AI transforms Australian accounting with 99.6% adoption

Intuit QuickBooks has released new data illustrating the significance of AI and outsourcing in the accounting sector in Australia, highlighting that 79% of accountants acknowledge outsourcing as a vital strategy for sustaining business growth and services.

The research found an overwhelming 99.6% of Australian accountants utilised AI over the past year to aid client success. The principal uses of AI included assisting clients with data entry and processing (62%), fraud detection and prevention (51%), and providing real-time financial insights (47%).

80% of survey respondents indicated that technological skills are now as crucial as traditional accounting skills in fostering both their own and their clients' business growth. AI and developments in cloud accounting have been identified as the top influences positively impacting the accounting industry, with 24% affirming significant benefits over the past five years.

Alan FitzGerald, Founder of Practice Connections Advisory, stated, "the greatest benefit of AI for the accounting industry has been the democratisation of the technology which gives all bookkeepers and accountants access to software, previously only available to larger firms."

He further addressed concerns about AI's role in the industry, noting, "Sadly the general message is that AI will replace accountants. However, clients demand human interaction. In our role as translators, accountants should leverage AI to streamline processes, so they can focus their time on clients and anxiety transfer."

The data also highlighted that 52% of accountants self-identify as 'early adopters' of digital tools, with investments in blockchain (56%), automation tools (53%), and AI and machine learning (50%). Over the next 12 months, they anticipate a 27% increase in investment in emerging technologies, budgeting approximately AUD $30,000 on average.

Despite the adoption of AI, several concerns persist within the industry. Accuracy (28%), data privacy (23%), and costs associated with implementation and maintenance (16%) rank among the top concerns regarding AI advancements. As a response, 63% of accountants have informed clients on AI usage, 60% adopted a code of ethics or best practices, and 59% established committees or panels for overseeing ethical AI usage. Additionally, 52% have introduced informational training related to AI.

Intuit QuickBooks Australia's Head of Accounting, Damien Greathead, could offer insights into these findings and the evolving role of AI in the industry. Alan FitzGerald's commentary also provides context regarding benefits, challenges, and future implications concerning AI in accounting.