Leading the Way with AI in Accounting: Do's and Don'ts for Success

Are you feeling the pressure to keep up with the latest in tech, especially AI, within the accounting sector?

I get it—it can be a lot to think about. You should definitely be feeling some pressure to automate your operations.

AI technologies, like ChatGPT, are revolutionizing our work, speeding up processes, and enabling us to deliver impressive results to our clients.

But adopting AI isn’t just about staying trendy with technology. It marks a significant shift in how we handle our everyday accounting tasks.

Let me share a few numbers that really put the impact of AI into perspective, per Karbon HQ:

• A striking 71% of accounting professionals predict that AI will dramatically transform our industry.
• Research from Mordor Intelligence projects that the market for AI in accounting will grow by 30% annually through 2027.
• Gartner reports that 80% of CFOs plan to ramp up their investments in AI technologies in the next two years.

Why am I sharing these stats? Because they highlight how critical it is for us to integrate AI—not only to enhance how we work but to remain competitive.

However, integrating AI is not without its hurdles. There's a lot of misinformation out there—some fear AI could replace human accountants, or worry it’s too complex to be worthwhile.

The truth? AI is set to enhance our roles, not replace us. It's designed to augment our expertise, not to make it obsolete. It’s just another resource to use to make our lives easier.

In fact, 66% of accounting professionals say that not adopting AI could actually devalue a firm. This underscores not just the advantages but the critical need to integrate AI to stay competitive.

So, how can you begin integrating AI effectively in your firm? How can you ensure that AI is a tool for success and not a stumbling block?

Let’s delve into some practical do's and don'ts that can help you leverage AI to its fullest potential, enhancing both your efficiency and your relationships with clients.

Do: Automate Routine Communications

In the dynamic world of accounting, efficiency is key to maintaining client satisfaction and managing a growing workload. Automating routine communications is a strategic move that significantly boosts operational efficiency.

By diversifying your automated communication strategies, you not only free up valuable resources but also create a more connected and responsive client service framework. This proactive approach ensures that your firm remains competitive and client-centric in a rapidly evolving digital landscape.

Consider all the touchpoints where routine interactions occur and how automation can streamline these processes:

• Email Automation: Implement email automation tools to send out timely reminders for tax deadlines, appointment confirmations, and newsletters with important financial updates. This keeps your clients well-informed and engaged without manual effort for each email.
• SMS Alerts: Utilize SMS services to send quick updates or reminders directly to your clients' phones. This is particularly effective for urgent communications, such as deadline reminders or confirmation of received documents.
• Social Media Responses: Deploy AI tools that can respond to basic inquiries on your social media platforms. This helps maintain an active and responsive presence online, which is crucial for client engagement and attracting new business.
• Automated Reporting: Use software that automatically generates and sends reports to clients on a regular basis, such as monthly financial summaries or investment updates. This ensures clients regularly receive valuable insights about their financial status, enhancing transparency and trust.
• Voice-Activated Assistance: Consider integrating voice-activated AI like Alexa for Business or Google Assistant to allow clients to get quick answers about your services through voice commands. This can be particularly useful for clients who prefer not using traditional online methods.

How to Implement Effectively:

• Choose the Right Tools: Select automation tools that integrate seamlessly with your existing systems and are reputable for reliability and security.
• Personalize the Automation: Customize the communications to maintain a personal touch. Even automated messages can be tailored to reflect your firm’s voice and the specific needs of your clients.
• Monitor and Optimize: Regularly review the performance of your automated systems. Look at client feedback and interaction rates to continuously improve the automation strategy.

In an insightful episode of "Building the Premier Accounting Firm," Futurist Daniel Burrus challenges the myth that AI will replace humans. He explains that the true shift is toward humans using AI to enhance their capabilities, especially in fields like accounting. Daniel highlights how AI can dramatically improve efficiency and accuracy, but its most significant role may be in deepening and securing client relationships through increased reliability and personalized service.

Daniel underscores that while our world is increasingly driven by technology, the essence of the future lies in human relationships anchored in trust. For accounting firms, integrating AI not only streamlines operations but also builds stronger, more loyal client connections.

Tune in to hear Daniel discuss how AI is reshaping client engagement in accounting.

Do: Utilize AI for Financial Reporting

Let’s face it, financial reporting can be a drag—not just time-consuming but also ripe for mistakes if you’re entering data by hand. That’s where AI comes in.

It automates the grunt work, pulling numbers from various sources and lining them all up neatly for you. This means less manual entry and more time for you to focus on the parts of your job that really need your human touch, like analysis and strategic decisions.

How to Make It Work for You:

• Automate Data Gathering: Get your AI setup to automatically fetch financial data from places like bank accounts and transaction tools. It’s like having a diligent assistant who makes sure all the numbers are ready and waiting for you, exactly when you need them.
• Keep It Legal: Stay Current with Standards: Make sure your AI system knows the accounting rules. Just like any tool, you need to keep it sharp—or in this case, updated. Regular tweaks to the AI’s settings will help you adhere to the latest accounting standards without breaking a sweat.
• Be Ready for Change: Financial regulations aren’t set in stone; they evolve. Having an AI system that can adapt to new rules with simple updates from your software provider means you’re always in compliance, effortlessly.
• Train Your Team: Know Your Tools: It’s crucial that your team knows how to use the AI tools effectively. From inputting data to interpreting what comes out, understanding the ins and outs of your AI setup can turn good results into great ones.

Don't: Overlook the Need for Human Oversight

While using AI to generate financial reports speeds things up and boosts efficiency, it's essential to remember the irreplaceable value of human insight. Accountants understand the nuances and complexities that AI might miss, ensuring the accuracy and reliability of your financial data. This human touch is key to maintaining trust with your clients and stakeholders.

Here are some actionable steps I strongly recommend for implementation:

• Set Up a Double-Check System: Make a rule that every financial report made by AI needs to be checked by at least two experienced accountants. This helps catch mistakes and ensures the report is correct.
• Keep Review Rules Up-to-Date: As rules and standards in finance change, update how you review reports. This keeps your team ready to handle the latest requirements.
• Check the AI Regularly: Besides regular checks, set times to thoroughly check the AI system to make sure it’s working right. This helps find any issues that need fixing.
• Promote Responsibility: Create a workplace where everyone feels responsible for making sure reports are accurate. Encouraging team members to talk about any concerns with the AI system can lead to better reports.

By taking these steps, your firm will not only use the latest technology effectively but also keep up the high-quality, reliable service that your clients expect.

Don't: Neglect Professional Development in Light of AI Adoption

As AI becomes a bigger part of the financial reporting world, it’s tempting to think that technology can handle everything. But there’s a catch: AI evolves rapidly, and the rules it follows (like those in accounting) can change just as quickly.

That’s why it’s crucial for your team to stay sharp and informed. Continuous learning ensures that your staff not only keeps pace with AI advancements but also understands the changing landscape of accounting practices. This combination is key to making the most of AI tools and keeping your team competitive in the marketplace.

Actionable Steps for Effective Professional Development:

• Regular Training Sessions: Set up regular training for your team on the latest AI tools and updates in the accounting field. These could be monthly webinars, workshops, or even short courses. The goal is to keep everyone up-to-date, not just on how to use the AI but why it works the way it does.
• Invest in Certifications and Courses: Encourage your team to pursue certifications in AI applications in accounting. Many professional organizations offer courses that can boost both their knowledge and their resumes. This not only enhances their skills but also boosts morale and loyalty.
• Create a Learning Culture: Foster an environment where ongoing education is valued and rewarded. Maybe set up a learning fund that helps cover part of the costs for courses or give time off for study. When learning is part of the job, staying ahead of the curve becomes a shared goal.
• Leverage Industry Experts: Bring in experts for in-house training sessions or Q&A sessions. These experts can provide insights into how AI is changing the industry and offer practical advice on integrating new technologies into your workflows.
• Encourage Knowledge Sharing: Set up regular meetings where team members can share what they’ve learned from their training and how it can be applied to their work. This not only reinforces new knowledge but also encourages collaboration and innovation.

By embracing the right practices and avoiding common pitfalls, accounting firms can successfully integrate AI into their operations, enhancing their services while upholding the rigorous standards demanded in the financial sector.

AI offers formidable capabilities, but the real key to success lies in how strategically we use this technology, complemented by ongoing professional expertise.

As we navigate this era of digital accounting, it's crucial to ask ourselves:

• How are we adapting to the continuous evolution of AI?
• Are we investing adequately in our team’s education to keep up with technological advances?
• How can we better harness AI to not only improve efficiency but also to provide exceptional service?

To dive deeper into how AI is reshaping the accounting landscape and how you can be at the forefront of this change, I invite you to listen to my podcast episode, "Rewind: Becoming the Disruptive Accountant w/ Futurist Daniel Burrus".

This discussion will not only enlighten you about the future trends in accounting but also inspire you to think differently about your role in this tech-driven world.

As you explore the vast potential of AI in the accounting sector, it's essential to remember that running an accounting business demands a commitment to lifelong learning. And when it comes to acquiring accounting expertise, there’s no better resource than Universal Accounting Center.

At Universal Accounting, you embark on the journey of business ownership supported, not isolated. Their team of experienced coaches will guide you step-by-step through the intricacies of starting and running your own accounting firm.

To jumpstart your journey towards owning a thriving accounting business, you can contact Universal Accounting at 877-801-8080.

Alternatively, you can schedule a consultation at a time that suits you best HERE. Embrace the opportunity to grow with a partner who ensures you’re in business for yourself, but not by yourself.

Additionally, I encourage you to visit the resources page on our website, where you can access a wealth of information and tools designed to keep you updated and skilled in the ever-evolving accounting arena.

About Roger Knecht

Roger Knecht is president of Universal Accounting Center, a post-secondary school for accounting professionals. With over 20 years of marketing, sales, HR & operations experience, Roger Knecht has helped thousands of business owners work ON their businesses to increase revenue, improve profits and build value. His strong work ethic and collaborative style delivers reliable, high-quality results for business owners.

Roger’s podcast, Building the Premier Accounting Firm, keeps accounting professionals on the cutting edge of the industry offering quality bookkeeping, accounting, and tax services. He hosts discussions with some of the accounting world’s best minds and shares actionable insights for firms.

Roger is the author of “Your Strategic Accountant” and “Your Profit & Growth Expert” , each written to help business owners understand what they can expect from the accounting profession.

Universal Accounting provides accounting professionals with the training, certifications, coaching, and support they need to become Profit and Growth Experts for their clients.