AI for accountants: What does it mean for your work?

AI is rapidly changing the accounting industry. Its impact on your daily work is already noticeable and will only increase. It is therefore important to understand how AI affects your profession, the opportunities it offers and the challenges it poses. By actively working on this, you can decide how AI shapes your future as an accountant.

How does AI work in accountancy?

AI in accountancy is already abundant in daily practice. It involves smart software that already facilitates your work. Programs automatically categorize thousands of transactions, detect discrepancies in financial data and prepare tax returns. These tools take over repetitive tasks so that you can focus on what you are really good at: interpreting data, advising clients and thinking strategically.

In practice, you encounter AI in accountancy in various forms:

Automation of accounting: AI systems process invoices, categorize transactions and generate financial reports.

High-level data analysis: AI systems process vast amounts of financial data in a fraction of the time it would take a human. They uncover connections that you might otherwise overlook.

Smart fraud recognition: With AI tools, you detect suspicious financial activity much more efficiently. The system screens large amounts of data and flags anomalies, allowing you to focus on assessing and addressing potential frauds.

Data-driven forecasting: AI helps you analyze historical financial data to project future trends. These insights support making informed strategic decisions and help identify opportunities and risks for your customers.

Improved customer service: AI-driven chatbots and virtual assistants answer basic customer questions so you can focus on the complicated stuff.

The rise of AI, especially in the financial sector, is unstoppable. According to a study by Mordor Intelligence (yes, really), the use of AI in accounting will grow by 30% annually between now and 2027. But don't think AI tools are only for the big players. You too can benefit from them.

AI for accountants: not a replacement, but a tool

Let's name the elephant in the room right away: will AI take over your job as an accountant? The short answer is: no. The slightly longer answer is: no, but it is going to dramatically change your job.

AI is like that new colleague who is incredibly fast and accurate at performing routine tasks, but has no idea how to reassure a client during a tax audit. It is a powerful tool, not a substitute. Think of AI as your personal assistant who helps you work more efficiently and smarter.

Here are a few ways AI can make your life as an accountant a lot easier:

No more boring data entry: AI can scan invoices, extract data and put them neatly into your system in an instant. No more manual entry, no more typos and no more endless entry of receipts and invoices.

Improved fraud detection: AI algorithms can analyze millions of transactions and detect suspicious patterns invisible to the human eye. You are no longer the fraud detective, but the fraud judge who evaluates AI's findings and takes action.

Accurate predictive analytics: AI can make accurate financial predictions based on historical data and current trends. Your role? To interpret those predictions and turn them into strategic advice for your clients.

Automated customer service: Imagine simple customer questions being answered automatically, even if you are long gone from the office. By automating simple questions and requests, you can focus on the complex issues where your expertise is really needed.

Real-time insights: No more hassle of manually compiling reports. AI can continuously analyze financial data and immediately alert you to discrepancies or opportunities.

The downside of AI for accountants

Before you throw all your spreadsheets out the window and rely entirely on AI, there are a few things to consider:

The integration of AI into financial services presents a series of complex challenges. Data privacy and security are at the forefront. AI systems require large amounts of data to function effectively, but this raises important questions about protecting customers' sensitive financial data. The introduction of the General Data Protection Regulation (AVG) underscores the importance of this issue.

In addition, many professionals struggle with the "black box" phenomenon of AI: the complexity of these systems often makes it difficult to make sense of their decision-making processes. This can be problematic when, for example, having to explain to a client why the AI system has detected suspected fraud.

The increasing reliance on AI technology also poses operational risks. System crashes just before crucial deadlines or long-term undetected errors in algorithms can have serious consequences for financial service providers and their customers.

Moreover, ethical dilemmas may arise when AI systems discover strategies that may be technically legal but ethically questionable, such as certain methods of tax evasion. In such cases, professionals must make difficult trade-offs between legal options and moral responsibilities.

Finally, there is the challenge of maintaining the "human touch" in an increasingly AI-driven work environment. Many clients value personal contact and rely on the expertise and insight of their financial advisors.

Finding the right balance between the efficiency of AI and maintaining meaningful human interactions is crucial to maintaining customer satisfaction and trust. Financial services firms must therefore carefully navigate between the benefits of AI implementation and safeguarding the human aspects that are so essential in their field.

These challenges are not insurmountable, but they require attention and a proactive approach. As an accountant of the future, you need to understand not only numbers and tax laws, but also data security, ethics in AI and managing human-machine interactions.

How do you prepare for the future with AI?

Now that you know what's coming your way, the big question is: how do you make sure you don't fall behind in this technological development?

Here are a few concrete steps you can take:

Keep learning: After all, you're never too old for it. There are more than enough online courses available on AI in finance, accounting and bookkeeping. Many universities and online learning platforms offer accessible (and sometimes even free) programs that you can start right away.

Focus on human skills: Empathy, critical thinking, creative problem solving - these are all skills that AI does not excel at. Develop yourself in these and you will make yourself indispensable.

Experiment with AI tools: Start small. Try an AI tool for automating your e-mail communications or analyzing financial data. The more you work with it, the better you will understand its capabilities and limitations.

Network with tech-savvy colleagues: Connect with accountants who are already leading the way in using AI. Learn from their experiences and mistakes.

Stay critical: Not every new AI tool is the holy grail. Critically evaluate whether a particular technology really adds value to your work and that of your customers.

Practical applications of AI in accountancy

How is AI already being applied in various aspects of accounting work?

Accounting: AI tools such as Xero and QuickBooks use machine learning to automatically categorize and reconcile transactions. This saves an enormous amount of time and reduces human error.

Tax return: Software as OniPath and Blue Prism automate data entry in tax returns. AI can also analyze complex tax laws and apply them to specific situations.

Auditing: AI systems can analyze huge data sets to detect anomalies that may indicate fraud or error. This makes the auditing process more efficient and effective.

Financial consulting: AI-driven tools can create financial models and calculate scenarios, allowing accountants to provide more informed advice to their clients.

Customer Service: Chatbots and virtual assistants can answer simple client questions, leaving accountants more time for complex issues. These AI applications increase the efficiency and accuracy of your accounting work. And remember: the goal is not to replace you as an accountant, but rather to empower you.

4 Commonly used AI tools for accountants in practice: Here's how to get started

You no longer have to be a die-hard techie to implement AI tools in your daily work. In fact, many of these tools are designed so that virtually anyone can understand and apply them. A few concrete examples of how you can start using AI in your accounting practice as early as tomorrow:

1. Automation of accounting with Dext Precision 

Dext Precision uses AI to simplify your financial accounting. This tool makes accounting more efficient by detecting errors instantly, providing accurate reports and automating time-consuming tasks. It acts as a reliable assistant that can even synchronize your financial data with systems like Xero and QuickBooks. Plus, it promotes collaboration with your team and your clients, so you can work together toward a flawless future.

If you want to start experimenting with Dext Precision, start small first and foremost:

• Upload a stack of receipts and invoices and let Dext extract the data.
• Use the automatic categorization feature to organize transactions.
• Let the system alert you to missing or incorrect data.

If you want to start experimenting with Dext Precision, start small first and foremost: experiment and scale up only once you feel that you are going to use the functionality on a regular basis.

2. Smarter email communication with Karbon AI

Karbon AI streamlines your work process by automating repetitive tasks, giving you more time for strategic work. You can link it as a tool with your existing systems, allowing you to work much more efficiently and effectively.

Thus, Karbon AI helps you communicate more efficiently with your customers:

• Have the AI prepare a draft response based on the content of an email.
• Use the feature to summarize long e-mail conversations.
• Adjust the tone of your emails with one click, from formal to informal or vice versa.

With this tool, you can respond faster to your customers and keep more time for challenging issues.

3. Enhanced data analysis with Silverfin

One of the major players using Silverfin is Deloitte. To quickly and efficiently create one central place for all your financial data, Silverin is the perfect AI tool: all your clients' important financial data is automatically updated and always at your fingertips.

With Silverfin under your belt, you can expand your distinctiveness as an accountant in several ways:

• Let the AI automatically run checks on your accounting data.
• Use the tool to spot discrepancies or opportunities in the numbers.
• Generate reports with insights you can immediately share with customers.

Silverfin helps you proactively advise and add value for your clients.

4. Automated tax returns with Tax on Demand

Tax on Demand offers reliable AI solutions for secure and accurate tax returns. This tool, currently in beta, can easily streamline your tax work as an accountant:

• Have the AI extract relevant data from financial statements and returns.
• Use built-in decision engines for ongoing tax audits.
• Receive suggestions for optimizing your clients' tax positions.

This allows you to work more efficiently while improving the quality of your tax advice.

Start small and scale up slowly

Start small and build up gradually. First, choose one tool that fits a specific challenge in your practice and experiment with it. Involve your team in the process and ask for feedback. As you become more familiar with the technology, you can explore more advanced applications.

Remember: the purpose of these tools is not to replace you, but to make your work more efficient and effective. By using AI tools smartly, you create space to focus on what really matters: delivering valuable insights and advice to your customers.

Implementing AI in your accounting practice doesn't have to be a big, scary step. It can start with small, practical applications that immediately make your work easier. So, which tool will you be the first to try out?

Shaping the future

The future of accountancy with AI is not something that happens to you; it is something you can shape yourself. By being proactive, continuing to develop yourself and balancing technology and human expertise, you can ensure that AI becomes your ally rather than your replacement.

At the same time, it is important to remain critical. Not all technological developments are necessarily good or necessary. It is up to you as a professional to determine which AI applications actually add value to your work and that of your clients.

The accountant of the future is not only a numbers wizard, but also a technology expert, an ethical compass and a strategic advisor. Preparing for this new role will ensure you remain relevant as an accountant and financial advisor. 

Are you curious about the benefits of AI for your work as an accountant? Please knock on our door. Who knows, maybe we can do something for you.