Navigating AI’s Impact on Accounting: Uses, Trends, and Tools

Become your company’s accounting AI champion and lead the way towards revolutionary financial change.

Understanding AI in Accounting

When discussing AI in accounting, many think of tools like ChatGPT, a natural language processing model using a large language model (LLM) developed by OpenAI. However, AI in accounting goes beyond just ChatGPT and encompasses various applications like machine learning, computer vision, and robotic process automation (RPA). 

Here are some notable uses of AI in accounting: 

• Automated Invoice Processing and Payables Workflow: Speed up accounts payable and accounts receivable processes. 
• Anomaly Detection in Financial Data: Quickly spot unusual transactions or patterns. 
• Research Assistance: Make research faster and more efficient. 
• AI-based Business Intelligence for Decision-Making: Gain valuable insights to drive strategic decisions. 
• Trends Analysis in Financial Reporting: Understand and forecast financial trends. 

In this article, we’ll explore how AI is being used in accounting and the best tools available to help SMEs streamline their financial processes. 

How is AI Transforming Accounting? 

1. Automated Invoice Processing and Expense Management:

• Accounts Payable: AI-based invoice processing includes automated data capture via optical character recognition (OCR), matching invoices to purchase orders, coding, approval workflows, and fraud detection.
• Expense Management: Automated expense management helps detect anomalies and provides real-time notifications to reduce errors.

2. Anomaly Detection:

• AI helps identify outliers in data that may indicate fraud or errors.
• It also provides valuable commentary on financial trends for better business insights.

3. Business Intelligence and Decision-Making:

• Real-time dashboards, expert systems, and embedded digital assistants provide key business insights.
• AI enables strategic analysis, helping SMEs make data-driven decisions.

4. Forecasting:

• Predictive analytics powered by AI supports financial forecasts and scenario planning.
• For instance, computer vision can track cars in parking lots to predict retail revenue, while generative AI improves forecast formatting.

5. Financial Research:

• AI can assist with research into taxation, accounting standards, regulations, and economic trends.

6. AI-Assisted Scenario Generation:

• AI can generate scenarios to support strategic business planning, offering a wider range of opportunities.

7. Auditing:

• AI automates audit schedules and detects data anomalies for auditors to investigate

8. Communications:

• AI can assist in business communications, writing emails, reports, and creating meeting agendas.

1. Stay Informed:

• Keep up to date with the latest AI advancements and how they can be applied to your processes.

2. Select the Right Tools:

• Choose cloud-based accounting software that integrates seamlessly with your existing ERP system.
• Look for automation tools with built-in AI/ML capabilities, such as automated invoice processing, PO matching, and real-time business intelligence.

3. Implement Gradually:

• Start with smaller tasks, like automated coding and invoice processing, before scaling up to more comprehensive AI applications.

4. Upskill and Educate:

• Encourage your team to learn how to leverage AI for strategic analysis and client advisory.

• AI is poised to revolutionise accounting, with the market set to grow at a compound annual growth rate of 45% to reach £16 billion by 2028.
• Embracing AI now can help SMEs improve efficiency, streamline compliance, and focus more on strategic growth.
• Accountants must adapt to this new landscape or risk being left behind.