Redefining Accounting with Artificial Intelligence(AI) and Machine Learning(ML)
Is Artificial Intelligence just a science fiction or a real phenomenon?
For decades accounting professionals were persistently hungry for new technological innovations to improve the level of efficacy and effectiveness for the clients. The demand for adoption of automation continued to intensify to create more smarter and dynamic accounting systems.
Industry experts have been tinkering with AI & ML in building a series of AI-driven applications and ML-powered algorithms to process humongous data, to make tax preparation, auditing and arrive at faster strategic decisions. Embedding AI and ML into accountancy help in automating significant amounts of mundane accounting tasks. Implementing innovative AI based technologies such as usage of Natural Language Processing (NLP) to dig up information with a human-in-the- loop to authenticate the results makes accounting processes to be more efficient and consistent. Usually the auditing process would have taken weeks to finish is now taking few hours, Thanks to the AI-driven technology.
It is not surprising that investments in AI are growing, according to Sage report 58% of large accounting firms are anticipating to implement AI & ML powered technological automation in accounting within the next 3 years. The Big Four audit firms have changed their investment agenda to focus more on technological makeover typically based on AI technology and data analytics. Four out of five financial enterprises believe integrating AI with accountancy will certainly hike their productivity and redefine the accountants’ day-to-day work.
How can Accountants use AI?
- Automating bookkeeping
- Use Chat-bots for Customer service
- Accounts Payable and receivable
- Forecasting Cash flow with total cash activity and visibility
- Validate transactions
- Manage Payroll System
- Tax Remittance
- Fraud detection
- Expense Compliance
- Verify and validate all financial documents
- Auditing each and every expense
- Analyze claims for many accounts
- Predicting potential complexities at an early stage
- Legal Contracts Interpretation
That’s a lot taken off the shoulders!
For clear understanding, considering a scenario as illustration to show how AI is redefining accounting. As an example, Auditing of expense claims, the days of looking through receipts, categorizing dates and VAT numbers are long gone. Instead AI application would audit expense claims and read receipts at the same time can detect anomalies and can forward it for further investigation and approval. This process guarantees that expense claims reaching accountants are perfectly valid and accurate, rejecting those claims which aren’t good enough.
Ultimately, the impact of AI-driven applications and modules in accounting sector is remarkable. AI & ML can evaluate multiple aspects from various sources and provide impulsive insights on concealed information around the areas of potential expenditure, budget forecast and investment possibilities. Spectrum Accounting specializes in a spectrum of services including accounting, bookkeeping, payroll, tax returns, and professional tax advice. Our magnitude of experience, competence and reputation makes us a distinctive world-class accounting service providers.