How Machine Learning Impacts Public Accounting

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How Machine Learning Impacts Public Accounting

By CFO Tech Outlook | Tuesday, January 19, 2021

The evolution of machine learning is expected to have a dramatic impact on public accounting processes.

FREMONT, CA: Machine learning is a familiar technology that encompasses a broad range of use cases. Machine learning can allow businesses to sift through vast amounts of data and find patterns that would have taken several labor hours. It can disrupt many industries and potentially generate new sectors. Here is an explanation of machine learning and its impact on public accounting. Read on to know more.

Many routine accounting operations will be managed by machine learning algorithms shortly. Accounting activities like expense reports accounts payable, and risk evaluations may be seamlessly automated using machine learning. The jobs needing the processing of documents have started disappearing with the innovations of document scanners, optical character recognition, and software to match documents. Machine learning algorithms can get an invoice, match it to a purchase order, decide the expense account to charge, and place it in a pool of payments to release, and A human worker can review the documents and release them for payment. While accounting in businesses will change shortly, the question of how public accounting will evolve remains.

Given that firms will implement machine learning in their operations to enhance accuracy and reduce costs, public accounting organizations' advisory services could dramatically change. It is estimated that 80 percent of the time spent on advisories services is processing data about its operations. Much of this data processing could be managed by machine learning algorithms, meaning that most of the time billed to customers would focus on value-added services that analyze the data produced by machine learning.

The evolution of machine learning is predicted to have a dramatic effect on business. Public accounting will require to adapt—to understand the technology leveraged by companies to better focus its initiatives in auditing the financial statements and be positioned better to offer the best tax and advisory services at a cost that generates value for their clients. As public accounting firms continue to leverage machine learning, new and dynamic opportunities will be available for young accounting professionals.

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