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Technological advances and the increased access to data are transforming the business landscape today. Professions where extracting data was formerly a largely manual process are now implementing various forms of accounting automation trends including, machine learning, cloud computing, big data, and artificial intelligence.   

According to TechRepublic, many organisations are already leveraging AI to automate cognitive workflow and make decisions in ways that mimic human actions. Today, bookkeeping tasks such as recording financial transactions, posting debits and credits, producing invoices, completing payroll, and many more, are all being automated using artificial intelligence technology. 

Artificial intelligence for bookkeeping works by processing massive amounts of data in accounting systems to evaluate its predictive power, then learns automatically from patterns or features in the data and improves its process for the next iteration. This new age technology allows businesses to seamlessly enforce corporate policy, while streamlining data entry and information management processes.   

Although artificial intelligence for bookkeeping is still in its infancy, the market is growing at an increasingly rapid pace. Artificial intelligence is reshaping the future and changing the way we do business, particularly in the accounting sphere. There are many advantages of AI in bookkeeping and several ways bookkeeping AI can change the way you do business, some of these include: 

1. Speedy Data Analysis 

Bookkeeping AI can help you automate several time-consuming administrative tasks like data entry, reconciliations, and more. It allows you to gain valuable real-time insights into the current status and future of your business. Artificial intelligence is a technology that memorizes and learns work patterns as it is being utilized, i.e. the more you use bookkeeping AI, the smarter and faster it gets at analysis and decision making.  

 2. Reduces Errors 

Unlike traditional bookkeeping, where errors can easily go unnoticed, implementing artificial intelligence for bookkeeping substantially reduces errors by automating functions that file data into the right place. Common bookkeeping errors such as error of transposition, neglecting to reconcile, mis-categorization or overcategorization, and many more can all be avoided through the implementation of artificial intelligence for bookkeeping. Not only that, bookkeeping AI can also detect inaccuracies and flag incorrect or improper submissions in reports and claims. This ensures that your books are always accurately managed and audit-ready in compliance with internal, local, state, and federal regulations.  

 3. Increased Security 

Cybersecurity also plays an important role in the application of artificial intelligence for bookkeeping. The rising use of artificial intelligence technology has largely reduced traditional cybersecurity threats to bookkeeping such as phishing attacks, malware attacks, and other tactics used to gain unauthorized access to valuable data. Not only is AI being deployed to find cyber attackers sooner, but businesses can also access their stored data securely and protect the cloud with bank-grade security methods that are difficult for intruders to decipher.  

 4. Cost Savings 

One of the advantages of AI in bookkeeping is also cost savings. Leveraging artificial intelligence for bookkeeping can also save businesses a significant amount of money over time. It is the goal of nearly every finance/ accounting team to reduce the high cost associated with closing. Fortunately, bookkeeping AI has proven its capability to dramatically reduce both the human time investment and resources required to close. Businesses with extensive bookkeeping processes can, as a result, realize tremendous savings and scalability.  

 5. Produces Business Insight 

Bookkeeping AI produces actionable business insights in processing massive amounts of structured and unstructured data. It works by first gaining an understanding of the data, then it analyzes and presents comprehensible implications of the data. This allows businesses to make informed decisions and take quick action on areas of concern. It also provides businesses wth valuable metrics that forecast liquidity and profitability ratios. 

 6. Increases Focus of Finance Team Expertise 

Bookkeeping AI has become an invaluable technological asset for finance teams, especially in the handling time-consuming tasks such as categorizing transactions and processing reconciliations. It can automatically optimize companies’ operations in ways humans can’t, improving their bottom line and enhancing the customer experience. This has minimized the workload of finance teams and created opportunities for them to increase their focus on more complex, strategic tasks like financial analysis and modeling.  

Highly conceivable also, is that the increasing demand for artificial intelligence for bookkeeping is expected to drive development which will further improve the sophistication of transactions and the amount of work the technology can handle. Businesses that embrace bookkeeping AI today will be the ones who derive the most success with this shift in the near future.  

Today, majority of accounting processes that exhibit a little redundancy or bureaucracy are the primeval integrators of artificial intelligence into their existing practices. Not only is bookkeeping AI allowing CPAs to gain more visibility into their companies, it is also enabling them to refocus their resources from traditional bookkeeping and maintenance tasks to higher advisory and analysis of business data.  

Business leaders are now more receptive to automating their bookkeeping processes than ever before. The implementation of artificial intelligence for bookkeeping has induced structural changes across board, replacing professions where people deal with rote tasks for automation. Bookkeeping AI is also extending the capabilities of companies to a whole new level, allowing accountants to spend more time on business-management roles and strengthening client relationships.  

According to a recent survey conducted by MIT-Boston Consulting Group, nearly 85% of the respondents believe that AI leads to competitive advantage. Bookkeeping AI can study data trends and predict future demands, giving you an edge over your competitors and an advantage over your customers. This also constitutes as one of the major advantages of AI in bookkeeping as such insights would’ve gone unnoticed if left to manual analysis. 

In view of the remarkable progress made by AI, new era startups and enterprises are also using automation to codify business logic. Today, with a vast portion of the workforce now remote, the time is now for the finance and accounting industry to prioritize a bookkeeping AI-led strategy that enables innovation, human creativity and business development. 

Business productivity today is at an all time high thanks to automation and artificial intelligence technology. A study by Accenture reveals that artificial intelligence has the ability to increase productivity by 40% or more. The volume of financial market data is gigantic and growing daily and as bookkeeping AI technology evolves over time, it is expected that the technology will continue to take on more process automation tasks while unlocking new opportunities for business expansion and growth.  

Although the rise in the implementation of artificial intelligence for bookkeeping may reduce the workload for accountants, there are no concrete indications that it will usurp the profession any time soon. This is because even though bookkeeping AI may be able to automate rote data, human intervention is still required to analyze the process and draw a meaningful conclusion.  

So rather than supplant the accounting profession, it is predicted that the adoption of artificial intelligence for bookkeeping will make accountants and CPAs far more efficient and productive as they take on more consultative and supervisory roles.  

 

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