The Influence of AI on Accounting

While the business world adapts to artificial intelligence (AI), many aspects of accounting will transform significantly in three ways. First, AI affects large accounting firms. Second, AI affects small accounting firms. Third, AI affects accounting data accuracy.??????

Because large firms process large amounts of data, AI can streamline predictive analysis, audit integrity, and tax compliance. By identifying past data as potential future trends, predictive analysis can be carried out (Mulyadi, 2023). AI improves audit integrity by spotting fraud earlier than the human eye. AI has an impact on tax compliance by helping tax preparers with tax law and research.

In addition, AI affects small accounting firms by automating bookkeeping, client communication, and tax information access. Since AI relies heavily on past data to inform decisions it can easily automate bookkeeping (Mulyadi, 2023). Artificial intelligence can help tax preparers respond to more complex queries by simplifying frequently asked tax questions. Like large companies, AI helps small businesses find the right tax codes quickly.

AI is an evolving technology that affects data accuracy and security in accounting. AI can increase accuracy by identifying inconsistencies in the data as it gains more knowledge about it. Due to the ability of AI to constantly look for unusual activity, data security is impacted. However, since AI is a developing technology, it can be attacked by hackers.

AI allows firms all around to complete their necessary tasks using a new approach. AI in accounting can revolutionize financial management for large firms, small firms, and data accuracy. This impact will influence accounting practices as the business industry adopts AI.

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References

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Mulyadi, M. (2023, April 10). AI Will Attract More Students to Accounting. Retrieved from The Wall Street Journal: https://www.wsj.com/articles/ai-will-attract-more-students-to-accounting-data-business-recommendations-490a8147