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Introduction to Artificial Intelligence: Its Impact to Accounting Firms

Introduction to Artificial Intelligence- Its Impact to Accounting Firms

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Rafael Manaig

Rafael Manaig

CRESCO Accountant

Introduction to Artificial Intelligence: Its Impact to Accounting Firms

We are in this era where advanced technology is continuously evolving and is being used everywhere. Today’s technology has automated manual systems with the help of Artificial Intelligence, commonly known as AI. A lot of people especially professionals are looking forward to what Artificial Intelligence (AI) has to offer.

The goal of Artificial Intelligence is to improve computer functions so that it will be able to think as a human can, it enables computers to perform machine-based learning. Artificial Intelligence can be applied to different business functions, and one of them is accounting. Accounting firms have embraced massive automation system over many years that help in improving the efficiency and effectiveness of its vital functions.

Artificial Intelligence has changed the accounting industry with improvements that eliminate tedious tasks freeing up accounting professionals to widen their roles and prioritize higher impact responsibilities. Since the 1950s, Artificial Intelligence has been introduced by computer scientists and it has shown tremendous progress over the recent years. Some might not realize the examples of AI on our daily online activities, it has been there as an integral part and gradually embedded in everything we touch and do.

Here are some ways on how this technology can ease the daily tasks of your accountants:

Data Entry

Accounting is where people deal with repetitive tasks almost every day of the week. Due to machine-based learning, Artificial Intelligence relieves the number of hours spent on menial tasks such as expense recording for it can extract data from images of bills or receipts and it automatically classifies to which spend category it should be placed. Artificial Intelligence can analyze large volumes of data at a speed which would not be easy for humans. 

Elimination of Error

Errors are unintentional mistakes made while recording. It may be that a person forgot to enter a transaction in the books, or when two digits are transposed or reversed. These are common human mistakes when someone handles a lot of data manually. Artificial Intelligence minimises or better yet, eliminates the room for this kind of error and the likes since human intervention is close to none in terms of the recording process. 

Compliance

Artificial Intelligence is customise based on a lot of rules and laws in place. Most companies have their own internal policies, but for some reasons, are not strictly enforced. The algorithms used in Artificial Intelligence have proved useful in watching corporate finances, especially expenses. 

Indeed, Artificial Intelligence can aid to many accounting firms however, this system does not necessarily replicate exact human intelligence. Some undermine the use of the term ‘AI’ in comparison to define its current work outputs. There are some cases that prove and support AI systems’ increasingly produce more outputs that far exceed the accuracy and consistency of those produced by humans. 

AI brings many opportunities for accountants and so has its own strengths and weaknesses. It provides more insight, efficiency and delivers more value to businesses. In the long term, AI raises opportunities for much more radical change, as systems increasingly take over decision-making tasks currently done by humans. 

Accounting firms should use a technology assistant. This way they can streamline data analysis and focus more on the growth and strategic functions of their clients. CRESCO Accounting is a team of Certified Public Accountants that have in-house IT experts. They maximise the use of Artificial Intelligence freeing up accountants from doing menial tasks which allows them to deliver more value and better service to their clients. 

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