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accountants and bookkeepers

AI and Accounting: How Will It Change The Industry?

With the ability to automate repetitive tasks and enhance data analysis capabilities, artificial intelligence (AI) is already being adopted by accountants for the purposes of performing accurate financial planning for their clients. 


Here, we’ll look at how AI in accounting is improving the industry, and how it will continue to impact financial processes in the future.

What is AI?

Artificial intelligence effectively simulates human intelligence with machines, performing tasks requiring human input like problem-solving and decision-making. AI systems can analyse large data sets, recognise patterns, and make informed predictions to enhance efficiency and accuracy in various fields – including accounting. 


Language models like GPT (which powers ChatGPT) are built on deep learning techniques and are trained on large amounts of data to help the model understand and generate human-like text. In terms of AI and accounting, these models can perform time-consuming tasks, freeing accountants up to focus on the more strategic and complex aspects of their work. For instance, a GPT model can help automate the generation of reports, use language queries to interact with financial data and extract information relevant from invoices.


Intuit is at the forefront of AI in the accounting industry with over 730 million AI-driven customer interactions per year, leading to 58 billion machine learning predictions per day. In fact, Intuit built its own Generative AI Operating System (GenOS) platform. GenOS leverages custom-trained financial large language models specialising in tax, accounting, cash flow and more.

4 useful AI tools for accountants and bookkeepers 


One of the key things accountants and bookkeepers can already begin to do now is to find a way to automate as many repetitive finance and accounting-related activities as possible. Investing in technology is key to driving team efficiencies and finding ways to continually engage and retain top talent


For instance, if you need to quickly create a document, AI tools such as ChatGPT (more on this further down) could assist.


Let’s take a closer look at four accounting AI tools that bookkeepers may find useful:


1. ChatGPT


ChatGPT is a free-to-use AI system based on complex language models that seamlessly integrate into an accountant’s existing workflow. This natural language processing tool can help with research, content creation, and even basic document drafting. 


In essence, accountants and bookkeepers are freed from repetitive tasks and instead, can focus their energy on handling the more complex financial needs of their clients. 


Accountants can leverage ChatGPT for: 

  • Communication such as email or marketing copy
  • Data sorting 
  • Improving spreadsheet proficiency


Here are six ways you can use ChatGPT as an accountant. 


However, it is important to acknowledge that Large Language Models (LLMs) like ChatGPT can sometimes produce inaccuracies or even fabricate information, a phenomenon known as “hallucinations”. 


This occurs because the technology relies heavily on complex algorithms and does not inherently verify the accuracy of the information it processes. Therefore, human oversight is often necessary when using AI for accounting – especially for critical tasks and issues – to ensure the generated content is accurate and reliable.


Verdict: Despite these considerations, there is a significant opportunity for accountants to incorporate this tool in their day-to-day operations and gain benefits from its use.

2. Copilot


Microsoft Copilot is another AI tool, operating on a freemium model, that can assist accountants in their daily tasks. 


Combining the power of LLMs with an accountant’s data in Microsoft Graph and Microsoft 365 apps such as Excel, Word and Outlook, this chatbot streamlines the process of creating presentations and documents with a single prompt. 


For instance, it can help an accountant generate a visually appealing financial report in Excel. It can even add relevant content from a document that was created much earlier. 


What else can Copilot do? Integrated into Outlook, it can unlock productivity by clearing an inbox in minutes. In Teams, it can summarise key discussion points and even suggest action items. Integrated into Excel, it assists with analysing trends and creating professional-looking data visualisations in seconds!


Verdict: Copilot is not just useful for unleashing creativity and unlocking productivity, it is a trusted companion in levelling up skills in word processing or spreadsheets. Integrated in productivity apps millions rely on daily and designed to learn new skills, it is set to perform even more sophisticated tasks as usage grows.


3. GrammarlyGO


Contrary to what you may think, the most important AI use case in accounting is actually communication – that’s right. 


As a cloud-based typing assistant, Grammarly assists by reviewing any text created, focusing on spelling, grammar, punctuation, clarity and engagement. It can also detect plagiarism and suggest replacements for any identified errors. 


GrammarlyGO, a generative AI feature of the writing tool, helps to write or rewrite your work, suggesting ideas based on prompts you provide to it.


According to The State of AI in Accounting 2024. Emerging Trends, Challenges and Opportunities report, accountants are using AI to compose emails and refine their writing instead of focusing solely on accounting-specific functions such as audit. 


Perhaps many do not enjoy the writing process. As accountants and bookkeepers are expected to communicate regularly with clients, and frequently with regulatory bodies, this tool is truly useful in helping them write as clearly, logically and persuasively as possible.


Verdict: Not only can Grammarly carry out a once-over on writing submitted, but you can even set the tone and writing style before it begins to generate drafts or rewrites. The benefits? Maintaining a high standard of professionalism, preserving a strong reputation and retaining client trust.


4. QuickBooks Cash Flow Planner


An AI-powered tool, QuickBooks Cash Flow Planner is designed to unlock financial foresight for small business owners. Achieving positive cash flow is every small business owner’s dream state, but the reality is that many profitable businesses run into cash flow problems, making it challenging.


With AI, raw data is transformed into meaningful insights. AI-powered data analytics help identify trends, patterns, and anomalies, providing a deeper understanding of your clients’ financial health. 


For instance, let’s say that you’re working with a small start-up considering business expansion. What would happen if sales were to drop by 30% in the next quarter? What impact would a 15% rise in inventory costs have? Does the business have enough cash in the bank to account for a sudden uptick in demand?


With QuickBooks Cash Flow Planner, you can analyse the client’s financial data and develop forecasts to address a range of scenarios. The AI will analyse the company’s data to provide a sneak peek into each of these scenarios. This will enable you to then advise your client on the best time to expand or review potential risks they should be wary of, thus supporting them in making informed decisions confidently.


Verdict: These tools are readily available and built into the Cash Flow Planner in the QuickBooks suite. Secure and reliable, this AI accounting software saves you time and empowers you to take control of your financial health, anytime, anywhere.

How to use artificial intelligence in accounting


Using AI to help with accounting offers an array of advantages that are already changing the execution and management of financial procedures for the better.


Here are some benefits and ways to use AI in the accounting industry to transform your business.  


Automation of routine tasks


Traditionally, accountants have spent considerable time on repetitive tasks such as data entry, transaction categorisation, and invoice processing. These tasks are essential but can be time-consuming and prone to errors. These processes don’t necessarily require accountants' unique skills and expertise. This is where AI can step in to help ease the burden.


What might have taken hours for a human accountant can now be completed in a fraction of the time, freeing up professionals to focus on more value-added tasks.


Enhanced data analysis


By harnessing the power of AI-driven tools, accountants can now process large amounts of data at unprecedented speeds. This empowers them to analyse datasets and extract insights efficiently.


One of the strengths of AI algorithms lies in their ability to identify patterns and trends within data. This proficiency empowers accountants to unearth insights from financial datasets that may have otherwise remained hidden through conventional analysis.


Improved fraud detection


AI has the potential to improve how we identify, prevent, and address fraudulent activities within financial processes.


AI algorithms are incredibly effective in recognising patterns and outliers across datasets. This plays a role in detecting any financial transactions or behaviours that might indicate fraud is occurring.


Thanks to AI-enabled fraud detection systems, financial transactions can now be monitored quickly. This allows for the identification of any fraudulent activities as they happen.

By identifying changes in regular transaction behaviours, AI can promptly notify accountants about potential fraud at an early stage. This proactive approach helps prevent losses from escalating.


Personalised financial advice


Accountants and financial professionals can leverage AI-driven algorithms and data analysis to provide recommendations and insights catering to individuals' and businesses' financial circumstances and goals.


By analysing volumes of data, including income, expenses, investments and market trends, AI enables a data-driven approach to offer customised advice. This technology considers an individual's or business's financial goals, risk tolerance levels and preferences to provide advice that aligns with their objectives.


AI can evaluate risk profiles and market trends to suggest investment strategies that offer returns while considering an individual's appetite for risk.


Read more: How AI can Improve Businesses

Take the stress out of managing your firm

What is the future AI impact on accounting? 

AI is expected to bring about changes to the accounting field. It could transform how accounting processes are carried out, how financial data is analysed, and how accountants provide value to their clients and organisations.


So, what does the future hold for accounting and AI?


AI systems will be capable of handling tasks that require cognitive abilities. For instance, natural language processing (NLP) will enable accountants to effectively use AI systems to understand documents, contracts and regulatory texts. This advancement in NLP will allow accountants to interact with AI systems using language. It will make it easier for them to access information, generate reports and ask queries.


As a result of these advancements, the role of accountants will evolve. They will focus more on decision-making, interpreting insights generated by AI systems and providing expert oversight to ensure data accuracy and ethical considerations are upheld.


QuickBooks Online is an Intuit software that uses AI to help automate repetitive tasks for accountants and advisors. These tasks can include data entry, invoice processing and even generating financial reporting.


Unlock the power of AI with Intuit's AI accounting software

Intuit is leading the way with artificial intelligence and accounting, integrating cutting-edge technology into its software. Now is the time to leverage the potential of AI for your accounting requirements.


Imagine a world where tasks like entering data, categorising transactions and processing invoices are automated, giving you time to focus on decision-making. Intuit's AI-powered solutions aim to streamline these tasks, reduce errors and enhance efficiency.


That's not all. With AI, your ability to analyse data will reach new heights. AI algorithms can uncover hidden patterns, identify trends and provide insights that could help your planning. Thanks to the power of AI-generated insights, making informed decisions will be easier than before.


Sign up for Quickbooks Online today and unlock the power of AI technology for your accounting processes.

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