Artificial Intelligence in Accounting
Artificial intelligence is reshaping many professional fields, including accounting and bookkeeping. As small business owners, we are always looking for ways to stay ahead of the curve and keep up with the latest trends. With the advancement of artificial intelligence (AI), it is important that we understand how this new technology will affect our businesses. In the past, bookkeepers would have to manually calculate and input data into their computers, but now they can rely on AI technology to do it for them. This means that businesses will save time and money, as well as avoid errors from human error that happen during data entry. Let’s explore how AI is revolutionizing small business, bookkeeping, and the accounting industry!
Benefits of Artificial Intelligence in Accounting & Bookkeeping
There is no doubt that AI is changing the landscape of business, with some experts predicting that up to 40% of jobs will be replaced by robots and AI in the next decade. While this may seem like a negative thing, it could actually lead to increased efficiency and productivity in the workplace. Fortunately, AI is not going to be replacing humans at least not any time in the near future. AI has the potential to be integrated into the day-to-day tasks of forward-thinking accountants, streamlining tedious processes, and reducing the chance of error.
AI is an exciting prospect for small businesses because it allows owners to focus on their knowledge-based duties, leaving the repetitive tasks to the technology. Rather than wasting time with monotonous tasks such as data entry, accountants can focus their efforts on all the work that requires a human touch, such as analyzing and interpreting data and using that information alongside human intuition to make educated decisions on how the company should proceed.
Additionally, AI has the potential to make accounting and bookkeeping more efficient and productive. In a traditional bookkeeping setting, accounting mistakes may go unnoticed. AI can detect errors immediately, ensuring that your books are always accurate. Machines may also be able to provide real-time financial insights, which often take accountants extra time and effort to discover.
AI Can Match Payments and Invoices
Although AI integration is naturally going to vary depending on the unique needs and preferences of accountants, clients, and companies, some accounting processes are more likely than others to be handled by AI and machine learning. One major example is clearing invoice payments.
Currently, dealing with payments from multiple invoices can be quite difficult, often requiring the accountant to dig through and match invoices or contact the client for clarification, a process that can be very time-consuming, especially when multiple clients and invoices are involved. Machine learning allows AI to analyze the data and clear out invoices or generate new ones.
AI Can Help Businesses Remain Compliant
Expense submissions should be accurate and compliant with company guidelines. AI can detect inaccuracies and flag improper submissions for removal or human approval. This real-time auditing would be quite tedious for human accountants. Using machine learning, AI can learn the company’s policies and analyze data in bulk to ensure that there are no discrepancies.
AI Can Analyze Data and Perform Fast Risk Assessments
AI can also perform large-scale tasks that would be virtually impossible for humans to complete in a timely manner. For example, AI can analyze the data from every accounting project ever completed in your company. It can then provide valuable insights on how to proceed with a potential project idea most effectively or even recommend that the company scraps it all together. While a human accountant might arrive at the same conclusion, it would take countless hours to pore through the data. AI allows for fast risk assessment, helping businesses to move forward on a more efficient timeline.
Consultance & Artificial Intelligence in Accounting
Artificial intelligence is becoming a major force in the bookkeeping and accounting world. For more information about small business accounting and how your business may benefit from AI, contact Consultance Accounting services. Consultance accounting provides the very best technology-based and operationally integrated accounting solutions for the small and medium-sized business market. From forecasting revenue projections to streamlining categorization and organization, Consultance using the latest technology gives you the competitive edge, and it is only a matter of time before AI becomes adopted widely.