Artificial Intelligence (AI) is so diverse in its applications that the accounting and finance industry has a significant productive impact. Artificial intelligence in accounting will improve processes and productivity in the foreseeable future because it comes with benefits. Some key benefits of AI in accounting include saving resources, money, and time besides providing actionable insights and competitive advantages.
The global AI in the Fintech market was estimated at USD 7.91 billion in 2020, and it is expected to reach USD 26.67 billion by 2026. The market is also expected to witness a CAGR of 23.17% over the forecast period (2021 – 2026), as per Mordor Intelligence industry reports.
Many companies in the finance industry are using AI-enabled applications nowadays for executing accounting operations. Organizations can streamline their operations, improve accuracy, boost productivity, and cut down on expenses. AI is valuable to accounting because it can quickly and efficiently evaluate vast amounts of data.
Here are some of the key functions of AI in accounting:
AI can identify and categorize vast amounts of data from many sources. Automating many of the administrative operations such as accounts payable processes, management and accounts receivable functions can also be enhanced through AI.
With artificial intelligence, document processing and approval can get automated since AI automates these administrative functions. So, internal accounting operations like purchasing, procurement, expense reports, purchase orders, invoicing, accounts receivable and payable, etc., are significantly improved.
With the help of computer vision and natural language processing, AI can process documents and provide reports in real-time. It is vital for business insight generation based on current market trends and helps make data-driven decision-making possible. Thus, an accounting firm can be proactive in its course of action and modify its plans and strategies if needed.
AI-enabled solutions improve audits and compliance with state, federal, and corporate requirements. AI-enabled solutions can effectively track essential documents and provide alarms or notifications when needed. Machine learning algorithms are necessary for combing through vast amounts of data for the purpose of identifying potential fraud issues. On identification of such problems, they get flagged for in-depth investigation.
Here are some of the ways in which AI assists with accounting tasks:
Expense management can be a cumbersome task if executed manually. With AI, reviewing spending and checking receipts becomes significantly easier and less cumbersome. AI solutions can also alert the concerned personnel in case of breach of configured rules, financial limits, approvals or security violations.
Manual procurement and tracking involve an overwhelming amount of paperwork. However, AI-enabled systems can effectively handle unstructured data from multiple sources. Therefore, the procurement process becomes more efficient with significant time-saving benefits due to AI.
Firms that use AI for their accounting operations can reap the benefits of enhanced accuracy and timely completion of monthly and quarterly operations. It allows companies to have adequate time to plan their course of action.
AI-enabled solutions can be used for tracking files to figure out which personnel has accessed them and when. Therefore, auditing becomes easier owing to the enhanced security of files.
AI chatbots are great for quickly answering basic queries such as due dates for invoices, account status, and the most recent account balance.
Manual invoice processing was the most expensive and cumbersome accounting operation that existed before AI. However, with automated invoice processing software available, enhanced (error-free) accounting with the elimination of the possibility of human errors, increased volume, and improved vendor relationships are possible.
Incorporating AI in accounting operations opens up a world of opportunities with significant time-saving and cost-saving benefits with enhanced productivity and accuracy in the finance industry. You can download invoices automatically from various portals and save time with automatic approval workflows. It’s time to adapt to the benefits of AI in accounting.
See the benefits of automated invoice management:
Better overview. Less accounting work. More time for your ideas.