in AI to streamline tedious work.
The act of completing invoices and sending emails can take up to 15 minutes. However, artificial intelligence software can complete this task in less than one minute. An example of small business software that eliminates the expense in hiring an assistant to complete invoices and account receivables.
As we review artificial intelligence, we will share different aspects of the technology to help you gain a clear understanding of how it works.
The True Definition of Artificial Intelligence
Artificial Intelligence is a series of machines that use algorithms to understand data to predict an outcome or learn from the positive and negative factors of a process. It reduces the amount of time it takes a professional to complete a repetitive task. As a result, employees can focus their energy on bookkeeping or other accounting responsibilities.
Artificial Superintelligence (ASI)
Artificial superintelligence is a computer that the thoughts of humans with cognitive abilities that are superior to the human mind.
Algorithms are rules that are set to help software perform tasks, achieve a specific goal, or solve a problem.
Machine learning is an artificial intelligence application that improves the performance of a machine.
The Benefits of Implementing Artificial Intelligence
The accounting industry will continue to be dependent on AI. A team of executives at a firm can determine areas of improvement in data. Information can be collected faster in a single system to save time in employees retrieving information to present to management. Here is a list of benefits of using artificial intelligence in your business:
Reduces hiring costs
Increase employee productivity
Improves accuracy rates
Artificial Intelligence Robotic Process Automation (RPA) Bots
A Robotic Process Automation Bot can move information into categories with the use of organized data. If your company offers a monthly subscription for a product and price to purchase the product in full, the bot has the intelligence to comprehend the information and send it to the different charts of accounts.
What Accountants Can Do Moving Forward
According to a Wolters Kluwer article, “machines could replace accountants within the next two decades.” It is the perfect time to excel in a more meaningful career that is the opposite of data entry or administrative positions. The focus on compliance will help to advance your learning of AI.
It is wise to think of innovative ways to cater to clients with improved services such as retirement plans, forensics, cost segregation studies, and litigation support.
Future Expectations of Artificial Intelligence in Accounting
In the future, it is expected that reporting from a compliance standpoint will be streamlined and processed more effectively.
There is a possibility that administrative positions will decline at small and big accounting organizations because of the adoption of paperless workflow for operational tasks. Automation software will be a replacement for the administrative responsibilities of accountants.
Furthermore, the ability to use advanced technology will be an expectation of employers for accounting professionals to adopt. As a result, business owners may have more of a need to hire a technologically skilled accountant that can operate Artificial Intelligence software.
Embracing Artificial Intelligence
The idea of computer software replacing jobs is a fear for some in the accounting industry. The ability to compete with a computer that processes information within seconds seems impossible.
The truth is a robot cannot replicate personality, human connection, and appreciation of clients the way an accounting professional can. Most businesses will prefer meeting an accountant in person to discuss financials.
While technology has its economic and time-saving benefits, it is not fully used to its full potential in the industry. It is an opportunity for accountants to review areas of the business to reduce the time it takes employees to focus on time-sensitive tasks. The utilization of AI in your company can result in customer satisfaction depending on how it is implemented.