Accounting Today – 6 Ways to Use AI in Your Firm
Some ways you can use artificial intelligence in your firm include the following:
- Automate Repetitive Tasks (e.g., data entry, bookkeeping, invoicing, etc.)
- Analyze Data (e.g., by quickly and accurately analyzing large volumes of financial data, which can include detecting patterns and anomalies that may indicate fraudulent activity)
- Predictive Analytics (e.g., analyzing historical financial data to predict future performance, such as cash flow, which can help you provide clients with more accurate forecasts and related strategic advice)
- Enhance Communications With Chatbots (e.g., AI-powered chatbots and virtual assistants can provide 24/7 support to answer your clients’ frequently asked questions)
Accounting Today – Accountants Share How They’re Using AI
Some ways firms are using AI today include the following:
- Data Preparation – Quickly extract data from PDFs, Excel files, or Word documents and format it so you can spend about a third less time acquiring the data and more time analyzing it.
- Use Digital Workers to Generate Journal Entries – Create bespoke digital workers using robotic process automation (RPA) to automate fund reconciliation across entities, extract data from investment statements, and generate journal entries.
- Answer Internal Firm Questions – Use AI to answer common staff questions about time off, 401(k)-related questions, and directory information.
- Financial Statement Analysis – Share client financial statements with AI and ask it to identify related insights to share with clients.
- On-Brand Content Generation – Use AI to generate content that is aligned with the firm’s chosen tone, style, etc.
- Comparative Analysis – Compare leases to market benchmarks, and ask AI to present the results in a formatted table.
- Automating Compliance – Assess risks and controls for a client based on its industry and regulatory environment, and then compare this to the company’s internal controls to identify areas of potential non-compliance.
Accounting Today – AT Think: AI’s critical role in enhancing cybersecurity
- “Firms that resist the introduction of AI run the risk of falling behind in
- accuracy and efficiency.”
Accounting Today – Evolving Through Uncertainty: Opportunities and Challenges for Accountants
- The AICPA President & CEO recently stated, “On the advisory side of your practice, the opportunities have never been greater.”
- There are significant opportunities “in emerging areas like ESG or attestation around artificial intelligence.”
Accounting Today – Internal Audit Leaders Hunt for Student Talent
- “Internships seem to be the most promising way to fill the [internal audit] talent pipeline.”
Accounting Today – Making the (use) case for AI
Some ways your firm can use AI include the following:
- Document summarization and Analysis – AI can quickly sift through large documents to help you find the information you need.
- Complex Tax Research – AI can help you understand and assess tax laws and legal precedents to help your firm generate tax position documents.
- Audit Content Generation (Audit Ally) – AI-powered tools like Audit Ally can auto-generate audit-related content such as evidence requests.
- Client Communication Enhancement – AI can summarize client communications, and improve the tone of your content before you share it with clients.
AICPA – The Rise of Gen AI
- Here are highlights of the AICPA’s commentary on AI and the CPA profession:
- Embrace AI for Competitive Advantage – CPA firms that embrace AI early will have a competitive edge over those that don’t, as AI becomes integral to accounting software and solutions.
- Augment Human Expertise With AI – AI can automate routine tasks and surface insights, allowing CPAs to focus on higher-value advisory work and strengthen client relationships.
- Leverage AI for Audit Efficiency – AI tools can dramatically improve audit efficiency by automating control testing, document review, and risk assessment procedures.
- Enhance Tax Services Using AI – AI can automate tax return preparation, identify R&D credits, write supporting memos, and streamline tax research.
- Boost Productivity with Internal Bots – Bots can handle internal queries on policies and procedures, freeing up staff for higher-value work. Bots can also monitor client websites for service opportunities.
- Establish Responsible AI Practices Early – Firms should develop AI governance frameworks, usage policies, training, and risk management practices to proactively address regulatory requirements and stakeholder concerns.
- Cultivate an AI-Ready Culture – Foster a culture of curiosity, agility, and shared responsibility around AI to spur adoption across the firm.
- Here are some excerpts from AICPA’s report on The Rise of Gen AI:
- “Generative AI can level the playing field between smaller and larger firms by providing smaller firms with tools that traditionally required significant investment in human resources and technology.”
- “Smaller firms can leverage AI to offer services comparable in quality to those of larger firms, but at a lower cost and with greater efficiency.”
- “AI can help minimize the impact of the staffing shortage in accounting and beyond by taking on routine, manual work and allowing people to transition to higher-value activities.”
CFO.com – How CFOs Can Deep Restless Accountants on Staff
Some ways you can retain staff include:
- Offer Flexible Work Arrangements
- Cap Weekly Working Hours (e.g., 40-50 hours per week)
- Benchmark Salaries Against the Industry
- Implement Workload Management to Prevent Burnout (e.g., capacity planning, prioritizing tasks, etc.)
- Provide a Firm-Specific Value Proposition – Differentiate your firm from competitors by offering unique benefits, a great culture, and growth opportunities.
CPA Practice Advisor – 2024 Grads Actually Want to Work in the Office, Gusto Finds
- Recent graduates aged 20-24 are choosing to start their careers in person.
- They are likely seeking face-to-face time with bosses, networking, mentorship, and in-person collaboration.
CPA Practice Advisor – 95% of Small Biz Owners Happy with Company They Started
- Price hikes (e.g., due to inflation) and cash flow are small business owners’ top concerns.
Forbes – A Strategic Blueprint For CPA Firms Looking To Outsource In 2024
Here are some tips for outsourcing work:
- Define Outsourcing Needs and Scope – Clearly determine if outsourcing is needed to overcome talent shortages, cater to growth, add service capabilities, or a combination of these, and define the specific work to be outsourced.
- Identify a Partner With Relevant Expertise – Select an outsourcing provider that will provide quality talent to maintain the firm’s reputation.
- Prioritize Data Security and Compliance – Choose a provider that complies with international information security standards like GDPR, SOC 2, and ISO 27001.
- Understand Legal and Ethical Considerations – Comply with laws and regulations in both the firm’s jurisdiction and the provider’s location, including data protection, labor laws, and provider-specific rules.
- Leverage Technology for Seamless Collaboration – Invest in communication, workflow, and coordination tools like Microsoft Teams, Jetpack Workflow, and Zoom, and automate operations with solutions like Bill or Dext for effective onshore-offshore teamwork.
- Decide on Outsourced Work Management – Determine whether to directly manage the offshore team (e.g., recruiting, training, supervision, etc.) or if you prefer to partner with a managed services provider and treat them as an extension of the firm.
- Actively Manage the Outsourcing Relationship – Regularly check the outsourcing partner’s performance against benchmarks to ensure consistent quality and talent availability.
Future Firm – Do You Even Need Any Marketing?
- For firms that provide significant high-ticket offerings (e.g., $5k/month) and who are not seeking to grow to 7+ figures, a simple marketing approach focused on networking and email marketing for retention and referrals may be more effective than extensive online marketing strategies.