Artificial Intelligence and Bookkeeping - Does it Play a Role?

Artificial intelligence (AI) solutions are no longer limited to the science industry. Now, even the business sector makes use of AI technology - including bookkeeping. David Tareen, SAS Institute Inc. head of global product marketing for AI, stated that the automation of data science is a priority for the industry. This is because such tools can help companies gather more data-driven insights, making for smarter decision-making. Given this, it's predicted that there will be widespread adoption of AI across various industries by 2024.

Even in the present, businesses are harnessing AI as a tool that improves internal operations. One such instance of this is in bookkeeping. That said, here are a few ways in which AI solutions help streamline bookkeeping processes.

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AI solutions can assist professionals in mundane bookkeeping tasks

AI solutions lessen financial professionals' workloads by handling mundane and repetitive tasks like uploading files, auditing, and organizing data. This allows bookkeepers to work on more complex tasks. After all, as advanced as AI is, there are some things that only a human bookkeeper can undertake. This includes creating thoughtful financial reports and recommending a business's next steps based on the available data.

That said, AI solutions will still need human intervention to optimize their processes. AI solutions need to be programmed carefully to ensure that they perform the right actions. This is why modern accounting degrees offer concentrations in accounting information systems along with essential courses on financial reporting, auditing, and income taxes. All these ensure that bookkeepers are fully equipped to handle AI solutions based on the clients’ unique needs and preferences.

RELATED: Is Bookkeeping Dying? Are Botkeepers and Artificial Intelligence Replacing Bookkeepers?

AI solutions support greatly reduces errors

AI solutions don’t just assist in processing and organizing data. They can also reduce any bookkeeping errors and oversights. Normally, bookkeepers have to encode and sift through large amounts of information. And this process is prone to human error. Mistakes can happen when large amounts of financial data are manually encoded. Therefore, to reduce errors, bookkeepers can program AI solutions to handle large amounts of data in their stead.

Bookkeepers can leverage AI solutions by creating a proper governance plan for the program. Through their expertise in accounting information systems, bookkeepers can work with IT professionals in setting the objectives and outcomes of the AI system. They can then program AI solutions to identify abnormalities in the data. Once this system is in place, bookkeepers can easily flag potential errors and oversights in financial statements, which, in turn, reduces the potential for crucial liabilities in data reporting.

AI solutions can easily organize data for analysis

Aside from reducing errors, AI solutions can help bookkeepers by organizing and presenting data for analysis. Their machine learning and natural language processing technologies allow them to detect patterns in financial data. Bookkeepers can then highlight these trends in data and, from them, extrapolate useful insights for the business. Consequently, these insights can be turned into actionable points that could potentially benefit company operations.

For instance, AI solutions can be programmed to detect fraud in audits. Traditionally, professionals had to rely on hunches and instinct to detect fraudulent transactions. But through AI solutions, businesses can easily run through thousands of individual transactions and flag any that seem unusual in the current data pattern. This is an effective way to spot fraud and nip it in the bud before things get worse.

Industries across the board are adopting AI technology because of their data management capabilities. And this goes for the bookkeeping industry. AI solutions can assist bookkeepers in handling repetitive tasks, reducing errors, and spotting data patterns for analysis. These benefits make for more effective data management, allowing bookkeepers to offer more advanced solutions for their clients. Given this, bookkeeping professionals would be wise to utilize such tools in their practice.

RELATED: How AI & Botkeepers are Affecting the Future of the Bookkeeping Industry

Have you experimented with AI in your own bookkeeping business?

This article is a guest post by Robbie June

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