Automation and AI's Emerging Role in Accounting Sector
The accounting and business advisory environments are undergoing rapid change. Automation and Artificial Intelligence (AI) are big parts of the change. Recently, Xero (accounting software) made changes in its leadership, pointing to an increased focus for them on Automation and AI, following a trend where enterprises are looking to increasingly use these tools. How might it apply to your business or work?
Automation and AI can be good at handling large volumes of data, speeding up processes or solving parts of problems; changing repetitive and routine tasks to a more automated or machine learned process.
Allowing advisors or your team to focus on value-added work, like interpreting information, using data, formatting it to understand it better and make quicker, smarter decisions. An example is the growing use of AI models to process data efficiently, opening new ways to do reports, analysis and check risks. The uses of AI Models/Machine Learning are in their infancy, 'the right way' needs careful consideration, review, training, and adjustments for specific jobs.
Using them isn't just about working faster. A survey of a large professional body indicates Automation and AI may improve the quality and flexibility of reports and enhance the use and compliance of protocols and data rules (consistency). Considering and using digital tools creates possibilities to help people work more efficiently and productively, doing more at the upper end of the value chain rather that the lower end. In some instances, if you haven’t spent hours processing the data, you can be more objective and analytical interpreting it.
Bringing Automation and AI into accounting and advisory isn't easy. Some issues are costs of new technology, lack of experienced users, clients and team members not being able or ready to adapt to it. This can mean changing to a more learning-based culture.
To overcome these issues, it is important to start with small projects that can be done in bite- sized chunks, together with good support. The finance and advisory world should think bigger than just efficiencies that can be gained and really consider the longer-term value of the opportunities that Automation and AI present, requiring us in the near term to learn new skills and ways of doing things.
Leadership is important in making these changes. Enterprises with creative, coaching-based leaders may do better at making their team and customers feel comfortable with new technologies – this is key to bringing new ways of working and new tools to your business.
There are challenges with Automation and AI, but there is optimism about them. There is still a gap in adopting Automation and AI, with only a small sector widely using them so far.
To use Automation and AI well, we need to learn the different types of Automation and AI, what they do, what the pros and cons are and have a good plan. The plan should cover goals, people, culture, managing risks, investing and handling data correctly, to name a few
Automation and AI are starting to play a role in predicting trends and giving advice in finance, which could change how accountants work, making them more involved in business decisions.
New Zealand's accounting and advisory sector, like many, are at an important turning point. With Automation and AI set to change its future as enterprises go through challenges and opportunities that they bring, the focus is now on improving how people work, their efficiency and productivity.
It’s worth considering if there are small enhancements for your business through Automation and AI.
Disclaimer – While all care has been taken, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this article; always see your professional advisor before taking any action that you are unsure about.
JOHNSTON ASSOCIATES, Level 1, One Jervois Road, Ponsonby, T: 09 361 6701, www.johnstonassociates.co.nz
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Published: November 2023