Benefits of AI in Accounting
Mon, April 19, 2021

Benefits of AI in Accounting

Accountants can devote more time and energy on creativity by automating administrative tasks / Credits: Roman Samborskyi via 123RF

 

Industries and companies are heavily investing in artificial intelligence to automate operations, preventing repetitive tasks and boosting employee productivity. Among all jobs, accountants have a repetitive, automated nature of tasks which means it is an ideal candidate for disruption. AI will not only automate tasks but also increase accuracy and efficiency as well as discover hidden insights and trends. Thus, implementing AI applications can greatly impact accountants.

According to Accounting Today, a trade magazine servicing the public accounting profession in the US, accountants can devote more time and energy on creativity by automating administrative tasks. They can focus more on analyzing and interpreting information to extract real value for the business and their customers. The technology can also automatically manage the process of gathering, sorting and visualizing pertinent data, helping the business run more efficiently. This frees employees from doing repetitive tasks and helps them focus more on tasks that matter most. 

At the same time, AI can address the growing concern for financial crime because it can significantly reduce financial fraud and minimize accounting errors. For instance, it can detect anomalies such as duplicate invoices or determine links between seemingly innocuous payments and other known risks while also helping to assign expenses to the correct categories. With this, the traditional practices would improve and protect both their own and clients’ finances.

Currently, experts stated that AI applications would benefit three areas in the accountancy professions such as invisible accounting, continuous audit, and actionable insight. This provides businesses to make adjustments such as accruals throughout the month, perform continuous reconciliation, and capture business activity in real-time. 

While many are terrified that AI will replace them in their jobs, there are a lot of professionals who are excited by the benefits that AI can offer. For instance, the “Practice of Now” report conducted by Sage reported that more than 58% of accountants strongly agree or agree that AI will help improve their firm in the future.