We Peer Into the Crystal Ball to Find out how AI and Automation Will Change Accounting

by | Nov 1, 2018 | Law Firm Protection, Legal Tech Software, Useful Tech Tips | 0 comments

The emergence of automation and artificial intelligence are changing the way in which accountants work.  These breakthrough technologies provide myriad benefits, one of which is a significant competitive advantage that helps accounting firms bring on that many more clients.  Let’s take a quick look at some specific benefits of these technologies and how to properly balance the latest tech with the human mind.



Machine Learning and Accounting


Machine learning is regularly built into the tech accountants use to transmit information.  Technologists expect the future of AI will be built on the assumption that intelligent machines will decrease the need for human workers.  AI analyzes massive amounts of information to reach conclusions that prove helpful for accountants as well as other professionals, governments and beyond.  Once conclusions are drawn, activities based on such conclusions must be adjusted.  This system is designed to learn rapidly in real time, proving helpful to everyone in the organization.



Will Accountants be Replaced by AI?


Some industry insiders are concerned the diverse mathematical demands accountants face might lead to AI supplementation that eventually spurs replacement.  As an example, accountants find it challenging to bill for conventional services such as audits, data entry, etc. as software can complete such projects much more efficiently.  Accountants will continue to enhance bookkeeping accessibility and accuracy while diversifying offers to please clients.  It will not be long until we reach the point where accounting firms no longer require data entry.


At the moment, we are witnessing cloud accounting platforms transition beyond the automation of transactions into analysis.  Machine learning provides accounting professionals with extremely useful information about clients.  For conventional bookkeepers, employees are challenged with segueing to the role of information systems manager.  This title applies to someone who understands digital accounting that is not centralized.  Furthermore, these professionals must have the know-how necessary to create systems around new applications.  In summary, information systems managers assist clients in their effort to be understood and fully in control of their data as well as the flow of cash.



Machines Just Might Liberate Accountants


AI optimists insist the use of machines to handle data entry and other tasks will liberate accountants and their support staff to proactively pursue business ventures.  As an example, accountants will be freed up to handle major financial transactions ranging from mergers and acquisitions to initial public offerings, performing strategic reviews, restructuring, loans and so on.


In the end, people will always prefer working with other humans as opposed to computers.  Clients will likely continue to favor human advisers as opposed to robotic ones.  As long as your accounting firm is staffed with intelligent employees willing to work with smart technology and apply the extra time to providing better and more diverse services, your team will thrive in this high-tech era.




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