The emergence of AI is transforming all industries, and accounting is no exception.
The next generation of automated accounting tools not only helps businesses eliminate mundane tasks and boost productivity, but they also provide powerful predictive analytics capabilities that can help businesses unlock valuable insights from their data.
This article will explore the various applications of AI in accounting and explain how cutting-edge tools can help accountants streamline processes, improve accuracy and enhance their strategic advice capabilities. Read on to learn more.
Automating manual tasks frees up time for strategic planning
Data entry, invoice processing and bank reconciliations are time-consuming and repetitive tasks that can waste an average of 25% of an accountant’s valuable time each week.
However, AI-powered accounting solutions like Dext are changing the game, deploying machine learning algorithms to automate repetitive tasks like data entry, payroll processing and financial reporting. With time-consuming processes eliminated, accountants can focus more of their time and efforts on improving client relationships and building their business.
AI in accounting minimises the risk of accounting errors
Accounting errors can often take a lot of time to rectify and, in some instances, negatively impact a firm’s reputation. Accuracy in accounting is crucial for ensuring the reliability of your financial reporting and compliance with tax legislation, so the latest AI accounting tools go above and beyond to minimise the risk of humans in everything from complex calculations to data handling.
Tools like Vic.Ai, for instance, harness machine learning (ML) algorithms to detect deviations from expected financial patterns in invoices. This enables finance teams to speed up their exception handling processes and drastically reduce the likelihood of accounting errors.
Predictive analytics unlocks hidden insights in financial data
In today’s uncertain economic climate, revenue can be affected by a range of factors inside and outside a company’s control. For example, geopolitical conflicts can delay global logistics cycles, and opening up shop in new territories can expose businesses to overwhelming demand for their products and services.
However, AI accounting tools can analyse vast amounts of data in real-time and generate reliable data insights to ensure that your company stays ahead of both known and unknown risks. Solutions like MindBridge.AI, for example, utilise predictive analytics algorithms to examine historical and external data sources. From there, finance teams can gain fast and accurate insights into business risks ahead of activities like global expansion initiatives, changes in sales channels, and new revenue recognition rules.
AI Copilots deliver fast answers to accounting queries
A recent recruitment study revealed that 9 in 10 companies are struggling to hire accounting professionals. These severe talent shortages are putting pressure on accounting firms to do more with less time and fewer experienced employees to share the workload.
Luckily, the latest AI-powered accounting tools offer Large Language Model (LLM) technology and user-friendly chatbot-style interfaces to answer accountants’ urgent data queries or act as in-house industry experts at their fingertips. For example, solutions such as Truewind.Ai offer real-time assistance with month-close workflows and provide management tools to provide complete visibility of back office systems. The end result: accounting teams can maximise efficiencies across the board without hiring additional staff.
INAA members remain at the forefront of automated accounting technologies
Here at INAA, we’re committed to helping professional accounting firms maximise their productivity and deliver the very best in client services across the globe.
We’ve recently developed a Technology Focus Group of accounting experts to share their knowledge and experience of the latest and greatest accounting automation and AI tools with INAA members. Through our dedication to building close bonds with accounting professionals worldwide, we’re on a mission to help businesses expand into new markets and achieve their unique goals.
If you want to learn more about technologies and trends shaping the accounting landscape, apply for INAA membership today.