7 Ways AI helps to digitize the accounting & finance tasks.
Artificial intelligence (AI) is playing a vital role in the digital transformation of accounting and finance. AI machines take over the burden of doing repetitive and time-consuming tasks. Artificial Intelligence in accounting reduces human intervention. Herein, we discussed how AI applications and AI services help finance experts in accomplishing their regular responsibilities faster. Let’s start.
AI in Accounting and Finance
Technology advancements are accelerating the work processes of accounting and finance. According to the market, the global workforce has a major concern that AI-powered machines will replace their jobs in the future. Even the finance employees also fear that they will lose their jobs if AI-based machines placed in workplaces.
Generally, the role of a finance professional is to make strategies to distribute business assets. Whereas, the role of accounting experts in business is best defined as recording and reporting every financial transaction of business. Errors while recording financial transactions, audit mistakes, and procurement process errors are the current issues that the accounting professionals are facing today.
AI technologies like Machine learning (ML) (in accounting) and deep learning helps accounting and finance professionals to perform their tasks more efficiently. With this, we can understand that AI supports the human workforce, but nor steal their jobs. Hence, the digital transformation in the accounting and finance sector using AI is incredible. AI accounting software brings a drastic change to your business.
Let’s see some opportunities that AI helps to completely digitize the accounting & finance tasks.
1. Machines Replicates the Human Brain
Automation, AI chatbots, machine learning tools, and other AI technologies are playing an important role in the finance sector. Accounting and finance companies are investing in these technologies and making them a part of their business.
According to researchers, AI Apps and ML apps are impacting the accounting & finance professionals and their everyday jobs. Using AI and ML, finance experts can improve productivity and deal with new clients.
Get in touch with USM AI expert to explore more about AI applications and services in Accounting and finance!
2. AI Machines Performs Many Accounting Tasks
Artificial intelligence machines automate end-to-end accounting procedures. It ensures operational efficiency while reducing costs. As automation is accessing every corner of a company, the financial companies also adopt the digital transformation that will gain from the technology developments. The accounting and finance leaders who deployed AI will be ranked in the future of digital transformations.
The advantages of artificial intelligence in accounting are more. Now, let’s have a look at what AI machines can do in accounting and finance:
1. Pay/receive processing: Existing AI-based invoice management systems are helping finance clients in making invoice processing efficiently. Digital transformation in accounting and finance is unbelievable. Digital machines using AI are learning the accounting codes that best suits for every invoice. Thanks to technology advancements in the finance sector.
2. Supplier Onboarding: The AI-powered systems can screen the suppliers by examining their tax details or credit scores. AI tools can set all suppliers in the systems without the need for humans. In addition, they can also set the query portals to get the required data.
3. Procurement: Many companies file their procurement & buying methods on paper. They maintain various systems and records that are not in connection with each other. As AI-machines process unstructured data using APIs, the procurement process will be automated.
4. Audits: Digitization in the audit process enhances the security level. Using a digital tracker, the auditors can track each file that is accessed. Rather than searching all paper documents, the digital files can ease the audit work. Hence, the digitization process in auditing provides improved accuracy of audits. Thus, artificial intelligence in accounting and auditing helps to record every financial transaction of the company. AI-powered audits are more efficient and perfect.
5. Monthly/Quarterly Cash Flows: The AI-powered machines can collect data from many sources and integrate that data. AI tools, devices, or AI applications not only speed up your processes, but they make your financial processes accurate and secure. Your monthly, quarterly, or annual cash flows will be collected and consolidated easily by AI-powered machines.
6. Expense Management: Revising and finalizing expenses to confirm that they are compliant according to the company’s norms is a difficult task. The manual process consumes more time for your finance team. Instead of humans, machines can do these tasks quickly and efficiently. AI machines can read all receipts, audit the costs, and also alert the human workforce humans when a breach occurred.
7. AI Chatbots: AI-driven Chatbots are developed to solve user’s queries efficiently. The queries may include the latest account balance details, statements, credit bills, and account status, etc. are included.
Therefore, AI for accountants is helping in many ways. Know what USM AI services and solutions for accounting & finance can do for your business.
Will Accountants Be Replaced By Artificial Intelligence Technology?
The accounting and finance professionals are in a big dilemma that is AI replace the accountants in the future?
The revolution of AI in accounting will not slowdown in any way. AI technology has the full capability to perform all mundane tasks of accountants. But, it doesn’t mean that it will replace accountants. Human intelligence will always be needed to perform and run technology efficiently.
The companies require accountants for interpreting and analyzing data captured by AI-machines. Moreover, accountants will play a major role in providing consulting services better than machines. Therefore, rather than replacing accountants, artificial intelligence helps accounts to do their regular tasks in a modern way.
As AI and machine learning perform repetitive tasks with more efficiency, accountants can save their time and focus on other general tasks like data analysis and consulting services. So, the future of accounting jobs will be automated and intelligently supported with AI, but not accountants (human workforce) will be replaced by AI machines.
Market Growth of AI in Accounting
According to the market reports, artificial intelligence in accounting is anticipated to reach $4.7 billion by 2024 at a CAGR of approximately 48%. Growing need of automated accounting processes, enhanced audit processes, and decision making power is driving the demand for AI in accounting.
Latest Trends that will Impact the Future of the Accounting Jobs:
1) Working in the Cloud Technology
A powerful technology trend is currently working in the cloud. The cloud gives immediate access to computing abilities and data. A big advantage of a cloud-based system is the frequent update of data, which permits clients and accountants to analyze information and make strong decisions that are based on data.
Furthermore, as indicated by the Journal of Accountancy, “cloud-based technology can also guarantee “constant monitoring, instead of intermittent analysis,” whenever data on the computer is updated.
According to Forbes, Cloud computing has been growing enormously in several latest technologies such as Artificial Intelligence, machine learning (ML), and Internet of Things (IoT), are combined into the cloud.
As most of the firms will transfer their information to cloud in the near future, it is better accountants to become experts in utilizing cloud technology in order to stay updated with the competitive world. The future of accounting jobs will be distinctly cloud-based.
2) Automation of Accounting Tasks
Work and time-escalated aspects of bookkeeping —, for example, reviews, charge readiness, banking, and finance — are anticipated to be completely mechanized by 2020, as per Forbes.
As the use of Artificial Intelligence to make self-learning systems— keeps on being incorporated into the tasks of accounting, technical systems would take on the redundant and tedious occupations, leaving the logical and administrative jobs to humans.
For example, critical software vendors like OneUp, Sage, Xero, Intuit will provide automated data entry facilities utilizing ML and AI advances in organization accounting.
3) Blockchain Technology
The third most trends that will impact the future of accounting jobs is ‘Blockchain’. As the blockchain technology will enable users to get to the fine records, create smart contracts and record transactions, it’s expected that the system is getting the notice of accountant professionals. Some of the famous accounting companies have already implemented the blockchain, namely, Deloitte, KPMG, PricewaterhouseCoopers, and Big Four — Ernst & Young. Hence, accountants who wanted to use blockchain should be well acquainted with the significant software programs.
Will technology replace Accountants?
The accounting and finance professionals are in a big dilemma that is AI replace the accountants in the future? Don’t worry! Here is the clarity.
The revolution of Artificial Intelligence in accounting will not be a slowdown in any way. AI technology has the full capability to perform all mundane tasks of accountants. But, it does not mean that it will replace accountants. Human intelligence will always be needed to perform and run technology efficiently. The companies require accountants for interpreting and analyzing data captured by AI-machines. Moreover, accountants will play a significant role in providing consulting services better than machines. Therefore, rather than replacing accountants, artificial intelligence helps accounts to do their regular tasks in a modern way. As AI and ML perform repetitive tasks with more efficiency, accountants can save their time and focus on other general functions like data analysis and consulting services. So, the future of accounting jobs will be automated and intelligently supported with AI, but AI machines will replace not accountants (human workforce).
The digital transformation in accounting and finance connects machines and humans to make the workflow more efficient. As machines can collect and process vast amounts of data, they can derive patterns and learn from the data. Since machines handle repetitive and tedious tasks, the accounting and finance experts will have enough time to focus on the tasks they are exerted in. Hence, we can strongly say that artificial intelligence will be the future of the accounting and finance industry.
Are you ready to deploy AI in your processes? Let’s connect with USM Business Systems and get benefits of AI in accounting!