Article

Artificial Intelligence (AI) is no longer a futuristic buzzword; it’s already part of our daily lives. Whether it’s smart assistants scheduling meetings or recommendation engines guiding purchases, we interact with AI more often than we realize. 

Recently, I had the opportunity to attend an AI training session organized by our company, and it completely changed the way I view the future of accounting and finance. What fascinated me most was the power of using the right prompts to create simple yet effective AI codes that could automate tasks, reduce errors, and enhance accuracy. The possibilities are endless—and incredibly exciting 

Transforming Accounting with AI 

AI has the potential to revolutionize the accounting and finance function by automating repetitive, time-consuming, and manual processes, freeing professionals to focus on higher-value, strategic work. 

“AI is not just about automating tasks; it’s about reimagining the way finance teams create value for the business.” – Nirmal Nath, Executive Director – Finance & Accounting 

1. Data Entry & Reconciliation 

AI tools can read invoices, extract data, categorize expenses, and post them to the right accounts, all without manual intervention. They can validate whether approvals are in place, check compliance with policies, and even perform transaction matching reconciliations between bank statements and book entries. 

2. Audits & Fraud Detection 

AI can analyze data from multiple sources to identify patterns, highlight anomalies, and flag potential fraud. It can automate audit schedule preparation, detect discrepancies, and create audit-ready reports, strengthening risk management and compliance. 

3. Financial Forecasting & Insights

Beyond preparing accurate financial statements, AI can predict trends based on historical data, market conditions, and other external factors. This provides deeper insights for better decision-making and forward-looking strategies. 

4. Tax Compliance & Optimization 

AI can simplify tax compliance by navigating complex regulations, automating return preparation, and identifying tax-saving opportunities, all while ensuring adherence to laws and deadlines. 

Tangible Benefits of AI Adoption 

Organizations already using AI tools in finance are witnessing game-changing results: 

• 8-10% of accountants’ time saved from repetitive data entry tasks, allowing focus on business communication, quality checks, and strategic contributions. 

• Faster monthly close cycles, leading to timely and more accurate reporting. 

• Higher quality general ledger data and improved reporting detail. 

In short, AI is making accountants more productive, accurate, and strategic partners to the business. 

“Finance leaders must leverage AI not just for efficiency but to generate insights that drive strategic decisions.” – Nirmal Nath 

Challenges & Risks You Can’t Ignore 

Like any disruptive technology, AI in accounting comes with its share of risks and considerations: 

• Data Security & Privacy: Sensitive financial data is vulnerable to breaches. While safeguards exist, cybersecurity must remain a top priority. 

• Over-Reliance & Reduced Critical Thinking: Blind dependence on AI could lead to complacency, unchecked errors, and a decline in analytical thinking. 

• Data Quality: Poor, biased, or inconsistent data leads to faulty forecasts, incorrect reports, and bad decisions. 

• High Implementation Costs: Advanced AI tools can be expensive, and small businesses may struggle to justify the upfront investment. 

• System Compatibility: Legacy systems may not integrate easily with AI solutions, requiring costly upgrades. 

• Fear of Job Loss: Accountants may fear AI will make their roles obsolete. Lack of clear communication from management can amplify this fear. 

AI as an Opportunity, Not a Threat 

AI isn’t here to replace accountants; it’s here to empower them. By automating routine tasks, AI frees professionals to focus on analysis, strategic planning, and decision-making. 

“The future of accounting is a human-AI partnership. Those who embrace this change will be the ones shaping tomorrow’s finance function.” – Nirmal Nath 

To make AI adoption successful, management must: 

• Communicate clearly about the purpose of AI implementation. 

• Offer training sessions and incentives for accountants to upskill. 

• Create a culture where AI is viewed as an enabler, not a threat. 

The Way Forward 

The emergence of AI is a wake-up call for the accounting profession. It presents an incredible opportunity to upskill, embrace change, and stay relevant in a rapidly evolving business world. While AI will handle the repetitive, rules-based work, human intelligence will always be required for judgment, creativity, and strategic decision-making. 

In short, AI is not the end of accounting jobs; it’s the beginning of a more insightful, impactful, and fulfilling era for finance professionals. 

About the Author

Nirmal Nath is a Chartered Accountant (ACA) and Cost & Management Accountant (ACMA) with more than three decades of experience in both manufacturing and service industries in different sectors. He had a brilliant academic record, having been a gold medalist in college and securing ranks at all India levels in both his CA and CMA. 
He has experience in handling audits of large corporations and financial institutions. He has a proven track record of handling the finance and accounting functions of large multinational companies in India and abroad. Nirmal has vast experience in handling acquisitions, system integration, process improvements, statutory compliances, audits, and taxation. 
Nirmal joined Dexian in 2017 and handles the F&A function of the group and provides guidance to the India and International F&A teams operating out of Dexian India Chennai office. Nirmal has been instrumental in bringing to Dexian awards at the 7th and 9th Finance Transformation Asia Summit of Inventicon and the Best Finance Transformation award at the India CFO Awards.