Embarking on technical transformation doesn’t happen overnight. It takes commitment, strategic planning and a clear path. Discover how to move forward with your accountancy firm in today’s world of digitisation, automation and AI integration – following 7 smart and indispensable steps.
The 7 steps:
Step 1 – Prepare your company, mindset and staff
Step 2 – Assess your current processes and readiness
Step 3 – Get your data ready
Step 4 – Evaluate the risks to manage them effectively
Step 5 – Team up with forward-thinking technology partners
Step 6 – Define how you’ll measure AI success across your firm
Step 7 – Engage with clients, stakeholders and partners
This is a chapter from our recent AI whitepaper ‘Beyond the hype: the real benefits of AI for your accountancy firm’ so, why not download the whole document for free? DOWNLOAD
Prepare your company, mindset and staff
Implementing AI requires more than just technology; it demands a cultural shift. After all, with the introduction of something new comes a change in operations, culture and team dynamics. Embracing this transformation with a thoughtful approach to change management is paramount to ensure a smooth transition that maximises the benefits AI can bring to your firm.
Here are a few tips to do just that:
- Inform your team about the capabilities and potential of AI in accountancy. In doing so, be sure to emphasise that AI is not a replacement for human expertise but rather a tool to enhance aspects such as efficiency and accuracy.
- Foster a culture of adaptability and continuous learning within your firm. When communicating internally, emphasise the importance of embracing change as an opportunity for growth rather than a threat.
- Involve your team members in the decision-making process about the adoption of AI technology. Solicit their input, address their concerns, and ensure that they feel valued and supported throughout the transition.
- Offer training, resources and ongoing support to equip your team with the necessary skills and knowledge to not only effectively and responsibly use AI tools and platforms, but also maximise the value they get from it.
- Enable a collaborative environment where your team members feel empowered to share their thoughts and best practices regarding AI integration. You can take various approaches on this, from setting up knowledge- sharing documents to organising interactive learning sessions.
“The first jobs in AI’s crosshairs were those of the graphic designer but, while a different skillset is becoming the norm, the profession very much still exists. The same rings true for accountants. Accountancy has already been evolving due in part to cloud-based software. But the change AI brings is an even greater acceleration – which also propels the need for accountancy firms to have an AI strategy in place as the resulting changes will invariably affect everyone in the firm.”
Cameron Ford, General Manager UK and Growth Markets at Silverfin
Taking a step back to leap forward
“When we took a step back and objectively assessed our firm, we realised that we were still far too reliant on paper-based processes – and worse, we had inconsistent working practices across our teams. There were even instances where work would be duplicated during different assignments. This was a big no-no, so we needed to level up our internal processes if we wanted to take our business to the next level.
Lynne Walker, Vice-Chair and Head of Business Advisory at Johnston Carmichael
The Silverfin team has been wonderful in this regard; they’ve been on hand at all times to assist with any and all training needs.”
Assess your current processes and readiness
Taking a holistic view of how your accountancy firm works is a crucial step in identifying the best opportunities for AI. Start by understanding your existing processes inside out.
We’ve seen these guiding questions work well for customers:
- Which repetitive tasks take up a lot of your team’s time that could be used more effectively?
- Are there any recurrent bottlenecks that prevent your firm from meeting deadlines and delivering added value to customers?
- In which areas – from data processing and compliance to internal collaboration and advisory services – is there potentially room for automation to reduce any stress and limit the load?
- If you’ve been doing client accounts for several years: is there historical data on the relationships and patterns between different accounts that provides training data to help avoid future issues?
Answering these questions will help you determine where you are as well as where you want to be on the digital and AI maturity scale.
| Did you know? Up to 50% of the activities carried out by accountants have the potential to be automated using current technologies, according to a study by McKinsey. Examples include automating data entry, invoice processing, reconciliation, fraud detection, revenue forecasting and analysing unstructured data – thus freeing up time for value-adding activities. |
“We recently had an item in an annual statement of around 12,000 euros for a company car. The year before, a similar figure was in the accounts. That seems logical, so you don’t immediately question it. But the Silverfin Assistant signalled something was wrong using AI.
Erik Van Looy, Partner at Van Looy Accountants
In the first year, 1,000 euros was booked each month, while in the following year, a global invoice of around 12,000 euros was booked. What had happened? In year one, it concerned leasing. In the next year, it concerned the residual value for which the car could be purchased. So not leasing, but a purchase of a used car. And that is not a cost, but something that must be included in the fixed asset.
I wouldn’t have spotted something like that, and certainly not with the same speed as AI.”
Where are you on the digital maturity scale – and where do you want to go?
Understanding your position on the digital maturity scale is crucial for charting your course forward. Where are you now, and where do you aspire to be? Imagine a spectrum from connection to advisory: each step requires new approaches and tools all while representing new opportunities to enhance your performance and deliver additional value and insights to your clients.
| CONNECT | How to get there? |
| You’ve centralised client data from various bookkeeping and financial systems – as well as spreadsheets – to enable the free and secure flow of data across your firm in real-time. Using the cloud ensures no more data silos and enables everyone to work on the same file seamlessly. | Cloud data hub |
| STANDARDISE | How to get there? |
| You leverage tools like AI Mapping to automatically map imported accounting data to a standardised chart of accounts for all your clients. This saves you time and enhances your accuracy based on real-time client data. | AI Mapping Templates |
| AUTOMATE | How to get there? |
| You’ve agreed on how you want to work as a firm and turned this into a set of automated workflows. That way, everyone follows the same processes for fast and accurate compliance and financial reporting. | Workflows |
| OPTIMISE | How to get there? |
| You’re using AI to continuously scan and check customer data for anomalies, errors or advisory opportunities. Automated alerts monitor and notify teams when clients hit key benchmarks, risk factors or compliance events, all while suggesting resolutions for future issues based on historical data. | Silverfin Assistant |
| ADVISE | How to get there? |
| You’re using AI for analytics and reporting to uncover critical insights and trends – not just in the performance of a single client but across a whole portfolio or your entire firm. This enables you to give more meaningful advice to clients. | Silverfin Assistant Insights |
Get your data ready
Overall, AI is intricately linked to machine learning, and machine learning still needs data to ‘learn’ from. This means that your data is a key component in preparing your accountancy firm fully and correctly to leverage the benefits of AI.
CONNECTING, STANDARDISING AND AUTOMATING YOUR DATA
Before you can deploy AI, your customer data needs to be automatically available and up to date everywhere. Connecting data necessitates the use of cloud tools and open APIs, which is now standard practice among technology providers. However, merely sharing data isn’t sufficient for seamless integration into automated workflows.
Often, the data arrives in a messy, incomplete and customised format, reflecting the diverse bookkeeping software programs, unique general ledgers, varied reporting periods and specific naming conventions employed by different clients. Incorporating this data automatically, albeit diverse, presents a challenge. The solution lies in harnessing two powerful tools: cloud syncs and (no, this is not a catch-22) AI.
Cloud syncs for structuring data
Cloud syncs ensure that regardless of the bookkeeping or practice management software utilised, the data undergoes transformation into a uniform structured data model.
Nonetheless, client-specific naming conventions and formats often necessitate some level of interpretation. That’s where AI techniques come in…
AI for enriching data
Modern AI techniques make it possible to make informed interpretations through data enrichment, assigning meaning to all imported data such as general ledgers.
This empowers the system to utilise the enriched data in subsequent steps. Since AI operates on probabilities and can occasionally err, users are prompted to confirm the enrichment process once, a task that consumes only a few minutes but yields massive time savings in the long run.
SIMPLIFYING YOUR ACCOUNTING PROCESSES
Once your data is standardised through AI enrichment, it’s time to make it flow! Here’s how Silverfin makes that happen:
- Silverfin simplifies your accounting processes by standardising them once as workflows, allowing the system to apply all process steps automatically. This functionality is zero-config, adaptable to any data source.
- Then, we rely on the two same key elements again – linking data between steps and leveraging AI for enrichment – to make sure you only need to fill in data once and adapt the process for each of your clients.
So much for the process, now let’s consider the benefits… Want to add a reconciliation in a working paper, for example? Silverfin makes sure it automatically flows through to the annual accounts and corporate tax. The consistency makes not only your processes smoother, but also the review and any handovers between colleagues, enabling much-needed work flexibility.
We’re just getting started – want to know more?
Enriched data ensures future readiness for comparative analysis, advanced analytics and even a powerful AI Assistant. However, this is only the initial step of how we make sure your data is ready for AI implementation. Going through every detail would merit its own whitepaper…
Want to delve deeper? Drop us a line.
Evaluate the risks to manage them effectively
With great power comes great responsibility. Harnessing the power of AI for your accountancy firm comes with a few possible pitfalls to look out for and avoid. That’s where risk assessment comes in: be sure to get a clear view of what the risks of AI deployment could be within your accounting firm, while also drafting a blueprint of strategies to manage them.
Here’s an example of what that could look like:
POSSIBLE RISK: DATA SECURITY AND PRIVACY
AI tools may require access to sensitive financial information, posing risks of data breaches and fraud.
How to manage? Use secure and trusted AI technologies that comply with data protection regulations to safeguard sensitive information. Look for credentials such as ISO 27001 certified platforms with continuous data backups and 24/7 commitment in service-level agreements
POSSIBLE RISK: LACK OF TRANSPARENCY
The complexity of AI algorithms can make it challenging to understand how certain outputs are reached.
How to manage? Strike a balance between using AI to streamline processes and making suggestions that leverage human expertise for critical decision-making and client interactions.
POSSIBLE RISK: ALGORITHMIC BIAS
Machine-learning algorithms can introduce bias, affecting decision-making processes.
How to manage? Partner up with technology providers that can help you audit and understand AI systems, ensuring proper governance and oversight of AI applications.
POSSIBLE RISK: DEPENDENCY ON TECHNOLOGY
Over-reliance on AI may erode professional competencies and create stress when human intervention and brainpower are required.
How to manage? Enable continuous learning and talent development programs that focus on enhancing both technical skills and critical thinking abilities
Overall: the key takeaway for your accountancy firm is to address risks such as these proactively and implement robust risk management practices to harness the benefits of AI while mitigating potential pitfalls – from square one.
Team up with forward-thinking technology partners
Embracing AI offers unprecedented opportunities, but the road ahead requires careful navigation and is a journey much better travelled with a companion by your side. To reap the rewards of AI in the most cost- effective way, it’s crucial to forge strategic partnerships with technology innovators.
After all, a collaborative approach simplifies your firm’s access to the benefits AI presents while mitigating the complexities of implementing the technology.
Some of the main advantages:
- You’ll be able to deploy AI solutions much more rapidly without the burden of building internal capabilities from scratch.
- You don’t need to invest time and resources in adding high-cost digital infrastructure to benefit from the potential of AI.
- You can tap into the expertise of seasoned professionals who possess a deep understanding of AI technologies and their applications in accountancy – not just to help you stay at the forefront of your industry, but also to train your staff to access the value of AI in the best way possible.
CHECKLIST FOR FINDING THE PERFECT TECHNOLOGY PARTNER
- Do they have a proven track record of success? Look out for evidence such as case studies, measurable business outcomes and positive references from previous customers.
- Do they share your vision and values? This is a prerequisite for forging an enduring relationship built on trust, transparency and mutual respect.
- Do they have the necessary scalability, support services and flexibility to ensure their AI solutions are compatible with your workflows and objectives?
- Are they actively involved in research and development with a proven track record in the exploration of emerging AI trends made available to existing as well as new customers?
- Are they willing to listen to your unique challenges, goals and aspirations, and do they actively involve key stakeholders in decision-making processes?
- Are they capable of guiding and training your workforce to enable them to access the value of AI to the fullest?
Define how you’ll measure AI success across your firm
You want to reap the rewards of automation for your accountancy firm? Check. You know where you are in terms of digital transformation readiness, where you want to go and how you’ll get there? Also check! Now, before you get going, it’s crucial to know how you’ll measure that you’re still moving in the right direction once that journey is underway.
In other words, don’t hit the ground running with blindfolds on. Instead, determine a clear roadmap toward the desired outcomes and define metrics upfront. Your firm will not only gain clarity on your objectives, but you’ll also be able to:
- assess whether the integration of AI aligns with your expectations,
- demonstrate the value of AI adoption to internal and external stakeholders,
- foster a culture of continuous improvement within your teams.
Here are some examples of which types of success you could measure across your accountancy firm – and the related KPIs to track your progress:
ACCURACY AND ERROR REDUCTION
One of the main promises of AI is greater accuracy. To see that for yourself, you’ll need to quantify the reduction in errors and inaccuracies.
KPIs: error rates, data quality improvements, …
CUSTOMER SATISFACTION AND EXPERIENCE
Greater efficiency, accuracy and quality through AI should result in happier customers, who are more likely to recommend you to others.
KPIs: Net Promoter Score, client satisfaction, feedback ratings, …
TIME SAVINGS AND EFFICIENCY GAINS
If you embrace AI to save time and gain efficiency across your firm, be sure to track the effect of automation across various workflows and tasks.
KPIs: processing time, turnaround time, recovery rate, …
TEAMWORK AND KNOWLEDGE SHARING
By introducing AI, one of your goals could be to foster knowledge sharing or ensure that different teams work in the same, standardised way.
KPIs: collaboration frequency, team cohesion scores, employee engagement levels, …
PROFITABILITY AND COMPETITIVE FEES
As AI increases operational efficiency and accuracy, it could ultimately lead to higher profit margins. By streamlining processes, it can also enable your firm to offer more competitive fees and more predictable pricing structures.
KPIs: Gross profit margins, net profit margins, ROI from AI initiatives, …
Don’t forget – it’s all about that baseline!
Begin your journey towards measuring success in AI adoption by establishing a baseline measurement for each KPI, against which progress can be tracked.
“Onboarding Silverfin has helped us create a standard process – backed by robust technology – to produce high-quality working papers quicker and more accurately than ever before. This has been invaluable in allowing us to maintain strong governance and provide a first-class client experience.”
Alastair Barlow, CEO and co-founder of flinder
Engage with clients, stakeholders and partners
Embracing AI doesn’t happen in a vacuum. Instead, it impacts both the internal and external stakeholders of your accounting firm – not in the least your staff and customers. Therefore, a smooth and successful AI implementation boils down to one thing: building – or rather: earning – trust.
The best way to get there is by being transparent. Here’s how:
BE CLEAR ABOUT YOUR GOALS AND EXPECTATIONS
From the get-go, make sure to explain why you are adopting AI, what problems you are trying to solve, and how it will improve your services and processes.
Tip: frame AI as part of your corporate DNA by demonstrating how it aligns with your firm’s vision, values and strategy.
ADDRESS ANY CONCERNS OR QUESTIONS HONESTLY
Be honest about the potential risks and limitations of AI, as well as the measures you have taken to ensure responsible and secure use of AI. Provide examples of how you – or your technology partners – test, validate and monitor your AI applications.
Tip: don’t make this a one-way street. Be sure to invite feedback and suggestions from both internal and external stakeholders.
COMMUNICATE THE BENEFITS OF AI FOR YOUR CUSTOMERS PROACTIVELY
Show how AI can help you deliver faster, more accurate and more personalised services, as well as deeper insights and recommendations.
Tip: why not make AI an integral part of your value proposition, the promise of potential value your firm delivers to its customers?
KEEP AN OPEN LINE OF COMMUNICATION WITH YOUR PARTNERS
External partners, such as technology providers and consultants, can help you access, implement and optimise your AI usage – all while training your staff to get the most out of it.
Tip: the key here is to be proactive in fostering collaboration and transparency. Make sure to engage in regular and honest discussions to share insights, address concerns and align your strategies.
“In the fast-evolving realm of AI, where developments occur at breakneck speed, the imperative to communicate clearly—spanning from grand visions of future impact to granular details of specific changes—cannot be emphasised enough.”
Rich Webb, Founder of Performance Ninja
Why not try Silverfin for yourself with our free 14-day trial? Sign-up here
Silverfin is the cloud platform that makes accountants successful. Silverfin dramatically improves the efficiency, accuracy and profitability of traditional accounting work. With centralised data, standardised and automated workflows, this work takes hours rather than days.
But that’s not all. With more time available (and Silverfin’s data, reporting and analytics tools at their disposal) accountants can also deliver the advisory services their clients value.
Launched last year in the UK, Silverfin Assistant continuously analyses client files to find unusual balances, missing transactions and outliers. Flagging these and suggesting fixes, saves hours of manual checking, improves accuracy and improves client service