Accounting for the Future: Machine Learning and Artificial Intelligence

Gadgets and software are revolutionizing every industry and profession, from construction management to big law.

Accounting is no exception. Rather, accounting has led the way for many years. Unlike other professions, accounting was quick to adopt technologies early on that would improve efficiency and accuracy in a field rooted in precision.

What does this all mean for the future of accounting? Should you be concerned Star Wars-like droids will steal your jobs, forcing you to reconsider your entire career? Many white-collar professionals worry their careers will fall victim to the same automation that impacted manual laborers of the past.

Technology is Expanding Accounting, Not Shrinking It

First things first, relax. Your job isn’t going anywhere just yet. In fact, if anything, this is a time to be excited about the changing nature of your profession.

You’re likely familiar with Tony Stark and his super suit. His robotic armor didn’t eliminate the need for Tony, or other heroes. It simply allowed him to perform at an ability above his own.

That is exactly what machine learning and artificial intelligence (AI) are doing for the future of accounting. This new technology isn’t replacing accountants, it’s helping them perform at a higher level.

What is Machine Learning and AI?

If you’re out of the loop about the basics of machine learning and AI, now’s a good time to catch up.

Machine learning is a subset of AI. Machine learning is the process whereby machines (like computers) are programmed to learn. They learn through complex algorithms that interpret data. Just like a child learns as it is exposed to greater external stimuli, a machine learns as more data is fed into its algorithms. The more data inserted, the more machines can recognize patterns and predict future outcomes.

How Will Machine Learning and AI Impact Accounting?

So, what does this all mean for the future of accounting? Well, you know all those routine, repetitive tasks that take up so much of your time? This is the ideal type of work that can be automated.

That doesn’t mean you won’t have a job, it means you’ll have more time to focus on the more demanding aspects of your profession. While your AI colleagues crunch data, create reports, and seek out anomalies, you will use your experience and knowledge to interpret the results and provide informed recommendations to your clients.

Here are just some of the tasks AI and machine learning can handle:

1. Auditing of expense submissions
2. Risk assessment
3. Accelerated calculations
4. Improved Forecasting
5. Resolving common customer queries

If accounting firms and professionals use machines and AI solutions to handle the burdensome calculations and important, but time-consuming inquiries from other team members and clients, accountants will have an increased capacity to take on even more customers than ever before. Perhaps even more importantly, they’ll be able to deliver greater value as well.

If you want job security in the future of accounting, be sure to find firms and companies making use of this technology.