Is AI Taking Over Bookkeeping?

AI is everywhere right now, and what it can and cannot do has been been a HUGE topic this year. In a matter of months, incorporating AI into our daily lives went from something on the horizon to something happening right now.

Many bookkeeping programs like QuickBooks are already incorporating AI tools into their software. It might have you wondering, “Is AI taking over my bookkeeping?” As an accountant, It’s certainly something I’ve thought about. I’d love to provide my insight about using AI in your bookkeeping, as well as give my thoughts on an even bigger question: where is AI in bookkeeping headed?

Can AI Do My Bookkeeping For Me?

AI can do some things without a problem, but not others. For straightforward, easy to categorize transactions, yes. AI can handle those on its own. The AI that QuickBooks uses can quickly categorize transactions by using the words in the memo field. It usually chooses the right category, but there are plenty of times it doesn’t.

One thing AI doesn’t know is the intent of a transaction. If you purchase plane tickets using your business credit card, QuickBooks’ AI will easily categorize that as travel. However, if you purchase plane tickets for your family vacation using your business points, those expenses would be more correctly coded as an Owner’s Draw. Since the AI only knows you bought plane tickets, it would categorize this purchase as travel as well.

Can AI Replace My Bookkeeper or Tax Preparer?

The short answer is no. At least, not yet. AI can absolutely do a lot of the bookkeeping faster than humans. However, a human must still review the AI’s outputs and determine if they’re correct.

As of right now, we can’t trust AI to be 100% accurate 100% of the time. Think of it this way. I could ask AI to give me all the steps to perform a surgery. It would search medical textbooks and write up a game plan that’s probably pretty accurate. But I’m not an expert in surgery. I wouldn’t know what half the terms meant, let alone have the expertise to verify the information it gave me. Before AI’s plan for surgery could be trusted for use in real life, it would need to be checked by a knowledgeable human.

Bookkeeping done by AI is the same way. Without a knowledgeable human checking AI, any errors it makes aren’t caught. And bookkeeping errors don’t go away. They accumulate until your numbers can’t be trusted, and your books become more confusing than they are helpful.

Is AI Here to Stay?

Yes, it’s pretty certain at this point that AI isn’t going anywhere. And while caution is still warranted when relying on AI, the way technology is evolving means AI will change the way things are done, and bookkeeping is no exception.

I like to think of it like the telephone and the computer. Both of those inventions changed people’s everyday lives. However, humans still have jobs and still must perform certain functions that phones and computers can’t do. I think AI will affect bookkeeping in the same way. We’ll use it to transform the way we work, but the work will still be here for us to do. 

Will Kane Accounting Outsource My Books to AI?

The short answer is no. While we are investigating ways to use AI to help us be more efficient and get your books done faster, we as your bookkeepers aren’t going anywhere. We’ll still be here listening when you tell us how excited you are about your new business idea. We’ll still be here helping you figure out your unexpected tax notice. We’ll still be here troubleshooting when the bank connection in QuickBooks stops working. We’ll still be here to clean up that QuickBooks file that you couldn’t fix on your own. (Or that AI tried to fix!)

As AI changes the way work, more and more people are seeking the human connection in what they do and the services they need. At Kane Accounting, our team will be here to help you run your business every step of the way.

If you’re looking for a bookkeeping service that incorporates the efficiency of new technology while prioritizing human expertise, we might be the perfect fit. Schedule a free consultation, and let’s find out how we can help your business flourish in the era of AI.