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Annotation:
Artificial intelligence has a significant impact on the world of accounting
and finance. By saving time and money and providing information, Artificial intelligence-
enabled accounting and finance systems help finance professionals and their companies
stay competitive and attract the best employees and customers.
Key words:
Artificial intelligence, Robotic Process Automation (RPA), accounting
procedure, analytical coefficients.
New technologies are changing the way people work in every industry. It
also changes the expectations of customers when working with companies. The
same applies to accounting. Artificial intelligence can help accountants be more
productive and efficient. Reducing the time to complete tasks by 80-90% will
allow accountants to pay more attention to advising their clients. Adding artificial
intelligence to accounting operations will also improve quality, as errors will be
reduced.
When accounting firms use artificial intelligence in their practice, the firm
becomes more attractive as an employer and service provider to customers. As
all accounting firms apply artificial intelligence, they will be able to provide the
data made possible by automation, while those who are not committed to this
technology will not be able to compete.
Robotic Process Automation (RPA) allows machines to perform repetitive,
time-consuming tasks in business processes, such as document analysis and
processing. Intelligent automation is a more sophisticated version of RPA. In many
cases, intelligent automation can mimic human interaction, such as understanding
the intended meaning of communicating with a customer and using historical
data to adapt to the activity. There are several applications of RPA and intelligent
automation in accounting work.
Artificial intelligence can often provide real-time information about the state
of financial matters, as this technology can process documents using natural
language processing and computer vision faster than ever, making daily reports
XASHIMOV BAKHODIR
ABDUGANIYEVICH
Candidate of Economic Science, Docent
Tashkent State University of Economics
KHAYDAROVA DILDORA
DJAKHONGIR QIZI
Assistent, Tashkent State University of
Economics
USING AND
DEVELOPMENT
OF ARTIFICIAL
INTELLIGENCE ON
THE PROCESS OF
ACCOUNTING
https://doi.org/10.47689/STARS.univer-
sity-5-pp217-221
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possible and inexpensive. This understanding allows companies to take the
initiative and adjust the course if the data shows unfavorable trends. Automatic
authorization and document processing using artificial automation technology will
improve several internal accounting processes, including purchasing, invoicing,
purchase orders, expense reports, accounts payable and receivables, and more. In
accounting, there are many internal corporate, local, state, and federal rules that
must be followed. AI-enabled systems help support audits and ensure compliance
by allowing documents to be tracked in accordance with regulations and laws and
flag issues. Machine learning algorithms can quickly sift through huge amounts of
data to identify potential fraud or suspicious activity issues that might have been
missed by humans, and flag them for further review.
The concept of artificial intelligence often suggests a distant future, where all
the most important work for doctors, lawyers, and, professional accountants, is
done by machines. One way or another, all the most important professions in the
world will be affected by technological progress, but to what extent, and what
exactly artificial intelligence will actually represent – these questions organizations
do not have a clear answer.
Accounting, reporting, and auditing are the areas of professional activity in
which their participants are at least sure that changes are coming. In the UK,
for example, the review “Future of Accounting” (“The Future of Accounting”)
from software manufacturer FreeAgent revealed the absolute confidence of
96% of respondents that by 2022 all or a significant part of their work will be
automated.
It is worth noting that automation is only one aspect of the arrival of Artificial
intelligence, but even with such an incomplete representation of the consequences,
almost all professional accountants are aware that their role is about to change.
According to Jonathan Bareham, director of the British audit firm Raedan, Artificial
intelligence will be “the next step in the automation and efficiency expansion that
cloud software has already provided.” According to him, this will increase time
savings, reduce errors and increase compliance. “All of this means that we will
all have more time to do meaningful work, truly helping customers manage their
business – analyzing the data rather than introducing it,” he added.
Paul Jenkinson, partner and founder of Whitespace, a cloud technology
company, compares the impact of Artificial intelligence to that of the introduction
of spreadsheets: in the United States, it reduced the number of reporting-related
jobs by 400,000, but at the same time created 600,000 new accounting jobs.
It is not certain that artificial intelligence will create new jobs, but it can be
expected that it will significantly simplify the work of audit companies. Here are
some examples.
The above-mentioned audit company Raedan uses the online platform Xero,
integrated with Receipt Bank, which allows the use of machine learning, and the
forecasting tool Fluidly based on artificial intelligence technologies is used by
them to estimate cash flows. Expensify is used to analyze and process customer
costs.
Darren Glanville, director of Operations at the Valued audit campaign, says that
such technology products in their case have not only reduced costs and increased
efficiency but also improved the quality of services. Costs are lower, margins are
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higher, but what is more important, in his opinion, is the enthusiasm of the staff
about this, as a result of which the indicators of attracting and retaining qualified
personnel have become higher. This has always been a problem, but with Artificial
intelligence, really talented people feel that they can do exactly the work that they
enjoy.
Artificial intelligence technologies play an important and increasingly significant
role in how we understand and interact with the world around us, but the question
relevant to our small (audit) world is what artificial intelligence means to the
auditors themselves.
More than 60 years ago, the very first Artificial intelligence projects focused
on tasks such as language translation. At the height of the Cold War, the United
States founded a project that aimed to provide automated translation from
Russian to English and back, but progress was negligible due to the limitations of
the computing power of the time.
The examples that are closer to us are more impressive. For example, in 2011,
the IBM Watson supercomputer beat a man in the intellectual TV show for
erudite “Jeopardy! “(analogous to “Your Game” – GAAP.RU). And the AlphaGo
program developed by Google DeepMind in 2015 won for the first time against a
live opponent - a professional player in the Japanese classic game of go. These
examples already bring “thinking computers” closer to our reality. Artificial
intelligence and its technologies, machine learning, are beginning to play a role
on a global scale. However, they have not yet crossed the line where it would be
possible to talk about a complete replacement of the human perception of reality.
However, the audit industry has also not escaped transformation through the
efforts of Artificial intelligence, which processes huge amounts of information and
is able to identify the main trends and anomalies in them. In the audit, artificial
intelligence uses advanced techniques to analyze data registries, detect significant
discrepancies, and identify risks.
With a risk-based, well-founded guarantee of quality, suspicious transactions
are reported with red flags (as a signal that they require careful consideration),
depending on how much they are selected from a whole set of data. In this way,
Artificial intelligence detects unusual payments and other activities that would
not previously have hit the radar with traditional testing approaches. People
rely on professional judgment and random sampling, and this can be either very
time-consuming or fraught with omissions (or both). Artificial intelligence quickly
processes all the information and identifies risks that previously could not be
detected.
Artificial intelligence-based systems, among other things, are able to constantly
learn and adapt to new information. As more and more data passes through
and is processed, Artificial intelligence analyzes it and finds correlations based
on hundreds of different variables. In addition, it significantly reduces the work
of both the audit company and its client. Entering accounting data registers for
analysis today requires minimal labor, and after that, the analysis starts and almost
disappears, the traditional need for auditors to go back and forth, asking their
clients clarifying questions. The time available to the auditors can be devoted to
a more detailed study of the details, which will allow them to draw a much more
detailed financial picture than they previously could even dream of.
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Artificial intelligence-based solutions work side-by-side with humans, automating
and repeatedly speeding up large-scale and complex tasks, and they certainly
help with decision-making when it comes to identifying significant discrepancies
and risks.
These are transformational technologies by nature, so any organization should
carefully weigh the pros and cons when developing development strategies for
the future. However, “to implement or not to implement” is not even a question. AI
is already improving the reach and quality of audits around the world, taking them
to a whole new level. Therefore, companies need to determine which solutions are
more suitable for them - and thus determine their future.
The focus on the accounting procedure as the central element of knowledge
about it is perhaps the key flaw of accounting education, which persists at the
present time.
So, a machine can calculate the current liquidity ratio from the balance sheet
data, and understand what led to it is just the task of a person, a specialist in
accounting and finance. It may be that the accounting policy has changed – the
method of estimating inventory or the method of allocating conditionally fixed
costs. It may be that there are expenses for future periods. Maybe the firm’s
contractual policy has changed. There may have been a revaluation of the
inventory due to its impairment. It may be that current assets have increased
due to an increase in long-term liabilities. There can be many reasons. And the
“arithmetic” approach to assessing the financial position of a firm based on the
values of analytical coefficients calculated on the basis of balance sheet data can
be very, very dangerous.
The use of technologies, called Artificial intelligence today, can save the work
of an accountant from huge amounts of routine, purely mechanical activities that
take up his time from the tasks for which our profession exists – managing the
company’s information flows, interpreting relevant data, making decisions in the
field of forming public information about the state of affairs of the company,
information and consulting support for management decisions, etc.
For more complex accounting tasks, such as the development of accounting
policies, artificial intelligence is not yet able to solve. To do this, you need to
teach them to make professional judgments and have appropriate data sets about
the organization and its external environment. The first one has not yet been
described by anyone, even at the level of the concept, let alone the technical
task. It will not be easy, if at all possible, to reduce all accounting work to sets of
classifiable features. The second will require the creation of digital counterparts
for all economic entities in the economy. This task will also not be solved in the
medium term due to its scale.
Therefore, the development of artificial intelligence will be the driver of turn-
ing an accountant from an accounting executive into an architect of account-
ing systems, a task manager and a teacher of robotic assistants. And of course,
in the interpreter of accounting information for the manager. The latter role
requires what artificial intelligence does not yet know how to do emotional
intelligence.
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p.
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