If we look around us, we will be amazed by the fact that everything we use is powered by Artificial Intelligence (AI), right from our smartphones to the applications we use on it, smart speakers, televisions, smartwatches, air conditioners, refrigerators, and a lot more. AI has touched every aspect of our lives and it wouldn’t be wrong to say that AI has already begun impacting the accounting and finance industry. Just like every industry expects AI to transform its processes, AI is sought to help accountants and financial professionals to perform better and provide more accurate results.
Artificial Intelligence uses computer science to process data and information in a particular pattern, manner and develop algorithms that reduce mundane and repetitive tasks to interpret information while making adjustments and predictions for error-free processing. AI makes work easy and helps accountants to become more productive and efficient. Using AI in the accounting and finance industry ensures that time-consuming activities are completed quickly with very little human intervention and leaves enough time for strategic and advisory roles that add value to the organization.
Using Artificial Intelligence will impact the accounting and finance industry by minimizing regular activities and providing better insight into the business.
Impact 1: Artificial Intelligence acts like the Human Brain but is much Faster and would Identify and Reduce Irregularities
Artificial Intelligence uses raw data available in the system and organizes and structures it for further use, just like a human brain. Accounting applications and tools are developed to ensure that regular activities like passing entries and reconciliation of accounts are done accurately and quickly with minimum information or by simply uploading documents/ pictures of transactions.
These advanced AI tools have built-in algorithms that can quickly identify any errors out of all the transactions that are processed. Such errors can be easily missed by any human, but AI is designed to ensure that errors are avoided and that transactions are recorded as per accounting guidelines and standards. With such AI tools and systems at use, companies can rest assured that their financials will provide the true and fair picture of their accounts and provide error-free statements for quick decision-making.
Impact 2: Artificial Intelligence will make Accounting less Expensive and Easier
The use of AI in accounting will reduce a company’s operating cost because less staff would be required for mundane activities and data entry. AI tools and techniques not only help in recording business transactions but also help in quick analyses of financial data and records. Accountants and professionals can quickly use the processed data to make reports, analyze and prepare their financials within the given timeline. Availability of processed information is the need of the hour when decisions are taken in the blink of an eye and competition is on the rise.
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Impact 3: Artificial Intelligence will make Invoice Processing and Payments Easy
Every company no matter what size or industry has to prepare and process invoices. This is a time-consuming activity where invoices have to be verified and data has to be processed manually and finally, payments have to be made. Using AI for invoice processing cuts down manual processing drastically, AI processes invoices, makes automatic payments, and passes all required entries in the back-end all in just one go. Automated invoicing is very useful while dealing with voluminous transactions in the most efficient manner and zero – errors.
Impact 4: Reaching out to a Large number of suppliers/ customers and making better purchases
AI uses the internet to help companies reach out to more suppliers. It is easy for companies to get credit-related information from various suppliers quickly, making it convenient to transact and deal with suppliers across various cities, states, or even other countries.
AI also enables companies to target more customers and make their products available on various platforms. Quick surveys and regular clicks on a product by customers help companies to forecast future sales and revenue. Companies can also learn about customer behavior and place their product in the right market at the right time.
Just as finding suppliers and customers becomes easy with AI-enabled systems, procurement and purchases can also be easily handled. Companies can contact their suppliers quickly and get rates and quotations from all the suppliers within minutes, making it easier for companies to compare the cost and quality of purchases and make informed decisions and paperless transactions.
Impact 5: AI will make Cash-Flows and Expense Management Easy
AI-powered applications and software reconcile accounts and records accurately, they take into account the company’s past activities, current transactions and predict future cash flow needs. AI integrates data from various systems and ensures that weekly, monthly, quarterly, and annual cash-flow statements are readily available for use.
Artificial Intelligence allows its users to set up various rules into its system, this speeds up the process which would otherwise take time due to manual checks and repeated revision of expenses until they are finalized for payments. As all expenses are handled online with limited human intervention, the chances of errors are minimized and expenses are managed in a precise manner. Since AI is programmed to check for errors or frauds there is very little scope of a breach in expense management.
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Impact 6: Quick and Efficient Solving of Queries
Artificial Intelligence makes very good use of the internet availability, every company that has their websites set-up, has a small chat-box on their homepage to help anyone who visits the webpage to raise any query or concern. This AI-enabled chat box is available 24×7 with a virtual assistant who can solve most of the queries based on the basic information that is fed into the system. Even queries that cannot be solved by virtual assistance are forwarded to the concerned department/ person-in-charge who can reply to the same on receiving the query. This platform makes it easy for customers, suppliers, buyers or any other stakeholders to get quick financial information or any expense-related query solved promptly at any time and any place.
The digital world is continuously growing and changing rapidly, every business that needs to grow and succeed will have to ensure that they make good use of AI to make their financial and accounting processes easy and efficient. With the wide reach of AI in every nook and corner, control and access of information are more easy and secure, hence AI is now being widely accepted by the finance industry.
Diligen makes use of AI tools and techniques while handling client’s accounts and records. Our robust team of professionals and accountants are well equipped and trained to use all the latest AI-enabled tools, systems, and applications. Diligen is well aware of the market needs and requirements and we help our clients to migrate easily into new systems and processes so that they can seamlessly use AI technology and systems. Our team at Diligen uses AI tools to provide better reports and financials to clients and also assist them on a regular basis to carry out their daily activities with ease. At Diligen our clients are guaranteed the best quality financial and accounting services as we are regularly updated with the latest technologies in the field of AI.