In this fastest world, technology has replaced everything, and accounting is one of those fields. We can say that the new century is the opening door for rapid technology and artificial intelligence. So, if we look around, dependency on technology has become necessary to accomplish life targets. Thus, the tax world is no exception, and now people are using software over accountants. But if you want to change your working pattern, then it’s crucial to understand each option in depth. However, let’s start with this:
Will Artificial intelligence replace accountants?
Recently, we can use automation for all jobs, whether it’s an accountant or tax filing software. According to the research conducted by Oxford University:
“There are 95% chances that accountants will start losing jobs to robots.”
So, it’s an alarming situation for people who don’t want to upgrade their skills. Apart from this, according to the Brookings institute, repetitive tasks are becoming obsolete. For instance, now, companies use employee paystub software for payroll management. But it’s also the reality that there are some places where technology can’t replace humans. So, artificial intelligence can’t replace accountants fully, but it may reduce their need.
The phase of transition:
Generally, we are living in a phase of transition where we have both options like software and accounting. It means the market is flexible for people who use traditional methods like bookkeeping or large entries. But then the time has changed, and we need to shift personal preferences. So, in this writing, we will break down the positive and negative sides of using software and accounting.
Accountant or software: Which one is better?
In reality, accountants and software provide a unique value to the users. So, it’s vital to make an intelligent decision that will give you a fair return on investment. Moreover, both fields have their own positive and negative sides. So, let’s look:
The advantage of using software:
If we look at the working pattern, there are more chances of mistakes and human error in repetitive tasks. However, the software comes forward in this situation with the following benefits:
Improved accuracy & efficiency:
Understandably, humans can commit mistakes, especially when they are doing the same daily task. For instance, the accounting mistake could be in a spreadsheet, keystroke, or you can duplicate items. So, you can avoid these mistakes by automating tasks. You can perform the day-long tasks in hours using AI and technology. In this way, accountants can focus on those tasks that are more important. Moreover, the software saves the entire management cost and timely notification through automatic emails.
Results in less stress:
If you use software and processes are automated, tasks will be more organized. Apart from this, it will be more accessible when filing taxes. The tax-paying season comes with never-ending tensions and a pile of work. For instance, you need to manage transactions, payments, receipts, and spreadsheets. So, automated software and technology will help reconcile and eliminate data entry errors.
Results in happier customers:
If you are increasing efficiency and minimizing errors, then it will result in more happy customers. For instance, if you are professionally organizing data, it will be easier to extract meaningful information later. Apart from this, an accountant can focus on more strategic work. According to the Bureau of labor:
“More technology usage will result in 7% more growth of accountants and auditors in the period of 2020-2030.”
We know that accounting jobs are challenging and put more responsibility on the accountant. So, in this situation, it’s best to take the help of machine learning, AI, or cloud computing.
Things that accountant does better:
We can automate repetitive tasks, but there are specific tasks that an accountant should perform. Here are the following tasks that software can’t replace:
Tax preparation & planning:
We need to understand that software can’t do tax planning and preparation. The tax codes are complex, and an accountant needs to understand the laws. However, the main job of an accountant is to understand new rules, and then you can avoid penalties and overpayments. Apart from this, here are the following things that an accountant can do better:
|Cash and accrual accounting||Inventory costing||Asset valuation|
|The structure of the legal entity||Optimization of the tax year|
Apart from this, only a human can take action to avoid unnecessary audits. Furthermore, you can decide whether to pay workers as W-2 or 1099.
The drawback of using software is that it can’t give financial advice. So, a public accountant is the only person who can provide insights on particular topics and concepts. For instance, we can create a 1099 MISC tax form online, but an accountant is the one who gave this idea. Apart from this, accountants provide analytical decision making, planning, optimizing cash flow, and securing loans.
The software can’t outsource tasks because artificial intelligence doesn’t come with this feature. An accountant is the one who decides about the functions they want to give others. We need to understand that using software isn’t as easy as outsourcing. But this isn’t a common practice nowadays. The ideal approach is to finalize tasks they can outsource to free up the company’s internal resources.
Conclusion: Which one is better?
An accountant is more knowledgeable than software because a human is the one who designs technology. The technology can’t replace the human factor, but the software is less costly and performs tasks faster. But if you want to stay in the competition, keep yourself aware of the emerging accounting software and technologies. So, always look for opportunities to learn new things and diversify your network. The best software helps small businesses prepare accounts and expenses and help to get ready for tax season. It’s wise to say that software can help accountants but can’t replace them. Still, we need humans who can focus and deliver quality tasks.