From basic bookkeeping to advanced analytics, it has become very evident that AI technology is changing the accounting profession holistically. As a result, entry-level accountants are left to wonder how this transformative technology will affect their futures. While AI in accounting has many benefits, there are also some hiccups for both experienced and new accountants alike. This article takes a closer look at AI’s impact on entry-level accountants, explains how Docyt’s AI accounting platform has been making its mark among accounting firms, and shares how it can benefit them.
Let’s begin by answering the common question often asked by entry-level accountants and most financial professionals: “How will AI impact accounting?”
Advantages of AI for Entry-Level Accountants
Efficiency and Accuracy
AI-powered accounting software standardizes your bookkeeping process across all your clients, providing you with an audit-ready output and automating repetitive activities like data entry, ledger reconciliation, expense management, and invoice processing. Automating back-office bookkeeping tasks improves data accuracy and reduces the risks of typical errors made by human input, saving a significant amount of valuable time for both the accountant and the client.
Real-time Insights
AI generates real-time financial insights, which can help accountants find and suggest to their clients ways to make smarter, data-driven decisions.
Developing Skills
AI-powered automation lessens the burden for entry-level accountants, allowing the accountant to engage with and focus on tasks that require human judgment. This shift allows for better skill development in areas like critical thinking and complex problem-solving. New accountants will also have more time to engage with and learn from veteran accountants. These invaluable opportunities lead to the development of skills that only come from experience – not through formal education.
Scalability
AI solutions are designed to grow with your clients’ businesses. They equip accountants to efficiently handle the needs of existing clients while confidently onboarding new ones. This scalability feature ensures that even if the business dynamics of your firm change, AI will be there to efficiently manage the increased volume of data, providing a sense of security for entry-level accountants.
Disadvantages of AI to Entry-Level Accountants
Fear of Job Displacement
It’s natural for junior accountants to have concerns about AI-driven automation replacing basic-level bookkeeping tasks and potentially leading to fewer employment opportunities at accounting firms. However, as Fortune points out in a March 2024 article, the latest key economic statistics, like wage-earning reports, tell a very different story. In reality, these statistics reflect a current shortage of about 340,000 accountants, indicating that AI is more likely to augment their roles rather than replace them.
Dependence on AI
Overdependence on AI might undermine the ability to hone basic accounting skills that come from repetitive exposure to tasks now automated. That said, it is of the utmost importance that entry-level accountants are aware of and highly competent in core accounting principles for successful outcomes with their clients.
Training and Adaptation
Adapting to new technology requires constant learning and training to stay current and maintain a competitive edge. This can seem daunting and time-consuming to entry-level accountants who are learning the basics and figuring out how to grow within the organizati
How Docyt AI Supports Entry-Level Accountants
Docyt AI stands out with unique features that standardize your accounting processes, increase efficiency, and improve profitability. Its modern tech stack ensures that automated workflows come together seamlessly, making it possible to deliver real-time accounting to your clients.
Docyt AI key benefits for accounting firms:
Fully automated workflows: Docyt AI takes a 360-degree approach to automation and can automate your entire accounting workflow, including ledger reconciliation. Alternatively, you can activate only select modules based on your clients’ needs.
Real-time reporting: With InsightFlow, you always have up-to-date financial reports on a single dashboard that can be tailored to each client. You can share a select dashboard view to go over numbers with your clients.
Simplified month-end: With ClosingFlow, Docyt AI continuously categorizes transactions, matches them with supporting documents, and syncs them into your accounting software. With AI-enhanced software, you can resolve uncategorized transactions or missing receipts by chatting directly with your clients.
Customer Experience: Docyt is loaded with user-friendly features designed for accounting firms that are sure to please your clients, like the ability to provide a branded experience, chat with clients, and control staff access to workflows, customization of modules create tailor-made financial and non-financial reporting, customizable dashboard, provide an inbox for secure document exchange and management, offer an expense app for expense management that rivals any other, and so much more.
Security: Docyt is SOC 2 certified, uses end-to-end encryption, and adheres to the highest standards of accounting and internet exchange practices. These robust security measures are in place to protect your data and ensure your peace of mind.
Scalable solutions: As the firm or clients’ businesses grow, Docyt will grow with them, so accountants can meet increasing work pressures efficiently and easily.
Skill enhancement: With Docyt handling mundane work, new accountants can utilize the found time for personal skill development. This opens up avenues for career growth, helping them gain working knowledge and experience in areas like analysis and forward strategic planning.
Incorporating AI-powered software tools like Docyt into accounting practices has considerably impacted the industry, leaving accounting firms and CPAs who adopt the technology ahead of their competition. There is so much to be gained by both veteran accountants and entry-level accountants. Each advancement of AI technology may come with learning curves, require some ongoing continuing education, and may even ruffle a few anxious feathers by creating a sense of competition for entry-level accountants, but the rewards in terms of efficiency, accuracy, productivity, and skill enhancement, are worth the challenge.
