Blockchain and AI could take over Accounting profession
It is no surprise to hear that Blockchain and AI could take over the profession of Accounting given all the other sectors that are being effected. Digitization whether AI, IoT or Blockchain have had a fundamental impact on the way we do business and work. GCCFintax recently wrote a piece on this. The article talks abou the move from pen and paper to digital spreadsheets and now how digitization coupled with automation is taking hold over accounting in an attempt to digitize the entire process.
The article goes on to state that two of these technologies: Artificial Intelligence (AI) and Blockchain have the potential to reshape the accounting profession as we know it.
In basic terms, Artificial Intelligence (AI) technology is intelligent machines that are able to complete repetitive, monotonous tasks obviously with greater accuracy & less time as compared to humans. It can self learn data to improve its performance. AI is already capable enough to handle many accounting functions, such as tax preparation, payroll, and audits. Also, nowadays the accounting software use the capabilities of AI to automate tasks such as data entry, account payables, etc.
Now since all the major accounting related work is being accomplished with the help of AI, it leaves us with one career impacting question – Does this world still need Accountants?The answer is definitely a YES.
There always will be a need for that human element – human intelligence – at the other end of AI technology. In fact, according to leading research firm, Gartner, AI is set to create more jobs than it will replace, leaving workers, including accountants with options. The accountants need to adapt new methods of operation and accept AI with a smiling face. The field of accounting and finance is not just about numbers and algorithms; we need someone to analyze & interpret the AI data; hence, the human intellect cannot be overshadowed in any way.
The article then mentions Blockchain as it gained popularity as a means of keeping the records. Originally invented for cryptocurrency transactions but the attributes of immutable records, timestamp, audit trail, etc. is making it a viable and effective alternative to reflect transparency in the business operations especially in record keeping. In the accounting profession, blockchain could have interesting implications for auditors.
Due to blockchain technology’s automated, real-time verification and enhanced security, auditors might not have to spend nearly as much time on verifications, confirmation, and analyses of specific accounts. Blockchain could make audits considerably faster and less expensive to perform. Both the role and skillsets of accounting auditors may change as new blockchain-based techniques and procedures emerge.
Although these changes might be difficult to adapt but as we know the benefits are absolutely worth the time invested in sourcing the best new software. Embracing these will revolutionize your own personality built. Staying up to date with trends & continuing to adapt & improve your knowledge over these aspects will definitely put you at the forefront.