AI, or Artificial Intelligence, is now being used in a range of industries to expedite processes and automatically complete actions. While at first glance it seems quite complex and perhaps even dystopian, AI is actually a very valuable tool in any modern business’s kit. It’s no surprise then, that AI is making some big differences when it comes to accounting and auditing services.
The way accounting firms conduct audits is evolving thanks to computerized data entry and validation, and automated sending of information to relevant contacts. This means, that with the right AI in place, you can complete many different tasks related to auditing, without lifting a finger. If you’re still a little skeptical, we’ve compiled this guide on using AI to improve your accounting firm’s auditing services. You’ll find the answers to all your budding AI questions below…
What is AI for Accounting Firms?
If you’re completely new to the subject, AI can be a bit daunting. In general, AI refers to computer processes that learn as they go. This is why one form of AI is known as machine learning. This means AI can complete processes that usually take a lot of manual work and knowledge of the topic at hand. The systems these robots use to take on the information in such a way are designed to resemble the way the human brain learns.
There are a few ways to utilize AI in your accounting firm, and when it comes to audits, there is a range of AI already in use. Robotic Process Automation (RPA), and machine learning are common types of AI used in audits. To implement AI throughout your firm’s computer systems, you will likely need to enlist the help of a specialized AI firm. There are many out there that offer set-up services specifically to accounting businesses.
What Can AI Do for Your Firm?
To find out exactly what type of AI your accounting firm might need, you’ll need to identify any areas that could benefit from automation. AI can certainly be implemented in your business step by step, so addressing problem areas first is the right move. Here is some more information on how the specific kinds of AI can improve your auditing services:
- General Automation - There are many processes involved in audits that can easily be automated, with the help of AI. These include sending relevant documents to colleagues or clients by deadlines and finding errors in these documents before forwarding them to the best place for amendment.
- Data Extraction and Organization - There’s a lot of information that needs to be gathered in order to complete an audit or maintain ongoing audits. By combing large datasets, AI can get you the information you need in a matter of seconds and store it in an appropriate way that suits your firm’s existing systems.
- Data Entry - RPA can lend a helping hand to your accountants in this area. The time taken for entries required in audits related to transaction and fluctuation analysis can be cut down to almost nothing, as AI collates and records the relevant data for you.
- Data Validation - Another area of auditing where RPA comes in, data validation is made simple with continuous account monitoring, thanks to AI. While mistakes are only human, AI doesn’t suffer from the same lapses in concentration or productivity. This means any data vetted by an AI program is certain to be completely accurate.
- Deeper Analysis - Supervised machine learning makes analysis of large amounts of data possible, as well as offering you the option to draw conclusions on trends, patterns, and potential risks, from this data. This is done through creating and running algorithms that analyze a huge number of transactions in seconds and get better each and every time.
What to Consider when Implementing AI in your Firm…
Before you dive into AI for your accounting firm, however, there are a few more things you should consider making the process easier once you involve developers. One of these is your existing technological capability, and whether you have the staffing resources to ensure a successful AI roll-out. You might also like to think about possibilities for training your team in monitoring AI, so they can use it to its full potential.
Many firms will launch a ‘pilot project’ before they decide to fully implement AI in their auditing processes. The best AI companies will consult with you before setting up your robots, to find out exactly what it is you need, and then trial their AI in your firm. This is useful, as it will give you a better idea of how much AI will help you, give your employees a chance to get to grips with it, and most importantly, allow you to decide whether it’s worth it.
Finally, as well as involving the experts to set up your software, it’ll also take some time to prepare your existing data for AI involvement. Clean data is always better than dirty data, so it’s often beneficial to do some spring cleaning, and organize your data as best you can, before you let the AI at it.
The Benefits of Using AI for Audits…
While it is slightly time-consuming to complete the full process of implementing AI in your accounting firm, it is a sound investment. Here are just some of the benefits your auditing services will receive, with the help of AI:
- Save Energy
The main benefit of AI in audits is that it does a lot of the onerous work for you. This allows auditors to make important judgments quickly, with all the data to back up their decisions. By completely removing the need for them to finish repetitive tasks, AI allows your colleagues to work on client outreach, customer service, and problem-solving. This makes for a more productive workforce, ready to tackle skilled and challenging tasks. Also, using AI provides your employees with yet another valuable and transferrable skill.
- Save Time
This is perhaps the most obvious benefit of AI, but it still needs repeating. Artificial Intelligence can complete huge data-related tasks very quickly, much faster than humans could ever hope to. This means lengthy auditing processes are significantly shortened. The capabilities of AI, and the automation of standard tasks, meaning you can take on more clients, and more accounts, making you more money in the long run. Again, for the best results, you’ll need to train your staff in responding to AI, and the way it goes about processes.
- Customer Satisfaction
AI not only benefits your staff but your clients too. With more time on their hands to focus on other things, employees at your firm can provide more in-depth support for clients when they have an issue with their accounts. Not to mention, your clients receive their needed correspondence exactly when scheduled, which is sure to keep a smile on their faces, too. You could even use AI in your digital marketing, with the help of important stats about your services available whenever you may need them. Plus, mentioning your technological capacity will draw more clients to your firm, and allow your brand to blossom.
- Always Evolving
By its very nature, AI is always learning. This means that most tasks will be completed more efficiently, the more your AI works. However, this isn’t the only way that AI is evolving to help you improve your auditing services. AI is a relatively young industry in general, and new advancements are always being made. Pretty soon, the capabilities of AI, when it comes to helping your accounting firm, will have expanded to include full decision-making and forming judgments on accounts. Another kind of AI currently being pioneered is known as natural language processing. This system could be used to help study and submit documentation, and perhaps even communicate with your customers.
Final Thoughts
After all that, we have barely begun to scratch the surface of how AI can help you improve your auditing services. However, taking the above into account, it’s no wonder that many accountants are skeptical of AI, and how it relates to the future of their profession. You can rest easy, as AI won’t be replacing accountants anytime soon, but it can certainly help them get their job done efficiently, and accurately.
AI assists you with everything from general data input, to spotting risks, to combing massive amounts of data for the single line you require. It frees up your resources and allows you to reach out to more customers. It does take a lot of preparation, but all in all, AI is worth the initial cost of set-up. Getting in on the ground floor, and having your firm optimized for AI now, will help you build foundations to introduce AI in many areas of your accounting firm’s operation in the future.
Sources
https://www.caseware.com/blog/ai-will-transform-auditing-accountancy
https://rootcodex.com/journal/4-reasons-how-artificial-intelligence-can-save-you-time-and-money/
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