The Impact of Artificial Intelligence on Accounting

Quick Highlights:

• AI improves accuracy and speed in accounting tasks like data entry and error detection.
• It allows for better decision-making and faster financial reporting by analyzing large volumes of data.
• AI is reshaping accounting jobs, reducing the need for simple data entry roles but increasing demand for data analysis skills.
• Learning AI tools and pursuing relevant education, such as a master’s degree or certifications, is crucial for modern accounting careers.

When the spreadsheet first came out, it quickly replaced a number of jobs in bookkeeping and accounting. Prior to this, a single change on a spreadsheet required an entire day of laborious calculations and adjustments. All of a sudden, a computer program existed that could instantly do the same calculations. 

Today, artificial intelligence (AI) is changing the way people work. AI in accounting and finance impacts how data is correlated and analyzed. Learning how to use AI in accounting is important because AI will continue to play a large role in the field. While AI in accounting isn’t going to erase every job in the field, it may change which jobs are available and how people do their work each day. 

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• A Student’s Guide to Passing the CPA Exam

AI-Driven Changes in Accounting Practices

Like the spreadsheet, AI in accounting will likely have an impact on data entry and reconciliation. It can also help with error detection, financial forecasting, and risk assessment. 

While learning how to use AI in accounting can be challenging, this change will likely make the field more efficient. Thanks to error detection, major mistakes will become less common. In one famous case in 2012, an Excel calculation error led JP Morgan to lose $6 billion. With AI in accounting and finance, these types of errors will become less common. 

How is AI used in accounting? Normally, AI is used for error detection, data entry, and similar tasks. It can also enhance analytical tasks by improving the way humans assess risks or forecast financial changes. 

AI intelligence makes it easier for systems to predict changes through machine learning. This versatile technology involves natural language processing (NLP) and machine learning algorithms. Because it can simulate human intelligence, it can help machines learn and reason without human involvement. 

AI especially excels at analyzing a large volume of data, which is why it is used by accounting firms. Through AI, it is possible to analyze a large volume of information at a high speed. It can even help with regulatory compliance and fraud detection. As a result, AI in accounting and finance can help increase accuracy, decrease costs, and boost productivity.

Benefits of AI in Accounting

Through the benefits of AI in accounting, organizations can reduce the amount they spend on doing day-to-day tasks. AI can quickly analyze data with better accuracy and speed than humans. This leads to better decisions and faster financial reports. 

Beyond providing better predictive analytics, AI can glean deeper insights from data. It does not face limitations from time or physical constraints like humans do. As a machine, AI can look for more connections and spend additional time analyzing data. 

For accounting firms, AI is an important way to become more efficient and productive. AI in accounting is also important for workers because it allows them to do their jobs better. 

AI’s Impact on Accounting Roles and Employment

The invention of the spreadsheet is a good example of how new technology can quickly remake an industry. Beyond automating tasks, AI in accounting will make the field more agile. At the same time, it will make ensuring regulatory compliance significantly easier. 

AI in accounting and finance will have the following impact. 

Streamline procurement: Because AI can analyze unstructured data and APIs, it can help streamline procurement and monitor ongoing changes in prices. This can help ensure better cost control.

Manage expenses: AI makes it easier to manage your company’s expenses. It can check recipes for errors and issue a warning if someone is using an expense account incorrectly. 

Faster financial closures: With AI, you can run numbers faster. Companies can create strategies, double-check accuracy, and speed up financial closures. 

Improved audits: This tool can help you analyze data sets, assess risks, and improve fraud detection. Plus, AI can provide real-time audits. 

Better invoicing: Another one of the benefits of AI in accounting is that it can make accounts payable and receivable easier. It can help your company manage invoices and extract data. 

All of these factors will lead to a shift in accounting jobs. Instead of job displacement, AI will likely lead to the creation of higher-value jobs. For example, simple data entry jobs will be less common, but the number of data analysis jobs will increase. To navigate the changing industry, workers will need new skills in AI literacy and data analysis. 

Preparing for a Future with AI in Accounting

If you want to get a job in accounting, the first step is getting an accounting degree. You should also learn how to use AI in accounting. This technology will be increasingly used in the field, so it is important to spend time learning AI tools as you pursue your degree and certifications. 

Master’s degree: If you already have a bachelor’s degree in accounting, you can pursue a master’s degree to gain additional skills. Some schools, like Eastern University, offer a master’s degree in data science for less than $11,000. Because many of these programs are online, you can train without quitting your day job.

Coursework: Before you choose a specific accounting program, you can also ask if they offer classes on how AI is used in accounting. For example, Rutgers Business School offers a class on artificial intelligence in accounting and assurance. 

Minor in computer science: If you haven’t received a bachelor’s degree yet, you can use your minor to learn more about data science and AI in accounting. Most colleges allow you to minor in computer science, data science, or computer programming. 

Certifications: With a certification, you will generally spend less time and money on going to school. At the same time, you will still be able to enjoy the benefits of AI in accounting. You can find top certification programs, like the certificate in AI and machine learning from Texas A&M University. It involves 300 hours of self-paced coursework, and then you take a test to get your certification.   

Google Cloud Certifications: If you want an inexpensive option, Google offers certifications in a range of topics. Other than the data science and machine learning path, you can also pursue Google certifications in generative AI training and contact center engineering. The path you choose depends on how you want to use AI in accounting and finance. Typically, you will pay a few hundred dollars to access these courses, making it a fairly inexpensive way to get started in the field.

The type of training you pursue depends on what you want to do in the accounting field. Because data science and AI technology are likely to change in the future, it is important to be adaptable and willing to learn. 

Discover the Impact of AI in Accounting 

Learning how to use AI in accounting is important if you want to work in the field of accounting. As new technology develops, AI in accounting and finance will continue to grow. More employers will look for workers who understand the answer to, “How is AI used in accounting?”

Fortunately, you can quickly learn how to use AI in accounting. Through the benefits of AI in accounting, you can increase your marketability among potential employers. In addition, you can expand the types of jobs you have access to and open up potential promotions in the future.