It’s difficult to name any specific sector in Information Technology that has not been affected by Artificial Intelligence. The world of finance and accounting is one of those that have been heavily impacted due to AI-powered technology.
Major Shortfalls of Traditional Accounting
Traditional accounting methods have multiple challenges that often hinder an organization from prospering further. Traditional accounting overlooks common accounting errors like loss of financial data or manual accounting mistakes too!
Few shortcomings of traditional accounting-
- Lacks potential to update day-to-day financial data
- Unable to provide necessary reporting and analytics before making financial decisions
- Fails to avoid unnecessary expenses that are easy with AI-driven accounting
- May not detect manual cash flow errors until it’s too late to initiate a corrective measure
- Unable to forecast a business owner’s future financial risks
- Can mislead the owner to make poor financial decisions, as traditional accounting can’t provide a transparent picture of the cost and profit involved in finance, sales and production, payroll, and inventory management
Whereas, AI-driven accounting leveraged chartered accountants in India to automate all of these tasks mentioned above and can reduce the burden of human accountants in adding data entry, adding bank reconciliation statements, and also in auditing.
In India, several startups have found AI-driven accounting useful to streamline popular accounting compliances.
Impact of AI in Modern Accounting-
The emergence of AI in modern accounting has ensured transparency in modern accounting practice that includes TDS and GST, tax management, general accounting etc. Accounting firms have found the leverage of automating accounting is quite effective than traditional accounting methods. Very recently, a study revealed that-
- AI-powered customer support chatbots are way better at supporting the general accounting-related queries shot by the clients, ensuring strategic and value-added in-depth
- Around 83% of accountants prefer AI as it reduces the manual tasks of the accountants by 80% compared to traditional accounting method
- 40% of the accounting firms are now looking ahead to offer AI-powered solutions for handling their client’s day-to-day accounting by 2026
- There’s also a market buzz that 40% of accounting will be automated by 2025 for auditing-related tasks
- The global market of AI in accounting is going to reach 16.5 billion US$ by 2026
A number of professional chartered accountants in Kolkata have recently admitted that the emergence of AI in modern accounting has compelled majority of PAN India based businesses to accept automated accounting software to perform their daily accounting tasks.
Some of those leverages assured with AI in modern accounting has been shared below-
Leverages Unlocked with AI In Modern Accounting
- Better transparency in accounting, resulting in simplifying audit
- Mitigating traditional accounting gaps by minimizing the time and errors involved in traditional accounting
- Forecasting current financial statements with 100% accuracy
- ERP-driven software to trace financial records from back date
- Automating accounting report generation
- Reducing unnecessary work-burdens on manual resources
- Automating invoice generation, simplifying purchase orders, expense report generation, accounts payable and receivable by turning the entire process 100% error-free
- Reducing manual burdens by predicting future trends based on business growth
Conclusion
The growing demand for AI in modern accounting has triggered the need for professional Chartered accountant firms in Delhi, Mumbai and other Indian cities.
However, you may also connect with Agarwal Rajesh & Associates ARKCA to learn more about our popular accounting compliance related services in detail.
Stay tuned with us to learn similar trendy and insightful information on the impact of AI in modern accounting.
