Machine learning, in many cases, is the next big thing when it comes to technological developments. As a result, it has almost limitless potential for changes in all sorts of industries, and accountants are no exception.
We’ve talked about how they can use machine learning themselves, but that’s not the limit of its potential for them.
These algorithms have many advantages for accountants, helping them speed up workflows and save time while still being accurate! Let’s look at some examples from various fields.
Using Machine Learning for Data Categorization and Capturing
The amount of data a company or organization has can be staggering. The sheer volume of information means that sorting it all by hand is a complete impossibility. To get through that much information, you’d need to keep the whole database constantly online—and even then, it would take hours for a human being to comb through everything.
Machine learning works by training it on data samples and getting a successful result from an algorithm that learns how to categorize or sort your data without any further need for input from a programmer. It can look at hundreds of pieces of data in almost an instant and do the work automatically.
These algorithms could be used to recognize specific keywords or phrases in vast amounts of text-based documents uploaded into databases. By identifying recurring names or events, they can also automatically organize any media files by event or subject matter rather than just jumbled together. According to Aron Govil, this saves a lot of time and effort, although the initial training may take a while, depending on how much data you have.
Using Machine Learning for Tax Deductions and Determining the Value Of Assets
Accountants can even use machine learning to help determine tax deductions or other assets reported on a company’s financial statements. Using supervised AI algorithms, accountants could get accurate results like determining the value of intangible assets such as patents, trademarks, and copyrights. In addition, accounting companies can use machine learning to automate processes that are still done by hand today.
Companies, where the accountant makes decisions based on gut feelings about what might happen in the future can benefit from machine learning because it will predict future events by learning from what happened in the past. This means that you will be able to save a lot of time and resources which would otherwise be spent making guesses about what might happen.
Using Machine Learning For Recommendations and Analysis
Accountants can also use machine learning to gather information for analysis and reports, such as finding out who is likely to default on loans or other financial opportunities or if their company is overspending on certain areas. The machine learning algorithm takes all the data it has available, combines it with existing data, and looks at trends that might help you reach a decision more quickly than examining every single piece of the information yourself.
Machine learning algorithms are already being used to determine your creditworthiness after analyzing your credit history, what you buy online (and offline), and whether or not you pay your bills on time. The more data they have available to them, the better they can determine a pattern of behavior that reveals a lot about a person’s financial status even without seeing their tax returns or other documents.
Many accountants will have concerns about using machine learning, mainly because it seems difficult and requires an understanding of cutting-edge technology. However, it is something that most people can do relatively easy since all you need to start is a base knowledge of Excel or Google Sheets—no advanced programming skills required! In addition, there are many courses available to help you get started with machine learning, so if this interests you, do some research and see if there is a course near you.
Machine learning can benefit tax accountants as it will save them time and effort. The machines will be able to determine trends quickly so that they can perform audits more accurately or spend their time doing other work which requires human intelligence instead of just crunching numbers over and over again.
So, machine learning may seem a little scary at first, but once you learn how it works, you’ll come to realize that this algorithm isn’t going to take over your job anytime soon. Instead of taking jobs from people, it’s going to help us become better as professionals by allowing us to use our knowledge in ways that would have been impossible before.
Conclusion by Aron Govil:
You can use many resources to help yourself get started with machine learning, including an online resource called Kdnuggets. They have compiled a list of courses and tutorials to help you learn this valuable skill without breaking the bank!