Today's world is twirling on a technological axis faster than most of us can comprehend. And one of the most potent elements on this axis is the device we all keep in our pockets: our smartphones.
Whether you’re a business owner, a casual reader, or something in between, you’ll be familiar with relying on our mobile phones for most everyday tasks in 2024! This includes managing your sales leads, Slack team communication, help centre inquiries on Intercom, and more.
Regarding accounting and financial management, AI and mobile technology have revamped how things are done. In this blog, we’ll explore all the ways GenAI and mobile technology are changing the way we do things. But before we get to it, let’s talk about what it was like before.
Financial management before AI
It was only in the past few years that AI has taken the world by storm. Naturally, the question begs: What was accounting like before GenAI? Traditionally speaking, financial management is broken into 8 key steps, which are:
- Collecting receipts,
- Sorting and organizing documents,
- Inputting data into an accounting system,
- Categorizing entries,
- Bank statement reconciliation,
- Generating financial reports,
- Analyzing financial data,
- Making business decisions.
Naturally, these take a lot of time and manpower. Even for businesses using accounting software like QuickBooks, many processes remain manual. These software tools often lack integration with email or other systems for automated document retrieval, requiring clients to organize and submit receipts and invoices manually.
Furthermore, businesses rely heavily on bookkeepers and accountants for payroll processing, data entry, and error correction. Manual input remained a significant part of the workflow, leading to time-consuming tasks, increased costs, and potential for human error.
What is GenAI in accounting?
Short for Generative AI, GenAI is an advanced form of AI that creates content by analyzing larger datasets and learning patterns. In accounting specifically, GenAI is used to automate data extraction, financial report generation and even auditing to some degree. For example, GenAI can automatically update records, record expenses and reduce the overall need for manual slaving over numbers!
However, the future of GenAI in accounting is much more vast than what it offers today. GenAI will evolve into a more intelligent form of financial forecasting and provide real-time analytics for businesses to rely upon for financial decision-making. Eventually, GenAI will take over the entire 8-step accounting process without needing human intervention at any point!
The role of mobile technology in accounting
Do you know that over 70% of the global population owns a smartphone? That makes mobile technology one of the most accessible forms of technology! But how does it aid in accounting today?
Mobile app solutions
Mobile technology is making financial management more accessible and convenient. The rise of mobile apps for bookkeeping, expense tracking, and accounting has enabled businesses of all sizes to manage their finances from smartphones or tablets. Whether it’s automated receipt tracking, invoicing, or financial reporting, they have it all covered.
On-the-go accounting
One of the major benefits of mobile technology is the ability to access financial data in real-time, allowing users to manage their accounts from anywhere. For example, Receiptor AI scans receipts directly from your phone and integrates with WhatsApp for quick communication between accountants and clients.
On-the-go accounting like this enhances cash flow management, budget tracking, and decision-making because you don’t need to wait for desktop access to view your financials.
Mobile integrated software
Numerous accounting platforms have optimized themselves by integrating easily as mobile apps, with Xero and Quickbooks being some of the biggest examples. This form of integration helps users sync their data automatically, reduce manual entry and the errors that come with it, and check their accurate financial records in real time!
What does the future look like?
And now, a little Dr Strange Magic. When it comes to the future of accounting via the lens of GenAI and mobile technology, many of these projections are already coming true, but in the phases of improving precision and accuracy.
AI-driven decision-making
Traditionally, accountants relied on historical data and fixed models for forecasting and financial analysis. In the future, GenAI will leverage vast structured and unstructured datasets to identify patterns and predict outcomes more accurately. Some of these decision-making processes would include:
- Predictive financial analysis,
- Real-time financial scenario planning, and
- Automated insights for strategy development.
Hyper-personalization
As GenAI becomes more advanced, it can provide hyper-personalized financial advice by analyzing individual or business-specific data. Mobile technology plays a key role here because it gathers real-time data and helps constant communication between businesses, accountants, and their financial tools.
Evolving roles of accountants
As GenAI and mobile technology automate much of the traditional work in accounting—such as data entry, report generation, and financial forecasting—the role of accountants will transform significantly. Instead of focusing on manual, repetitive tasks, accountants will become strategic advisors who employ AI tools to provide high-level financial guidance.
Limitation of GenAI in accounting
Despite the benefits of GenAI in accounting, there are drawbacks too. Here are the three top limitations of using AI in your accounting practices:
1. Data privacy and security concerns
One of the biggest concerns when it comes to GenAI is data privacy and protection. Most AI models utilize your fed data to create substance for their development, which can raise a problem of data protection, especially when it's your company’s financials. Furthermore, GenAI also gives way to cyber vulnerability which can make you prone to cyber-attacks and digital data theft.
2. Training and adaptation
Currently, the majority of the existing workforce hasn’t learned the ropes of GenAI, especially given its dynamic changes every other day. Hence, implementing GenAI in accounting means grappling with an extensive training session involving accountants and businesses so they know how to use the technology at their disposal best.
3. AI-Human collaboration
Last but not least, the current state of AI stands at a point where human oversight is of critical importance. In many instances, AI will need comprehensive guidelines and still create flawed results that can wreak havoc unless human eyes comb through them. That’s why, despite AI, you’ll need manpower to ensure you’re on the right track!
Final thoughts
GenAI and mobile technology are set to revolutionize accounting by automating traditional processes, enhancing real-time data access, and transforming the role of accountants into strategic advisors.
While GenAI offers promising advancements in financial forecasting, analysis, and personalized advice, mobile integration provides convenient on-the-go management. However, the adoption of these technologies requires overcoming challenges such as data privacy concerns and the need for human oversight.
As these technologies evolve, they will reshape the future of accounting, making it more efficient and intelligent. The only question is: are you ready to go with the flow?
