Management In Accounting And Professional -Myassignmenthelp.Com

Question: Discuss About The Management In Accounting And Professional? Answer: Introduction Artificial intelligence is the concept where human intelligence processes are simulated by machines, typically computer system. It is basically an attempt to create artificial systems that possess intelligent behaviour. The development of AI is taking place quite quickly an in business world, AI is enabling the businesses to function smartly and efficiently. With the development of advanced technologies in several areas, the business entities are looking for more powerful, unique and sophisticated business solutions to improve and streamline their processes. Artificial intelligence encompasses numerous technologies such as machine learning, robotics, knowledge reasoning, natural language processing, cognitive computing and computer visions are few of its main branches. Many industries have started implementing some or the other applications of AI into their regular processes. However, the potential of AI applications is yet to be realised by businesses. The concept of artificial inte lligence is still being developed to design such applications which can readily form their decisions without any human intervention. The organisations which are looking forward to make use of AI opportunities are required to continuously monitor its development and has to ensure the availability of appropriate technical infrastructure that supports its implementation. The development would not replace the human operators in the near future however it will enable organisations to do much more with its innovativeness. Impact of artificial intelligence on accounting profession Artificial intelligence enables the machines especially computers to perform tasks that are decision based and which were performed by humans previously. One of the main branch of AI, named as machine based learning is progressively making the analysis procedures improved and simplified based on which various decisions are made in the businesses (Ranjan, 2009). The adoption of artificial intelligence tools and techniques in businesses helps the managers to improve the overall operational efficiency and productivity of business. Every enterprise has to perform various functions to conduct its business. Accounting is one of such important function that is undertaken in almost every organisation whether small or large ones. The term accounting has a wide scope and covers various types of accounting such as management accounting, financial accounting etc. Accountants of the business organisations have been using the tools and techniques of artificial intelligence since last many years wi th the intention of improving their functioning and adding more values to the businesses. The ultimate purpose of accounting profession is to improve the decision making capability of the company regarding the investment decisions. Accountants are expected to provide appropriate advise to their clients that helps them in their decision making process about the resource allocations. The use of artificial intelligence systems in accounting profession aids the accountants to use radically different and advanced approach to fulfil the ultimate objective of their profession. The accountants are appointed to report to the stakeholders of the company about the financial outcomes of the business of employing organisation. The investors and providers of finance need to gain trust and confidence about the companys financial performance before lending their funds and hence accountants are accountable to them. To fulfil their responsibility, accountants need to apply their core competencies and skills while reporting to company such stakeholders. The use of AI tools enables prompt availability of accurate financial results as and when such information is required. The implementation of AI technology in accountancy profession has helped in automating the tedious tasks of data entry thereby allowing the accountants to create better insights from the improved analysis of data (Alles, Kogan, Vasarhelyi, 2000). Deployment of artificial intelligence does not only emphasises on the accuracy and speedier processing of accounting and financial information but it also releases them to focus on other valuable tasks such as problem solving, strategic decision making and other decision making (Chandi, 2017). AI is continuously being developed by several accounting firms to interpret and analyse accurately the huge volumes of data in real time. It performs more analytic and sophisticated calculations and computations that supports the decision making regarding significant business aspects (The accounting strategic IT Conference, 2018). The auditors of companies are using AI tools which have natural language processing capabilities for the purpose of interp reting the contracts and deeds that they have to examine during the course of their professional engagements. The accountants role is also changing with the evolution of AI system (Ovaska-Few, 2017). They are required to be more skilled to utilise the opportunities provided by artificial intelligence such as they might require good knowledge of techniques of machine learning. Also, they are required to apply more critical thinking by adopting innovative ways of thinking and to enhance the communication skills ((ICAEW, 2017). Opportunities from Artificial intelligence The introduction of AI system has automated the general accounting functions at basic level but the use of more developed and sophisticated artificial intelligence tools will facilitate the automation of higher level accounting function. It will bring more employment opportunities for the white-collar workers of the organisations as technological advancement is continuing to gain the pace these days. AI will also enhance the audit quality as it improves the efficiency of accountants in their functioning (Zhao, Yen Chang, 2004). Therefore, the accountants in the audit team will experience the major boon in their professions because of advanced artificial intelligence platforms. Moreover, AI will also support remote working due to the digitisation of work using such technologies. The other opportunities from AI that are on their way, are being discussed below: Analytics calculation: The analysis of financial results of the company has always been an area of due concern for the management as well as the accountants. Such analysis requires higher degree of accuracy of the calculations performed hereunder. The tools of artificial intelligence will bring more accuracy to the accounting functions due to the automation of such functions. Humans are more prone to errors whether logical or mathematical and with the intervention of machines in the accounting areas, the accurate financial results will be obtained to support the decision making of users (Jones, 2017). Bank reconciliation: Machines like computer systems can easily perform bank reconciliation functions with the automated approach and the increased reliance on machines for improved calculations and reconciliations will free up the accountants to utilise their knowledge, skills and time to the strategic areas of business as they require more inherently human aspects. This will allow the business to create more values for their clients and in handling them in more effective ways (Nemati, Steiger, Iyer Herschel, 2002). Automated invoice categorisation: The machine learning automated software will facilitate categorisation of invoices which is currently undertaken by the accountants (Omoteso, 2012). Innovative applications to manage business finances: The AI is continuously bringing in the tools and applications interfaces to manage the business finance by automatically creating invoices, making revenue projections and determining the status of expenditures made in course of business. Risk assessment: Machine learning techniques will facilitate mapping of risk assessment by extracting data from all the projects that a company will undertake, so that comparison can be made for analysing the financial results (Marr, 2017). Threats from Artificial intelligence Though the evolution of artificial intelligence has brought significant benefits and opportunities for the businesses through its unique and innovative features it has exposed various threats to the businesses and professions. On one side, the AI technologies are positively contributing to improve the accounting function of the businesses whereas on the other side, it is imposing the risk on the jobs of the accountants. The disruptive changes to the business models due to the development and expansion of artificial intelligence systems in the upcoming years may affect the employment scenario (OLeary, 2002). The implementation of artificial intelligence techniques by some of the business organisation may create pressure on other entities as they might have to lose the competitive advantage over those organisations which are investing in such techniques. Moreover, such techniques will be imposing the major threats on the small businesses as they cannot afford to implement such advanced technologies in their businesses due to the funds constraints and in this way it will bring inequality in the development of overall economy. Also, due to the more and comprehensive data availability, the case load for the judgement work involved in auditing will also increase (Chan Vasarhelyi, 2011). Moreover, the introduction of artificial intelligence will require huge amounts to be invested on the training and development of accountants that are performing their accounting profession services traditionally. The accounting departments of the companies will be trimmed out. The lack of requisite knowledge and skills to use the AI tools and implement its techniques in the business will lead to heavy loss of employment of accountants (Sage One, 2016). Moreover, the evolution of AI systems will take the processing of accounting information to the online platform which may be highly exposed to the risks of data loss or corruption or manipulation as a result of cyber-attacks. Therefor e, the use of information technology in the form of artificial intelligence may cause heavy disruption to the business in the events of cyber-attack. Overreliance on the machineries such as computer system involves the risk of inactivity or disruption of overall functioning of business in the event of machinery or system failures. Conclusion The impact of evolution of artificial intelligence techniques has been critically analysed above and it can be ultimately concluded that AI techniques will bring more productivity to the accountants functions and will enable them to help their clients to take effective and improved decision. The role of accountant will not be reduced with the development of AI tools but it will require them to be more skilled and competent to participate in other significant functions that can prosper the business. They will rather have new colleagues i.e. the computer machines to work collaboratively for the provision of better services to their clients. Undoubtedly, the accounting departments of the companies will be shut down and the released capacity of the accountants will be used for strategic initiatives. However, it is necessary to understand that over-reliance on such artificial intelligence tools and techniques involves risk to a great extent as the computer systems may fail any time and th ereby affecting the overall business functioning of the organisation. Recommendations To implement the system of artificial intelligence in the businesses and to reap out maximum benefits of the opportunities provided by AI technologies, the managers must ensure that they have formulated necessary strategies, plans and policies for the implementation of such advanced technologies to the business. The managers must ensure that an adequate strategy in this regard would not only involve planning or arranging the resources to implement AI but to constantly observe and monitor the continuous development of the artificial intelligence. Investment of excessive resources in the implementation of funds could be damaging in case such techniques and tools of AI proves to be ineffective or unsuitable for the business. Moreover, before implementing AI to the significant business function the managers must ensure that the employees of the company have requisite amount of knowledge and competencies to cope up with the use of such advanced technologies in the business and if they do not have such requisites then they must be given adequate training to understand the actual importance and functioning of AI tools. Also before implementing such tools the entity must ensure that it has necessary safeguards and back up plans in case of any failure in the execution of such techniques. References Alles, M., Kogan, A., Vasarhelyi, M. A. (2000). Accounting in 2015.The CPA Journal,70(11), 14. Baldwin, A. A., Brown, C. E., Trinkle, B. S. (2006). 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