Facing an avalanche of data and the perpetual need for precise financial reporting, accounting firms are under constant pressure to deliver swift, error-free results. But, how can accounting firms navigate these challenges without compromising quality or overextending their resources?
The answer lies in leveraging artificial intelligence in accounting, where the benefits of AI include improved accuracy, efficiency, and the ability to provide proactive financial advice.
AI technology offers a myriad of benefits that go beyond mere automation. With the right AI tool stack your firm can improve its accuracy, gain significant competitive advantages and have the ability and capacity to offer personalised, proactive financial advice to your clients.
How is AI Used in Accounting and Finance?
Artificial intelligence is continuing to change how accounting firms can handle routine, mundane tasks like data entry. Much like how online bookkeeping systems disrupted the way of work, AI is helping accountants spend less time on repetitive work. By freeing up resources, firms can focus on more meaningful strategic work and position themselves as valuable advisors.
AI-powered tools also enable financial professionals to make faster, data-backed decisions while enhancing accuracy and efficiency in their accounting processes. With its ability to analyse extensive datasets and discover trends, threats and opportunities, AI is changing how accountants work for the better.
Accounting Activities That AI Can Perform
There are many accounting-related tasks artificial intelligence can help with. Here are some examples:
- Faster Data Entry: With cloud-based AI tools and smart integrations, data only needs to be entered once, significantly reducing human errors and increasing overall efficiency. Then, it can pull that information through to all your necessary reports and working papers. It also facilitates expense tracking and can extract information from receipt images, reducing the need to capture information manually.
- Uncover Non-Compliance Issues: AI tools can quickly find non-compliance issues and alert your team. For example, it can flag any purchases made outside of company policy. This helps auditors save time finding and assessing errors and mitigating risk.
- Fraud Detection and Scalability: AI continuously checks your data sets for anomalies and learns from the information it receives. Its ability to process at high speeds allows it to predict patterns and detect irregularities faster without sacrificing precision. Moreover, AI is scalable and can easily maintain consistent accuracy as your firm grows.
Read More: The Future of Accountants: How AI is Reshaping Your Role
Real Benefits of AI in Accounting for UK Firms
Let’s look into how AI can transform your biggest challenges into strategic advantages.
1. Accuracy and Reduced Human Errors
One of the real benefits of AI in accounting is its ability to improve accuracy and significantly reduce the risk of errors, offering clear advantages for firms looking to enhance their processes.
Unlike humans, AI systems can process large volumes of data in real time and flag inconsistencies for further review.
Russell Frayne, Director of Transformation at Gravita, reviewed their data using our AI tool, Silverfin Assistant. It ran 100 checks and spotted four spot-on errors.
“It would have taken an accountant 30 minutes or more to dive into the client file and find those anomalies,” highlights Russell.
By automating these checks, AI speeds up the review process and reduces the likelihood of human oversight. Furthermore, AI’s continuous learning capabilities mean it constantly refines its algorithms based on new data, improving its accuracy over time.
Read More: Technology Used in Accounting Firms: 5 Ways AI is Transforming the Industry
2. Efficiency and Time Savings
“As mentioned above, AI can enhance efficiency in your accounting workflows by automating routine and time-consuming tasks, contributing to AI-driven efficiency in financial reporting and overall operations. This rapid processing shortens the accounting cycle and decreases the potential for bottlenecks caused by manual data handling.
Additionally, AI systems can streamline tasks like VAT compliance for accounting firms. Through automation, AI ensures these tasks are completed both swiftly and accurately.
“We’ve been using Silverfin Assistant for VAT compliance, and the management account reports have delivered significant time savings,” notes Rosie Cooper, Director of PM+M. “And it’s just getting less and less. Budgets have been halved on the majority of stuff, and I do expect it will just get quicker and quicker with Silverfin Assistant further reducing review points.”
The time savings achieved through automation allows firms to reallocate resources to areas that directly contribute to business growth and client service, like advisory services and unlock new revenue streams, maximising productivity and operational agility.
And it’s working.
A 2023 study by McKinsey reveals that high-performing AI organisations report a 20% or more bottom-line impact from AI usage.
3. Decision-Making with Data-driven Insights
AI tools enhance decision-making in accounting through actionable and timely data-driven insights. With an AI system on your team, you can offer more predictive analytics and provide your clients with forward-looking advice based on real-time data and historical data trends.
This capability transforms accounting decision-making by enabling accountants to make informed decisions based on comprehensive data analysis, reducing reliance on intuition and potentially biased interpretations.
This aspect of AI helps firms transition from traditional accounting roles to more consultative positions, adding value to client interactions and enabling proactive rather than reactive strategies.
For example, you can set up automated alerts when clients hit key benchmarks, risk factors or compliance events. When a threshold is met, your team is alerted to take action at the right time to make a difference.
Read More: 7 steps to understanding and managing AI in your accountancy firm
4. Better Customer Service
There are various ways in which AI tools can help you step up your customer service game.
For example, AI-powered chatbots enhance customer service in accounting by allowing your clients to receive instant responses to common queries 24/7. This reduces your customer service team’s workload while meeting modern customers’ quick turnaround expectations.
That’s not all. AI-driven platforms can fast-track your compliance workflows, produce precise financial management accounts and provide insights into cost-saving opportunities, financial planning and risk management.
The result? Your clients benefit from quicker turnaround times, fewer mistakes, greater value and personalised financial advice. AI helps your firm earn their trust, nurture your relationships and creates a competitive advantage compared to other firms.
Read More: Beyond the hype: the real benefits of AI for your accountancy firm
5. Talent Attraction, Retention and Development
Besides improving your profitability and customer satisfaction, artificial intelligence in accounting can play a crucial role in attracting, developing and retaining talent at your firm.
As outlined in our “Beyond The Hype” whitepaper, adopting AI technologies in accounting firms makes them more appealing to prospective employees eager to work for forward-thinking companies, helping to attract and retain top talent.
AI-driven tools like Silverfin Assistant allow accountants to develop a modern skill set and keep up with clients’ expectations.
Moreover, AI can nurture your junior team members.
For example, Silverfin Assistant offers always-on continuous training. The AI tool educates staff on identifying and resolving common issues, helping them learn your firm’s best practices and handling accounting scenarios in line with your standard operating procedures.
This creates a more interactive onboarding experience and reduces the reliance on senior staff members and the time needed to check their work for errors.
The Strategic Advantage of Artificial Intelligence in Accounting and Auditing
The integration of artificial intelligence into accounting practices is no longer just a futuristic concept—it’s a current reality that offers a suite of benefits that can address some of the industry’s most pressing challenges.
Ready to unlock the advantages of adopting AI in accounting and lead your firm into a new era of excellence? Explore how Silverfin’s AI-powered solutions reduce staff frustration around repetitive tasks, inconsistent workflows and the inability to provide advisory services due to delayed or incomplete reporting.
Request a demo with Silverfin today and transform your accounting operations into a more profitable, efficient and strategic business component.
