Automation is transforming businesses
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Artificial Intelligence (AI) refers to machine processes that simulate the way humans think. It has the ability to analyse data and formulate decisions based upon these data. AI systems process vast amounts of data extremely quickly, faster than the human brain, and can detect patterns that provide businesses greater insight. AI systems are also far more consistent decision-makers as they do not exhibit human biases and other inherent human limitations. Machine learning is a subset of AI by which computers can learn from the data they are given without being explicitly programmed to do so. The intelligence behind the technology creates the capacity for learning, reasoning and understanding.
AI is a rapidly emerging field. It has application in many accounting business processes. As a result of an increasing number of accounting systems adopting its use, accounting is one of the key areas in which automation is accelerating.
Recent developments incorporating AI makes it possible to integrate functionalities including bookkeeping, payroll processing, customer invoicing, superannuation payments, supplier batch payments, and preparation of financial statements and other reports tailored to users’ needs in a single accounting system. These accounting systems are capable of analysing millions of transactions, relationships and patterns in mere seconds. AI allows the system to predict similar transactions in the past allowing the user to allocate transactions in the appropriate accounts without having to go back and check previous transactions. A snapshot of how a business is performing can be glanced in real-time. Instead of being financial historians, real-time financial information allows decision-makers to look forward focusing on business planning and improvement discussions. AI also has the capability to read relevant information from a bill issued by a supplier and prefill the system with this information. It also promotes fast data retrieval allowing users to access information anytime, anywhere. It provides secure file storage mainly due to cloud access, particularly beneficial for even small businesses.
Collectively, the above results to cost reduction as lesser time is utilised in coding repetitive transactions. This also improves accuracy and leads to higher employee productivity. In an era where consumers take their best experience on the service provided, employees will have more time to focus on value-adding tasks, keeping cost growth in check.
Meanwhile, as any other change, implementing automation presents itself with challenges such as employee resistance. Adapting to change is a responsibility for everyone in the organisation. A plan should be laid carefully, proper assignment of stakeholders for the project, and ensure the team is fully informed. The organisation also needs to build AI automation in such a way that it has confidence in the ‘decisions’ the AI machine makes. It is vital to consider the appropriateness of the accounting system to the business.
Despite the challenges, in this period of global advancement, automation should be highly considered. Ignoring the opportunity automation provides, is tantamount to accepting the risk of being overrun by your competitors who have already leveraged those opportunities.
As everything is continually evolving, so should your accounting system. The AI capabilities in today’s accounting systems are fundamental to a business. Automation is the opportunity to improve your business intelligence.
Talk to us if you want to know more on how to implement an improved and automated accounting system suitable for your business.
By Marnelli Simangan – Accountant – Venture Private Advisory.