How AI is Revolutionising Accounting in 2021
Accounting has been around since the days of Ancient Egypt – and the birth of AI may be the biggest revolution it’s seen in all that time.
80% of executives think AI in accountancy gives them a competitive advantage, and 79% of business owners see it as key to boosting productivity, according to Finances Online. What’s more, 66% of accountants are willing to invest in AI, and about 55% already plan to use it to its full capacity.
Here’s what that could mean for the accounting industry in 2021.
While tracking transactions is a time-consuming bore for humans, it’s quick work for an AI, whose data-crunching superpowers can be used to extract and classify information, automate spending categories, store images of receipts, and produce reports for human accountants to analyse.
One company providing this kind of AI is AppZen, which offers automation for corporate spending policies and 100% compliance auditing for all expenses.
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Where large sums of money are involved, there’s always the risk of fraud. AI can reduce this risk by enforcing corporate policies and procedures. It can also detect fraudulent activities in spending reports.
SanFrancisco-based YapPay uses AI to predict cash flows, provide total cash visibility and track accounts receivable activity.
Data analytics is one of the fastest-growing fields and could be combined with AI to create accounting tools that would enable even novices to gain advanced insights.
Software company Vicai has created an AI platform for remote accounting and enterprise finance. It incorporates machine learning, rapidly learns from interactions and provides feedback to improve performance.
Norwegian company 24SevenOffice offers accounting fully integrated with AI that allows bookkeeping and document management. It can analyse hundreds of millions of invoices and related data while giving users complete control.
Big data analysis and machine learning enables AI to provide deep insights and completely automated management of bookkeeping tasks like invoices, streamlining documentation and workflows.
AI can learn from info patterns and data to create forecasts, projections and business insights that enable humans to make better decisions.
One company succeeding in this field is SMACC, which offers a single platform for automated data extraction from accounting entries, financial planning and invoices for small to medium-sized businesses.
However hard human accountants try to deliver a streamlined financial management process, human error is unavoidable. AI can standardise the process and carry it out in a truly streamlined way.
Agilize Europe, based in Milan, Italy, uses machine learning algorithms to create accurate accounting records by classifying data scanned from devices.
The AI revolution in accounting and finance is only just beginning. In the near future, we can expect to see today’s automated software applications develop into comprehensive systems that will provide solutions on a global scale.