Skip to main content

Will AI Technology replace Accountants?

In recent years technology has evolved at a much rapid pace, so fast that it has almost gained a life of it's own. Technology has been making continuous advancements in each & every field including our very own Profession of Accounting. During its journey, accounting has seen many transformations as a result of the changing business world.



Stating a small example: Shift from pen & paper to the digital spreadsheets even for the purpose of bookkeeping shows how the evolution of technology in the modern era leads to the digitization of the entire accounting process.

With the influence of this digitization & automation, the need to 'get a hold'; on these emerging technologies has become a crucial point. This will be key to professional success for accountants. Two of these technologies: Artificial Intelligence (AI) and Blockchain have the potential to reshape the accounting profession as we know it. 

In basic terms, Artificial Intelligence (AI) technology is intelligent machines that are able to complete repetitive, monotonous tasks obviously with greater accuracy & less time as compared to humans. It can self learn data to improve its performance. You might have heard about AI in recent times but it came into existence way back that it is already capable enough to handle many accounting functions, such as tax preparation, payroll, and audits. Also, nowadays the accounting softwares use the capabilities of AI to automate the tasks such as data entry, account payables etc.

Now since all the major accounting related work is being accomplished with the help of AI, it leaves us with one career impacting question - Does this world still need Accountants?.Answer is definitely a YES.

There always will be a need for the human element and human intelligence at the other end of AI technology. In fact, according to a research, AI is set to create more jobs than it will replace, leaving workers, including accountants with options. The accountants need to adapt new methods of operation and accept AI with a smiling face. The field of accounting and finance are not just about numbers and algorithms; we need someone to analyze & interpret the AI data; hence, the human intellect cannot be overshadowed in any way.

Now coming to blockchain, since last couple of years, it's getting popular as a mean of keeping the records. Originally invented for crypto currency transaction but the attributes of immutable records,  time stamp, audit trail etc. is making it as a viable and effective alternate to reflect transparency in the business operations especially in record keeping. In the accounting profession, blockchain could have  interesting implications for auditors.

Due to blockchain technology's automated, real-time verification  and enhanced security, auditors might not have to spend nearly as much time on verifications, confirmation, and analyses of specific accounts. Blockchain could make audits significantly faster and less expensive to perform. Both the role and skill sets of accounting auditors may change as new blockchain-based techniques and procedures emerge.

So there's a very common saying in English- Don't resist change, embrace it. The only thing constant in the world and that is 'change'.

Rather than worrying about these technological changes, we should embrace it as a powerful solution to enhance customer services where accountant can use all their training & experience to do their best.

Although these changes might be difficult to adapt but as we know the  benefits are absolutely worth the time invested in sourcing the best  new software. Embracing these will revolutionize your own personality built.  Staying up to date with trends & continuing to adapt & improve your  knowledge over these aspects will definitely put you at forefront.
You can find more articles on at https://thetaxsupport.com/blog
You can find tutorial videos on at https://www.youtube.com/c/vipinsanger
Labels:
Location: New Delhi, Delhi, India

Comments

Post a Comment

Popular posts from this blog

Small Businesses should use mobile apps for filing GST - 9 reasons Why..

GST and Taxation for MSMEs: GST accounting applications have helped in the transition of many small businesses and entrepreneurs in an easier and cost-effective manner to a new indirect tax system and also making them organised in terms of their bookkeeping. GST and Taxation for MSMEs: Since the launch of July 2017, Goods & Service Tax (GST) has been the most important factor for government and businesses with many changes being introduced recently. GST for Indian economy has been an evolving process and has brought advantages for small businesses in many ways by reducing complexities of inter-state taxation, digitization of MSMEs and an online portal for registration, filing and compliance purpose to make indirect taxation convenient and simple in India. There are about 13 million GST payers, out of which, 6-7 million are B2B, and 5-6 million are B2C. India’s MSME sector contributes about 8 per cent of India’s GDP, 45 per cent of the manufacturing output, 40 per cent of the ...
Post a Comment
Read more

TDS cut to benefit investors in equity mutual fund dividend plans

Investors in dividend plans of equity mutual funds will benefit from the 25% cut in the rates for tax deducted at source (TDS) announced by finance minister Nirmala Sitharaman on 13th May 2020. Tax experts said mutual funds are currently required to deduct a 10% TDS on dividends paid to unit holders. For the remainder of FY 2021 this will come down to 7.5%. The lower rates will come into effect from May 14 and include deductions on dividend, interest, professional fees and brokerage. Investors who route money through alternative investment funds (AIFs), real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), too would get the benefit of the lower TDS rate, say experts. REITs and InvITs are taxed in the same manner as debt instruments. The government had made dividends taxable in the hands of investors in the budget for FY 2021. “The unit holders will get the benefit of reduction of TDS on the dividend declared by mutual funds. This benef...
Post a Comment
Read more

TDS rate cut to leave professionals, equity investors with cash

The reduction in TDS/TCS is expected to boost cash flows by ~50,000 crore, the finance minister said on Wednesday while announcing the move as part of an economic package. The government’s move to reduce the rates of tax deduction at source (TDS) and tax collection at source (TCS) by 25% will benefit investors and professionals by putting more cash in their hands. While this doesn’t bring down the tax liability of taxpayers, it leaves more money with them during the course of the financial year. Individuals will still have to pay their tax liability -- every quarter, or annually. The reduction in TDS/TCS is expected to boost cash flows by ~50,000 crore, the finance minister said on 13th May, 2020 while announcing the move as part of an economic package aimed at reviving an economy roiled by the Covid-19 pandemic and the lockdown enforced to combat it. Usually, the payee deducts TDS or TCS on behalf of the receiver and deposits it with the government. TDS and TCS are met...
Post a Comment
Read more