How Artificial Intelligence (AI) can enhance the relationship with your accountant
Artificial intelligence (AI) is likely to be one of the biggest developments in the way many industries work. The increased use of the term AI has resulted in it being named ‘Word of the Year 2023’ by Collins Dictionary. Whether you’re an early adopter of AI or approaching with caution, AI looks set to stay and transform modern working practices.
The accountancy sector has already been through key changes in recent years, specifically around the digitalisation of tax reporting. In April 2019, it became mandatory for companies with turnover above the VAT threshold to use digital reporting methods, under the Making Tax Digital (MTD) initiative. The overall goal for MTD is to make tax administration more effective, more efficient, and simpler for taxpayers.
Increasing the digitalisation of accounting processes creates more opportunities for utilising AI to enhance the relationship business owners have with their accountant.
Will accountants be replaced by AI?
Let’s address the elephant in the room. Will the use of AI in accounting eventually replace the need for any business to have an accountant? No. The use of AI has many benefits, which we’ll outline below, but it cannot replace human judgment and interpretation.
How AI will enhance the relationship with your accountant
Rather than replace your knowledgeable and experienced accountant, AI allows them to ‘dig deeper’ and advise you more strategically. Here’s how:
1. AI and automation free up time for your accountant to spend on higher-level work
Manual, repetitive tasks in financial reporting can use AI and automation to increase efficiency and productivity. Tasks are completed quickly and with less human error. The time saved can then be used by your accountant to focus on more strategic and analytical work, giving you more value.
2. AI analyses larger volumes of data so you get more insights
AI can process larger quantities of data quickly and accurately. Anomalies and potential errors can be identified by AI algorithms ensuring reports are more reliable. Your accountant has robust data to interrogate and gain better insights from.
3. AI can analyse performance data in real-time to improve the accuracy of future trend predictions
Your accountant can support you to be more forward-looking and make more informed decisions based on reports and analysis generated in real-time. Emerging trends can be spotted sooner and potential new business opportunities identified ahead of your competitors.
It’s an exciting time for the profession, utilising AI technology to revolutionise historic processes which will ultimately increase the efficiency, accuracy and depth of insights from business data. The feedback from our clients is that they’re excited too!
If you’re an ambitious, forward-thinking business owner using AI to innovate your business processes, and would like to work with an accountant with the same enthusiasm for technology, then WoodWhite Accountants would be delighted to hear from you. Call us on 0118 997 7100 or email enquiries@woodwhiteaccountants.co.uk