Recent advancements in artificial intelligence have fueled media speculation causing people to wonder if AI could eventually replace human workers. Although certain industries are becoming more automated, human interaction and oversight is still needed to program, oversee, and run AI-based machine learning systems. Certain fundamental human behaviors cannot be replicated with machines. However, AI automation can make our lives easier in the workplace by increasing productivity and efficiency.
Automation can be a useful tool in the accounting industry as it can help eliminate or minimize tedious tasks. A survey found that 81% of accountants believe AI technology would save them at least ten hours of work per week – this adds up to over 52 work days per year. Furthermore, automation in the accounting industry is expected to grow over 30% annually in the next five years. Leveraging the power of accounting automation can make your team more efficient, allowing them to shift focus from manual to strategic tasks.
The Current State of Accounting
Many people view accounting as an antiquated industry filled with number crunching, balance sheets, and monotonous daily tasks. As an accountant you could be pulling data from different systems one minute and chasing down receipts the next. Although accounting can be challenging, it’s a necessary part of doing business.
Let’s say you’re the accountant for a local restaurant chain. It’s the end of the month and you’re reviewing credit card expenses. One by one, you start going through the transactions and coding each expense in the accounting ledger – cleaning supplies, food items, employee uniforms, etc. Then you begin reviewing credit card transactions and reconciling them to paper receipts. All the while, you’re having to access various banking and credit card websites to manually pull that data into the accounting software. Some receipts don’t match or aren’t properly itemized, so you begin calling Joe the Restaurant Manager. He says he has to search his office, but can’t find the receipt you’re looking for. You’re attempting to manually reconcile the accounting ledger but things aren’t adding up. Multiple receipts are missing, some employees aren’t answering their phones, and you didn’t even get lunch.
If this sounds like the typical day in the life of your accountant, you aren’t alone. The good news is accounting automation software like Docyt can make an accountant’s life easier.
Focus on Your Business, Not on Your Bookkeeping
Many elements of your business have advanced well into the twenty-first century, so why are you still treating accounting like a relic of the past? Accounting automation tools, such as Docyt, can help save valuable time for bookkeepers and accountants. Let’s revisit our last example but this time incorporating automation.
Once again, you’re the bookkeeper of a local restaurant chain, but this time you have Docyt. Since you already performed an initial setup providing Docyt with bank account login credentials, Docyt has already pulled all transaction data from your bank and credit card accounts. Next, Docyt will code each of your transactions and match them to their respective invoice, receipt, or other supporting document. Since you’ve been using Docyt for the last few months, the AI technology has learned your company’s spending habits and transaction categorization and codes your transactions automatically. Each of your transactions are automatically posted as journal entries in the accounting ledger. All the while, the profit and loss (P&L) and balance sheets are being continually updated. No more asking Joe the Manager for a receipt, as he’s already uploaded it to Docyt. You feel relieved as Docyt has saved you over 3 hours of work today.
In summary, Docyt’s accounting automation software retrieves data and organizes it into actionable workflows. It collects information, categorizes it, and provides continuous updating and reconciliation of your accounting software. As a result, an accountant’s job now becomes significantly easier with Docyt.
How Accountants and Bookkeepers are Using Automation
Advancements in automation are helping tech-forward accountants and bookkeepers automate more of their daily work. Docyt helps them shift the focus away from manual, repetitive tasks so they can focus on more strategic work.
Leveraging the power of automation will help accountants and bookkeepers become more efficient. If you’re looking to automate your bookkeeping tasks – you’ll need the right tool to help you every step of the way.
To learn how Docyt can automate your accounting, set up a free consultation with us today.