Accounting Automation: Should CPAs fear the word?

Automation is not a new thing in this digital era. It’s out there everywhere. Be it in the retail sector, the marketing sector, or even something as sophisticated as the hospitality industry. It’s something that the 21st century can’t simply ignore.

But then, there are always questions and raised eyebrows about the potential threats that automation can pose...especially when one starts thinking about the accounting field. Now, what we need to look into and understand is whether all those fears are for real or not. We will also have to try and understand the benefits of accounting automation and CPA, and how such benefits have an edge over the disadvantages.

For the uninitiated, automation includes an ensemble of technological solutions including artificial intelligence (AI) and robotic process automation (RPA).

Coming back to the fears which accountants have regarding the ever increasing popularity of automation, let’s start dissecting each one of those fears before we reach a conclusion.

To begin with, many accountants and CPAs are marred by the thoughts that the products of automation, including accounting automation ai and robotic process automation among a wide array of others, will put an end to their profession, or at the least dilute it to an extremely insignificant level.

There is also the fear of the possibility of complete dependency on technology, thereby reducing human potential and capability to a great extent.

A look into ongoing trends and research conclusions reveal that there has been a noticeable growth in the number of accounts related jobs, and it’s expected to continue on the same track with a growth of 6 percent by 2028 (As per an article published in the website of U.S. Bureau of Labor Statistics). Now, this trend gives us some food for thought! There are no chances for a sector that exhibits such growth to be under the threat of extinction from automation.

The demand for manpower is always on the rise, thanks to the fact that work requirements never go down the graph. Fresh opportunities take birth in the industry every now and then. After all, there are many things that only the human brain, creativity, and skills can satiate, isn’t it?

Now that we have debunked a myth related to the so-called threats posed by automation to accounting and CPAs, let’s take a look at some of the most important benefits of accounting automation.

Managing a tremendous amount of data, all the while avoiding errors is without a second opinion a difficult task, especially considering the increase in workload that professionals have to struggle and juggle with these days. This is where automation comes in. With automation of accounting, we can avoid errors that would have been otherwise caused due to manual labor. Also, any volume of work can be managed swiftly in time as well as a cost-effective manner.

Every basic thing such as accounting work, file reviews, payroll, verify e-signatures, bookkeeping, expense recording, tax preparation, etc. being managed by technology means, better chances for workers to invest their time and energy for higher skilled work.

One of the most important automation technologies that make all these possible is artificial intelligence. Too much to comprehend? Well then, let’s just simplify things. Artificial intelligence simply takes up tasks that are usually done with human intelligence and completing them in a highly efficient manner. Some of the things which AI can help out with are speech recognition, decision-making, translation, visual perception, etc. among others.

Analysis can be done and conclusions can be drawn swiftly with AI when it comes to accounting. Also, many processes such as bank reconciliations, invoice categorization, auditing expense submissions, etc. can be effectively automated.

Above all, fraud detection can also be easily done with the help of artificial intelligence.

Now, going back to the benefits of automation in general to the advantages of accounts payable automation software deployment

• Repetitive tasks can be taken out of the workload of employees, by automating them. Just considering how much of their quality time accountants waste on mundane activities such as data entry, spreadsheet auditing, repetitive journal entries, preparation of the same reconciliation every month, etc. drives home the importance of this point. After all, accountants can definitely provide much more value, by channelizing their skills towards tasks that require ‘human touch.’

To help accountants in this aspect, there are many products out there. But only a few are completely reliable to the core, such as SaasAnt Transactions.

• This can benefit particular businesses, as well as the entire industry greatly. For those who are not aware of the products that can help them out with this, SaasAnt PayTraQer is our suggestion.

• Businesses can expect a whole new world of security and reliability when it comes to data.

• Solutions such as Expensify and TSheets help in organizing expenses and keeping track of time respectively. This takes off such time-consuming tasks out of the CPAs’ buckets.

• Human skills such as the ability to connect, to tell stories, to come up with innovative ideas and solutions, to empathize, to create opportunities, etc. will get more value since they are beyond the scope of automation.

• Helps accountants to build a good partnership with clients. This happens due to the fact that automation can help them become more effective in what they do by forecasting into the financial future of the clients, with some help from smart data analytics.

• Automation also goes way beyond just artificial intelligence and robotic process automation, thereby extending its benefits far and wide. Some of the innovative automation based technologies that would definitely impact accounting in the future in a great way are big data analytics and blockchain.

• Big data analytics: It’s all about studying a tremendous amount of data, thereby uncovering insights including hidden patterns, correlations, etc. As per the latest surveys, big data is being increasingly used by finance and accounting professionals these days.

• Blockchain: Speaking of blockchain technology, it’s something that had its roots in being used as a solution for governing cryptocurrency transactions. But then, of late it has grown beyond that and has extended its branches to a wide range of industries, including accounting, health care, government, insurance, supply chain management, real estate, banking, etc. 

It’s extremely important for businesses these days, all thanks to its immutability as a general ledger. It allows businesses to enjoy the benefits of a quality audit trail as well as transparent transactions. Thus it reduces the costs of annual audits, as well as regulatory compliance.

Now, that’s not just it when it comes to automation. But then, a complete list of the benefits of accounting automation can be never-ending.

Keeping the benefits aside, we definitely need to be aware of the fact that CPAs will have to up their skills to survive the tide. This is especially important for those whose work mostly depends on the area of manual data entry.

CPAs who don’t shy away from accepting technology with an open heart can always survive without even the slightest tinge of fear. They can always up to their skills, and thereby add further value to their businesses.

With an ever-increasing volume of data and tasks, there is a huge amount of pressure on accounting teams of late. Manual processes won’t be able to be of much help in such situations. Automation steps in during such times of trouble, and proves that it is without any doubt, the need of the hour.

Thus we can conclude beyond the slightest bit of doubt that automation is inevitable as well as beneficial for the accounting industry.