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Why is Artificial Intelligence important for companies?

by oumesh for ACCOUNTANCY, AI Leave a comment
Why is Artificial Intelligence important for companies?

The answer to this question is very simple and can be summarized with a word. “Data” Companies are overwhelmed by avalanches of data which is so massive that they are often impossible to manage with human resources alone. For this reason, it is necessary to adopt technologies that can collect, analyze and process these data in a fast, safe and protected way including accounting. Now, in fact, we will immediately see how artificial intelligence is applied in this sector.

Utilization of AI-related to accounting software.
There are four examples of accounting software AI usage in the order of general accounting operations:

1. Automated reading of receipts by introducing AI-OCR
2. Automatic journal entry by AI
3. Efficient and accurate auditing and settlement check using AI
4. Supporting how to use accounting software with AI Chabot

In nature, accounting has not only the need for specialized knowledge and the existence of technical terms such as account items, but also a lot of routine work such as receipts, monetary input, journalizing, and auditing. Unless specialized knowledge is acquired, it is not a job that anyone can do right away, and conversely, there is an aspect that if you have specialized knowledge, you can go to any company immediately.

By incorporating the expertise and routine work into AI and incorporating it into the system, various work can be automated. Therefore, accounting software has a lot of room for AI, and it can be said that it is an area where AI can be easily used.

Some AIs are built into accounting software itself, while others are linked to accounting software. Some of them are built into the software and can be used as basic functions, while others can be used as an optional option.

There are some services that can be linked to many accounting software, even if they are different from accounting software.

Impact of Artificial Intelligence on Accounting

# 1. Changing the role of the accountant

One of the key benefits of technology development is to reduce the demand for slow and passive processes and to allow accountants more time to increase business value.

* Cloud technology is lowering the cost of supporting infrastructure for organizations.

* New technologies also use insights and actionable analytics to add more macro insights to business drivers and help you achieve a comparative advantage.

* Accountants are therefore changing to become strategic business partners out of accounting and management.

* Reducing routine, process-oriented roles and out-of-frame thinking will be required.

* The accountant will face the “cold” flow of technology as a whole so it is important to realize that changes in the future by completing tasks in a timely manner.

* But many people’s routines are so busy that it’s impossible to even think about doing things differently.

 

# 2. With the change, opportunity comes.

Technology enables the company’s finance team to immediately perform three key points: value creation, value creation methods, and the value creation process. In particular, accountants can now access software and use software-as-a-service technologies hosted in the cloud.

* This lowers infrastructure costs, reduces installation costs, and speeds up technology implementation.

* Cloud technology enables secure and smooth updates.

* The level of insight that can be gained outweighs most of the performance gains in direct operating systems, and new companies can be added immediately.

 

# 3. Cloud technology is a paradigm shift for accountants

* Remote tasking is one of the most important features of cloud technology.

* Fundamentally changing the way businesses operate because people can access their data anytime, anywhere

* Real-time reporting also changed the organization.

* More information can be delivered directly to the way business leaders want it.

* A completely different approach is taken by Cloud-ERP technology, for instance by recording the names of people relating to sales transactions.

 

# 4. Future accounting prospects are diverse and bright

* Factors such as Blockchain, Making Tax Digital, and Open Banking are changing the job of accountants, so accountants must move to keep up.
Artificial intelligence and machine learning will be part of accounting, which is a good thing.

* No need to worry about accuracy in the future.

• Have a qualified accountant check the figures produced automatically and make sure they are correct.

* Most accountants think that change is needed, but it is still in its infancy.
We need to persuade some customers to tell us that technology is the way forward.

* It is also important to remember that competitors are using technology to drive growth.

 

Will artificial intelligence replace accountants?

In the form of current technological development, there is a question raised about whether artificial intelligence will replace the accountant! As the Hollywood film about the development of artificial intelligence shows, human beings always have a subconscious fear when facing artificial intelligence and robots. The work of the industry will be completely taken over by the robot. Although this kind of worry is still superfluous at present, some industries should be prepared for a rainy day. For example, accounting may be one of the industries that artificial intelligence should replace.

The founder of SMACC hopes to use the concept of artificial intelligence automation to resolve the financial accounting problems encountered by the company in its operations and decided to develop a system to make the whole process simple. After receiving the customer’s report, SMACC converts it into a format that the machine can read, encrypts it and then assigns the account. And this platform can learn to track sales, costs, invoices and liquidity.

This artificial intelligence system can check 64 data nodes, verify invoices, VAT-ID, etc. Over time, the system will continue to self-improve, distribute data more quickly, and solve complex accounting problems for the company’s customers.

According to the company, the system is highly automated and learnable compared to other similar platforms and can be gradually improved over time. Although science and technology have been developing rapidly, the development of the industry is not determined by simple predictions. Therefore, practitioners in the accounting profession do not have to worry too much, at least in the current social environment, accounting practitioners are indispensable.

Of course, in order not to be eliminated by the times, accounting practitioners should learn more, practice more, and strive for excellence.

Experience is still indispensable

What artificial intelligence cannot exactly do is make a creative judgment and make a decision based on the context of the task. The most skillful artificial intelligence is not able to conduct an orchestra, given the nuances of performing a complex symphony, and is not able to understand the intricate rules of intercompany calculations.

No artificial intelligence algorithms today are able to take into account the complex relationships of the material world. The machine cannot judge. The future may come faster than we think, but today an accountant has a huge advantage over any advanced algorithms – human experience.

With the development of AI, accounting and finance operations that can be patterned more and more will be replaced by AI. In some cases, most of the accounting data can be created without any accounting knowledge such as journals. Artificial intelligence in accounting audits will become more widespread, and it will be necessary for certified public accountants and members of corporate finance/accounting departments to use the expertise.

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