The impact of AI in accounting practices in Australia

The accounting field in Australia is changing fast because of Artificial Intelligence (AI). Many businesses, including forward-thinking accountants Brisbane firms, 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:

1. Data Security: Protecting sensitive information while being clear about how AI is used.
2. Bias and Accuracy: Understanding the limits of AI to make fair decisions.
3. 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.

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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 and AI-based accounting tools for accountants should not be seen as a threat; they are tools that help accountants work smarter and faster. By embracing automation, using practical AI tools, and committing to lifelong learning, CAs can thrive in this new era.

When it comes to choosing the best AI for accounting in 2025, leading platforms vary based on business needs:

• QuickBooks Online Advanced is widely used by small to midsize businesses for features like predictive analytics, smart transaction categorization, and anomaly detection.
• Xero is favored by startups and small businesses for its AI-driven bank reconciliation, real-time cash flow monitoring, and integration with bookkeeping software. For tailored bookkeeping, you can access professional support from a certified Xero bookkeeper to ensure your business books are accurate and up to date.
• Vic.ai stands out among larger enterprises, automating accounts payable and invoice processing with advanced AI.
• Trullion specializes in automating audits, lease accounting, and revenue recognition — ideal for firms handling complex compliance.
• Botkeeper and Docyt provide robust AI-driven bookkeeping, blending automation with human oversight.

Other notable solutions include Sage Intacct, FreshBooks, Zeni, and Netgain, each with unique strengths for various workflows. By selecting and leveraging these AI tools, accountants can streamline processes, reduce manual errors, and focus on high-value advisory services.

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 planning and forecasting, 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 operational requirements 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 protection. 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.

How is AI adoption progressing in Australian accounting firms?

Adoption Rates

AI adoption is slowly gaining traction in Australian accounting firms.

• Small Firms: Approximately 71% have adopted AI tools in some capacity, and 14% have plans to adopt AI tools in the immediate future.
• Large Firms: Approximately 75% of the large firms have started testing AI tools in relation to financial reporting and auditing to see if they can obtain efficiencies.

Key Use Cases

AI is being used in a number of ways that are adding significant value to accounting:

• Streamlining administrative duties, which saves accountants from mundane and time-consuming work so that they can concentrate on more strategic work.
• Enhancing communications with clients and improving ongoing engagements, which can make the process more efficient and provide a better experience for the client.
• Facilitating complex data analysis to find insights that would generally take humans longer or may not be feasible to do at all.
• Utilising generative AI for the purposes of identifying anomalies in data or automatically constructing analytical reports.

Governance & compliance

In Australia, the need for good governance of AI is also being heightened by regulators such as the ASIC and AUSTRAC:

• Regulators are encouraging firms to develop good governance frameworks to help use AI responsibly.
• Transparency is key – businesses must be explicit on how AI reaches its conclusion.
• Human intervention is important to ensure compliance is always maintained and to avoid risks and regulatory breaches.

Frequently Asked Questions

Can I use AI for accounting?

Yes, AI can be effectively used in accounting. A study by accountant has shown that the most experienced professional strategically uses AI to increase performance, improve both productivity and reporting quality. The AI-SAC software helps accountants to handle more customers and finalize the monthly statement. However, expertise is still important, as human decisions are required to evaluate AI’s work and avoid potential errors.

Can AI replace accountants?

AI is changing accounting by automating regular tasks such as data entry and harmony, but it will never completely replace the accountant. Human skill-like decisions, advisory services, and relationship-essential. Instead, the accountants taking advantage of AI will be more valuable, as the profession moves towards strategic, analytical and customer-focused work.

Can you use ChatGPT for accounting?

Yes, ChatGPT can be effectively used for accounting tasks such as automating routine work, generating financial summaries, drafting reports, and categorizing transactions. Academic and industry research shows that large language models like ChatGPT perform well in textual analysis and exam simulations for accounting, enhancing efficiency and audit quality. However, outputs require careful validation since ChatGPT cannot replace professional judgment or guarantee compliance independently. It is best used as a productivity assistant to complement human expertise and established accounting software. Professional accounting bodies emphasize using ChatGPT as a supportive tool rather than a full replacement for accountants.

What is AI in accounting, and how is it used?

AI uses these accounting machines learning, natural language processing and future stating analysis, such as data entry, invoices processing and bank coordination, they are capable of detecting fraud, detection and auditing assessments such as fraud, preferences and auditing assessments. Research suggests that AI increases accounting efficiency, accuracy and decision making, allowing professionals to focus on strategic, high-value work. However, human monitoring is important for compliance and moral ideas.

What are the benefits of AI in accounting?

AI provides many advantages in accounting, including:
– Increased efficiency through automation of repetitive tasks.
– Enhanced accuracy in data processing and analysis.
– Improved decision-making with advanced data analytics.
– Cost savings by reducing manual labor and errors.
– Better client service through timely and personalized communication
These benefits contribute to better service distribution in more streamlined operations and accounting practices.

How can accountants stay updated with AI advancements?

Accountants can stay informed and enhance their AI skills by:
Participating in professional development courses offered by organizations like CPA Australia and CA ANZ.
Attending workshops and webinars focused on AI in accounting.
Engaging with industry publications and research reports to understand emerging trends.
Collaborating with AI technology providers to explore practical applications in their practice.
Continuous learning ensures accountants remain competitive and proficient in leveraging AI tools effectively.

What ethical considerations should accountants be aware of when using AI?

AI use includes moral ideas in use:
– Transparency in AI decision making processes.
– Maintain accountability for AI-related outcomes.
– Sensitive data for customer privacy and protection
– Avoid prejudice in AI algorithms to ensure fairness.
– Compliance with regulatory standards controlling AI applications in financial services.
Following these moral principles helps to create confidence and integrity in an-assisted accounting practices.