Are you using artificial intelligence (AI)? As we see AI more and more in daily life, we're hearing debates and speculations about its potential to replace traditional professions, including bookkeepers and accountants.
While AI is indeed transforming the finance industry, the question remains: Will it do finance professionals (like me !😉) our of a job? In this blog I'll look at the impact of AI on accounting and discuss ways AI can be used to assist bookkeepers and accountants, and give you my view of the future of these professions.
AI for Bookkeepers & Accountants
AI was the hot topic on the agenda at every accounting event in the last year (and that doesn't look like fading this year!). We're already seeing changes behind the scenes with the software we use, with numerous tasks being automated and better real time insights into financial data being available.
Here are some of the ways AI is reshaping the accounting profession.
Data entry
The biggest change is the potential for AI-driven software to simplify the data entry, by automating the processes, reducing or even removing the need for manual data input. Thus saving bookkeepers like me time and minimising the risk of human error.
Improved accuracy
AI tools can identify discrepancies & inconsistencies and spot patterns in data - including financial data - with the potential to maintain and even improve levels of accuracy, giving us better insight into your numbers and more opportunity to talk about what matters to you ... reaching your goals, and the power of your numbers allow you to do that.
Real time insights
The key task of bookkeeping is to ensure the accuracy of your numbers so that you can see the power of them. Therefore, when we spend less time fussing with the accuracy because AI is doing that for us, we can dive into the insights and key facts you need to ensure your business is healthy. This allows you to make informed decisions promptly.
Time efficiency
Automation of routine tasks frees up time for accountants and bookkeepers to focus on more complex financial analysis, scenario and strategic planning.
Will it replace us?
You'll notice that the role of AI as we see it is focused on speeding up and improving the accuracy of what a bookkeeper or accountant would traditionally spend the majority of their time doing. And this is how I see AI - as a valuable assistant, not a replacement.
While AI is a transformative force in accounting, it is not poised to replace us.
Why?
Human judgment
Accounting and bookkeeping often involves subjective decisions and judgment calls that AI simply cannot make. Human professionals will always be important for interpreting financial data, understanding the context within the specific business, and having real conversations with you, the business owner.
Relationships
Earning your trust through real communication and relationships matters to us. When it comes to finances, you need somebody on your team to run queries past, and AI can’t replicate that. Data is data, but we’re here to address your concerns, know your goals and help you reach for them.
Adaptability
As humans, we can adapt quickly to unpredictable scenarios… if you remember everything the country went through during 2020, you’ll remember just how quickly we were able to interpret, respond to and implement every update from the Chancellor. AI may struggle to adapt to rapidly changing financial landscapes and handle unique, complex situations.
Security & ethical considerations
This one feels like the big one for me.
As a professional accountant / bookkeeper, ensuring compliance with financial regulations, security of data, and maintaining ethical standards is crucial. We would never put your data at risk and we’re keeping a constant view of developments of the software we’re using and how they incorporate AI.
AI-based accounting software, when properly developed and implemented, can be highly secure. These accounting softwares often use encryption and other security measures to protect financial data. However, the level of security can vary depending on the software provider and the software configuration. We see this as a risk, and for this reason, only work with reputable software providers.
This topic is high on the agenda of every accounting and bookkeeping event, it’s an area that is moving fast and which we’re watching closely.
For this reason while I acknowledge AI can be very helpful for my work my current policy is only to use software that will help with general day-to-day process that can be highly automated in a secure way meaning and therefore allowing me the time to support and advise clients with processes & strategies unique to their business.
So will AI replace your bookkeeper?
While AI is reshaping the accounting profession by enabling software to automate some tasks and provide better insights into patterns and inaccuracies, AI is not poised to replace bookkeepers and accountants. AI should instead be seen as an assistant that will enhance services in the future allowing us to give you better data and insights, but the vital human touch is still crucial.
The future of accounting and bookkeeping is certainly a relationship between human expertise and AI innovation, bringing the best of both worlds, but you can rest assured, that I’ll always be here.
Wondering how AI can help you with your bookkeeping?
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