Artificial intelligence (AI) has become the ubiquitous buzzword of our era. It is tossed around in boardrooms and splashed across headlines, conjuring images of sentient robots and self-driving cars. In March 2023 alone, the keyword “AI” generated a search traffic volume growth of 30.4 million from 7 million in June of the previous year. Businesses are curious about the impact, if at all, on their operations and potentially finding out how this can give them a competitive edge. Seeing the potential for increased productivity, as reflected in the expected market size of $407 billion by 2027, 64% of businesses expect AI to be a game-changer.
But this all-encompassing term often leads to confusion and inflated expectations. Let’s dispel the myth: AI, in its current state, isn’t a silver bullet poised to revolutionize every industry.
Instead, AI represents a collection of powerful tools and techniques. Machine learning, a subset of AI, allows computers to learn from data without explicit programming. This empowers them to identify patterns, make predictions, and automate tasks – a game-changer for accounting, particularly when combined with offshoring practices.
So, how does this “realistic” AI translate into practical applications for accounting firms that leverage offshoring? Here’s a breakdown of some key use cases that are already transforming the landscape of accounting today:
Repetitive, data-heavy tasks like accounts payable and receivable processing are prime candidates for AI intervention. Imagine an intelligent system that scans invoices, extracts relevant information, and automatically populates your accounting software. This frees up offshore staff from tedious data entry, allowing them to focus on more analytical tasks that require human judgment.
Tax season can be a chaotic time for accounting firms. AI can step in to assist with reviewing standard notices from the IRS. Trained on vast amounts of tax code data, AI tools can automatically identify relevant sections of the notice, classify its nature (audit notification, request for information, etc.), and even suggest preliminary responses. This pre-screening process lightens the workload on offshore accounting professionals, allowing them to prioritize complex cases demanding human expertise.
Maintaining consistent internal policies and procedures is crucial for any accounting firm. AI can be a valuable tool in this area. By analyzing historical data and identifying potential inconsistencies, AI can pinpoint areas where policies might need revision. This empowers offshore teams to collaborate with their home office counterparts to ensure adherence to company standards.
Accounting firms often send out standardized responses to common inquiries from clients or vendors. AI can be used to automate the creation of first drafts for these responses. By considering the nature of the inquiry and relevant company policies, AI tools can significantly reduce the time spent drafting initial responses, allowing offshore personnel to focus on personalizing and finalizing the communication.
The future of offshoring will likely be a hybrid model that strategically leverages AI and human expertise.
Here’s how this hybrid model might work:
While AI won’t replace human accountants entirely, it has the potential to revolutionize the way accounting firms operate, particularly those that leverage offshoring. By automating repetitive tasks like data entry and invoice processing, AI can free up human accountants to focus on higher-level analysis and strategic consulting. This shift, combined with AI’s ability to analyze vast datasets, can lead to more efficient and insightful financial management. As AI continues to evolve, the human-AI partnership in accounting will undoubtedly become even more crucial, shaping the future of the profession.
Here at OffsiteOffice, we build remote, offshore accounting teams that work as an integral part of our clients’ operations. We offer the best global talent at cost-effective rates so you can enhance your financial operations and achieve your goals faster. We help you do everything needed to build a team, from helping you design a strategy to recruiting, setting up interviews, onboarding your team, providing infrastructure and ongoing administration.
OffsiteOffice will meet with you to understand your business goals and the requirements for each position and then find the perfect candidates to join your team. We build dedicated teams exclusive to your account that we provide with the infrastructure and tools to work effectively with you. Lastly, we handle the administrative aspects of your team – payroll, HR, etc., so you never have to. All for 1 simple monthly fee.
Contact OffsiteOffice today to learn more about building an effective Global Accounting Team.
In a recent digital CPA Conference webinar, Dave Schnitt, President and CEO of IQ BackOffice and Offsite Office, shared valuable insights, drawing from his company’s extensive experience in providing outsourced accounting services and offshore staffing solutions.
While AI won’t replace human accountants entirely, it has the potential to revolutionize the way accounting firms operate, particularly those that leverage offshoring.
A talent shortage is driving more companies to explore offshore accounting and staff augmentation solutions, particularly in their accounting operations.
This article is a quick digest of key takeaways from David Schnitt’s insightful podcast interview regarding Offsite Office.
With traditional talent pools drying up and domestic recruitment becoming increasingly challenging, organizations are thinking strategically about their accounting operations.
Businesses are increasingly recognizing the value of delegating accounting tasks to qualified service providers in other countries. This approach offers a multitude of benefits beyond just cost savings.
Let’s schedule a call to discuss your needs. Choose a convenient time and one of our consultants will get back to you ASAP.
Offsite Office will provide a Consultant to perform a detailed review and benchmarking of your current process. We will:
