It’s estimated that artificial intelligence and machine learning will continue to be major topics in 2020. In fact, according to data from Gartner, AI enhancement will create $2.9 trillion of commercial values and 6.2 billion hours of work in 2021.
Machine learning is a computer’s ability to recognize and apply patterns, conclude algorithms from those patterns, and then refine those algorithms based on feedback. Already, machine learning has helped users perform key real-world calculations and analytics that would take years to solve via conventional computing. It’s easy to see why machine learning’s broadly available application and functionality are a terrific supplement to accounting.
What is Machine Learning
Machine learning excels at its own version of inductive reasoning. Based on an existing set of data points or examples, the computer can “learn” what the rules are for determining a result. Machine learning is especially good for predicting outcomes. Computers can process large amounts of data far faster than a human brain, which gives machine learning the power to process thousands of data points to identify the most relevant ones and apply its inferred rules.
Most of us have already experienced machine learning without even realizing it: Suggestions such as those you find in your Netflix queue or Amazon browsing are everyday examples of machine learning. Rating a show, actor, product, or book lets the technology draw its own conclusions and point you toward similar results.
Machine Learning for Accounting
When it comes to accounting, machine learning helps accountants manage the most repetitive and predictable tasks. Most accounting technology already employs machine learning tech to auto-categorize transactions and track entry errors for reconciliation. Other accounting tasks that are now managed by machine learning and AI include:
- Matching items to amounts for simplified invoicing
- Tracking errors in books to streamline auditing
- Automating bank reconciliations and categories
- Using AI chatbots to address financial queries
Small businesses and entrepreneurs who don’t have the luxury of either a full-sized or a full-time accounting and finance department find machine learning especially helpful. Accounting technology with machine learning makes “DIY accounting” much more achievable by automating menial tasks such as categorization and reconciliation.
The longer you use the technology, the more accurate your machine learning will become at tracking transaction histories. With machine learning, your accounting technology may “notice” that something is not quite right before you do because of its “experience” processing big data. The longer you use machine learning, the easier it will become to practice DIY accounting.
AI Makes Your Job Easier, Not Eliminated
With all these technological advances, it could be easy for accountants to wonder if they’ll be AI-ed right out of a job, but there’s no need to fear machine learning and AI. Machine learning will actually make an accountant’s job easier and more efficient by automating the more menial and time-consuming tasks. This frees up time to focus on the analysis and financial storytelling your company needs to build and improve for the future.
Machine learning in your accounting technology will move you from being just a number cruncher to a trusted advisor by eliminating errors and significantly reducing liability. Implementing this accounting technology will give you the competitive advantage you need to stay profitable long into the future.
Get Smart With Accounting Systems, Inc.
Now that you’ve decided that perhaps machine learning is for you after all, it’s time to get the right technologies in place. Having a trusted team of experts like Accounting Systems, Inc. means you have access to proven business strategies and technologies right at your fingertips, backed by a team that focuses on your technology, so you can focus on what you do best: making a profit.
See how machine learning fits into your technology with a free software consultation from one of our experts. Click here to schedule yours today.