Business wants to get rid of traditional bookkeeping methods. To ensure this they adopt automated bookkeeping software. Almost 36% of executives believe that AI can enhance work productivity.
But they don’t understand that everything has its pros and cons and so does AI. Artificial intelligence can’t work without human instructions. Many employees think that a major disadvantage of AI is that it replaces humans. But they are wrong, it has flourished in many jobs but their nature is different.
Facts and Figures about AI
85 Million jobs will be replaced by AI by 2025
375 Million people will switch their jobs by 2030
70% of manufacturers are not able to adopt AI
Advantages of Automated Bookkeeping System
AI provides countless benefits that enhance the productivity of a company. Many SMEs are moving their concern rapidly to achieve their desired target. They capture their audience in a more efficient way through automation.
Cloud computing software ensures that all financial statements can be retrieved with just one click. Many SMEs can present their financial statements with more accuracy and reliability.
AI works and thinks faster than humans and can save a lot of data in its cloud. This data is always accessible by an authorized person.
Reduces Human Error
A lot of human mistakes can just be eliminated by acquiring automated bookkeeping services. Many businesses are reducing these errors to enhance productivity. Generating revenue is the top priority of every business and can only be achieved by executing automation services.
For example, a bookkeeper records an invoice of a supplier with a wrong supplier name. Now the company will pay the wrong amount to the wrong supplier.
Automated bookkeeping has reduced these mistakes as it alerts users about wrong details.
Less Repetitive Tasks
Automation reduces the chances of repetition. Repetition takes a lot of time in traditional bookkeeping. Employees state that most of their time is consumed by repetitive things.
For example: employees search for hard copies of one-year-back financial statements. Firstly, they find this task very hectic. Secondly, going through the copies is very difficult. It will consume more than 3 to 4 hours per employee approximately.
So, automated bookkeeping and invoicing enhance the productivity of employees by diminishing repetitive tasks.
Diminishes Chances of Fraud
Almost every person in the finance department had access to financial reports. This increases the chances of fraud as anyone can change any figure.
AI has reduced these chances and provides more secure financial statements. Only authorized persons can access the financial data. An Authorized person can access software with his unique ID and fingerprint.
Many businesses are enhancing the security of data by acquiring cloud-computing software. Almost 75% of businesses will adopt AI to eliminate the risk of fraud.
It ensures rational decision-making as financial bots do not have any emotions like humans. They can not decide anything in an emotional state. So, the decision-making is more accurate and reliable.
Disadvantages of Automated Bookkeeping Solutions
Everything in this world has both pros and cons. Nothing is perfect, nor is the AI. Automated bookkeeping services have their disadvantages but they are fewer so sometimes people ignore this side. Let’s discuss a few of them in detail.
Needs Human Intervention
Nothing can be done without the intervention of humans. AI can not work without humans. Someone has to scan a receipt and instruct web-based software. Proper training is required for employees on how they can deal with AI software.
Lacks Judgment Ability
AI software can rationalize invoices, accounts payable, and receivables. However, it can not define company goals. It can guide the owner in the decision-making process but can not make rational decisions.
Too much Initial Investment
Automated software requires much initial capital as a one-time investment. Many businesses do not adopt this because of the high amount of investment.
In The End
Automated bookkeeping solutions have more advantages than disadvantages. Thus, businesses are acquiring web-based software. Moreover, It helps in saving costs and additional expenditures by utilizing less workforce.
Only registered or authorized users can have access to financial reports. Audit-ready reports guide owners to make tactical and strategic decisions.
But it lacks the judgmental ability to make decisions on its own. A heavy amount of initial investment is required so many SMEs can’t afford this. AI can not work alone without human intervention. Few employees are needed to scan and upload the receipt.