Like the rest of us, you keep hearing about AI — everywhere. You’re intrigued, but also a tad sceptical. You might be thinking, artificial intelligence sounds like a big league play. And, after all, how would it affect your business? Well, hold that thought.
If you’re curious, stick around. We’re aiming to put your uncertainties to rest. We’ll go through each challenge you might face as a small or medium-sized accounting firm looking to adopt AI, and then we’ll go through actionable solutions.
Before we go any further, you might be interested in our webinar series on all things AI in accounting. Click here to book your spot. Sign up for our webinar series – Unlocking The Potential of AI in Accounting
Understanding the need for AI
Traditional methods remain surprisingly persistent. A significant 56% of accountants still lean on legacy systems to steer their operation. Think piles of paperwork, never-ending spreadsheets and processes that require a high level of human intervention. And it works — there’s no denying that. The spreadsheets line up, and the audits get done. But, in terms of efficiency, there’s considerable room for improvement.
Now, here’s where AI swoops in with a cape. By integrating AI into your accounting processes, you can achieve unprecedented levels of efficiency. Imagine automated auditing that cuts the time required in half, or predictive analytics that not only spots trends but also potential red flags, way before they become a crisis. This isn’t futuristic — it’s happening right now, and yes, even small firms are getting in on the action.
For instance, AI-powered invoice categorisation can free up valuable hours in your day. Similarly, risk assessments can become more precise, and compliance checks can turn into a smooth operation rather than a headache-inducing ordeal.
The long and short of it is this: Adopting AI can make you more competitive, accurate and prepared for the challenges of modern accounting.
The benefits are clear, but what about the roadblocks? Up next, we’ll dissect the main challenges you could encounter on your journey toward AI adoption and arm you with solutions that work.
Key challenges in adopting AI (And solutions!)
We’ve established that AI has the potential to revolutionise your accounting practice, but it’s not without potential hurdles. First off:
- Financial constraints
Let’s face it, integrating new technology isn’t always cheap, and for a small or medium-sized firm, budget can be a sticking point.
Solution: Start small, scale later
There are a plethora of cost-effective AI tools specifically engineered for smaller operations. You can begin by automating just one function, like expense tracking or client communication. As you start to see the financial benefits — and you will — then it’s time to think about scaling up. You control the pace, and your investment can grow as your confidence and ROI do.
- Skills gap
AI isn’t something you plug in and forget. It requires a certain level of expertise to leverage it fully, and the existing team might not have the skills necessary — yet.
Solution: Training
Consider running AI-specific training programs for your existing staff or hiring a temporary consultant to bridge the knowledge gap. That said, most AI solutions will come with training and support for as long as you need it.
- Data security concerns
When you’re dealing with sensitive financial data, security is paramount, and the thought of integrating AI may raise some concerns.
Solution: Choose verified platforms
Select AI platforms that adhere to robust security protocols and industry standards. Look for features such as end-to-end encryption and multi-factor authentication to ensure data integrity. Also, here’s how you can talk to your clients about the transition.
- Complexity of integration
Integrating AI solutions with existing systems can be a complex task that requires meticulous planning.
Solution: Phased implementation
Break down the integration into manageable phases. Start with one accounting function — like auditing, for example — and then gradually move to others as you become more comfortable with the technology.
- Resistance to change
Staff might resist the integration of AI, fearing it could make their roles obsolete.
Solution: Inclusive decision-making
Involve your team in the decision-making process and clearly communicate how AI will augment their roles rather than replace them. This fosters a culture of openness and inclusivity, making the transition smoother.
Get started on your AI journey with Dext
By now, you’re well-versed in both the challenges and solutions of integrating AI into a small or medium-sized accounting firm. You’ve probably pondered what tools can help you navigate these challenges and simplify your processes. Well … Enter Dext, a suite of products designed to reclaim your most precious resource: Your time.
- Dext Prepare automatically extracts all your financial data, doing away with hours of tedious manual input.
- Dext Precision acts as your in-house quality control, making sure your accounting data is both accurate and compliant.
- Dext Commerce auto-fetches your digital sales transactions, turning the reconciliation process into a walk in the park.
And here’s the kicker: Integrating AI into your accounting practice doesn’t have to be a colossal move. Whether you’re already set up with Xero, QuickBooks Online, Sage or another top-tier accounting software, Dext products slot right in. No fuss, no steep learning curve.
If you’d like to find out more about AI and its role in accounting and the wider finance world, we’re hosting a three-part webinar series: Unlocking The Potential of AI in Accounting. Dext’s Chief Product and Technology Officer, Stephen Edginton, will be joined by a number of industry experts, as they weigh in on the hottest talking point in accounting and beyond. Click the link below to book your spot.
Sign up for our webinar series – Unlocking The Potential of AI in Accounting