In today’s business landscape, more companies are embracing artificial intelligence (AI) in their operations. The same can be said for the accounting industry! Many accounting tasks and processes can be repetitive and tedious, such as ledger entries, bank reconciliation, accounts receivable and payable, and payroll administration, the day-to-day functions of accountants are a lot easier with AI.
Does the presence of several benefits imply that it will end the profession for many accountants? While artificial intelligence has substantially enhanced the accounting landscape, it is unlikely to replace accountants but will instead strengthen accountancy roles.
How has AI changed accounting?
AI has revolutionised how accountants and financial professionals carry out their tasks, making processes more efficient, accurate, and streamlined. So, is it important for accountants to embrace AI in the accounting field? In a survey conducted in 2020 for Digital Accountants involving ACCA members, 89% reported that digital skills were either necessary or very necessary in their industry.
As the scope of accounting expands in today’s digital environment, familiarity with cloud computing and automation will be an invaluable ability for any accounting professional. Here are some of the ways AI has helped in enhancing the accounting world:
Automating Day-to-Day Tasks
Accountants often deal with countless documents, such as invoices, claim forms and bank statements, making it unfeasible for accountants to sift through if unassisted. Keying all these documents by hand can be time-consuming and prone with errors, but with the help of AI, you can significantly downsize these time and errors. AI in accounting software can automate invoicing, deliver past-due notices to clients, and seamlessly generate the latest financial statements, making it simple for your finance teams to keep track of all transactions.
Enhancing Financial Planning and Analysis
Financial planning and analysis are vital for any business to make informed choices and boost financial health. Accounting software can provide accurate and up-to-date financial data by automating repetitive and taxing accounting tasks, allowing companies to focus on strategic planning and analysis and ensuring a more efficient and precise accounting process.
Overseeing Fraud Detection
The use of AI in accounting can significantly enhance compliance and fraud detection. AI can recognise approved patterns that assist them in identifying fraudulent activities and anomalies, and flagging these activities immediately. These identified anomalies will be reported for follow-up and inspection before damage happens.
Enhancing Tax Compliance
Accounting software can also assist your finance department in remaining compliant with tax rules and regulations. By using AI, you can automate and streamline tax calculations, validations, and submissions, all while reducing the risk of errors, penalties, and audits, ensuring timely and accurate tax reporting and filing. A good accounting software will automatically include new tax rates, ensuring you are always tax season ready.
Conclusion
It is without a doubt that AI poses many benefits for businesses, accounting included. AI enables accountants to work faster and better, but does that mean it will replace accountants? It won’t! AI is not a threat to accountants but rather an opportunity to strengthen their skills. By embracing AI in their daily tasks, accounting professionals will undoubtedly thrive in the growing digital landscape without worrying about being replaced.
If you are still deciding if you need accounting software that can free up the time of your finance teams for more critical tasks, refine financial planning and analysis, improve fraud detection and enhance taxation compliance, call us at +65 6297 3398 or email us at sales@info-tech.com.sg. We will gladly help answer your enquiries!
