How is AI affecting bookkeeping?

In general, AI tools like machine learning, automation, and data recognition can streamline financial record keeping. Traditional bookkeeping involves a lot of manual data entry. AI can automatically extract useful information from scanned and digital documents and bank feeds. This speeds up processes and reduces human errors. Once set up, AI can automatically allocate costs and sales invoices and create reports. It can also analyse patterns of income and expenditure to improve forecasting and help you make decisions. 

 

We thought we’d take a look at some of the pros and cons of AI in bookkeeping. 

 

1. Pace of change. There is no doubt things are happening quickly. That’s both good and bad. As soon as you think you understand something to do with AI, things change. While AI can help streamline time-consuming repetitive tasks it’s worth remembering we still need to check what it produces. Business owners are responsible for the accuracy and reliability of their financial information. Taking good advice from properly qualified and regulated professionals is still important. 

 

2. AI skills. Bookkeepers and accountants always look for reliable ways to streamline processes and provide the latest and best information for clients. Most are very happy to improve their AI related skills. However, staying up to date with the latest innovations is a continuing challenge. AI can miss relevant regulations, latest practices and legal precedents. Relying on AI-generated information on tax matters has already received criticism from professional bodies. 

 

3. Scope. Just because you can do things with AI doesn’t mean you should. It’s likely clients will become even more mystified by the range and type of financial information AI can provide. Although AI can produce detailed information quickly it won’t always provide useful insights. Financial professionals still need to interpret the information as part of the service they provide. 

 

4. Automation. This is an area where AI can certainly help bookkeepers. It can streamline financial processes and automatically allocate expenses to the right codes, for example. It can suggest the most likely options for business bank account reconciliation, saving time. This means we can spend more time confirming accuracy and querying unusual transactions. As our expertise develops, we can use financial information more effectively to help you make better business decisions. 

 

5. Customer service. Making sure your financial information is up to date is an important part of a bookkeeper’s role. Faster processes following rules and processes you have agreed for your business will provide reliable financial records. When you use accounting software in the cloud like Xero, you can see the latest information at any time, wherever you are. You can check who owes you money, simplify forecasting, and choose how to view your financial data. You can even ask AI questions about your finances to help you make decisions.