An accountant’s work should not mainly consist of chasing documents, checking data and searching for errors. However, these tasks often take up a large part of the working day.

According to Raamatupidaja.ee, accountants may spend up to 70% of their working time looking for missing information, checking data and correcting errors. As a result, only a small part of the day may be left for analysis, advising clients and understanding the company’s financial situation.

AI cannot make missing documents appear or take responsibility away from the accountant. However, it can reduce manual work, help find information faster and make daily tasks and data analysis easier.

Where does an accountant’s time actually go?

Accounting involves much more than entering invoices and submitting tax declarations. Accountants need to look for missing documents and transaction details, check entered data, compare results from different periods and find the causes of errors. They also answer client questions, search for information in software guides and prepare invoices, reports and financial summaries.

Each task may not take much time on its own. However, when there are dozens of them during the day, they create a significant workload. Constantly switching between tasks and working under time pressure can also increase the risk of mistakes.

A Gartner survey of 497 finance professionals supports this. According to the results, 18% of respondents made financial errors at least once a day, one-third made several errors a week and 59% made several errors a month. The survey linked these mistakes to a heavy workload and a lack of time.

The goal of automation is therefore not only to fit more tasks into the same working day. It should also reduce time pressure and give accountants more opportunities to focus on their work.

How much time can AI save in accounting?

The effect of AI on accounting is no longer just a theory. Researchers from Stanford and MIT studied the use of generative AI in accounting firms. They found that accountants who used AI spent an average of 3.5 fewer hours per week on routine data entry and transaction classification.

Over one year, this adds up to around 182 hours, which is more than four full working weeks.

According to the study, around 8.5% of working time moved from routine tasks to higher-value activities. AI users supported 55% more clients per week, recorded 21% more billable hours and completed the monthly closing process an average of 7.5 days earlier. Their general ledger records were also 12% more detailed, showing that the time savings did not reduce the quality of their work.

The results have been published by Stanford Graduate School of Business, MIT Sloan and the Journal of Accountancy.

When accountants spend less time processing data manually, they have more time for quality control, client communication and meaningful financial analysis.

Why is AI more useful when it is integrated into accounting software?

A public AI chatbot can answer general questions, but it does not know your company’s financial results or the data stored in your accounting software.

The SimplBooks AI Assistant works where the company’s financial data is already stored. Users do not need to collect information from different reports, copy it into a separate spreadsheet or enter it into a public chatbot.

The AI Assistant can help users:

• find answers to questions about accounting and using SimplBooks
• create clear summaries based on the company’s financial data
• compare results from different periods
• analyse the company’s financial performance
• identify possible errors and areas that need attention
• carry out specific tasks in the software based on instructions written in everyday language

For example, users can ask the SimplBooks assistant to compare sales revenue with the previous year, summarise the company’s results for the last six months or point out possible differences in the data.

The AI Assistant does more than answer questions. Users can also give it specific instructions, such as: “Create a €350 invoice for customer X.”

The AI Assistant prepares the invoice using the information already available in SimplBooks. The user only needs to check the details and confirm the invoice. This allows everyday tasks to be completed without moving between different menus and views.

According to an ICAEW article, generative AI can analyse large amounts of data and help identify transactions or patterns that may be causing a difference. This means that accountants do not always need to search through long transaction lists manually to find the possible cause of an error.

AI does not replace an accountant’s professional judgement

The main value of AI is not replacing accountants but reducing routine work. It can help find and collect information, make initial comparisons and prepare everyday tasks.

The final responsibility and decision-making still remain with the user. An invoice prepared by AI must be checked before it is sent. The results of analyses and suggestions about possible errors must also be reviewed by the user.

The best results come from cooperation between people and technology. AI finds and collects the information, while the accountant decides what it means. AI prepares the task, while the accountant checks and confirms it. This allows accountants to focus on work that requires experience, context and professional judgement.

Less time searching, more time creating value

When a large part of the working day is spent chasing documents, checking data and correcting errors, there is less time to understand what the numbers actually mean for the company.

Saving even a few hours each week can add up to dozens or hundreds of hours over a year. This time can be used to advise clients, analyse the company’s results or simply work in a calmer and more accurate way.

The SimplBooks AI Assistant helps users find information, analyse company data and complete tasks using simple written instructions directly in the accounting software. The assistant is available in the same place where daily accounting work is done.

Activate the SimplBooks AI Assistant and try it free for 30 days.