AI is reshaping the accounting industry, bringing new innovations and standards of efficiency. The role of Certified Public Accountants (CPAs) and other accounting professionals is changing forever, too.
With AI, accounting processes will soon be faster and more accurate. In the near future, accountants might even be fully replaced by AI programs.
1. Changing the Role of CPAs
One of the most immediate effects of AI on the future of accounting will be changes in the role of CPAs. Programs already exist that are capable of rudimentary automation, including many popular spreadsheet applications.
AI will take this a step further. The amount of calculating and hands-on work that accountants need to do will slowly decrease as AI programs take over specific tasks.
The Human Touch Is Still Important
However, this may not mean accountants will cease to exist. The role accountants play in the finance world will simply change. Experts have pointed out that one of the most important parts of an accountant’s job is understanding the unique needs and circumstances of their clients.
AI programs may never be able to compete with humans in this social, personal task. So, accountants will still be needed to guide and oversee the automated AI accounting process.
It is also worth noting that accountants will be needed to consult on the development of AI accounting programs to make sure they are designed in a helpful and effective manner.
2. Automating Accounting Tasks
Accountants are responsible for a long list of tasks for each of their clients. As AI makes its way into accounting, many of these tasks will become automated. This automation will allow accountants to work much more efficiently.
For example, many small businesses go to accountants to do their taxes. Business taxes can be highly complicated and tedious due to the many additional details needed compared to personal income taxes.
Accountants can use AI programs to simplify the tax process for their business clients, allowing them to offer better service and quick turnaround times.
Different Accounting Tasks
There are many other accounting tasks AI can automate, as well. This extends beyond personal accounting to include businesses’ accounting needs, such as automating timesheets and payroll management with AI.
The time demands of other highly tedious processes, such as bank reconciliations, can be vastly reduced with the help of AI. Using algorithms to automate these tasks allows accountants and finance professionals to do their jobs much more efficiently and be more productive.
Due to the highly precise and computational nature of AI, these programs will also help accountants deliver more accurate work.
3. Full-Service AI Accounting Apps
While the industry is not there quite yet, it won’t be long before full-service AI accounting programs are available. It is clear that AI is the future of accounting. Today, basic accounting apps for specific things like tax filing are already available.
Over the years ahead, software developers and finance experts will use AI to create programs that can intelligently complete many accounting tasks. In fact, estimates suggest up to 80% of accounting tasks can be fully automated.
While these programs still won’t fully eliminate the need for human accountants, they will allow many people to access intelligent accounting services without needing a CPA or other financial expert.
Advances In AI Accounting
One of the first consumer advances in AI accounting will likely be smart tax filing programs, for example, that go beyond the rudimentary software available today.
Accountants will likely use AI apps to automate large portions of their daily tasks, as well. AI apps will also likely become popular for drawing actionable insights from financial data, such as generated reports, charts, and graphs.
The Evolution of Accounting
AI is rapidly changing accounting and financial services. The innovation that AI is driving in accounting will ultimately lead to easier workloads for accountants and more intelligent accounting computer programs.
Automation may remove the need for accountants to do many manual tasks, but humans will always be a crucial part of the equation in financial services. AI is helping accounting to evolve into a more efficient, streamlined, and accessible industry.