AI-Powered accounting is the new accounting
An accountant not using AI? Now that’s risky.
Just a few years ago, AI in accounting was seen as experimental. Today, it’s essential. AI in accounting is having a tremendously powerful and profound effect on the profession: from reducing errors and ensuring compliance, to surfacing novel insights and automating manual workflows.
Much like the move from paper records to digitalization and computers, not moving with the times by incorporating AI into your accounting operations means being left behind.
Here are five ways accounting professionals are using AI to carry out their roles more effectively and make an impact within their organization.
1. Automating data entry
There’s nothing that sucks the energy out of an accounting team more than manual data entry. Professionals who have undergone intensive training and gained valuable experience, shouldn’t have to spend their time inputting data.
While automated data entry has already existed for some time, AI takes things to the next level.
AI-powered software can automatically upload data from multiple sources – including leases invoices, receipts, bank statements, and other contracts – extract the relevant data, propose journal entries that are audit-ready and in full compliance with the relevant standards, and a whole lot more.
This way, accounting professionals can get the basic manual tasks taken care of, error-free, while simultaneously leveraging new tools to contribute more meaningfully to the organization’s success.
2. Modification detection
Some of the latest accounting standards, such as those pertaining to lease accounting, have specific instructions around modifications to the original agreement, which can be challenging to identify and account for.
AI-driven accounting software solutions like Trullion provide advanced modification detection, where an updated agreement can be uploaded in its original format, and the software will automatically detect the changes and propose the correct accounting treatment.
3. Predictive analytics
Accounting is a treasure-trove of data. With so much historical information available, combined with current financial data, there is an incredibly powerful use case for AI.
AI can provide insights, forecast future financial trends, assist in budgeting and cash flow management, and even help accounting professionals to prepare impactful presentations ready to share with company leadership.
The accountant thus becomes not only the keeper of historical records, but the visionary that the Board and C-Suite turn to for matters of strategic importance.
4. Financial reporting and analysis
Financial reporting and analysis should be seamless, effortless, and with the major insights readily available.
AI-powered accounting software can provide this, and more; automating and error-proofing everything from managing financial data to reporting to stakeholders.
AI accounting tools can generate financial reports and perform in-depth analysis astoundingly quickly, accurately, and painlessly.
AI-powered accounting tools can play a crucial role in ensuring compliance with new and evolving accounting standards, such as ASC 842 (Lease Accounting) and ASC 606 (Revenue Recognition).
For example, such solutions can analyze large volumes of financial data and contracts to assess whether the recognition criteria and accounting principles mandated by the standards are correctly applied.
Extracted data can be validated and cross-referenced against the specific requirements of the standards, significantly reducing the risk of non-compliance. And, by automating these processes, AI tools enhance accuracy and consistency in accounting treatment, mitigating the potential for human error.
Perhaps most importantly, AI-powered SaaS solutions can dynamically adapt to evolving standards by incorporating updates and modifications, ensuring ongoing compliance.
Incorporating accounting AI into your workflows
Today, leading accounting professionals are leveraging AI in innovative ways to streamline operations, enhance accuracy, and provide invaluable perspectives.
From automating data entry to enabling predictive analytics, AI is revolutionizing the accounting industry, empowering professionals to make more informed decisions and navigate an increasingly complex financial landscape with greater ease and efficiency.
Begin your seamless journey into a professional world enhanced by AI by connecting with Trullion today.