Last month, I discussed the not-so-new topic of cloud accounting and how it’s helping solve cybersecurity and retention challenges. Now, let’s examine how artificial intelligence (AI) is further transforming the accounting profession, particularly in staffing, retention, and cybersecurity.
In this post, we'll discuss:
AI accounting has emerged as a game-changer. It significantly increases speed and efficiency (with near-perfect accuracy) across various aspects of the profession.
From data collection to research, its impact is undeniable.
While we can’t say, “one AI power user is worth ten AI novices” or quantify it in terms of employee equivalence, there’s no question that those who use AI at work are achieving more, and accounting leaders are taking notice.
According to a study by Amazon, “employers are willing to offer up to a 47% increase in base salary for employees proficient in AI.” This substantial premium reflects the value AI-savvy workers bring to the table. And employers aren’t just offering higher salaries; they’re entrusting those employees with more responsibilities—right off the bat. Instead of being bogged down with mundane, repetitive tasks, AI-proficient staff are tackling complex projects.
Now—the question arises—could hiring an AI-savvy staff member be your firm’s competitive differentiator? Possibly.
When it comes to hiring, offering more money for an AI-savvy staff member will make your firm stand out to prospective employees.
When it comes to clients, in a profession where efficiency and accuracy are paramount, having a team member who’s effectively using AI tools sets your firm apart.
It’s important to note that not all businesses are taking the same approach when addressing the accounting talent shortage.
Instead of fighting to get talent in the dried-up talent pool, some businesses are using existing infrastructure to effectively ‘multiply’ employees:
AI is a versatile solution for accounting. Whether you’re using it to attract top talent by offering premium starting salaries or to offset dwindling staff numbers, one thing’s clear: AI is becoming the accounting profession’s staffing shortage solution.
The phrase “AI won’t replace your job; people who know how to use AI will” has become a sort of mantra in discussions about the future of work. But what does this really mean for accounting professionals?
While there’s no evidence that human CPAs are being replaced with robotic counterparts quite yet, we are witnessing a more nuanced transformation. Specific subsets of a CPA’s job are being augmented or replaced by robotic process automation (RPA) and AI.
To understand this shift, let’s break down a typical accounting job into tasks:
Where does that leave human CPA? Far from being obsolete, accountants find themselves with more time and cognitive bandwidth to focus on what truly matters: making informed decisions and crafting creative solutions for clients. The accountant's role is evolving from a number-cruncher to a strategic advisor, leveraging AI accounting insights to provide higher-value services to clients.
This evolution underscores the importance of embracing accounting AI as a tool rather than viewing it as a threat. By doing so, accountants can enhance their capabilities, offer more sophisticated services, and ultimately secure their place in an AI-augmented future.
While AI and automation offer significant efficiency gains and opportunities for innovation in accounting processes, they also introduce new risks.
One of the primary concerns is data security. The information input into AI tools is typically stored in a database, making it crucial to avoid entering any proprietary or personal information that could be compromised.
To help navigate these challenges, here are some best practices for using AI tools securely in your accounting practice:
Addressing these questions will help eliminate uncertainty and ensure that your firm’s use of AI meets its security standards and client confidentiality requirements.
As Emily Frels wrote in her post on the tech taking over accounting in 2024, AI “will continue to shape the profession.”
It’s time to lean into what generative AI tools can do for you, your career and your future.
Ready to try it out for yourself? Check out Spark, Rightworks’ purpose-built AI tool for accounting firms.
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