The Crucial Role of Machine Learning in Accounting Business

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The Crucial Role of Machine Learning in Accounting Business

By Sarah Dawson, CFO Tech Outlook | Tuesday, February 16, 2021

Machine learning technology is the easiest path to growth for accounting firms, and it is only getting better day by day.

FREMONT, CA: There is currently much hype around Machine Learning (ML) and its impact on accountants. Financial services are leading adopters, together with high tech and telecom. The report predicts that these three industries will continue to lead AI adoption in the next three years. This technology is becoming very sophisticated, and early adopters are starting to see clear advantages. ML adopters with a proactive strategy get approximately 12.5 percent higher profit margins in the accounting industry than non-adopters. Here is how ML applies in accounting processes.

Machine learning can serve as a helping tool for auditors. They can push the whole ledger into automated analysis and then use machine learning as they evaluate exceptions. When the auditor confirms an exception, ML can track the auditor's decisions. As it looks over those decisions, the system will try to decide which data points determine factors in the validation or invalidation, learning to find exceptions over time. Digitized auditing processes are also connected to improved security: ML makes it seamless for auditors to track files and review data points instead of poring over each document. Auditors can become more efficient by implementing machine learning in their work processes.

Bookkeeping activities are some of the easiest to work machine learning potentials into. Machine learning can contribute to accurate data, quicker accounting, and effective practice management. Bookkeeping comprises a lot of tracking and recording. Accountants require running after, and logging lots of transactions and records—and technology can step in to manage all of that, instead. Machine learning supports do away with these repetitive parts of work so accountants can turn their focus elsewhere.

Running an accounting firm and serving customers is about more than the humdrum of actual accounting. Machine learning lightens that burden—it frees up the accountants to develop the business or support clients in innovative ways. Continuous enhancements in accounting are achievable, and the easiest method to foster it is through machine learning. The accounting team will zero in on what matters the most instead of getting caught up on repetitive tasks.

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