The accounting department, financial controller or bookkeeper of small and medium-sized businesses will soon be able to benefit from advances initiated in the field of artificial intelligence (AI).
Routine, repetitive tasks
Routine, repetitive tasks could soon be carried out by AI following programming of the required data processing specifications. In this way, data entry errors would be a thing of the past, and the AI would carry out an initial check to identify errors, incomplete information, etc.
In concrete terms, this technology could draft sales invoices to customers based on a few selected keywords, automatically send statements of account to customers, send payment reminders for invoices exceeding the agreed terms, record cash receipts directly in the accounting books, and so on.
Bill payment management
AI could also be involved in the management of regular suppliers. Invoices received in paper format could be scanned for automated processing. The system could even automatically identify invoices received via a company-specific e-mail address. The AI would then identify incoming invoices in real time, process them, check the calculations, match them with a purchase order and a delivery note, compare the unit prices invoiced with the unit prices on the purchase order, and record it in the accounting books (selecting the appropriate General Ledger accounts). AI could even manage payments according to the deadlines negotiated with the supplier, taking into account any discounts granted and the availability of funds.
However, a human check will still be required before payment is authorized, to ensure that everything is in order, and to detect any attempted fraud. More specific human intervention will also be required in the event of discrepancies, when purchasing new products or services, or when introducing new suppliers.
Help with payroll management
In the context of payroll management, one of the most important benefits of AI would be the automation of processes be it data collection, checking the accuracy of figures, detecting anomalies, preparing payslips, etc.
These repetitive tasks could all be automated. This would enable companies to save time and reduce human error, while freeing payroll managers to concentrate on anomalies. A trend is already apparent in companies, via integrated IT systems, but we’re talking here about intelligent automation that would go beyond existing systems.
In the ledger (GL)
Repetitive general journal entries have long been programmed to post to the General Ledger on a monthly basis. AI could assist your accountant by automatically adjusting entries according to the situation. For example, the monthly depreciation of fixed assets could be adjusted to take account of the current month’s acquisitions and disposals.
Also, the provision for bad debts could be adjusted to take into account the collection history of specific customers, the amount of 90-day customers, proposals for composition received from customers, and so on.
An assistant for your accountant
This new technology could also assist your accountant in assessing cash flow, making investment decisions, determining financial position through ratio analysis, analyzing contracts and analyzing various financial reports.
A company could use it to detect fraudulent transactions in a short space of time. AI could be used to identify vouchers showing large amounts posted to unusual accounts, vouchers duplicated by the same employee in the accounting books, payments to unusual suppliers or to companies where a declared shareholder is a close relative of an employee, and so on.
Implementation requires training and support
To optimize the use of this heralded digital revolution, it will be necessary to ensure that accountants understand how the applications provided work and how they process data. They will also need to be able to modify the programming or calibration of AI technologies to correct recurring errors and tailor operations to the company’s activities. Specific training will therefore need to be offered on a regular basis; the accounting profession will be transformed as a result.
However, companies that opt for increased use of AI won’t be able to do without their accounting departments altogether. They may, however, hope to reduce the number of accounting clerks they employ. The accountants who remain will be able to offer more advice to management, and will focus on exceptions that could not be handled by AI systems, as well as on its optimization.
High set-up costs
Implementing these new technologies will undoubtedly involve significant costs for a company. As with any investment project, a preliminary analysis will be required to assess the costs versus the expected benefits. The Government of Canada has already put in place a grant entitled « Improving Your Company’s Technologies » grant (part of the PCAN program) of up to $15,000.. This grant is intended to offset the cost of consulting a digital consultant to draw up a digital plan. Such a plan could identify solutions that you could implement in your company today, particularly in your accounting department.
Your Amyot Gélinas chartered accountants will be on hand to guide you through the transformation processes arising from digital advances. In particular, they can help you determine your eligibility for the PCAN program. Don’t hesitate to contact them to discuss your needs.
An article by Marc-André Pilon, CPA auditor,
co-written with the help of the Chat GPT artificial intelligence system.
For further reading :
