Artificial intelligence (AI) is a revolutionary technology. According to a recent Gartner survey in 2019, 37% of companies surveyed had already adopted AI technology, and the numbers would have already increased.
It is not surprising that this revolutionary technology has also penetrated the accounting sector. Artificial intelligence can be used to automate processes in the accounting industry. For example, AI can help you manage cash more efficiently using predictive analytics. This will help you make better decisions about buying inventory or paying bills on time. There are several use cases for AI in the accounting industry, such as:
Automation of tedious tasks
As AI becomes more advanced, it will have a bigger and bigger impact on the way we work. In accounting, there will be less need for human intervention when it comes to tedious tasks such as data entry and calculations.
For example, an AI program can automatically categorize your expenses and organize them into different categories like “food” or “gas”. This makes it easy to see which areas of your business cost the most and where you can save money. It also makes it easier to see how much money has come in each month from each source so you can plan future spending accordingly.
AI can take over these tasks and make them much more efficient, freeing up your time for more critical tasks such as strategic planning or client meetings. The beauty of AI is that it’s not just about speed, it’s also about accuracy.
Automation saves your employees time, allowing them to focus on more critical tasks, such as decision-making and communicating with customers.
Accounting fraud is not a new phenomenon. It has been around for centuries and has grown in sophistication over time. However, it is not always easy to detect fraud when it occurs. Additionally, accounting fraud can be difficult to prove due to the complex transactions and records typically involved in such cases.
AI can help identify fraud by providing more accurate data analysis than humans alone can provide. Accounting fraud often involves the manipulation of data used for financial reporting purposes. This could include falsifying information or making adjustments that distort information presented in financial statements, which investors and others use in deciding whether to do business with a company or individual.
Using artificial intelligence with big data analysis tools can help identify patterns or anomalies in datasets that would be hard for humans alone to see clearly or quickly before they happen. can take action against those responsible for committing fraud against an organization by their actions or omissions during their lifetime. use.
Allow customers to track their money in real time
Most clients of accounting firms don’t know where their money is going. This makes it difficult for them to manage their finances effectively and efficiently.
With the help of AI, however, customers can easily track their spending in real time and also keep track of what they’re spending on different things throughout the day or week, depending on how often to which they want updates on their finances from an app or website. .
Electronic signatures are increasingly common in accounting because they make it easier to share documents, sign contracts and send invoices.
The electronic signature has many advantages for accounting departments, such as:
- It cuts costs by eliminating paper and printing costs and eliminating the need to scan documents to electronic format. In fact, according to a recent survey, companies migrating from traditional signing to using electronic signature software can see an increase of around 55% to 78% in savings.
- Reduces errors by eliminating manual data entry by scanning and re-entering, ensuring that only authorized individuals can digitally sign any document. The same LuraPen survey points out that electronic signatures can reduce errors by 80%.
- Improves efficiency by allowing documents to be electronically signed any time of the day or night, regardless of where you are (eg while traveling).
Cloud-based accounting software has been around for years, but until recently, most people were unaware of its benefits. However, cloud-based accounting software has become increasingly popular over the past few years as it offers many benefits not found in traditional accounting software.
The benefits are so tempting that most accountants now use cloud accounting software for day-to-day work. A recent survey indicates that more than half of accounting firms surveyed are using cloud accounting to improve project management functions and improve communications.
Some of the critical benefits of cloud computing for accounting firms include:
- Cloud computing allows accounting firms to access data and information from anywhere, which is especially useful for mobile accounting professionals who need to work remotely.
- Cloud computing provides a more secure environment than traditional methods of storing data, making it ideal for storing sensitive information such as customer files.
- Cloud computing also allows accounting firms to quickly expand their operations as new staff members join their team or if they need to hire more employees during peak periods.
Big data analytics
Big Data Analytics can help accountants improve their business processes by making better decisions based on data analysis. For example, an accountant may use a software tool that automatically analyzes historical data about business transactions and identifies common patterns among those transactions that could indicate fraud or reporting errors. This information can be used to detect potential problems before they become problems.
An example of big data analysis used in accounting is when a business uses it for tax compliance. They may use it on employee-related data, such as employee salary information or pension contributions. The business could also use this information to calculate how much tax it owes or how much money it needs to set aside for other taxes due during the year (like corporation tax) .
As the world moves at a rapid pace, businesses must keep pace. The accounting industry has long relied on efficient management of paper documents, but those days are fast fading. As digital storage becomes the norm, you can expect all sorts of advancements in this area, including AI analytics for business intelligence. After all, there’s no sense in relying on outdated techniques when you have so many growth opportunities available with emerging trends.