AI in Bookkeeping

Artificial Intelligence (AI) can help bookkeeping in many ways and looks like a really exciting opportunity for bookkeepers and accountants alike. There are many ways where AI can and will help bookkeeping and we’re already starting to see some these coming into every day use. A combination of both artificial intelligence and human intelligence can drive bookkeeping and accountancy practices forward.

Automation - There are a lot of repetitive tasks in bookkeeping such as data entry, processing invoices and receipts, bank reconciliation and more. AI can automate much of this allowing bookkeepers, accountants and business owners to spend more time focussing on strategy, growth, support and other aspects that can add more value to a business.

Fraud detection - AI can analyse large amounts of financial data to detect patterns and anomalies that could indicate fraud. This is a job that could take a bookkeeper or an accountant a considerable amount of time to analyse, so AI could make this process so much faster and improve efficiency of any investigations into anomalies in accounts.

Real time-insights - AI has the ability to analyse data quickly to provide real time insights into a company’s financial health. Being able to process large amounts of data in a small amount of time will help bookkeepers and accountants to be able to provide their clients with meaningful financial data more often and more easily.

Forecasting - AI can identify patterns to help with forecasting and reporting. For example, predictive analytics like Xero’s bank reconciliation predictions can help with the reconciling process but does still need human intelligence to confirm they are all appropriately reconciled. Things like cash flow forecasting and financial projections will be greatly enhanced by AI in accounting software.

A great example of AI in bookkeeping is Dext, which is cloud-based software which allows bookkeepers and accountants to submit invoices and receipts digitally, extracting the data and integrating it straight into regular accounting software such as QuickBooks or Xero.

As AI progresses I’m sure there’ll be more to write about, it’s an exciting time for those who like to mix technology with their accounting and bookkeeping.