Top 3 Areas where AI augments Professional Accounting Services

Recent years have seen the growth of Artificial Intelligence (AI) across numerous industries, including professional accounting. Machine learning and software automation have begun to replace numerous tasks that once occupied the vast majority of the professional accountant’s attention on the job. Accounting firms that have learned to embrace AI and use software automation in their procedures have discovered a competitive edge that helps them cater to the higher level needs of their clients. In this article, we will explore the top three areas where AI and software automation augment professional accounting services.

Automation of Standard Accounting Procedures Boosts the Accountant’s Role as Financial Advisor

Software automation in the professional accounting industry is not new, but it is increasing and it’s here to stay. Many larger firms and a number of smaller ones have adopted AI for standard accounting procedures, including accounts payable and accounts receivable, automated billing systems, data entry and processing, and more. The tedious tasks that traditionally consume much of the professional accountant’s time and brain power can now be done quickly and efficiently by software automation. This new reality frees up the accountant to step into the role of financial advisor, offering invaluable insight into the data procured by automated systems.

The CPA who no longer must spend grueling hours “crunching the numbers” thanks to AI and software automation can instead offer their clients higher level services as a strategic advisor and consultant. No longer tied up by data procurement, they can focus on analyzing the numbers, making recommendations, and helping clients chart the course for big financial decisions. AI technology gives the professional accountant the opportunity to showcase the expertise he or she has been applying on the job for years.

Higher Standards for Compliance: Improved Accuracy, Increased Productivity

AI and software automation offers distinct advantages to the professional accounting industry. The latest technologies produce data reports with incredible accuracy, reducing the margin for human error. Accounting tasks performed with machine learning are quick, precise, and efficient, allowing CPAs to get the results they need in less time. Here are just a few of the ways AI can help professional accountants on the job:

• Simplify the monthly, quarterly, and yearly close procedure. Software automation can generate and consolidate data quickly from multiple sources. The sooner these numbers are available to the CPA, the more time he or she has to strategize the company’s next financial move.
• Track and analyze expenses. Company compliance becomes much easier to manage when accountants can rely on AI to track expenses, check receipts, and indicate whether there are any red flags in the company’s spending procedures. ‍
• Perform comprehensive, forensic-level audits. With the assistance of machine-generated data, accountants can now perform audits on 100% of a company’s financial transactions, thereby eliminating sampling procedures.

Again, the accuracy and efficiency of automated accounting tasks creates opportunities for the professional accountant to enter into an advisory role, performing more strategic services for clients, like planning the budget, maximizing profitability, and financial forecasting.

The Professional Accountant Will Be Indispensable in a New Way

As AI technology continues to shape the professional accounting landscape, some may wonder whether the role of the accountant will be diminished and eventually disappear altogether. Experts observe the impact of AI on other industries, like health care, marketing, and travel agencies, for example, and speculate how the trends will impact professional accounting services. It’s true that the nature of the CPA’s job will continue to evolve as AI becomes standard practice among large and small firms alike. Those firms who want to gain a competitive edge and position themselves as financial advisors, consultants, and business strategists will take advantage of the improved accuracy and efficiency that software automation affords. As companies integrate a variety of AI systems, they will look to accountants to interpret the machine-generated data and offer their professional expertise more than ever before.

Undoubtedly the role of the professional accountant will continue to change with the latest technologies. As in times past, we suggest that those who aren’t afraid to embrace industry-wide changes and learn to adapt will find that AI affords more opportunities for the advancement of the accounting profession than we ever thought possible.

VALID8 is an industry forerunner in automated accounting technology. If you are ready to take the leap and integrate automated, comprehensive financial auditing software into your accounting services, schedule a demo with us today.‍