Automated data entry. Natural language generation. Tax return robots.
No, we’re not talking about Hollywood’s latest sci-fi movie. We’re talking about AI (Artificial Intelligence) as a lean, mean, money-handling machine, and the ways in which it’s revolutionising the world of accountancy.
AI is more than just a computer – it’s a long-term vision, and something that will continue to advance in importance and dominance. In fact, AI is already transforming the way public practice accountants operate. By harnessing the power of technology, firms are upscaling output, enhancing productivity, and bolstering their business in an entirely new way.
While it’s important for firms to embrace new technology to stay on the cusp of new trends, the rise of AI has sparked debate and caused some divide within the accountancy profession.
Not sure which side of the fence you sit on?
Here at Public Practice Recruitment Ltd, we work closely with firms up and down the country and gain insight into how AI is breaking new ground in the accountancy world. As the UK’s experts in public practice accountancy recruitment, we’re intrigued by AI and what the future it holds for our clients.
In the following blog, we’ll explore the pros and cons of AI in accountancy, the emerging technology, and how your firm could utilise it to expand your services and grow your business.
The Research Behind the Robot – Accounting Today’s report
Accounting Today has recently released exclusive research that examines “how the accounting profession is approaching generative AI, what it needs to accelerate adoption and the risks it perceives that the new tech holds.”
The research was conducted online by Arzient, parent company of Accounting Today, in January 2024.
Key findings from the report include:
- A majority of accountants expect in the next three to five years that AI will change the nature of their jobs, increase opportunities and create new roles
- Many expect that their clients’ expectations will change as a result of AI, demanding greater cost efficiency, faster and better service delivery along with greater privacy
- Most think that AI is advancing too quickly
- Many are concerned that AI will degrade relationships and introduce ethical concerns
Overall, the report argues that while accountants are interested in the advantages of AI, they’re reluctant to deploy such technology. This is due to the industry’s “conservative approach when it comes to new tech, but also due to the perceived risks AI holds”.
The study has also found that “rival financial services sectors are adapting to generative AI at a much faster rate, raising the risk of outside disruption if the accounting profession cannot evolve and adapt in time.”
From Data to Decision Making – The Impact of AI on Accounting Tasks
Like it or loathe it, AI has made a big impact on the accounting industry, particularly through machine learning and data analytics. While human oversight is still a necessary measure, the power of AI is replacing conventional accounting duties.
As more data continues to emerge, machine learning algorithms become more adept at spotting patterns and abnormalities.
The remarkable robotic brain of AI-powered data analytics is now powerful enough to analyse enormous volumes of data. But what does this technology actually look like?
Here are a few AI applications that some of the leading UK firms have implemented to streamline their normal day-to-day accountancy duties.
-
Automated Data Entry and Transaction Coding
Data entry activities have been transformed by AI technologies like Robotic Process Automation (RPA) and Optical Character Recognition (OCR). With the help of these solutions, transactions may be coded into the appropriate accounts in accounting software and data can be automatically extracted from invoices, receipts, and other financial documents. By automating data entry, accountants can focus on more important activities and minimise errors caused by human data entry.
-
Real-time Financial Monitoring and Anomaly Detection
Artificial intelligence systems can track financial transactions in real-time, which makes it possible to quickly identify any unexpected trends that point towards fraud, errors, or compliance problems. Through the utilisation of machine learning algorithms, these systems have the ability to recognise patterns in past data, guaranteeing prompt resolution of any possible problems.
-
Predictive Analysis for Financial Forecasting
Predictive analytics forecasts future financial results by utilising historical data. By examining big datasets to find trends, patterns, and correlations that human analysts might miss, artificial intelligence makes such forecasts more accurate. These insights can be used by accountants to improve financial planning, risk management, and budgeting accuracy, which will aid companies in making strategic decisions.
Tax Return Robots – Our Research
While it’s important for firms to embrace new technology to streamline processes, the rise of AI has sparked some debate.
A leading firm in the South East recently told us that it’s set to welcome Tax Return Robots in the coming months. By harnessing this technology, the firm aims to enhance its efficiency and simplify the tax return process. The team hopes that embracing AI will see a rise in productivity and provide clients with greater security.
But what do you think?
We asked our LinkedIn followers – accountancy firms and candidate across the UK – about their opinion on AI, and whether they plan to or have already embraced such technology.
Here are the results:
- 63% voted in favour of Tax Return Robots
- 25% voted against Tax Return Robots
- 13% voted in the middle
As indicated by these findings, it can be said that most accountants are ready to embrace the future. Interestingly, these results argue the opposite of Accounting Today’s report. Instead, our poll demonstrates a willingness to advance and implement AI technology.
We assume that the 25% who voted against Tax Return Robots believe that humans can do it better. This adds weight to Accounting Today’s argument that AI will soon replace human oversight and degrade professional opportunities.
Final Thoughts
The AI conversation in accountancy is divisive, to say the least. However, judging by our own research, we predict that many more firms will implement tax return robots, and AI technology in general, over the coming years.
The majority of accountants seem to be onboard with the AI revolution, and we’re excited to see what new technology will emerge in the not-so-distant future.
Here at Public Practice Recruitment Ltd, our position in the market – as the largest agency recruiting accountants into firms across the UK – we see first-hand the impact of emerging trends and demands within the sector.
This perfectly places us at the forefront of challenges and opportunities that both firms and candidates are currently facing. The public practice recruitment market is constantly evolving and we’re able to provide expert advice on the best recruitment strategies for 2024 and onwards.
We’re proud to represent some of the most talented accountants, tax specialists, and seasoned auditors in the country.
Is your firm looking for the next forward-thinking talent to steer your success?
Do you want to secure candidates who are keen to embrace new technology and make a real difference to your firm?
Contact us today to find out how we can help.
