In the last few years, accelerated advancement in technology has transformed neural networks, decision machines and “social” robots from science fiction to Wall Street monetization.
Artificial intelligence (AI) is part of what is known as the fourth industrial revolution, eliminating, and creating a new gamut of opportunities across all industries. While some repetitive jobs may become redundant with AI, it will not replace the role and skills of accountants.
New and evolving accounting roles, combined with the use of smart tools, give accountants the opportunity to expand their roles and offer a broad portfolio of services, which paves the way for accountants to act as trusted advisors.
The impact of AI in accounting and finance is staggering and leads to a more efficient and streamlined process.
According to Forbes, leading software providers such as Intuit, Sage, One-Up, and Xero are using AI and ML techniques to simplify data entry and compliance-related tasks. According to CPA Magazine, Robotic Process Automation (RPA) has reduced audit and contract processing time from months to weeks. As Forbes reports, large companies are embracing RPA’s integration of artificial intelligence for “higher performance and higher service.”
Harnessing Finance & Accounting Industry with AI
Machine Replicates Brains
The main role of intelligence in accounting is to perform human action. Yes, AI applications in accounting and finance are especially useful for performing daily human tasks.
Analytics technologies such as Robotic Process Automation (RPA) and Natural Language Processing (NLP) can track and monitor financial transactions, identify inconsistencies such as unexpected financial risks and perform appropriate and effective audits.As an audit support tool, it can review financial records, detect anomalies, and provide audit trails. This streamlines the auditing process and ensures compliance.
Closing Made Easy for Finance Processes
The month-end closing process is made easier with the automation of transactional processes, making it more effective and efficient. AI algorithms can consolidate data from various sources and merge it, eliminating manual intervention and reducing human error.
Improved Payable and Receivable Accounts Managemen
For accounting processes like AP and AR, where the transactions can go up to millions, AI-based invoice management has not just levelled up their game but has increased efficiency and productivity to yet another level.
End to End Automation of Finance processes
The future of intelligence and accounting will be like brothers in the coming years. By streamlining end-to-end financial processes, AI solutions can increase efficiency while reducing costs.
The automation of tax calculations, identification of opportunities for tax savings, and compliance with shifting tax regulations can be achieved with the assistance of AI.
Risk factors can be assessed by AI, enabling valuable insights for improved decision-making in domains like investments, loan approvals, and credit assessments.
Cash flow Management
AI algorithms can also analyse cash flow patterns, predict future cash needs, and optimize cash management strategies.
Financial statement analysis
By leveraging AI, financial statements can be analysed, trends can be identified, and valuable insights can be generated to enhance financial analysis and reporting.
Companies have started using AI in procurement to make it paperless by using APIs that manipulate unstructured data. This smart system automates time-consuming processes and allows sales professionals to spend more time exploring the benefits of strategic purchasing.
Artificial Intelligence Chatbots: A Digital Virtual Assistant
Chatbots are designed to solve user queries efficiently. Questions may include details of account balances, statements, financial statements, financial position, and more. With the help of chatbots, the finance team can monitor open invoices and streamline the recovery process to ensure invoices are paid and settled on time.
There is no denying that the AI revolution in accounting is here to stay. Human intellect, however, will always be needed to maintain and operate technology effectively. As a result, human beings will never be completely replaced by technological advancements.
At Thoucentric, we understand that digital transformation in accounting involves bringing people and machines together so everyone can contribute to what they are best at. Using advanced technology and knowledge, our business solutions experts create best-in-class solutions.
Reach out to us and learn more about how our experts can help you in this rapidly changing field, whether you are new to the field of accounting or an established professional!