Artificial Intelligence and its Key to Efficiencies and Decision Making in Your Finance and Accounting Office
How can AI make for a smoother running office and provide analysis for decision making?
Our last article took us on a tour of the technology tools being used by the power and utilities industry in their field construction activities. Now, back at the office, let’s take a look at the technology tools being used in the accounting and finance office.
AI is Transforming the Finance Function
Artificial intelligence (AI) tools are increasingly becoming integral to the operations of finance and accounting offices. These tools are revolutionizing how financial data is processed, analyzed, and utilized, leading to significant improvements in efficiency, accuracy, and decision-making.
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One of the primary areas where we see advances is in automating repetitive tasks. AI-powered software can handle routine data entry, invoice processing, and transaction categorization. Automation not only reduces human errors, leading to more accurate financial statements and records, but it also frees up staff for other value-added activities. Of course, staff training should be part of the transition process for team members to ensure a smooth integration of their new duties.
Data analytics is another area experiencing significant progress. On the operations side, more data is available from technical tools, but the use and analysis of that data do not always keep pace. Here, AI tools are crucial for analytics, but human skills and interpretative abilities are also necessary. These tools can analyze historical financial data to identify trends, patterns, and anomalies that might not be immediately apparent to human analysts. However, the decision-making process still rests with managers and boards.
AI Finance Tools that Will Make an Immediate Impact
Here’s a shortlist of AI tools that will make an immediate impact in a finance office.
1. Automated invoicing, reconciliation, and financial reporting.
2. Contract review and analysis software for identifying potential lease treatments, and for financial due diligence and compliance.
3. AI-driven expense report auditing tools that automate expense processing and detect potential fraud or policy violations.
4. AI tools for auditing and identifying anomalies in financial transactions, enhancing the accuracy and efficiency of internal and external audits.
5. AI tools for data analytics and details for financial planning and forecasting, enabling real-time scenario analysis and decision-making.
This is just a sampling of tools that can have an immediate impact in a cooperative or utility. The integration of AI tools into the finance and accounting function will significantly impact efficiency, staffing, and decision-making. As your cooperative or utility develops annual budgets, make room for acquiring and integrating some of these tools.
About Russ Hissom - Article Author
Russ Hissom, CPA is a principal of Utility Accounting & Rates Specialists a firm that provides power and utilities rate, expert witness, and consulting services, and online/on-demand courses on accounting, rates, FERC/RUS construction accounting, financial analysis, and business process improvement services. Russ was a partner in a national accounting and consulting firm for 20 years. He works with electric investor-owned and public power utilities, electric cooperatives, broadband providers, and gas, water, and wastewater utilities. His goal is to share industry best practices to help your business perform effectively and efficiently and meet the challenges of the changing power and utilities industry.
Find out more about Utility Accounting & Rates Specialists here, or you can reach Russ at russ.hissom@utilityeducation.com.
The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists. You should seek formal advice on this topic from your accounting or legal advisor.