Introduction

Are you using artificial intelligence? As we
see artificial intelligence (AI) more and more in daily life, we’re also
hearing debates and speculations about its potential to replace traditional
professions, including bookkeepers and accountants. While AI is indeed
transforming the finance industry, the question remains: will it do finance
professionals (like me!) out of a job? In this blog post, I’ll discuss the
impact of AI on accounting, discuss the ways in which AI can help bookkeepers
and accountants, and give you my view of the future of these professions.

AI for accountants

AI is hot on the agenda at every accounting
event right now. We’re seeing changes behind the scenes with the software we
use, with numerous tasks being automated and much better real-time insights
into financial data. Here are some ways AI is reshaping the accounting
profession:

Data entry

The biggest change right now is the potential
for AI-driven software to simplify data entry by automating processes, reducing
or even removing the need for manual data input. This saves time for
bookkeepers like me, and minimises the risk of human error.

Improved accuracy

AI tools can identify discrepancies and
inconsistencies and spot patterns in data –
including financial data. AI has the potential to maintain and even
improve levels of accuracy, giving us even better insight into your numbers and
more opportunity to talk about what matters to you – reaching your goals, and
the power of your numbers to allow you to do that, which leads us toâ?¦

Real-time insights

When we spend less time fussing with the
accuracy because AI is doing that for us, we can quickly get stuck into the
insights you need into your company’s financial health. This allows you to make
informed decisions promptly.

Time efficiency

Automation of routine tasks frees up time for
accountants and bookkeepers to focus on more complex financial analysis,
scenario and strategic planning.

So, will it replace us?

You’ll notice that the role of AI as we see it
is focused on speeding up and improving the accuracy of what a bookkeeper or
accountant would traditionally spend the
majority of their time doing. And this is important to remember. I see
AI as a valuable assistant, not a replacement. While AI is a transformative
force in accounting, it is not poised to replace bookkeepers and accountants.
Here’s why:

Human judgment

Accounting and bookkeeping often involves
subjective decisions and judgment calls that AI simply cannot make. Human
professionals will always be important for interpreting financial data,
understanding the context within the specific business, and having real
conversations with you, the business owner.

Relationships

At Fairbook Business Services, earning your
trust through real communication and relationships matters to us. When it comes
to finances, you need somebody on your team to run queries past, and AI can’t
replicate that. Data is data, but we’re here to address your concerns, know
your goals and help you reach for them.

Adaptability

As humans, we can adapt quickly to
unpredictable scenariosâ?¦ if you remember everything the country went through
during 2020, you’ll remember just how quickly we were able to interpret,
respond to and implement every update from the Chancellor. AI may struggle to adapt to rapidly changing
financial landscapes and handle unique, complex situations.

Security and ethical
considerations

And this is the big one for me.

As a professional accountant, ensuring
compliance with financial regulations, security of data, and maintaining
ethical standards is crucial. We would never put your data at risk and we’re
keeping a constant view of developments of the software we’re using and how
they incorporate AI.

AI-based accounting software, when properly
developed and implemented, can be highly secure. These accounting softwares
often use encryption and other security measures to protect financial data.
However, the level of security can vary depending on the software provider and
the software configuration. We see this as a risk, and for this reason, only
work with reputable software providers.

This topic is high on the agenda of every
accounting and bookkeeping event, it’s an area that is moving fast and which
we’re watching closely.

Conclusion

While AI is reshaping the accounting
profession by enabling software to automate some tasks and provide better
insights into patterns and inaccuracies, AI is not poised to replace
bookkeepers and accountants. AI should instead be seen as an assistant that
will enhance services in the future allowing us to give you better data and
insights, but the vital human touch is still crucial.

The future of accounting and bookkeeping is
certainly a relationship between human expertise and AI innovation, bringing
the best of both worlds, but you can rest assured, that I’ll always be here.