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Pandle Insights - AI in Accountancy: Cause for Concern or Opportunity?

1st Jun 2018
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Pandle is cloud bookkeeping software made with real people in mind.

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The rise of Artificial Intelligence and automation has been keeping people on their toes for quite some time. Every so often we get another study claiming that robots are going to take all our jobs and panic ensues.

Physicist Stephen Hawking famously warned about the dangers of AI: “The development of full artificial intelligence could spell the end of the human race.”

Others are more hopeful about the future of AI. Earlier this year, Google CEO Sundar Pichai declared that “AI is one of the most important things humanity is working on. It’s more profound than electricity or fire.” However, he also drew attention to the potential risks and concerns a future of AI will inevitably bring about.

AI risks in accountancy

Like most industries now, accountancy has been featured in the AI debate. Many are worried that the future of this industry is heading towards extinction. But are we getting too ahead of ourselves?

According to the BBC’s automation risk calculator, chartered accountants run a 95% risk of having their jobs automated. 97% of bookkeepers and 95% of tax experts are thought to be replaced in the future.

These are worrying figures for the industry and are definitely worth considering. However, we believe that by being adaptable to the changing market, accountants can ride out developments in AI.

AI is thought to be developing at a scary rate, but at the moment, it’s largely based on simple predictions from user behaviour. For example, we use AI in Pandle to automatically categorise new transactions based on previous selections to save users time.

AI has yet to even begin to replace the genuine insight and experience that accountants can offer their clients.

AI in Accountancy

 

Accountants are more than just number crunchers

Automation within accounting has mostly been focused on data input and processing. However, there’s a lot more to the job than simple data processing.

A huge part of the service you provide as accountants is to make sure our clients are well informed about tax liabilities and new laws coming into effect. Giving advice on current events and legislation, tailored for a specific business, is much more difficult to replace.

Accountants not only make sure their clients are paying enough money but also that they’re not paying too much. By assessing company accounts and working out the most tax efficient way of operating, accountants can save clients money and become invaluable to a growing business.

While one day it might be possible, AI is nowhere near being able to offer the same level of advice that an accountant working in the field for years is going to be able to give.

The job has already changed

If you’ve been in this industry for a while, you’ve no doubt seen changes occur already, particularly in what clients expect. The ability to adapt to change means that businesses can ensure they’re always meeting client expectations of a modern service provider.

Accountancy firms have already had to adapt to accommodate things like cloud accounting and the upcoming Making Tax Digital scheme. The industry as a whole is more resilient than we sometimes give it credit for.

In the future, we predict that the role of an accountant will incorporate some tech support responsibilities as accountants help their clients use accounting software and the AI features within it.

The opportunities of new tech

The best way to remain resilient in any industry is to be open to change rather than get left behind. This means keeping on top of the news, watching out for changes in technology and coming up with ways to work with them rather than against them.

Rather than fearing change and new tech, we like to think they are opportunities instead. Here at Pandle, we’ve always kept our eye on what’s changing in the industry and what clients expect from us.

We have embraced automation and machine learning because we believe these things can help to create a better user experience.

Our mission was to create simple software that doesn't overwhelm users, especially those who don't have experience of bookkeeping. By using automation, we can make the process of bookkeeping simpler and less tedious, meaning that users can spend the time they save on their business.

Using cloud accounting in your firm

We would say the first step into the future for accountancy is to embrace cloud accounting. It meets key needs and expectations of modern clients. Clients want simple software, tedious tasks automated and to be able to access and update records on the move. It’s also a step towards being prepared for Making Tax Digital that will come into place next year.

Are you interested in using Pandle as part of your accountancy firm? You can partner with Pandle in one of two ways.

Our basic version allows you to use the software to manage all your clients' accounts. However, our Brandle version goes one step further. With Brandle, you can use our software but all mentions of Pandle will be removed and replaced with your own branding and logo.

You'll be able to customise the logo, colour scheme and copy to make sure that it truly reflects your brand. You can host your Brandle account on a domain of your choosing, so you can direct traffic to your website instead of ours, improving your digital marketing efforts.

To find out more about Brandle you can download our free guide here.

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