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How Cloud and AI are Transforming Accounting

Posted by: Fabia Meinhold
Category: Tax and Regulations
cloud and ai

For the past few years, new technologies have been revolutionizing practices across several industries and sectors. Now, the time has come for the accounting field to follow this trend. Especially cloud and artificial intelligence (AI) technologies are affecting the accounting standards and practices of businesses. Furthermore, these technologies offer great opportunities for accountants to acquire new skill sets.

Have you read our previous article on Why Should You Switch Accountants Now?

Throughout this article, you will learn more about the application of cloud technology and AI systems in accounting and finance. Keep reading to find out how this will benefit your business!

Cloud accounting & its benefits for businesses

What is cloud?

Traditionally, data is either stored in the form of hard copies (paper documents) or in a digitalized form on computers. However, with the development of cloud solutions, it is now possible to store this data on an online “cloud”. It is a secure server that enables its users to access their data remotely from any device that has an internet connection.

When cloud meets accounting

Cloud systems have upgraded many processes and are now also increasingly affecting accounting practices. One major change is the development of cloud accounting software. They work like traditional accounting software but include a cloud solution that enables its users to access the data remotely, as explained above.

The main advantages of cloud accounting are:

  • The data is accessible from anywhere, anytime. When accounting companies use this kind of system, it enables not only themselves to access the information remotely and to provide a broader range of services, but can also enable their clients to upload accounting-related documents and access the data on the cloud whenever they wish to.
  • It minimizes IT costs and the storage necessary for securing the data. Cloud solutions offer a high storage capacity online and enable accounting companies and their clients to save their own servers’ storage.
  • The data on the cloud is safe. As opposed to traditional data-storing methods, there is no risk to lose the documents. Good cloud accounting solutions work with highly secured servers.

How AI technology increases efficiency in accounting

Some accounting companies have started to provide AI-backed accounting and finance solutions, enabling process automation and higher accuracy.

Automation of accounting processes with AI technology

With the help of AI technology, the automated processing of accounting-related documents facilitates and accelerates financial services such as invoicing, expense/income reporting, bank reconciliation, and much more.

For example, Kwikdroid, SJ Grand’s digital accounting and business management solution, enables clients to upload a picture of their expenses or vendor bills, and extracts the relevant data, using OCR (Optical Character Recognition) and AI technology. Using such tools helps companies minimize the time spent on manual data entry and focus on their core operations.

Reducing accounting errors and the risk of fraud

Furthermore, AI technology got more and more accurate over time. Therefore, combining accounting with AI got even more advantageous for businesses. The higher the level of accuracy, the lower the risk of error.

This is particularly advantageous in light of the high number and complexity of local, regional and national regulations that companies have to follow, and that AI technology can directly take into consideration. AI-enabled accounting systems can spot compliance issues and help companies avoid fraud penalties.

Why does human support still matter?

Human intelligence and artificial intelligence: the best of both worlds

Even though cloud and AI technology are enhancing some services of accounting companies, clients still need the human touch that only real accountants can provide.

Cloud and AI handle the generation and storing of data, whereas accountants analyze the information collected and offer complementary advice on complex matters such as context-specific tax planning, operational decisions, and growth strategies. Therefore, a combination of both, artificial and human intelligence, is the key to high-quality accounting services.

Conclusion

For companies to stay competitive in the rapidly evolving business world, it is important to quickly integrate the new technologies that will help them increase efficiency and minimize costs. Cloud accounting and AI-enabled accounting systems are two of these tools and provide huge advantages for any kind of business.

Don’t miss out on these opportunities! Discover how Kwikdroid revolutionizes your accounting and business management in Asia and get in touch with our team for further information.

If you want to know more about how to use accounting technologies, contact our team and follow us on social media to get the latest news!

Our experienced team has the necessary expertise and the know-how to support you with your business – have a look at the services we offer.

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Author: Fabia Meinhold

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