What’s unusual about anyone currently training in accountancy is that they will be the first generation of accountants to use AI right from the start of their careers.
The reason being accountancy, traditionally known for its repetitive and meticulous tasks, is experiencing a transformation that is easing the daily grind for those working in the profession.
Artificial intelligence which is revolutionising industries around the world, is now being increasingly used for routine and time-consuming tasks in accountancy.
Bookkeeping, data entry, creating balance sheets and the analysis of financial data, everyday jobs which were laborious and prone to human error, are now being efficiently handled by AI software. These systems can process vast amounts of data in the fraction of time it would take a person, while ensuring both accuracy and consistency.
All of which leaves accountants to focus on more interesting business advisory and strategic roles such as predicting financial performance or knowing whether a company is viable. Junior auditors too are moving away from traditional reconciliations and ledgers work to overseeing AI powered software and databases.
So, how can AI and automation continue to improve accounting practices in the future and importantly what new skills do those training in the profession need to adopt to stay on top of industry demands? Here are some of the key AI benefits to look out for going forward.
Streamlined auditing
Auditing is an area where AI is already making a substantial impact. Traditional auditing methods involve extensive manual checks and reconciliations, which can be time-consuming and labour intensive. AI driven tools can automate many of these processes, reducing the time and effort to complete an audit. Rather than relying on audit sampling - a representative sample of data from a larger data pool to identify potential issues– AI can analyse entire datasets providing a more comprehensive and accurate audit.
According to a KMPG survey, four in 10 senior audit professionals expect that AI will reduce the size of auditing teams due to an increase in efficiency. However, the same survey reports that an increased use of AI is expected to attract more talent to grow and enhance accounting and auditing teams.
Use of financial data to track business performance
AI is revolutionising how accountants analyse data. Long gone are the days of the humble spreadsheet to identify trends and performance. Finance professionals are using advanced AI tools to analyse large datasets in real time, tracking patterns that may not be apparent to the human eye. Predictive analytics tools together with customer data can be used to make accurate forecasts for companies to gain a strategic advantage over competitors.
Fraud detection and improved risk management
A major part of an organisation’s success relies on the ability to identify and rectify risks at an early stage. Step forward artificial intelligence which can analyse data in real time to provide insights into changes in customer behaviour, evaluate economic trends and foresee shifts in cashflow. Hazards such as fraudulent activity can be detected quickly and accurately therefore managing the risk to the business more effectively. Historically, risk management in accounting has been a reactive process. AI inspires a more proactive approach through risk forecasting and this use of the technology looks set to expand.
Improving client relations
What AI can learn from data and make predictions, it can’t yet replace human judgement needed to weigh up different scenarios and make informed decisions. As a result, accountants and other finance professionals will still be in demand in the future, but different skills and capabilities will be required. Junior accountants, for example, may need to focus on more client facing skills and systems management. Experienced finance professionals will use AI driven insights to offer more personalised and strategic advice to their clients so delivering higher value services.
What does this mean for accountancy students?
According to the ICAEW (Institute of Chartered Accountants in England and Wales), while AI won’t take your job, finance professionals in the future are going to need new skills to thrive including:
Data literacy
Technical skills around AI fundamentals including machine-learning algorithms, data analysis techniques and natural language processing
Adaptability and continuous learning
Critical thinking and judgement.
There is no doubt that AI is set to boost productivity and jobs in the profession and that accountants will be in demand in the future. While machines are great at spotting patterns, human oversight will always be required. Finance professionals need to understand the positive benefits of AI and develop the skills and aptitude to stay on top of future industry demands. By integrating AI into accountancy education, students will gain the skills and knowledge required to excel in their future careers.
Speak to us if you’re ready to accelerate your finance career.
Reed Business School offers industry-recognised accredited accountancy qualifications and apprenticeships, including ACCA, ICAEW, AAT and CIMA.
