How to get the best out of AI-powered accounting automation

One example is the painstaking task of checking which invoices you have, which ones have been paid and which you may be missing on a supplier statement. Some supplier statements can be multiple pages long and you get them all at the end of the month. This not only saves time, but also ensures data and liabilities are correct, which helps manage cash flow, minimize surprises and build trust. Keeping compliant when reporting tax is such an important part of running a business, and AI is a handy tool on that front, acting as a secondary check before you submit any reports. AI continuously monitors financial activities, flags anomalies and adapts to changing regulations, reducing the risk of oversights and offering real-time, auditable trails. Washington reflected on her career, including moving to Silicon Valley in her 20s, working abroad to gain global experience, switching from tech to biotech, and taking on a CFO role early in her career.

The human element: AI augmenting human expertise

Moreover, machine learning identifies patterns in sales forecasts and fraud detection. And deep learning, with its advanced neural networks, boosts accuracy and predictive power across financial processes. “I think as leaders, we have to appreciate that there’s this unprecedented opportunity for growth and value creation with AI,” Washington said.

“The more work is automated, the more opportunities individuals have to step away from some of those manual routine administrative types of tasks that accountants have done over the last 100 years and into that strategic business partner role,” said DePrisco. “That’s so critically important these days to help organizations achieve their outcomes.” But it’s also creating new opportunities for accountants to step into more strategic, creative and advisory roles. The future of accounting lies in critical thinking, adaptability and leadership, all of which are areas where human expertise shines.

Tax preparation, for instance, is being revolutionized by AI-powered assistants like Intuit’s TurboTax AI, which can instantly scan documents, interpret the latest tax codes and suggest optimal scenarios for clients. AI automatically categorizes transactions and reconciles bank feeds, even learning from recurring patterns. Natural language processing (NLP) further expands AI’s reach, turning regulatory documents and financial news into actionable intelligence. Meanwhile, computer vision uses optical character recognition (OCR) to extract data from scanned images and documents, adding an entirely new layer of analysis.

Success in this transition depends on making clear assessments of where AI will add value, establishing clear policies and governance in use, and the cultivation of skills that complement technical capabilities. Accounting and bookkeeping is integral for a successful business and the industry has undergone significant changes over the years, from manual paper-based processes to software and cloud-based systems. The emergence of advanced AI, means there is a significant shift in how financial information, such as invoices, statements and payroll, can be managed and processed. I recently took a demo of an emerging startup that has automated the accrual entry process with AI. In my experience, the accrual process has always been one of the most challenging and time-consuming tasks during month-end close. AI-powered solutions can be a game-changer, effectively eliminating the manual effort and significantly reducing errors.

Washington began her tenure as president and COFO of Salesforce in March, a newly created position. A longtime Salesforce board member with expertise in technology, including agentic AI, she leads the company’s operational and financial strategy. There is a scenario in which concerns about AI’s reliability or predictability mean its use is restricted for staff that haven’t yet had time to fully prove themselves. With the C-suite keeping an eye on ROI, junior employees may not be supported or encouraged to use the technology by their organisation. Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries. Artificial Intelligence (AI) is transforming industries globally, and accountants and bookkeepers are in a unique position to leverage this technology to do more and help the businesses they serve.

Will AI Replace Accountants?

• The human touch, context and expertise is now more important than ever in a constantly changing environment.
• AI tools can handle repetitive tasks, but strategic thinking, ethical judgment and personalized client interactions are areas where human expertise still reigns supreme.
• With 85% of new practitioners ranking work-life balance as a top priority when choosing an employer, AI offers a powerful opportunity to help teams work smarter, not harder and achieve the work-life balance employees increasingly value.
• The IMA released a report earlier this year on the impact of AI in accounting and finance as technologies like ChatGPT gain widespread acceptance.

AI cannot completely replace the power of humans when it comes to accounting and bookkeeping – in fact it should encourage upskilling of juniors who would otherwise spend time completing menial tasks, particularly with the current shortage of accountants. The skills shortage is something that has led to the increasing adoption of AI, which has meant that accountants and bookkeepers are able to spend less time on menial tasks when they are stretched. And realistically, accountancy leaders must remain responsible when it comes to understanding the pivotal role of AI in the accountancy sector, if they don’t want to be left behind.

AI in Accounting: The Future Is Here

It’s important to note that senior leaders will be more aware of the looming talent shortage in the industry. And are more likely to be the decision makers in the room discussing the potential impact of recruitment challenges. That might be one of the reasons they’re taking the initiative to future-proof by learning how to automate tasks, recognising that their businesses may soon struggle to fill essential roles. AI has the power to help accountants make more informed decisions, providing real time insights to pave the way for predictive analytics. This level of automation can analyze vast amounts of financial data in a fraction of time, freeing up accountants to focus on higher-value tasks such as financial planning and analysis and risk management.

Impact of AI being felt in jobs market, says Morgan McKinley report

Understanding the importance of accountability within the accounting industry is something we take pride in at Dext. Therefore, the need to embrace AI advancement responsibly to create a more efficient and prosperous future for all is essential. For example, Sage’s in-platform assistant can create an invoice with a simple command, run you through the steps of configuring a payroll or troubleshoot a VAT submission. You can also set this up to give you reminders and alerts about upcoming tax deadlines or suspicious transactions. Features such as Sage’s CoPilot and AP Automation automatically extract data from  documents like invoices, receipts and bank statements and identify errors or patterns, as well as generating reports. Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more.

Incorporating AI in accountancy software also allows businesses to introduce cloud-based systems into their day-to-day, making it more seamless to move away from paper-based systems. Additionally, AI holds a track record of identifying errors within processes, due to the fact that AI demands undivided attention. It can help with everything from data analysis to tax preparation and fraud detection, which is because its algorithms are built to identify patterns and anomalies that may indicate such activities, allowing accountants to act quickly on behalf of customers. AI-assisted tax reporting can even highlight tax-saving opportunities (such as capital allowances or R&D tax credits) when generating reports, allowing you to save money that you might have missed in the past.

Intuit found that 82% of accountants believe that AI-powered accounting tools have established more client interaction and satisfaction. AI-powered accounting tools have incurred massively increased retention rates, with Sage reporting a renewal subscription rate of 102% in 2024, which denotes increased client retention. To help accounting and finance professionals adjust to the far-reaching changes emerging from AI, the IMA is planning to provide more training. “We need to ensure that we’re providing education, knowledge and certification training for practitioners who are moving to new roles,” said DePrisco. “I do think that is probably the biggest concern that many practitioners and organization leaders have as it relates to AI, and that is job displacement,” said DePrisco. ACCA’s latest AI monitor report explores how the gradual integration of AI over comings years is likely to change how accountants work and deliver value from the automation of repetitive tasks to increased knowledge support for decision-making.

The report points out that, while AI can help make processes more efficient, human intervention needs to be retained at critical junctures. Ultimately, the integration of AI needs to reflect the fact that trust remains a fundamentally social concept built on human interaction, transparency, and oversight. And the future of accounting will involve navigating tensions between efficiency and human judgement, automation, and control. While AI brings remarkable efficiencies and accuracy to accounting, the human element remains crucial. AI tools can handle repetitive tasks, but strategic thinking, ethical judgment and personalized client interactions are areas where human expertise still reigns supreme. By leveraging AI, accountants can focus more on advisory roles, providing deeper insights and more value to clients.