Blog: AI will Change Current Accounting World and Cut more Labor Works
Are you just suffering through your annual tax report? In April, we are all struggling with annual tax report. Also, April is busy season for all taxation accountants and IRS government. Right now, there are a lot of tax preparation software to help people or small businesses to handle their annual tax reports, but there are still a lot of limitations about handling changing policies, not having enough types of tax report forms in their database, and some specific complex situations.
In the future, with the implementation of AI and machine learning, most of current problems will be able change. Right now, we are using machine learning to teach machines to learn things from outside and detecting changes from their environments. With the process of teaching machines to learn by themselves and making reactions by themselves, in the future, once this kind of technique is mature enough, machines or systems should be able to detect and handle changes by themselves also. With this improvement, those existing tax preparation software will be able to detect changes once they people inserted and software will be able to react to the latest changes by themselves. Might still need some people to supervise and test reactions to ensure everything is accurate. By implementing AI to tax preparation software, system is able to prepare people’s tax return form more accurately and more information will be covered in the system. By this improvement, more and more customers will switch to tax preparation software instead of attending tax preparation office or finding a CPA accountant. Also, since the system is making reactions by itself, less developers will be needed since they don’t need to re-develop some functions in the system adding new features. They only need to handle the maintenance part to ensure some emergency related to changes. Also, with development time reducing, the time and cost for releasing a software will decrease as well which highly improved the efficiency of development and release process.
Besides reacting to policies changes, AI is also able to handle some complex cases by using some robots to do customer services. Since machines are able to teach and learn by themselves, they should be able to handle most of the cases by handling big data from all related resources. If the case is too complicated, it would reach out to a human customer services or human CPA accountant and solve specific situation. Also, although AI robots are able to do most of the customer services work, there still need to have human supervisors to ensure accuracy and maintenance. But since most of the customer service switch from human to robot, much labor work gets highly saved.
Besides taxation, there are still many work in accounting world, like yearly end audit work and financial reports. These two are very important because these reports show the company’s operation in previous year and will influence the company’s operation in the following year. Right now, every company is spending a lot of time and cost on annual reports and audit reports. For audits reports, those mainly depends on data from financial reports and auditors make final opinions after reviewing all repots. If we are able to implement AI technique to calculated and analyze these data and generate reports based on previous analysis, we can save more auditors’ work and also companies’ time and cost.
With AI’s tech help, system should be able to process all the data on financial reports once the data is ready. Since system did most of analyzing work and generate a final report for auditor, it takes auditors less time to go through all files and detail descriptions. Also, system is also able to generate opinions based on all details and rules by implementation of AI. Probably also need supervisors to double check and review all works did by robots. But with AI’s implementation, much time and cost are saved and also released a lot labor work to work on other more important things.