How often do you find yourself overwhelmed by monotonous tasks like data entry, proposal creation or compliance checks? If you are an accountant, you probably find a good chunk of your time spent on repetitive tasks. Fortunately, AI is making a number of these mundane activities a breeze!
Research indicates that repetitive and manual tasks such as data entry that is common in accounting can be accomplished in 50% less time with the use of AI and ML. This will be on accounts payable and receivable, it may even cut down invoice generation time, which can save as much as 70% of cumulative times.
In this blog, we will look at how AI is transforming the profession and what tools or software leading accounting practitioners are using.
What is the role of AI In Accounting?
For instance, up to 80% of manual accounting tasks such as financial transaction categorization, record reconciliation, tax compliance, invoice processing and even financial reporting can be speeded up with AI. Tools like proposal software, practice management software, workflow management software as well as numerous pre-designed templates can massively improve accounting processes.
Below is a comprehensive list of tasks that AI for accounting field can handle:
- Data Entry Automation
- Invoice Automation
- Expense Categorization
- Accounts Payable Automation
- Accounts Receivable Automation
- Financial Report Generation
- Fraud Detection
- Audit Procedures Automation
- Tax Preparation Assistance
- Predictive Analytics
- Chatbots for Client Support
- Workflow Optimization
- Anomaly Detection
- Compliance Monitoring
- Intelligent Document Processing
This, naturally, has an impact on productivity as well as revenue. Adopting AI can boost financial productivity by up to 25%! It is no wonder that 73% of accounting firms are planning to adopt AI in their practice.
So, What Are The Benefits of using AI in Accounting?
Speedy Processing: Automation can eliminate time-consuming tasks of data entry, processing, and approvals of many processes such as transactions, reconciliations and invoicing. For instance, it can speed up invoice processing by up to 70%. This clears up time for deeper insights and allows quick decision-making, which can be a game-changer.
Real-Time Financial Reporting: Smart ledgers or other AI platforms provide customized data dashboards, project trends, provide insights and can even populate real-time/financial reports that are far less prone to errors.
Automated Bookkeeping: AI and automation can significantly improve data input, transaction separation, reconciliation and other mundane bookkeeping tasks which clears up time for more important activities. Some software can even help with pricing for bookkeeping services, provide bookkeeping proposal templates, bookkeeping engagement letters, etc.
Enhanced Audit Support: AI can scan financial information, detect patterns, spot errors and anomalies and perform analysis at exceptional speeds, thereby improving auditing processes. It can improve overall audit efficiency by 50%.
Regulatory Compliance: AI can auto-update compliance requirements for financial reporting processes, predict financial risks with a 92% accuracy rate, and overall enhance regulatory compliance by up to a 70%.
Other Benefits: There are some other benefits which have been observed in the case of deployment of AI in accounting, such as enhanced client and stakeholder interaction, ease and growth of business and cost cutting.
Also Read: Top accounting conferences in 2024 to attend where you can learn more about accounting trends, including AI.
Top Trends of AI in Accounting
Out of all the professional services industry firms, the ‘Big 4’ auditors, which include Deloitte, EY, PwC, and KPMG are harnessing AI in a front-line manner. Here's how:
- Deloitte: Uses an internally developed automated document review platform that employs cognitive technologies to evaluate contracts and find key information, improving efficiency in the audit process.
- EY: Embeds AI technology into its audit process, analyzing and extracting data from unstructured sources like contracts and large data sets to identify risks of material misstatement due to fraud.
- PwC: Has developed customized software applications that synthesize data, complete and review code, generate documentation, and more, resulting in 20% to 50% productivity gains. They also provide clients with an enterprise version of ChatGPT-4 for advanced AI-powered solutions.
- KPMG: Offers the Trusted AI framework to help clients design, build, deploy, and use AI tech solutions responsibly and ethically, fostering loyalty and partnerships.
It may be that because small accounting firms lack the economies of scale of the Big 4. A survey finds out that 94% of accounting CFOs believe that AI will remain prominent in finance and accounting teams.
Some of the top use cases include bookkeeping automation, tax return preparation and document review. Apart from using software for proposal creation, practice management, automated billing systems and workflow automation.
Also Read: Emerging Trends in Accounting for 2024 and Beyond
Top AI Tools Used in Accounting
In the realm of AI, various tools and software for accounting firms can significantly enhance the practice. These solutions streamline tasks, improve accuracy, and provide valuable insights. Here’s a look at some top AI tools and software to consider:
1. Cone
Cone is a robust proposal software and practice management software designed specifically for accounting firms. It expedites the process of several clients joining your firm and also assists in managing projects and time.
For the best Accounting Practice Management Tools in the US, it’s recommended to use Cone, which assists clients’ onboarding and projects as well as time tracking.
How it helps accountants:
- Streamlined Proposal Creation: Create proposals quickly and easily.
- Integrated Practice Management: Manage projects and tasks in one place.
- Real-Time Financial Analytics: Gain insights into your financials instantly.
- Automated Client Onboarding: Simplify and speed up onboarding processes.
- E-Sign: Enable clients to sign documents digitally for faster approvals.
Free templates available:
Pro Tip: Check out must have accounting management tools to automate workflow and reduce manual intervention.
2. Docyt
Docyt is an enterprise accounting automation software which works in conjunction with the current accounting application of the organization.
How it helps accountants:
- Automated Document Processing: Take the time off to complete documents with the use of Artificial Intelligence.
- Real-Time Expense Tracking: Make an expenses record to embrace all the expenses throughout the process.
- Smart Invoice Management: Automate invoicing process with the help of AI.
- Seamless Integration: Integration with your existing system is very simple.
- Customizable Reporting: Receive reports that would be of exact interest to you.
Pro Tip: Check out cloud based business management software to manage your business efficiently.
3. Vic.ai
Vic. ai is a form of an AI that acts as a platform to perform all the accounting and finance activities especially in terms of billing of services and expenses.
How it helps accountants:
- Automated Invoice Processing: Handle invoices without manual effort.
- Intelligent Coding: Automatically assign correct codes to transactions.
- Fraud Detection: It can easily identify any potential suspicious activities which are taking place in the network.
- Approval Workflows: Simplify the ways of making payments for service providers and suppliers through approval of invoices.
- Real-Time Reporting: Always have the latest finance reports.
4. Gusto
Gusto is a payroll management system with a pay processing, tax, and benefits administration program that integrates AI into business.
How it helps accountants:
- Automated Payroll Processing: Simplify payroll with automatic calculations.
- Tax Compliance Management: Ensure tax compliance effortlessly.
- Employee Self-Service Portal: Let employees access their information anytime.
- Integrated Benefits Administration: Manage employee benefits in one place.
- Time Tracking Integration: Sync payroll with employee time tracking.
5. Botkeeper
Botkeeper is a business management platform that offers an AI powered bookkeeping service in real-time with machine learning and occasional human interference.
How it Helps Accountants:
- Automated Bookkeeping: Minimize paper based transactions and accounting activities.
- Real-Time Financial Reporting: Get up-to-date financial statements.
- AI-Powered Reconciliation: Use AI in order to do transaction reconciliation effectively.
- Customizable Dashboards: Visualize the data in a format that will be suited to your firm.
- Seamless Integration: Connect to your favorite accounting software.
6. ChatGPT
ChatGPT is a new generation AI language model which was recently developed by OpenAI. It is ideal for creating human-like text from the given input prompts.
How it Helps Accountants:
- Data Analysis Assistance: Get help analyzing complex data sets.
- Content Generation: Generate marketing materials with ease.
- Fuzzy Rule Implementation: Implement complex logic effortlessly.
- Real-Time Information Retrieval: Find information instantly.
- Improved Workflow Efficiency: Minimize on tasks that would consume a lot of time.
By integrating these AI tools into your firm, you are bound to change the way your firm handles accounting related tasks while you shift your attention to what truly matters most to your clients.
Pro Tip: Learn more about effective strategies in marketing for accountants to build a strong online presence.
Will AI Affect Traditional Accounting Jobs?
AI is making accounting more efficient. Through automation, improved error detection and streamlining, it is redesigning how accountants execute their tasks. AI tools are developed to help accountants. It is more likely to transform accounting roles than eliminate them.
For example, with AI - it will eliminate repetitive tasks that it offers and this will save time for the accountants to attend to other priorities. AI is growing to be a trusted tool for accountants rather than a replacement for traditional accounting roles.
Why Choose Cone As An Accounting Partner?
Choosing Cone means empowering your accounting firm with innovative AI solutions that streamline processes, enhance productivity, and improve client interactions, ultimately driving growth and efficiency in your practice. Cone's client management and billing software also ensures that every aspect of your firm runs smoothly, from client onboarding to final invoicing. Some of Cone’s best features include:
Client Management: Streamlines client interactions, ensuring personalized and efficient communication within your firm.
Proposal Automation: Creates customized, AI-generated proposals, helping you secure more clients faster. This feature also helps you get accounting leads by targeting prospects effectively.
Task Tracking: Monitors project progress and deadlines, keeping your accounting team on track.
Workflow Integration: Seamlessly integrates with existing tools, enhancing your firm’s productivity. Understanding what is an accounting workflow is key, and Cone ensures it is optimized for efficiency.
Time Tracking: Accurately logs billable hours, ensuring you maximize revenue for your accounting services.
Document Management: Organizes and secures documents, making it easy to access and share files with clients.
Collaboration Tools: Enhances collaborative communication through client collaboration software, hence fostering efficiency of work within your firm.
Real-Time Reporting: It offers real-time information that assists in decision making since it will be more up to date than older traditional research methods.
Pro Tip: Check out free accounting proposal template to create professional proposals easily and quickly.
Pricing:
- Essentials: $8 or £6.41/month
- Growth: $11or £8.83/month
- Starter: $5 or 4£ per user/month
- Essentials: $10 or 8£ per user/month
- Growth: $15 or 12£ per user/month
Transform Your Accounting Processes Now
Incorporating AI in accounting can revolutionize your practice through handling of repetitive tasks, increasing accuracy, and making decisions based on real time data. Tools like Cone streamline proposals, client acquisition, and provide real-time financial insights.
With Cone, accountants can manage all tasks in one platform, boosting productivity and client satisfaction. Don't wait—sign up for free today!
FAQs
1. How is AI used in accounting?
AI in accounting works to complete tasks that can be repetitive or take a lot of time and to analyze data and then offer businesses some useful information.
2. Can CPA be replaced by AI?
Although AI is often expected to replace the functions of the CPAs, this shift will actually limit the involvement of AI to the mechanical work while the CPAs will retain the significant roles of decision-making and management of client accounts.
3. What is the best AI for accounting?
The best AI for accounting depends on your firm's needs, but popular options include tools like Cone, Docyt, Botkeeper.
4. Can AI do bookkeeping?
Of course, using AI technology, it is possible to regularly perform activities like data entry and value categorization, as well as carry out financial reporting, with fewer errors.
5. How does AI enhance financial forecasting?
AI uses past experiences and market conditions to predict the future financial gains of a firm so that they are able to strategise.
6. What role does AI play in fraud detection?
It is helpful when an organization receives huge amounts of financial transactions, making it easier for the AI systems to detect several anomalies that may lead to fraud.