How can AI Transform the Accounting Sector?

Artificial Intelligence is steadily creating a significant impact on many business processes. Most of the modern enterprises rely heavily on technology for tasks like communication, logistics, data-analysis as well as customer service. This has made them smart and efficient.

At this rate, businesses are projected to be regulated and managed with the help of massive technical support in the near future. At present, however, companies are still learning to automate the basic processes that are strictly mechanical and do not require human judgment or a rational decision.

In such a scenario, can technologies like AI and Machine Learning impact the accounting sector?

The Need for Automation

One of the cornerstones of the accounting sector is the need for accuracy. Rising competition has given rise to the need for increased efficiency and speed as well. Artificial Intelligence enables machines to carry out certain tasks automatically and independently.

In the accounting sector, there are many such tasks like data-entry, the technical calculation as well as predictive analysis, which are daily requirements. Considering the current capabilities of Artificial Intelligence, it can undoubtedly take-over such tasks from accountants.

Subsequently, accountants will be able to invest their time in tasks that require more of a human touch. So there is no doubt about the fact that there is a need for this kind of automation in the financing sector.

Getting the Basics Right

Considering the fact that the foundational language for computers is numbers, they are bound to assess numbers and figures more accurately than humans. As a result, basic activities like data-entry are easily transferrable to AI. This will not only ensure increased precision but also help accountants focus on other consultative tasks.

Increased Speed & Profitability

Computers are able to perform technical tasks many times faster than humans. AI-enabled accounting will perform tasks faster and with more efficiency. This is bound to impact the bottom line. As a result of this, higher volumes of work will be rendered in a lesser amount of time. At a time when enterprises are looking toward expansion, automating processes like accounting will only be an added advantage.

Better Compliance

The ability of AI to detect errors and inaccuracies is impeccable. Moreover, AI will be able to perform supplementary functions like generating analysis, reports as well as producing suggestions regarding future actions. Artificial Intelligence also has the ability to perform anticipatory tasks. As accounting deals with identifying patterns and predicting trends in the markets, AI can be the perfect aid to the process of predictive analysis.

The Future of AI

Considering where the technology stands now, it is difficult to assess if AI can completely replace accountants. Even though certain technical tasks, as mentioned above, can be easily transferable from humans to machines, a certain degree of human judgment is a major part of the accounting and finance department.

Other challenges of introducing AI & Machine Learning in accounting include the lack of superior infrastructure and IT supports. The costs are another concern for SME’s because it is difficult to predict the price of installing as well as maintaining an AI system at this point. Integrating advanced technology with business processes is entailed with the requirement of fresh training as well. This raises more concerns of whether or not the endeavor would be lucrative.

The increased demand for agility in business has helped in justifying the need for AI in business processes. More and more companies are opting for third-party solutions like those offered by Aloha Technology. Most leading businessmen believe that the future is automated and hence, it is quite certain that technologies like AI & Machine Learning will transform the accounting sector to a large extent.

About Aloha Technology

Aloha Technology is a global IT services firm delivering digital transformation by putting digital and data to work to create a competitive advantage. Aloha's domain expertise spans across several business verticals like Retail, Healthcare, Telecommunication, Business Intelligence, BFSI, Enterprise Collaboration, Supply Chain, Internet Advertising and CRM. Leading ISVs look at us as a strategic R&D outsourcing and end-to-end product development choice. Aloha's global presence includes a workforce of designers, application developers, computer scientists and engineers, and digital technology and subject matter experts ready to serve the growing 21st-century information and technology service needs of clients.