Artificial Intelligence – The Future of Accounting

This article has been written by Heather Neves. Heather is working as a Business Analyst and is a freelance content writer. She likes blogging on topics related to Technology (SEO, SMM, Digital Marketing), business strategies & home improvement. She graduated with honors from Columbia University with a dual degree in Business Administration and Creative Writing.  

Artificial Intelligence (AI) is raging in every field like fire. Machine learning is being built into further technology that humans rely on for sending and receiving information. Therefore, we can say that the future of artificial intelligence is depending upon the presumption that smart machines will lead to the reduction of human labor.

Artificial Intelligence - The Future of Accounting

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Artificial intelligence is an extraordinary software that can draw conclusions from large quantities of data and work according to those drawn conclusion. In addition, it has a good learning capacity and can work for every field.

Knowledge economy workers are beginning to experience what manual labors faced in the earlier days. The new technology eliminated the jobs of the manual workers and today the same is feared by knowledge sector employees.

The upcoming development in the computing scenario is that machines will overtake the professionals. The same is going to happen with accountants.

As a matter of fact, accountants presently are finding it hard to make invoices for the conventional services. Whereas AI, on the other hand, can calculate and produce the result within a jiffy, saving the customers their time and capital.

The accountants need to accept and work on a certain holistic approach for financial consulting. This will help in improving their accountancy efficiency and indulge in broadening their services for the clients.

Machines Complementing Human Brain Functioning

According to Accenture, ‘automation, machine learning, and adaptive intelligence are increasingly becoming a part of the finance team’.

Artificial Intelligence applications are affecting monetary efficiencies. AI is deemed to produce better results and will be highly proficient and reliable.

Alternatively, they will be able to catch and cater to a higher number of clients and deliver more value because they will have the power to detect the actionable penetration rather than biting numbers of sales.

Propelling innovation will be easy for industries after employing AI for their projects.

How AI Will Overturn the Future of Accounting

Humans are going to have new colleagues that will help them produce accurate results. As a matter of fact, there are no machines that can quantify emotional requirement for work, they can learn to perform redundant jobs reducing the time.

However, let us have a look at the certain probable ways AI affecting accountancy.

  • Accounting tasks by machine: A machine can learn a company’s expense policy, receipts and audit details. It can furthermore claim to ensure compliance and will detect and forward only questionable claims for human’s approval. Machines will free up humans and conduct automatic accounting to improve results and reduce costs. In fact, the pace in which AI is developing, it is going to infiltrate in all the other divisions of the industry. Eminent financial heads are going to welcome a change because AI will offer expertise which is extremely beneficial for future business processing.
  • Accounts payments and receive process: Artificial intelligence is already working on processing invoice. The AI-powered invoice management system will be beneficial as it will implement smooth digital workflows. These machines can learn accounting codes which are essential for making bills.
  • Supplier Onboarding: Machines can detect and check on the new supplies by quickly calculating the credit scores or tax information. They can also easily set them up without the involvement of humans. Moreover, every inquiry portal will be supporting all the necessary information within minutes.
  • Procurement and purchasing: The procurement and purchasing process involve a lot of paperwork. They use varying systems and files which are not compatible with each other. AI comes to play in this situation in such a manner that it will make the entire system paperless. Machines are able to organize unstructured data and track the dynamics of pricing among the suppliers. That’s the advantage of artificial intelligence working on accounting sector as they will reduce unscrupulous accounts.
  • Audits and Closing processes: With the advent of digitalization on audits, it will be easy to keep a trail of when and by whom which files were accessed. Moreover, it is going to increase the security aspects of auditing and the auditors can leverage the digital files, improving performance and precision. On the other hand, machines are also structured to consolidate data and later reconcile it. The closing process can speed up increasing accuracy.

Will Artificial Intelligence Replace Accountants?

Many accountants reading this article may surely be having this question hitting their heads, right? For all such curious minds, the answer is “NO,” AI will not eliminate accountants on a whole though there are chances of reducing the workforce.

AI plays a vital role in complying with the policies and rules, but anyhow there needs to be an accountant who needs to finalize the things.

The accountant’s key functionality will be to monitor and interpret the AI data and further take relative steps for the decision making affair.

So yes, AI is definitely going to bring new innovations for accounting and will help in enhancing the accuracy in precision giving it improvised look but not at the cost of duplicating humans.

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