If there is one technology that has been creating a lot of buzz in the recent past, it is Artificial Intelligence. In general, Artificial Intelligence or AI is a field in computer science that is dedicated to creating super-smart machines, especially computers and robots that simulate human intelligence. The technology uses algorithms (step-by-step instructions) that computers can execute to perform specific tasks. Software/applications using strong AI are capable of making judgments, finding solutions, solving problems, learning from and creating data, or doing any other unfamiliar task—without human intervention.
Artificial Intelligence is taking the accounting industry by storm. The technology extends the capabilities of accounting professionals to a whole new level and is expected to bring vital changes to how accountants perform their day-to -day tasks to achieve increased productivity and cost-efficiency. Let’s have a look at how AI impacts accounting:
Automates Repetitive Tasks – Accounting involves a number of repetitive, as well as complex tasks which can be automated through AI to save time, achieve accuracy in results, reduce cost, and better utilize the available resources. The tasks include but are not limited to uploading documents, understand entries, and classification of entries based on different accounting codes.
Improves Decision Making with Data Analysis- In an attempt to get meaningful insights from their accounting research, researchers often need to analyze a large amount of data. This is usually done by multiple human coders manually, making the process time-consuming, costly, and less accurate. In order to mitigate these issues and obtain better results, AI-aided techniques can be used in accounting. Artificial intelligence and cloud work together to compute a massive amount of data. Machine learning in accounting research can be used by firms not only to collect but analyze this data at a much higher speed that is nearly impossible to be achieved by humans. The analysis can help in improving decision making and increasing productivity of a business.
Reduces Possibility of Human Errors – Accounting firms are constantly faced with changing regulations and demands from their clients. Imagine you are an accountant using a software like ERP, Excel, Oracle, or QuickBooks and your software has more than 60 data points to review: receipts and invoices. Errors committed in this particular task can turn out to be really costly. With AI, data handling and processing becomes completely automated and is, therefore, one of the major reasons why AI plays a crucial role in the area of compliance. Artificial Intelligence can help in determining whether the math is correct, the issuer is accurate, check identification number, and calculate Value Added Tax (VAT), and verify all fields in an invoice.
Solves Common Queries through Chatbot - Another important tool of Artificial Intelligence is a chatbot. Companies, these days, are taking great advantage of this tool to help their business grow. Chatbox enables a machine to resolve common inquiries on its own, such as checking when the bills are due, updating the balance, and knowing the status of an account.
Machine-based learning was initially performed by humans, but with technological innovations and the increasing power of Artificial Intelligence, computers are being programmed to do that on their own. A lot of industries are reaping the benefits of deploying AI to their operations to execute simple to complex tasks and accounting is no exception!
That said, having better technology won’t mean anything if you cannot act on it. This is where the role of an accountant becomes extremely important. Even if machines are made way smarter to perform all the calculations, analysis, or initial audit-related work, a professional would still be needed to analyze the process and draw a meaningful conclusion.
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- Artificial Intelligence is taking the accounting industry by storm. The technology extends the capabilities of accounting professionals to a whole new level.
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