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How AI is revolutionizing accounting and bookkeeping

VaselineOctober 1, 2024

0 4 minutes read

How AI is revolutionizing accounting and bookkeeping

Artificial Intelligence (AI) is transforming industries globally, and accountants and bookkeepers are in a unique position to leverage this technology to do more and help the businesses they serve.

Accounting and bookkeeping is integral for a successful business and the industry has undergone significant changes over the years, from manual paper-based processes to software and cloud-based systems. The emergence of advanced AI, means there is a significant shift in how financial information, such as invoices, statements and payroll, can be managed and processed.

Stephen Edginton

Chief Product and Technology Officer at Dext.

Accountants must lead the way

There are multiple benefits that AI can offer the accounting sector, and its introduction has allowed many accountants and bookkeepers to keep up with existing demand when they are unable to hire staff. A recent Sage report finds that the use of technology by SMBs contributes to £216 billion in the UK alone, and as trusted advisors to businesses, accountants and bookkeepers are in a unique position to help businesses unlock this value though using the right tools for the job. By adopting automation, precious time can be saved and used to give better advice. The human touch, context and expertise is now more important than ever in a constantly changing environment.

AI unlocks new ways to do things that were not previously possible to automate. One example is the painstaking task of checking which invoices you have, which ones have been paid and which you may be missing on a supplier statement. Some supplier statements can be multiple pages long and you get them all at the end of the month. Dext has recently completely automated that process with AI. This not only saves time, but also ensures data and liabilities are correct, which helps manage cash flow, minimize surprises and build trust. AI when used correctly, elevates those that leverage it.

The power of informed decision making

AI has the power to help accountants make more informed decisions, providing real time insights to pave the way for predictive analytics. This level of automation can analyze vast amounts of financial data in a fraction of time, freeing up accountants to focus on higher-value tasks such as financial planning and analysis and risk management.

Additionally, AI holds a track record of identifying errors within processes, due to the fact that AI demands undivided attention. It can help with everything from data analysis to tax preparation and fraud detection, which is because its algorithms are built to identify patterns and anomalies that may indicate such activities, allowing accountants to act quickly on behalf of customers.

AI creates seamlessness for businesses

One of the most significant roles AI plays in businesses is eliminating the need for manual data entry. It’s obvious, but automating the input of financial data saves significant time, reduces room for error and means time is put back into helping businesses to grow. With accurate and up-to-date information, it is also easier to plan ahead for the unexpected by identifying trends, spotting inefficiencies and making proactive adjustments to ensure the business is always on track.

Incorporating AI in accounting software also allows businesses to introduce cloud-based systems into their day-to-day, making it more seamless to move away from paper-based systems.

Human touch remains essential

AI cannot completely replace the power of humans when it comes to accounting and bookkeeping – in fact it should encourage upskilling of juniors who would otherwise spend time completing menial tasks, particularly with the current shortage of accountants. The skills shortage is something that has led to the increasing adoption of AI, which has meant that accountants and bookkeepers are able to spend less time on menial tasks when they are stretched. And realistically, accountancy leaders must remain responsible when it comes to understanding the pivotal role of AI in the accountancy sector, if they don’t want to be left behind.

It is important to remember that AI does not come built with the critical thinking and problem-solving skills that humans have, which highlights the importance of human oversight even with the adoption of AI technology. This is because human accountants play a crucial role in ensuring that there is accuracy and integrity of financial information and systems.

Understanding the importance of accountability within the accounting industry is something we take pride in at Dext. Therefore, the need to embrace AI advancement responsibly to create a more efficient and prosperous future for all is essential.

In essence, accountants should see AI as their copilots, not their autopilots. The use of AI is just like a car in autopilot, when you need it to it can break and stay in one lane, but if you take your hand off the wheel, it cancels the autopilot. That is how humans should consider the way AI works within accounting firms – you definitely can’t take your hand off the wheel.

Overall, accounting is more than just focusing on the crunching of numbers. Human accountants possess the soft skills such as communication and empathy to understand the needs of clients on a deeper level.

Although their time may be stretched, with the addition of AI, accountants can bridge the gaps that come with accounting and bookkeeping so they can balance their time and let their soft skills shine.

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This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro

VaselineOctober 1, 2024

0 4 minutes read

Accountants must lead the way

Vaseline

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