How Can SMEs Use AI in Accounting Without Losing Control of Their Numbers?

Small and medium-sized enterprises make up the bulk of South Australia’s business population. Ranging in size from 0 to 200 employees, SMEs often face challenges in terms of managing resources and scaling for growth, which is where a dedicated business advisory and accounting firm can help. Check out this guide by Hood Sweeney on how SMEs can use AI in accounting while keeping their numbers under control.

How Can AI and Human Resources Work Together in Accounting?

Artificial intelligence helps human resources work more efficiently, including in the accounting space. By using state-of-the-art software, accountants can rely on AI to fast-track routine, high-volume tasks, freeing up their time to make crucial decisions. For example, AI in accounting can be used to automate data entry, expense tracking and bank reconciliation, while human sign-off should be required for financial statement approval, complex tax matters and monthly account management.

What Accounting Controls Can Be Automated?

SMEs and their accounting teams often find AI is most useful when setting pre-defined controls, such as approval thresholds. As an example, expenses under $100 may be set to auto-approval, while anything over needs manual approval from a manager. Software may be configured to flag duplicate transactions or unusual activity, while role-based access controls determine who has permission to approve payments and edit vendor details.

How Often Should SMEs Review Accounting Records?

Rigorous reviews are essential to help SMEs maximise the benefits of AI in accounting without putting their business at risk. AI makes it possible to not need to review every individual transaction, but instead perform weekly checks of flagged items and cash positions. A monthly review is also important for checking high-impact areas such as revenue, cost of goods sold and taxes, while ensuring accuracy in all reconciled accounts.

What Are The Best AI-Integrated Accounting Tools?

Business advisory and accounting specialists typically recommend software featuring built-in AI to avoid disconnected data. Some of the top accounting software, such as Xero and QuickBooks provide native integration, connecting directly to POS systems and bank accounts, as well as the opportunity to train AI systems to work more effectively. Correcting misclassifications is key so AI learns specific organisation rules, improving efficiency.

How Can You Get Started With AI Accounting?

If you run a small or medium-sized business and want to benefit from advancements in AI, it’s best to find a reputable accounting firm with proven experience helping SMEs. By outsourcing accounting to a knowledgeable third-party, you can focus your resources on growing the business while feeling assured that money management and compliance are taken care of. The best accountants will be familiar with all the latest technology to boost your business.

Learn More About Accounting for SA Small and Medium-Sized Enterprises

Since 1976, Hood Sweeney has provided businesses across Adelaide and regional SA with tailored accounting and strategic advice. We are here to help SMEs make the most of their money through robust, resourceful accounting and financial management. Contact our accounting team to discuss your business needs today.