Artificial intelligence (AI) is revolutionizing many jobs, automating manual, repetitive tasks and increasing efficiency and productivity.
Accounting is no different. Embracing technological innovations that make our daily work more efficient will allow us to be more precise and get more done.
Many AI software options can take your accounting practice to new heights.
In this guide, I’ll discuss how accountants use AI, the benefits of AI accounting software, and the best AI software options available in the market.
How Is Artificial Intelligence Used in Accounting?
Artificial intelligence uses algorithms and machine learning to automate manual tasks, such as data entry, invoicing, and analysis.
Whether you are a Certified Public Accountant (CPA) or Certified Management Accountant (CMA), you spend your workdays crunching numbers and analyzing data at some point in your career.
Combining traditional accounting practices with AI automation helps accountants balance human brainpower and modern technology.
Let’s take a deeper look.
Automated Bookkeeping
Bookkeeping is traditionally a manual, tedious function. Transaction recording, data entry, and invoice creation are all tasks that take time and are prone to human error.
AI powers automated bookkeeping, accurately and consistently categorizing and reconciling transactions. AI saves time and ensures accuracy in bookkeeping.
Tax Compliance
Compliance with evolving tax laws and regulations is crucial for accountants. AI accounting software stays updated with local and federal tax codes and ensures your financial records and reporting are tax-compliant.
AI can also accurately calculate taxes and generate necessary forms, automating the tax filing process for individuals and businesses.
Smart Data Analysis
AI has revolutionized accounting data analysis by processing vast financial data quickly and identifying trends, anomalies, and opportunities that may go unnoticed by humans. AI provides valuable insights for strategic decision-making with machine learning algorithms so businesses can optimize their financial performance.
Real-Time Financial Forecasting
Predicting future trends is vital for data-backed decision-making. AI-powered forecasting tools provide real-time financial predictions based on historical data, market conditions, and other factors.
Financial forecasting allows accountants and C-suite leaders to respond proactively to changing internal and external circumstances and make strategic decisions, thus ensuring financial stability.
Fraud Detection
Fraudulent activities can have devasting consequences for businesses. AI software excels in detecting irregularities and other patterns that can indicate potential fraud within a company’s financial transactions.
AI and machine learning algorithms analyze the complete picture of all transactions within a period and flag suspicious activities so businesses can prevent losses and maintain integrity.
Automated Invoicing
Invoice creation takes time and effort. AI accounting software automates the invoicing process, from generating invoices based on predefined datasets to sending invoices to clients automatically.
Automated invoicing saves time and ensures accuracy.
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What Are the Benefits of Using AI Accounting Software?
AI accounting software has myriad benefits to take advantage of in your daily work. Automation and machine learning make you a more reliable, accurate, and efficient accountant.
Let’s look deeper into a selection of AI accounting benefits.
Automation of Routine Tasks
Say goodbye to repetitive tasks like data entry, categorization and reconciliation, and invoice creation – AI accounting software automates these processes and frees up valuable time for more strategic tasks.
Enhanced Accuracy
AI accounting software is precise. You can rest easy knowing that human error and costly mistakes are eliminated, and financial records are accurate when automated with AI.
Faster Data Processing
AI processes financial data faster than ever, enabling real-time financial insights and quicker decision-making.
Real-Time Insights
Access to real-time financial data is crucial in the fast-paced business world. AI accounting software provides instant insights into a company’s financial health so you can make informed decisions whenever necessary.
Improved Decision-Making
AI software can analyze complex data sets and identify trends more efficiently and accurately than humans, empowering organizations to make data-driven business decisions.
Data-driven decisions lead to better strategic and financial planning.
Cost Savings
AI accounting software reduces labor costs and minimizes financial error risks inherent in accounting. Automating tasks and improving efficiency leads to cost savings for businesses.
Efficient Auditing
Financial audits are a significant aspect of financial management. Auditors can use AI software to quickly and accurately analyze data so audits are conducted efficiently and thoroughly.
Scalability
As your business grows, so do your accounting practices and needs. AI accounting software is scalable and adaptable, evolving with your needs.
Data Security
Data security is a top priority for accountants. AI software employs robust data encryption and security features to protect your sensitive data, reducing the risk of breaches or fraud.
Continuous Learning
Adaptability is a key benefit of AI accounting software. The software continuously learns and becomes more efficient and accurate as it learns from past data and interactions.
Accessibility and Collaboration
Financial data is accessible from anywhere with cloud-based AI software, promoting collaboration and making remote work possible.
Compliance and Regulation
Evolving financial regulations create a challenge for accountants. Artificial intelligence-enabled software is designed to stay updated on the changing landscape of tax law, reducing the risk of non-compliance penalties.
What Is the Best AI Accounting Software?
There are many AI accounting software options available in 2023. Each has its benefits and limitations, so finding the one that best suits your needs is essential.
Let’s discuss a few options.
Oracle
Oracle’s comprehensive AI portfolio is best-in-class and features several AI innovations, including generative AI, language, vision, document understanding, anomaly detection, machine learning, data labeling, and AI infrastructure.
Oracle’s unique approach to AI is focused on data security and privacy, powerful modeling, embedded generative AI services, and much more to support your key business functions.
Pricing: Varies depending on users and services.
SAP
SAP’s AI is built to future-proof your business. Make agile decisions, unlock valuable insights, and automate tasks with AI designed with your business context in mind. SAP’s AI is trained in your industry and company data, driven by SAP process expertise, and accessible in the solutions you use daily.
Concerned about ethics? Run responsible AI built on leading ethics and data privacy standards while maintaining full governance and life cycle management across your organization.
SAP offers finance activities like intelligent invoice matching to reduce outstanding invoices, streamline calculations for purchase order accruals, guard against fraud with AI-assisted anomaly detection, and simplify month-end close.
Price: Available on request.
Intuit/Quickbooks
Intuit recently introduced Intuit Assist, its generative AI-powered financial assistant. It will provide personalized, intelligent recommendations to help consumers and small businesses make smart financial decisions with less work and complete confidence.
Intuit Assist is embedded across its platform and products and puts the power of next-generation AI in your hands.
Price: Included with existing products
What Does the Future of AI Accounting Software Look Like?
Artificial intelligence in accounting has ushered in a new era of efficiency and accuracy.
Even in a world where we work with AI, valuable accounting skills are the same skills that CMAs practice daily.
Becoming a CMA is a way to future-proof your career. The next decade will change the face of many jobs regarding AI, especially the hard skills needed to excel in accounting.
A World Economic Forum (WEF) report defines how the value of talent will be reset in the “new world of work” over the next decade.
The skills that the WEF says are essential in an AI-driven world are inherently human–leadership, active learning, analytical thinking and innovation, complex problem solving, reasoning, emotional intelligence, and ideation – and are all skills CMAs are known for.
CMA Exam Academy helps you gain a competitive edge in your professional journey and embrace the skills necessary for career longevity and success. Get started today.
Hi, I’m Nathan Liao (aka the CMA Coach)! For the last 10 years, over 82,000 accounting and finance pros came knocking at my door seeking guidance and help. If you’re also aiming to conquer the CMA exam on your very first try—without wasting away time or money—you’ve found your ultimate guide. Dive in deeper to discover more about me and the dedicated team that powers CMA Exam Academy. Click here and let’s embark on this journey together!
