Artificial intelligence (AI) is the hot topic of the moment… it’s on everyone’s lips and seems set to transform many fields: accounting firms will be no exception. What will be the impact of this technological advance on the services offered by accounting firms to their clients?
Artificial intelligence in accounting firms
These new technologies offer incredible possibilities for improving the efficiency and accuracy of the services offered by accounting firms. Nevertheless, it remains unlikely that AI will ever be able to fully replace the panoply of personalized services and advice offered by accountants and tax specialists. It must be recognized, however, that this technology can be of great use on a number of levels.
By harnessing the benefits of AI and interconnected applications, accounting firms can imagine rethinking certain processes and bringing new perspectives to clients. Virtually every service offered by accounting firms could benefit from these advantages, including financial auditing services and tax mandates.
Collaborative analyses between the accountant and AI
Auditing financial statements is a demanding and complex task, requiring careful analysis of a company’s financial data and information systems. AI could be used to accompany the CPA and automate many tasks, such as extracting and classifying financial data, enabling auditors to focus on higher value-added tasks. Machine learning algorithms could analyze large historical or industry datasets to detect patterns, trends and anomalies, helping to identify potential risks and errors. AI could also generate a list of recommended audit samples based on data analysis. Auditors could then review these recommendations and decide whether to use or adjust them. In short, AI would enable auditors to deliver more accurate results and offer higher quality assurance to customers.
Optimizing customer taxation
Canadian taxation is also a complex and constantly changing field due to regular legislative changes. AI could help accounting firms navigate this environment by providing timely and accurate tax reminders. AI software could analyze Canadian tax laws, regulations and case law to help interpret current legislation, identify tax planning opportunities and predict (in terms of probability) how the courts would decide a particular tax issue. AI could also automate the process of preparing tax returns, reducing the time and errors associated with this task.
Additional safety and control tool
Data security is a major concern for accounting firms. AI could help strengthen security and ensure regulatory compliance. AI-based systems could detect anomalies and suspicious behavior in financial transactions, flagging potential fraud or error. In addition, AI would help accounting firms comply with regulations such as the Personal Information Protection and Electronic Documents Act by identifying and protecting sensitive customer information. The key to such a tool, however, will remain that it remains framed and supervised by humans, i.e. CPAs who are aware of the issues at stake.
A 24-hour assistant
AI would also open up new opportunities for accounting firms to interact with customers. AI-based virtual assistants (Chatbots) could answer common customer questions, provide information on tax returns, check whether tax information held by different levels of government matches customer data, compare accounting procedures between different customers so as to make personalized recommendations to improve systems, track the status of their billing in real time. This would enable firms to provide fast and efficient support to their customers, even outside office hours. In addition, AI could analyze customer data and provide recommendations to optimize their financial situation.
For today, or for tomorrow?
Although this projection may seem futuristic or far-fetched, advances are being made rapidly in this field and are already being quietly integrated into our everyday tools. The advent of paperless environments is a case in point, whereas just ten years ago this seemed unthinkable to most. Change can be rapid…
Artificial intelligence is opening up new opportunities for accounting firms in the fields of financial statement auditing and Canadian taxation. By leveraging AI, accountants and tax professionals will be able to improve their operational efficiency, deliver more accurate and higher-quality results, and offer more in-depth tax advice to their clients.
It will remain essential to combine human expertise with technological advantages to achieve the best results. AI is a powerful tool that can strengthen the accounting profession and offer new perspectives for the future, but it will not replace the skill, judgment and expertise of your CPAs. Your CPAs will remain partners of choice for your business, they will simply have to evolve to best support you and adequately frame these new tools.
An article by Marc-André Pilon, CPA auditor,
co-written with the help of the Chat GPT artificial intelligence system.
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