With technology advancing at its current rate, it’s no surprise that many people are looking towards automation as the future of business across the world. The economy sector and its related industries, like accounting, are no exception to this matter.
Especially considering that accounting hasn’t really seen much in the way of forward leaps in tech since the advent of the double-entry bookkeeping; which allowed for recording of both profits and losses, considered one of the biggest advances in business and commerce.
That was 500 years ago.
One of the bigger issues with the industry of accounting is the sensitivity of the industry towards the smallest mistakes, which is why chartered accountant insurance is in such high demand. Automation may help alleviate that, on top of streamlining the workload of practitioners and businesses.
There have been several studies on what automation would be able to do for accounting and practitioners across the world, and the seeds for full automation have already been planted, with many accounting software vendors like Sage and Xero offering automated data entry functionality, among other automated services.
One study estimates accounting tasks, alongside taxation, payroll, audits and banking will be fully automated thanks to AI-based tech by 2020. Currently, however, current machine learning algorithms still require further refinement and improvement to significantly boost their efficiency and accuracy in order to avoid the accounting errors that lead to cases in need of chartered accountant insurance, and truly fulfil the promise of automation.
Naturally, shifting into automated operations isn’t the easiest thing to do; it requires a change in mindset and reallocation of resources and personnel. Thankfully, the industry has been looking into that matter, and have concluded that accountants won’t be rendered obsolete by robots.
According to exports, technology and automation will be handling the more traditional data work inherent in accounting, while practitioners will step into a more advisory role, a creative function that require a human touch that cannot be replaced by AI.
This is something that robots cannot replace humans on, as the human creativity allows for creative work and providing meaning and context to the data, which means that practitioners will always have a place to work in.
This means that, in the future, AI-powered systems will still need a human touch, to connect them to clientele.