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Artificial Intelligence: Adapting or Threatening?

In recent years, the rise of artificial intelligence (AI) has sparked debates and concerns across various industries,
including the field of certified public accountancy (CPA). Many professionals in the accounting world are grappling with the question: Is AI a threat to CPAs, or should humans adapt and embrace AI as a powerful tool?

The advent of AI technologies has undoubtedly brought significant advancements and capabilities that were once unimaginable. Automated systems and machine learning algorithms are now capable of performing
complex tasks, data analysis, and decision-making with remarkable speed and precision. This has led to concerns among some CPAs about the potential displacement of human accountants by AI systems.

While the capabilities of AI are impressive, it is crucial to recognize that AI is not meant to replace human accountants entirely. Instead, there is a growing recognition of the potential for CPAs to adapt and harness AI to enhance their work and deliver more value to their clients. By leveraging AI tools and technologies, CPAs can automate repetitive and time-consuming tasks, improve accuracy and efficiency, and focus on higher-level advisory and strategic activities.

Rather than viewing AI as a threat, CPAs should consider AI and humans as partners in this industry. By combining the strengths of AI and CPAs, a powerful partnership can be forged, leading to improved outcomes for clients and the accounting profession as a whole. In this article, we will delve deeper into the opportunities presented by AI for
accountants and explore specific examples of how AI is being used in accountancy practice. We will also discuss how CPAs could improve in the age of AI, especially appreciating the importance of adaptability and continuous
learning in order to thrive in this new landscape.

The Opportunity for CPAs to Improve and Grow

 Rather than rendering accountants obsolete, AI provides an opportunity for CPAs to enhance their skills and expertise. By working alongside AI systems, accountants can develop a deeper understanding of

AI algorithms, data analysis techniques, and machine learning principles. This knowledge empowers CPAs to become more effective in interpreting and utilizing the insights generated by AI, ultimately improving their ability to provide strategic advice and guidance to clients.

Furthermore, the integration of AI enables CPAs to expand their service offerings. With AI automating routine tasks,
accountants can focus on higher-level activities such as financial analysis, risk assessment, and strategic planning. This shift allows CPAs to become trusted advisors who provide valuable insights, foresight, and guidance to
clients in making informed business decisions.

AI also brings substantial advantages to the table when it comes to efficiency, accuracy, and scalability. Machines equipped with AI algorithms can process vast amounts of data quickly and accurately, reducing the likelihood of human errors that can occur due to fatigue or oversight. This increased accuracy instills confidence in the financial data and reports produced by CPAs, enhancing the credibility of their work.

Moreover, AI enables CPAs to handle larger volumes of data and complex analyses that would be otherwise challenging or time-consuming for humans alone. This scalability allows accounting firms to handle larger client portfolios, expand their services, and operate more efficiently.

Example of how AI can be used in CPA practices https://www.botkeeper.com/blog/tech-vs.-humans-how-to-divvy-up-the-accounting-work

1. AUDITING — SOME FOR YOU AND SOME FOR THE ROBOTS

AUDITING STILL NEEDS THE HUMAN TOUCH.

Auditing is one great example of a financial process that benefits from a combination of automation
and the human touch. Machine learning allows auditors to pinpoint exceptions easily, and the longer an auditor works with a system, the better the system will get at streamlining the process and accurately detecting exceptions.

We still need human auditors, though. Someone needs to double-back and determine that the
exceptions an accounting AI system located were correct. The human touch can provide oversight and help wrap up loose ends that machines leave in the audit process.

2. BOOKKEEPING — LET THE ROBOTS TAKE A LOAD OFF! YOU DESERVE A BREAK.

We know we’re not alone when we say that bookkeeping is a drag. It pulls your team away from building relationships with and serving your clients, and they can’t expand their industry knowledge or skills if they’re always sitting around fussing with data.

You can rely on accounting automation to handle most of your bookkeeping tasks. You’ll probably
be surprised by how much time you save when you make the switch! 

Here are a few examples of tasks that machines and AI can tackle for you:

a.   Monthly or quarterly close procedures: AI helps speed up monthly and quarterly close processes; it quickly provides data from multiple sources that’s been consolidated and merged. And best of all, it’s also more accurate than human-procured data.

b.   Procurement: Tracking and procurement usually involve a lot of paperwork and tedious procedures. But AI makes it easy to track changes in price amongst numerous suppliers, making sure no cent is wasted.

c.   AP/AR: Opportunities abound for accounts payable and accounts receivable. AI-powered invoice management, digital workflows—it’s all AI-based!

d.   Expense management: Expense management is a lot of review and approval work, but AI makes this a lot easier because it automatically checks receipts, helps review expenses, etc.

3. TAX WORK — COWORKING WITH THE BOTS

THE ONE THING YOU CAN COUNT ON EVERY YEAR….

This is one of those areas of work where you can get some done on your own and leverage AI to do a
little work, too. Here’s one example of how AI can help:

a.   The no-touch tax return: A no-touch tax return is where every step of the tax prep and compliance process is digital and automated. (Can you imagine?!)

Really — everything! From the time client data is obtained until the completed tax return is sent
back to the client — it’s all automation. We’re not quite there yet, but we’re getting closer, especially when you consider how far we’ve come thanks to COVID.

The great news about tax work is that virtually everybody needs it (the only certainties in life are
death and taxes, as they say). The broader your tax abilities, the more valuable your services will seem to clients. Making the digital process as smooth as possible will make your clients more comfortable.

4. ADVISORY SERVICES —STICK WITH HUMANS

WE’RE GREAT AT WHAT WE DO.

As humans, this is where we shine! Advisory services are about more than algorithmic facts — the
world doesn’t always run like a machine. CPAs really stand out here; they’re trusted thought leaders and experts, and people look up to them — especially during times of uncertainty.

Practices that offer advisory services earn 67% more revenue than firms that provide compliance
services alone. If you only rely on artificial intelligence accounting and refuse to leverage human intelligence, you’re going to lose out on a lot of
profit.

The strategic tasks that come along with advisory services need the human touch. When it comes to
planning financial budgets, capital optimization, process improvement, and other similar tasks, a human will always get the job done better than an AI-driven system.

Bottom Line (A New Kind of CPA)

The integration of AI in the field of accounting has ushered in a new era for CPAs—a powerful partnership between AI and humans. The evolving role of CPAs in the age of AI demonstrates the need for adaptability and continuous learning within the profession.

Throughout this article, we can confidently conclude that AI does not replace the human touch, but rather a tool that amplifies our human capabilities. The expertise, judgment, and strategic thinking of CPAs remain essential in providing advisory services, overseeing AI-generated results, and ensuring the accuracy and integrity of financial information. The collaboration between AI and CPAs creates a synergy that revolutionizes the profession, enabling accountants to deliver exceptional services, enhance client satisfaction, and drive growth.

As the accounting landscape continues to evolve, the power of the partnership between AI and humans becomes increasingly evident. The future of the CPA profession lies in embracing this partnership, leveraging AI technologies, and constantly adapting to the changing dynamics of the industry. By doing so, CPAs can elevate their role, enhance their value proposition, and thrive in the exciting and transformative era of AI-powered accounting.

The successful CPA of the future is one who embraces the power of partnership between AI and humans.

Embracing the Future of CPA Industry with HWAA’s E-Audit Services!

At HWA Alliance of CPA Firms Inc. (HWAA), we are dedicated to embracing cutting-edge technology to enhance and evolve our services. That’s why we are proud to introduce our signature E-Audit service, revolutionizing the way
audits are conducted.

Our E-Audit service embodies the 4 E’s: Efficient, Economical, Effortless, and Electronic. Gone are the days of
piles of files cluttering your office, waiting for year-end audits. With E-Audit, we conduct audits throughout the year, ensuring timely corrections and delivering the best possible results.

Our E-Audit service revolutionizes the audit process with an electronic approach, saving your organization time and
resources. We eliminate manual searches, digitize and organize documents, and provide easy access. This streamlined process enhances efficiency, reduces errors, and eliminates the need for physical storage. We handle the entire audit process, freeing you from administrative tasks and allowing you to focus on your business. With our commitment to innovation and quality, we leverage AI technology to deliver accurate and comprehensive results.

Don’t settle for outdated audit practices. Embrace the future of auditing with HWAA’s E-Audit service. Experience the
benefits of efficiency, cost savings, and a hassle-free process. Let us help you unlock the full potential of your organization while maintaining the highest standards of quality. Contact us today to learn more about our E-Audit
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