The Advantages of Using Artificial Intelligence in Accounting Industry
In the coming decades, the Artificial Intelligence will be taking over more and more of the decision making tasks from humans. And nowadays, there are a lot of big accounting companies intend to use the accounting software instead of human, due to the accounting software is more easily to control by implement the relevant information that you needed then it comes out the accurate information that you need. A lot of accounting companies are using accounting software because it has more benefits than disadvantages.
1. Reduce Cost
While a company adopts the accounting software instead of employ the expert auditor, it can save cost for the employee salary. It may incur a high cost in the beginning. For example, Ernst&Young, Deloitte and PwC embraced artificial intelligence in tax and accounting firm. The tax preparation, auditing and the strategy consulting are the services which rely on an intensive use of the human capital in historical. But now, the accounting software has been threatened these business models.
The new technologies such as natural language processing (NLP) and the robotic process automation (RPA) complete in few hours only while the auditors need to spend few weeks to do it. From here, we can observe that if the company use accounting software instead of human they can just employ few employees by operating and supervision the Artificial Intelligence as well and save the cost from employing more employees.
2. Save Time
Through accounting software, it can naturally compute the result whereas accountants have to key in the data one by one and compute it manually. As we have mentioned the example in the reduce cost part, the robotic process automation (RPA) able to complete the task in just a few hours but auditors need approximately a few weeks to complete it. The manual reporting is not only costly but also time-consuming compared to the accounting software.
The auditors can save time from the countless data points to flag the potential due to the compliance information is programmed into the software. The modern software can be designed according to the company and customize the compliance features based on their unique policies.
Moreover, the accounting software can scan the reports automatically to identify waste, fraud and other issues. It is because of human manually recognize the issues will consume more time than the artificial intelligence, and sometimes human will overlook for those issue.
When a company uses the accounting software, it can unlock time and propel the growth and also the profit of a company. Which in turn, it can be created a true value of the company by utilize the time. It allows the company to allocate their time and focus on what they are interested in.
3. Increase Productivity
As improvements in accounting software increased the productivity of accounting firm and reduced the accountants employed in accounting firm. Artificial intelligence and cognitive technologies can aid and fasten the decision making process and eventually increase the productivity. When the company uses less time to compute the outcome for accounting report, it actually improves the effectiveness of an accountant. With accounting software, accountants can then present the report in a shorter time.
If the accountants are not well performed in their career, they may consume more time on a task. However, with accounting software, it will not choose the easy job or difficult task to complete; it will only complete the given task in a shorter time compared to accountants. Since accounting software had been programmed with all of the necessary data and information, it can actually boost up the speed of the task to be completed. Accounting software is not affected by other factors like time, motivation, stress because they are not human. While the company choses to adopt accounting software, it can solve the calculation and analysis part while accountants can focus on other creative tasks instead.
4. Free From Errors
Deloitte recently has announced a partnership with Kira System to aid in contract and document reviewing something which is underpinned vital parts of the business. Kira System is a fast-growing Toronto-based software company, it equips enterprises with intuitive, easy to use software tools for uncovering relevant information from their contracts and also the related documents. Kira works by using the examples uploaded by the users as their reference for accuracy. The Kira’s CEO who is Noah Waisberg has said that the Artificial Intelligence has arrived at a point that the machines can scale a human expertise by extracting the information from complex documents accurately.
The accounting software can accurately identify the information by learning examples versus just reflexively to identify the pre-programmed clauses. If this cases implement to a human it may consume times to a person who has zero experience on identifying the information, or employ an experienced people to solve this problem but these experienced people are harder to seek for and it is a high cost to employ them.
The accounting software also provides a better accuracy when the process becomes completely automated. A large company has an enormous amount of the information asymmetry. To err is human. Computers do not. Accounting software can categorize the data well so that they able to determine and separate all information into different accounts by themselves. In the mundane task, human will get bored while doing the same job every day, but machines do not feel that way. While people get bored, they tend to make mistakes because they are not focusing on their tasks. With accounting software, financial report and analysis of the reports will be free from error. Accounting software does not need care, consideration and motivation from colleagues, they are designed to complete the given job in a shorter time flawlessly.
Furthermore, the data interaction in accounting field can be complex, time-consuming and also is a frustrating process for the accountants. It will confuse them and the chances of making mistakes by obtaining the irrelevant data will increase. If accounting firm adopts accounting software, it will be assigned to handle the humdrum jobs. When the accounting software is not being programmed correct it may make mistakes. However, the chances are very low since accounting software will be tested in different perspective before they are sold to the accounting firms.
With big data, accounting software is equipped with all kind of data and it is an enormous amount. It eventually reduced the error to a very low probability. Accounting software helps in achieving a better outcome through improve prediction, which includes many angles of the perspective.
5. Reduce Risk
When the outcome is more accurate, it can reduce the risk of dealing with other business traders. This is due to an expert systems allow a reduction of risk for a number of different reasons which it can increase the consistency of the problem by solving the approaches. This consistency can lead to a decrease in the variance of accounting behaviors and a corresponding increase in the accounting quality.
By leveraging advancements in data science such as the artificial intelligence and also machine learning, the financial institution can set a new standard of the AML (Anti-Money Laundering) compliance, mitigating regulatory risk more effectively and saving the industry billions of dollars in fines.