How AI is Helping Accountants and CFOs in the Finance Industry

It is true that artificial intelligence (AI) has been beneficial for many industries, including finance and accounting (F&A). However, some professionals are still skeptical about the use of AI in their processes. They believe that it will replace humans and make them obsolete. But this is far from the truth. 

In fact, according to PwC’s Finance Effectiveness Benchmarking Report 2019, 61% of finance leaders believe that finance functions could become more effective with improved technology, such as AI and robotic process automation (RPA). 

In this article, we will discuss how AI is helping accountants and CFOs stay ahead in the competitive finance industry. 

Read: Understanding the Value of AI in Finance Digital Transformation 

What is AI in Accounting? 

AI or artificial intelligence in accounting and finance refers to the use of digital computers or computer robots to perform accounting-related tasks that were normally done by humans. It can range from automating repetitive tasks to gaining helpful insights from the financial data it extracted. 

How is AI Used in Accounting and Finance? 

AI is changing many parts of accounting and finance. Here are some ways it’s being used. 

Invoice Processing  

AI can quickly pull information from invoices, which means accountants don’t have to spend hours manually entering data into spreadsheets. Instead, they can use AI accounting software to generate invoices in minutes. Having these tools in place can help accountants stay ahead of the industry by reducing the time it takes to process invoices. 

Fraud Detection 

AI looks at patterns in transactions to spot anything unusual. This makes it easier for accountants to find or detect fraud before it becomes a bigger problem in the organization. 

Predictive Financial Analysis 

A Google Cloud article explained that AI can predict specific future outcomes with high degree of precision, which can be beneficial with the entire organization as it can detect fraud, reduce risk and predict customer future needs. 

Continuous Auditing 

With AI, auditors can check transactions in real-time. This gives a clearer picture of a company’s financial health and helps to deal with issues early on. To add, even companies like Ernst & Young Global Limited are embedding and using AI to its end-to-end audit process. 

Read Next: AI in Accounting and Finance: Advantages and Negative Impacts 

How can AI help CFO and Accountants? 

For accountants and CFO, AI is a valuable tool that can help them work more efficiently due to the functions it can perform, as enumerated below: 

Automate Repetitive Task 

AI can handle tedious or repetitive tasks quickly. For instance, automating data entry can save hours that accountants would otherwise spend on manual input. This efficiency allows them to focus and dedicate more time to tasks that drive business growth. 

Improves Accuracy 

In the F&A industry where mistakes have no room, AI can offer accountants a more accurate way to process data. By automating data entry and other repetitive tasks, they can reduce the risk of human error. This means that accounting professionals will be able to produce more accurate financial reports and statements, which is important for decision making. 

Provides Better Data Insight 

Another thing AI can help accountants and CFOs is that they can gain a better understanding of the company's financial health. AI-powered accounting tools, when programmed correctly, are good at analyzing large amounts of data, which gives them an advantage to identify trends and patterns that may be missed by human eyes.  

Best Practices for Using AI in Your Firm 

Here are some simple and practical ways your organization can start using and make the most of AI: 

1. Invest in AI Tools

To make the most of AI, you should look into AI-powered accounting software. These tools should be able to automate tasks, improve data analysis, and make your work more efficient. QuickBooks, Xero, and Sage are some of the popular options you can use to streamline your accounting processes. 

2. Integrate AI with Existing Systems

If your organization has already been using accounting systems for years, you don’t need to start from scratch. Instead, many AI tools nowadays can work alongside your current software—which enhances its functionality without a complete overhaul. 

3. Train Your Team on AI

As AI becomes more common in the F&A industry, it’s important to train your team, especially your accountant, on how to use these tools effectively. Doing these allows them to see the full advantage of AI technologies. 

4. Create a Data-Driven Culture

It is best to encourage your entire organization to value and understand the importance of data-driven decision-making. When everyone understands the importance of data, it becomes easier to use AI effectively.  

5. Monitor and Adjust AI Strategies

Finally, keep an eye on how well your AI strategies are working. As the F&A industry is constantly changing, it's important to remain adaptable. This isn't just for your own growth, but for your whole organization's success.  By consistently reviewing your AI tools and assessing their impact on your operations, you can stay ahead of the competition. 

The Bottom Line 

AI is changing the game for finance and accounting, offering huge opportunities for accountants and CFOs to improve their efficiency and accuracy. By taking advantage of AI, not only will it help your organization to stay competitive in the finance industry but also future-proof your operations, giving your organization a better position to compete ahead. 

Are you interested in integrating AI into your accounting operations? 

Consider D&V Philippines. We are a reliable outsourcing firm specializing in finance, accounting, and data analytics. Schedule a free consultation with us today to learn more about how we can help you integrate AI into your business.  

 You can also visit our website to learn more about how we can help you or you may also download our Business Analytics whitepaper  to learn more about our solutions for staying on top of your accounting needs.