What does this mean for accountants and bookkeepers?
For a long time, software has been used for bookkeeping. The software is just getting more sophisticated and it is becoming easier to process data and will continue to do so. AI is just another form of software tool.
Xero has the facility to predict bank transaction details based on past entries. However, you do need to be able to check whether the automated suggestions are correct and accurate.
There are several apps that read your purchase invoices with data capture such as Hubdoc and Dext Prepare. Though they are exceptional, and a huge time saver, there are still times when human input is required.
Xero has many associated apps that link data directly into Xero, saving time and ultimately money.
Whilst writing this, Word is auto suggesting grammar and spelling – this is AI.
Chat GPT can be useful for ideas but to really write something you need to have the knowledge behind to check the facts.
An example from one Chat app is as follows on using AI:
“Fraud detection - AI algorithms can analyse (the app spelt it with an American z) large volumes of financial data to identify patterns and anomalies that may indicate fraudulent activities, such as money laundering or unauthorised (another z) transactions.”
“Data security and privacy – The increased reliance on AI systems means that sensitive financial data is stored and processed digitally, raising concerns about data security and privacy breaches. Strong cybersecurity measures need to be in place to protect this information.”
With more and more use of automation, yes there is likely to be fewer jobs in the traditional sense, but data always needs to be interpreted and explained in detail other than just numbers or graphs and advisory services are likely to increase.
With quarterly reporting on the horizon for sole traders and landlords, automated help is needed.
With so many bookkeeping, accounting, and financial data analysing tools available, the future of accounting is exciting and not to be feared.
The next step
If you have any further questions regarding this insight, please contact Alison Martin.