The accounting field in Australia is changing fast because of Artificial Intelligence (AI). Many businesses are starting to see how AI in accounting can help them work better and faster. AI can take over simple tasks, like entering data and sorting transactions, which allows accountants to focus on more important work, such as giving advice and analysing financial information.
However, not all companies are using AI yet. Some are unsure about how to start or worry about the risks involved. This creates a big chance for Chartered Accountants (CAs) to lead the way. By helping businesses understand and use AI properly, CAs can become key advisors in this new environment. In the following sections, we will look at how AI is being adopted in accounting, the benefits of automation and the need for strong ethical leadership as firms embrace this technology.
Current adoption of AI in Accounting
In Australia and New Zealand, the use of AI in accounting is still very new. A report from Datacom in 2024 shows that only a few companies are fully using AI. Many are unsure how to start, often due to unclear policies and concerns about risks.
This situation gives CAs a chance to lead. By helping businesses understand how to use AI effectively, CAs can become key advisors. According to Deloitte’s Future Finance Trends report, strong leadership is essential for successful adoption of AI in accounting. Firms that embrace AI can work more efficiently and gain a competitive advantage.
Automation: The Key to greater efficiency for Chartered Accountants
AI and automation are changing how CAs work. They can take care of repetitive tasks, allowing you to focus on more important work. AI tools can boost productivity and accuracy while reducing mistakes.
Many CAs are already using AI to improve their work. For example, you can use tools like Xbert.io for checking invoice processing, Aider.ai for analysing client data, or ChatGPT for drafting communications. These tools are easy to use and help CAs provide better service to clients.
For business leaders, using these tools can lead to better insights into their operations and improved decision-making.
Addressing concerns about AI
A common worry is that AI will replace humans. However, while AI is powerful, it cannot replace the human skills that make CAs valuable.AI is good at automating tasks and analysing data but lacks judgement and emotional understanding. CAs are still needed to interpret data, advise clients, and ensure ethical practices. By using AI, CAs can enhance their skills and become strategic advisors who offer valuable human insights.
The role of ethical leadership in adoption of AI in accounting
As businesses start using AI in bookkeeping/accounting, ethical leadership is crucial. CAs are well-positioned to ensure that AI in accounting is used responsibly.
Key Areas of Ethical Oversight:
- Data Security: Protecting sensitive information while being clear about how AI is used.
- Bias and Accuracy: Understanding the limits of AI to make fair decisions.
- Ethical Guidelines: Creating rules for responsible use of AI to ensure accountability.
CAs can take ethics courses offered by CA ANZ to learn more about responsible practices in AI-driven accounting.
By promoting strong policies for ethical artificial intelligence use, CAs can help businesses navigate this new technology wisely.
Staying ahead: The need for continuous learning
AI is evolving quickly, so continuous learning is essential. While many firms see the potential of AI, few invest in training their teams. This gap offers an opportunity for proactive CAs to stay ahead.
Consider exploring courses on:
- The impact of generative AI
- Improving fintech skills with AI
- Using ChatGPT for productivity
- Understanding large language models
You can also join workshops that teach how to integrate AI into accounting tasks and learn from real-life success stories.
Ongoing learning not only prepares you for the future but also increases the value you bring to your firm and clients.
AI for accountants – Chartered accountants have a powerful New Tool
Cloud accounting software/AI-based accounting software for accountants should not be seen as a threat; it is a tool that helps accountants work smarter and faster. By embracing automation, using practical AI tools, and committing to lifelong learning, CAs can thrive in this new era.
Machine learning is changing how management accountants work, even more than it affects auditors. It can be used not just in analytics in finance but across the whole organisation. Management accountants need to make sure that there are proper rules and controls in place for how machine learning is used.
Using machine learning in accounting
In accounting automation/automated bookkeeping, machine learning can help sort transactions. By looking at past data, it can help predict how to classify new transactions. Most vendors have clear categories, but some can fit into different ones based on how their products are used. For example, an email tool might be classified as advertising if used for marketing but as an IT expense if used for internal newsletters. In such cases, a human should check the classification to avoid mistakes.
Financial planning and analysis (FP&A)
In financial reporting/planning, machine learning can analyse data to improve forecasting models. However, the quality of the data is crucial. If the data is biased or poor, the predictions will also be unreliable. FP&A accountants need to be careful about the data they use.
Opportunities for machine learning in business
As more departments start using machine learning, they will need guidance on governance and controls. FP&A accountants have a chance to help other departments by sharing their skills in data analysis and modelling.
This issue cannot be handled by IT alone. Accountants must look at the bigger picture, including data, processes, and how information is used. For each project, accountants should understand tax compliance needs and design controls to manage risks from biased data.
The Role of internal auditors
Internal auditors play a key role in checking how well governance and controls are working with machine learning. They also evaluate methods to reduce risks from biased data.
Embracing machine learning
The idea that AI will replace accountants is just hype. Instead, AI can help accountants focus on providing better support for decision-making rather than just gathering data and doing manual work. Accountants need to manage the risks that come with AI by implementing strong governance and controls.
Accountants should explore how machine learning can improve their financial audits and accounting roles. There are also great opportunities to assist other departments in using machine learning effectively while ensuring proper controls are in place.
Adjusting corporate governance
Corporate governance must adapt to align with the risks of machine learning technology. A specific focus on data governance should be created to tackle issues like data bias and privacy compliance. IT alone cannot handle these risks since they lack the expertise in risk management that accountants provide.
By using machine learning as a helpful tool, accountants can spend less time on routine tasks and more time drawing insights from their analyses. Their skills in designing controls and understanding data biases can support other departments as they adopt machine learning.
Machine learning offers a unique opportunity for accountants to enhance their careers and give a competitive edge to their organisations. Embracing this technology is essential for future success.