The CFO'S Perspective

How is AI Going to Affect Accounting and Finance Teams?

How is AI Going to Affect Accounting and Finance Teams?
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AI-accounting-and-financeThese days we’re hearing a lot of clients ask, “How is AI going to affect my business?”

Unfortunately, there’s a lot of fear mongering going around related to AI based on largely unfounded concerns. There’s an uneducated belief that AI could steal jobs away from skilled professionals across various business facets like accounting and finance. However, this is simply untrue! AI is not going to replace your accountant, but what it is going to do is make professionals across finance, accounting, tax, treasury, procurement, and audit better at what they do!

Let’s examine the ways in which AI is going to affect your accounting and finance teams:

Assist Employees

It’s no secret that an accountant shortage is continuing to affect companies nationwide. This deficit in skilled resources is likely going to continue for years to come, which means business leaders and shareholders need to find a solution for accomplishing the same business-critical accounting activities with a dwindling pipeline of accountants to leverage. AI has emerged as one potential solution to the problem, offering a slew of automation possibilities to assist overworked accounting professionals.

Leaning on automation for repetitive tasks is going to be integral in avoiding burnout in the years to come as a lack of incoming talent continues to affect the accounting industry. As Grace Noto explains when discussing how CFOs are addressing employee burnout,

“Talent shortages and the associated strain they put on existing employees have been top of mind for executive and finance leaders over the past few years, especially as pricing pressures compound the stress on workers. Nearly 80% of employees reported experiencing burnout in the past year, hampering employee engagement and reducing productivity for a third of such workers... As such, CFOs are zeroing in on how to mitigate the stress on their existing employees and how to ensure they are receiving the support they need from the business.”

Integrating automation into accounting and finance workflows allows employees to work more efficiently so they can avoid having to put in long hours at the office, helping to stave off burnout in an industry that’s known for its overworked employees.

Reduce Costs

While automation in accounting can assist employees at the micro level in their individual roles, the best business case to be made for AI may actually be at the macro level companywide. Early AI use and its projected future benefits point to significant cost-savings for companies that can implement and utilize it well. In fact, according to a recent study, 59% of accountants across the US and UK report that they are already using AI-based tools and applications to save an average of 30 hours of work per week across their teams.

What we’re already seeing is that automation can also reduce personnel costs, reduce errors, and free up skilled staff to focus on more value-add activities, all of which can contribute significantly to a company’s bottom line. For instance, automation can be used to streamline repetitive bookkeeping tasks, so a company doesn’t need to pay its bookkeeper overtime or cover the search costs to find someone new when they quit.

Improve Insights

The breadth of data that AI can offer with the tap of a finger continues to drive advanced financial insights through robust reporting and data analysis solutions. Real-time financial analysis and dynamic reporting tools provide better insights more quickly to allow for agile decision-making and better overall strategic management. The result will be everything from improved cash flow forecasting to long-term strategic planning for companies that choose to embrace AI capabilities.

Mitigate Fraud

AI is also being used increasingly in enhanced business security measures across areas like internal controls and loss prevention. As AI-powered fraud detection software continues to evolve, it will increasingly act as a first line of defense to better protect businesses from both internal and external threats. For this reason, AI-driven fraud mitigation tools are going to become an increasingly important tool in every financial leader’s belt to help prevent business fraud in the years to come!

When you need experienced financial leadership, we can help! Our team of consulting CFOs provides outsourced CFO services to organizations across all industries and business stages. We help our clients face the ever-changing world of accounting and finance to run their businesses better. Whether it’s advising on financial strategy, conducting a financial assessment, providing the data analysis needed for smart decision-making, or improving their accounting systems for better ongoing cash flow management, we help organizations put the right pieces in place to promote growth. Contact us today to find out more!  

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Topics: Artificial Intelligence


Topics: Artificial Intelligence