AI hacks for accountants to turbocharge productivity

Data shows that AI-enabled practices expect to hire 10 times more employees and triple their revenue growth compared to non-users, outpacing other sectors in the adoption of the technology.

Research by Sage found that widespread artificial intelligence (AI) implementation in UK accounting practices could add £2 billion to GDP, boost exports by £238 million, and create nearly 20,000 new jobs. The accounting industry already contributes £33.3 billion to the UK economy and employs 323,000 people.

The research also highlights the industry's positive outlook on AI, with 61 per cent of accountants and bookkeepers believing the technology will create more opportunities than risks. Nearly two-thirds (68 per cent) feel confident that they will be able to adapt to AI, and 5 per cent of surveyed companies believe AI adoption is crucial for attracting next-generation talent, especially for improving work-life balance.

More than half of business owners have embraced AI for cybersecurity and fraud management, while a similar proportion use the technology for internal communications, Forbes research reveals. Some 97 per cent of business owners believe that ChatGPT, a popular AI language model, will benefit their operations.

Nick Winters, partner at Blick Rosenberg, cautions against turning blind eye to the possibilities of AI. "AI is coming and you will ignore it at your peril,” he says. “Other firms will use it to save time, giving them more profit and a competitive edge."

He says accounting professionals must adapt or risk being left behind. But what exactly does this AI revolution mean for accountants and what hacks can they use to find productivity gains across their operations.

Where to start?

For accountants looking to take the first step, Winters recommends starting with reputable AI software. "I would suggest using well established AI software,” he says. “For example, Copilot, ChatGPT, Inflo, DataSnipper."

In particular, he cites software such as Microsoft Copilot, with its seamless integration with existing Microsoft products, as a “sound place to start”.

However, Winter cautions the adoption of new software and practices can be costly, both in time and financial cost to implement.

“A cost benefit focus group may be the best way to identify potential benefits and increase the chance of successful adoption,” he says. “Microsoft, for example, will provide Copilot for a trial period. Firms can then arrange for a focus group to understand how AI can bring benefits and understand the value that might be provided.”

The potential for AI to boost productivity in accounting firms is significant. Winters outlines several areas where AI is already making an impact:

• Automating meeting note summaries.
• Confirming technical information.
• Automating repeated tasks and eliminating spreadsheet errors.
• Reviewing financial statements for checking comparative figures.
• Partially automating timesheets.

"We are already finding time savings and improvements," Winters says. "Audit is an area ripe for AI."

Winters cites the example of PLAUD AI being used to take notes at meetings, saving valuable time. This aligns with the broader trend of businesses using AI to streamline operations, with Forbes reporting that one in three businesses plan to use ChatGPT to write website content, while 44% plan to use it to write content in other languages.

This sentiment is shown across business, with Forbes reporting that nearly two-thirds (64%) of business owners believe AI will improve customer relationships.

Accountants must be vigilant about maintaining confidentiality and adapting existing procedures and policies to accommodate AI and new software. The Forbes research also found some 40 per cent of business owners were concerned about an over-dependence on technology from AI use.

One in four business owners worried about AI affecting website traffic, highlighting the need for a balanced approach to AI implementation. Winters says: "Remember the usual confidentiality and adapt procedures / policies to match AI / software etc.”

The AI adoption race

AI allows small and medium-sized accounting firms to provide services previously offered by larger businesses.

"The larger firms are pushing ahead quickly and carefully with AI and the smaller firms mustn't get left behind," Winters says.

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