Encompassing so much more than mere automation, the introduction of AI to the accounting industry has meant that many of its processes are now more cost-efficient and agile, while guaranteeing regulatory compliance.
Tools driven by AI have given accounting professionals the ability to focus their attention on strategic initiatives of a higher level, which will go on to drive their businesses forward; powering growth and success. AI is also helping them gain a significant edge over their competitors, by giving them meaningful insights and solutions driven by data, to a range of complicated challenges. Even when outsourcing for CPA firms is used, AI is used by the third party service providers to help them provide their clients with even more valuable assistance, that goes well beyond data input and back office bookkeeping tasks.
In light of this, accountants and CPA firms not adopting AI tools, could well see their business begin to suffer.
Here are just a few of the ways in which AI is transforming the accounting industry:
Expediting financial closures
Informed financial decisions can only be made with access to data that is 100% accurate, and with the help of AI, this can be achieved through processes driven by machines. Quickening the pace of monthly or quarterly processes, making everything more accurate, and even predicting future financial trends using historical data, are all made possible with AI.
Making accounts payable/receivable more efficient
Managing invoices efficiently is a function that’s undeniably important, whatever type of business you’re running. With the help of invoice management systems powered by AI, invoices can be categorized according to certain criteria, into regular, purchase, or contract payments. In routing invoices correctly, approval processes can be expedited and all unnecessary delays reduced significantly.
Streamlining procurement
Paperwork and differing file formats are still used by many accounting firms, opening the door for inaccuracies to creep in. With integrated technologies, like natural language processing (NLYP) and machine learning, accounting professionals can streamline procurement by going paperless.
By connecting other platforms, such as inventory management or accounting software, with procurement systems, Application Programming Interfaces (APIs) enable the seamless communicating and sharing of data. Such integration cuts out manual data entry altogether, and limits the chance of errors occurring when information is transferred between systems.
Transforming audits
With its capacity to analyze vast swathes of financial data, automating audit procedures with AI containing risk assessment and fraud detection tools, makes it possible to carry out audits in real-time, while issues are continually identified and monitored.
Rather than having to search manually though financial records, AI enables transactions to be quickly analyzed and patterns identified that could point towards errors or fraud.
Streamlining management of expenses
It can take up a lot of an accounting professionals time, to review and approve expenses, ensuring they comply with company policy. AI tools, on the other hand, can machine-check receipts, carry out expenses reviews, and raise an alert should a breach take place. It can also give insights into spending trends and patterns in real-time, giving CPA firms the ability to make informed decisions related to cost optimization and budgeting.
Enhancing customer support
Busy accounting firms are sometimes inundated with client queries related to a whole host of issues, and responding efficiently and appropriately to them all, isn’t always achievable. But, AI-powered chatbots have responses that are lightning-fast, given around the clock, and can solve any problem a client might have. These kind of consistent, accurate responses are great for a firm’s reputation for customer service.
Nowadays, many more accounting professionals use corporate tax outsourcing to help them get ahead (by reducing their workload, enhancing accuracy, and giving them valuable insights etc), and because the majority of such third party service providers also use AI and other top tech tools, they can help you remain competitive in more ways than one.