Posted by Alyanna Tagamolila
Aug 16, 2023
Share
Accounting has always been an essential part of every company – mainly because financials play a focal point in longevity and in every decision that is made. Following this, the advent of technology and innovation did nothing to shift the priority away from accounting but injected the industry with different finance and accounting technologies that accountants have now grown used to using every day.
Like the tools that accountants have grown to love, the ease and scalability of Artificial Intelligence (AI) provide the same revolutionary processes that will optimize how we manage financial data. The question is – why should we use it?
The Benefits of AI in Accounting
Before going into the benefits of AI, it is first important to tackle how AI is perceived in the world of finance and accounting. With its capability to automate routine tasks and to integrate forecasting and analysis into its algorithm, some professionals have reservations about AI’s capability to replace humans – rendering finance and accounting professionals without jobs. However, in a report by the New York State Society of CPAs published in 2024, six accounting firms in the US disprove these reservations.
In the report, these accounting firms mention no downscaling of talents and employees but instead mention how AI has allowed them to take their processes one step further. With the capabilities of AI, their employees and their algorithms work hand-in-hand to not only provide leveled up finance and accounting support but also enhance their customer service, their clients’ inventory management and their marketing efforts as well.
This means that for accounting firms that have already integrated AI into their work processes, AI has not served as a way to minimize the number of employees that need to be employed but has allowed employees to optimize the firm’s operational processes as whole – focusing on both the services the firm offers and the service delivery process and the back-end tasks that allow the firm to provide quality support for clients.
For accounting firms that have yet to integrate AI into their processes, here are some ways in which AI will be able to help you remain competitive this 2025 – making you the firm of choice for both existing and new clients.
Efficiency
AI, like modern machine learning seen in most finance and accounting software, has the ability to automate and streamline manual accounting processes. By reducing the time spent on routine tasks such as financial transactions, accountants can focus on their core responsibilities and take a more active role in helping the company’s growth.
Reduction of Errors
Errors are only natural with tasks being done by humans. The human brain cannot handle large sets of data and complex calculations at a speed that computers can. Because of this, when work is often produced at a deadline, errors may be unavoidable.
With AI, the risk of said errors is erased. By automating data entry and analysis, accounting teams can maintain a higher level of data accuracy, reducing the potential for financial discrepancies. Because of its intelligent nature, AI not only reduces errors but can also analyze the data it is processing in real time and flag down any inconsistencies that your team needs to be alerted to.
Real-time Insights
With its capability to analyze large amounts of data at a time, AI-powered accounting software can easily provide real-time financial information, valuable insights, and data-driven recommendations based on your company’s current data. This allows you to quickly adapt to any market changes, decide on investment opportunities and feel secure knowing how the company is faring at any given time of the day.
For accounting firms, readily available insights with increased accuracy allows you to have given value-added support for your clients – allowing not just your firm to shift according to market trends but your clients as well, showing them that you have their financial health and interests at heart and that you are a trustworthy service provider when it comes to their finances.
Read: How to use AI to protect your company from financial risks
Enhanced Financial Forecasting
AI’s capability to analyze historical data and identify patterns allows AI-generated financial forecasts to be data-driven and accurate, increasing the accuracy of your financial statements.
With AI's predictive capabilities, accountants can develop more reliable financial models, estimate cash flows, and plan budgets with greater confidence. Improved forecasting not only helps businesses prepare for potential challenges but also assists in identifying possible growth opportunities.
Advanced Fraud Detection
Leveraging AI in finance and accounting strengthens fraud detection mechanisms. AI technologies can analyze transactions and identify unusual patterns that may indicate fraudulent activities. By implementing AI-driven fraud detection systems, your firm can not only safeguard your own financial information and assets but give your clients the same protection – giving your firm the reputation of being a trustworthy provider.
Seamless Integration
Contrary to what some may fear, implementing AI in accounting does not require a complete overhaul of existing systems. AI solutions can be seamlessly integrated with existing accounting software and processes, reducing disruption and easing the transition. This adaptability ensures that organizations can harness the power of AI without significant infrastructure changes.
Beginning your AI Integration Journey
Despite the numerous benefits we have outlined for your firm once you integrate AI into your accounting processes, it is important to approach these changes with the right mindset. Integrating AI completely is not a one-step task that can be rushed with immediate results visible the next working day.
This is a development of your processes that like all your other initiatives prior requires careful planning, training and execution. Once you begin the process, constant evaluation and finetuning should be done to make sure that you are fully able to maximize the positive effects that AI integration can bring for your accounting firm.
Where to Start
Assessing your Firm’s Needs
Before choosing an AI model or AI-integrated accounting software for your firm to use, it is important to assess your current operations: are you a firm specializing in a specific accounting service for your clients? Do you have recurring accounting processes that are not common to most? By assessing your current daily tasks and identifying inefficiencies in your operations, you can determine which areas of your processes would benefit the most from AI integration.
To be able to do this process correctly, you can conduct an internal audit of your current processes and assess your operational pain points which have negatively affected your overall efficiency. Once this is done, it is also important to assess your employees’ AI-readiness – are they digitally proficient, are they open to learning new processes?
Establishing your pain points and your employee readiness gives you a proper baseline as you set your AI integration goals.
Look Into AI Accounting Technology
After assessing your company’s current pain points, the next step is for you to research AI Accounting Technology or Software that caters to your needs. Luckily, most accounting software to-date already offers AI integration into their features such as automated bookkeeping, predictive analytics, fraud detection and increased accuracy in financial insights and forecasting.
Some of the most widely used AI integrated accounting software include:
- Xero and QuickBooks Online – AI-powered automation for invoicing, categorization, and reconciliation
- Sage Intacct – Advanced AI-driven financial management and forecasting
- Bot keeper – AI-assisted bookkeeping and financial reporting
- BlackLine – AI-driven transaction matching and account reconciliation
Note that each of these software has various functions which can be customized according to your needs. Each of these software providers also offer various price points, making it a realistic option for firms who are conscious about the cost it would take to successfully integrate AI into their current process.
Alongside cost and features, it is also important for your firm to look into the overall service of your provider -- see if aside from the services you require, their sales support will give you the assistance you need as you adapt their software into your daily processes.
Test with Small-Scale Implementation
Connected to our prior statement earlier in which we highlight the importance of not rushing your AI integration process, your first round of implementation and integration should be small-scale.
How can you do this? By beginning with AI integration in just 1 or 2 daily tasks of select teams or just one department. By starting small you can evaluate the integration’s effectiveness and communicate openly with the team/s involved – asking feedback from them regarding challenges/bugs/inconsistencies that they can encounter.
During this period, communication not just with your trial team is important but with your service provider as well. Make sure that you direct any technical questions you have to their support team so that you are orienting yourself with the software properly.
Once you are able to integrate on a small-scale without problems, you can then consider running AI tools in parallel with your existing systems, giving your employees the adjustment period needed before fully adopting your AI-integrated systems.
Build an AI-Positive Work Culture
Alongside the effectiveness of your tools, the success of your AI system also depends on how well your team can adapt to new technology. To do this, make sure that you are not merely giving them access to the new software but are providing the training needed for them to become familiar with and master the use of your chosen software.
If possible, you can ask your service provider to train a few members of your team to become fully familiar with your AI-integrated tools and utilize each function fully – these members can then train your firm for a while. Encouraging a culture of knowledge-sharing allows your employees to have a positive mindset about the change, reducing fears of job insecurity and instead allowing them an opportunity to upskill and become a more valued talent.
Additionally, addressing concerns about AI replacing human roles is important during this phase. Encourage employees to view AI as a tool that can free them from repetitive tasks and reduces the risk of error so they can focus on strategic financial planning and advisory roles.
Becoming a Future-Ready Firm
As you adopt AI into your accounting processes, you are positioning your firm to be ready for the trends forecasts in the finance and accounting industry this 2025. However, becoming a future-ready firm is not just about adopting AI.
To remain competitive, your accounting firm should shift your mindset to match the pace of today’s innovation.
Make sure your firm continues to adopt a growth mindset, continuously looking at the advancements in both technology and practice/s of the field. By updating your firm’s processes in accordance with the latest accounting practices, technology and security measures available you are showing to both your employees and your clients that you are a firm with the long-term in mind, making you a service provider and employer of choice for both stability and consistent quality.
Read: How to Transform your Company's Accounting Processes with AI
The Bottomline
Although the development of AI and its application is still ongoing as more and more industries integrate AI into their processes, it is already the perfect time for accountants to utilize it. The adoption of AI not only streamlines accounting processes but also empowers accountants to focus on higher-value tasks that require human intelligence and critical-thinking skills.
While AI is indeed innovative that has changed the landscape of the accounting profession, it remains a tool that humans can use to make their work easier. By harnessing this effective tool, you can help your company prepare for any financial landscape they may face.
See how AI can help your accounting processes today!
Are you looking to integrate AI into your accounting processes? Finding a finance and accounting outsourcing partner that is constantly up to date with the latest finance and accounting technology trends may just be what you need. If you want to know more, contact us today and we’ll help you with scalable solutions perfect for your company.
Get to know more about our solutions as you download our Outsourcing: How to Make it Work guide today and know how we can help with staying on top of your accounting needs.
First published by August 16, 2023 and updated March 17, 2025 by Aly Tagamolila
