The benefits of artificial intelligence in accounting
Using AI in accounting and to aid the delivery of accounting services offers several advantages, many of which are already beginning to change the execution and management of procedures and systems for the better.
These are some of the positive AI impacts in the accounting industry:
Increased automation of routine tasks
Even as recent as a few years ago, it was reported that a great majority of accountants were still spending considerable time on repetitive tasks such as data entry, transaction categorisation, and invoice processing. While essential, these tasks are also time-consuming and prone to error.
But here’s the thing - these tasks don’t necessarily require an accountant’s unique skills and expertise, making a compelling case for the introduction of AI to ease the burden by offloading repetitive and transactional activities.
Increased automation paves the way for accountants to showcase value by focusing on financial analysis, strategic planning, forecasting, compliance, regulatory adherence and performance measurement.
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.
Enhanced and refined 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, which form part of machine learning, 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
With more people shopping online each year, global ecommerce is on the rise. The flipside to such growth is a rise in financial fraud, theft, blackmail, corruption and money laundering. AI has the potential to help businesses improve how they identify, prevent, and address fraudulent activities within financial processes.
AI algorithms can be 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 fraudulent activities as they occur.
By identifying changes in regular transaction behaviours, AI can promptly notify accountants about potential fraud at an early stage, preventing losses from escalating.
Greater personalisation of financial advice
Accountants and finance professionals can leverage AI-driven algorithms and data analysis to provide recommendations and insights that cater 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.