Whether it excites you or scares you, artificial intelligence (AI) is here, and it is quickly transforming the world as we know it—and many jobs. Are the accounting and finance industries being impacted? How are accounting departments embracing AI to be more efficient?
What are a few ways AI is already in use? Here are a few examples:
- In enterprise accounting software – Companies that use Oracle NetSuite, SAP, Sage, and other accounting systems are seeing AI in action. Oracle NetSuite’s Text Enhance is one example—its generative AI capability that helps users leverage company-specific data to create and refine contextual and personalized content. It increases productivity and accelerates processes. AI is integrated into SAP’s Enterprise Software Solutions as well, accelerating the financial close process, speeding up account reconciliation processes, enabling automated tax compliance checks, and more.
- In the audit process/Big 4 – Big 4 accounting firms have invested heavily in AI-powered tools to help them gain operational efficiencies and improve their client service. KPMG created KPMG Ignite to help its clients train, configure, and deploy their own custom AI-enabled solutions, and its own internal tool, aIQ. Deloitte has scaled its AI capabilities, including a suite of GenAI tools enhance productivity and guide clients. EY has embedded AI into its own technology systems and the technology it uses in the end-to-end audit process.
- In fraud detection – Accounting professionals can use fraud detection technology powered by AI to flag abnormal patterns in financial transactions and identify potential system vulnerabilities and risks. Thanks to machine learning algorithms, a fraud detection model or system “learns” and becomes better and better. There are many tools out there ideal for auditors, accounting departments and professionals who deal with managing risk.
Accounting departments can gain many advantages using AI—from automating routine tasks to providing valuable financial insights to company leadership. Here are some ways AI-powered technology and tools are freeing up accounting teams:
Automated data entry and tasks – AI enables accounting systems to automatically recognize text on invoices and other documents (optical character recognition) and input that data. This helps reduce “human error” and speeds up what can be tedious tasks for staff accountants. Or, if you have a smaller accounting team, your staff will be able to conserve their time for higher-level activities like preparing and analyzing financial statements.
Bank reconciliations – AI-powered accounting software makes the account reconciliation process more efficient and accurate. The system automatically matches bank statements with accounting records and generates reports of missing or duplicate entries.
Expense management – Speaking of fraud protection, AI-powered systems can monitor expenses and immediately note discrepancies or suspicious activity. For instance, machine learning can analyze past employee expense reports and note unusual patterns, flagging them for further investigation.
Financial forecasting – The ability to analyze historic data and use predictive analytics to generate forecasts is another advancement. This helps businesses make more informed strategic planning and budgeting decisions and increases accounting teams’ value-add to the forecasting process.
Streamlining payroll – Automation is the name of the game with AI-powered payroll solutions. Traditional payroll relies on manual data entry, which can be quite time-consuming for larger companies and prone to errors. AI enables companies to process payroll faster and with greater accuracy, and it allows for more advanced reporting too. Increased security is another benefit.
Job Security for Accounting and Finance Professionals
There’s no question: accounting and finance will always require professional judgment and critical thinking.
Interpreting AI-generated insights and making strategic decisions require a deep understanding of a company’s goals. Also, AI-powered systems are only as good as the data they’re trained on. The input and oversight of your internal and outsourced accounting team are essential. AI is an exciting and powerful tool when used appropriately, but it’s important to understand its limitations.
Whether you’re just beginning to explore AI’s potential to make your accounting and finance teams more efficient and forward-thinking or you are already taking advantage, our consulting services group is here to help. Reach out to TGRP Solutions today to discuss how we can optimize your accounting and finance teams in 2025 and beyond: 303.789.1500.
