Gaining the edge with AI in accounting and advisory

Accounting firms worldwide are exploring how best to leverage AI in accounting to address global challenges such as staffing shortages and the growing demand for skilled professionals. By automating repetitive tasks, AI can reduce burnout, enhance accuracy, and free up valuable time for higher-level client services.

Regardless of whether firms have fully embraced AI, its rapid advancements are offering effective solutions for challenges often tackled by accounting firms. This compels firms of all sizes, from small partnerships up till the Big 4, ([1], [2], [3], and [4]), to seek innovative ways to optimize their operations and maintain competitive advantage.

In this article, you'll discover how to implement generative AI and other tools to improve efficiency and automate processes in your accounting firm.

 Will AI replace accountants or bookkeepers? 

The simple and obvious answer is no. AI is transforming many industries. However, it is essential to recognize that accountants and bookkeepers bring a unique set of skills that technology cannot replicate. At the heart of accounting and advisory lies complex decision-making and professional judgment. Here’s why these qualities of accounting services are irreplaceable:

• In contextual interpretation of regulations: Accountants interpret laws, regulations, and ethical standards in the context of each client's specific requirement and situation. This requires not just knowledge but also a deep understanding of the industry and its intricacies.

• For strategic decisions from client data: Beyond number-crunching, accountants analyze data for insights that can drive strategic decisions. Generic insights: A generative AI model may not sufficiently assess or identify risks, forecast relevant trends, and generate specific advice for client best practices.

 AI as an assistant (Not replacement): Implementing AI in accounting tasks and practice management

Rather than replacing, AI can complement, scale, and accelerate accounting firm activities. While Generative AI may not be ideal for every task, it excels at accurately executing tasks traditionally considered error-prone and data-intensive. For instance, it can efficiently handle large volumes of data and carry out repetitive tasks, allowing you to focus on building strong client relationships and maintaining a professional image for your business.

Here are two ways it can help.

Data mining and basic analysis with AI

While AI may generate generic insights based on available data and may lack the depth to assess specific risks, it excels at processing vast amounts of information swiftly, uncovering patterns and trends that might otherwise go unnoticed. It can be used to offer,

• Tailored financial summaries based on historical data to improve advisory services.

• Conducting multi-year analyses to identify trends or anomalies.

Personalizing client communication using AI

Generative AI can create personalized client communications and proactive services to clients, such as:

• Automating responses to regulatory queries and compliance notices, streamlining client communication.

• Speed up routine writing tasks, from sending updates and reminders to summarizing action points from meetings, allowing accounting professionals to save time and ensure consistent, professional messaging.

 Integrate AI and time-saving accounting automations

To fully reap the benefits of technology, leverage not just generative AI but also integrated modern accounting software and accounting firm practice management systems. Such solutions streamline critical tasks, deliver timely updates, and seamlessly enhance the efficiency of both your operations and your clients' business processes.

Here are some features to consider, along with AI, for your accounting workflows, practice management, and the processes they can help improve.

Transaction Management

• Bank Reconciliation: Automate the process of reconciling transactions with bank statements to minimize errors.

• Transaction Matching: Match transactions automatically, reducing the time and effort spent on manual reviews.

• Automatic Categorization: Categorize recurring transactions to simplify bookkeeping and maintain consistency.

• Currency Conversion: Automatically convert currencies for accurate international transaction handling and compliance.

Customizing workflows

• Automated Reminders: Set reminders for key deadlines and tasks, ensuring nothing is overlooked.

• Custom automations: Design automation workflows for unique business needs, enhancing efficiency in specialized tasks.

Enhancing reporting and insights  

• Real-Time Reporting: Access a variety of real-time reports to make data-driven decisions faster.

• Dashboard: Immediately find relevant information from curated dashboards, follow trends, and monitor financial KPIs.

• Automated Insights: Receive alerts and actionable insights based on anomalies or deviations in client accounting systems.

Advanced features for data handling and synchronization

• Data Import via Auto-Scan: Leverage tools to scan physical bills, receipts, and integrate data from apps for seamless import.

• Sync bank feeds: Leave behind marking bank statement feeds and transactions and save time with automated bank connection.

• Integrate apps you use: Connect with crucial apps, fetch data, sync information, get notified, and bridge communication gaps.

Client management with automation in accounting

• Client Portals: Offer clients secure and user-friendly portals for sharing documents, collaborating, and accessing real-time financial data.

• Seamless Data Integration: Synchronize client accounting and other relevant systems to facilitate real-time data exchange

• Questionnaires: Streamline data collection, onboarding, and audits by using customized questionnaire templates to gather consistent, accurate information from clients at each stage of the process.

Features to streamline workpapers

Using specific working papers or workpaper software for accountants instead of generic options like spreadsheets and online file storage or papers and files, enhances the workflow and minimizes human error. It provides a more organized and efficient approach to completing tasks. Here are some ways how.

• Improve client requests: Send queries or request documents from clients directly through your workpaper software, track all related queries.

• Staff collaboration: Assign tasks to your staff with clear deadlines tagged to specific accounts and track progress.

• Journal adjustments: In case of mismatches, directly edit journals from your workpaper to show the exact adjustment.

These collaborative, modern, and automation-driven features, combined with AI in accounting, create new opportunities to elevate your impact—allowing you to focus on higher-value activities, from advisory services to strategic consulting.

Looking for future-ready accounting software for your firm? Give Zoho Books a try. Need practice management software that fits perfectly with your team and clients? Check out Zoho Practice, the ultimate practice management solution to manage your firm tasks, your staff, and your clients.