Companies are all different. Even if your firm specializes in a particular vertical market, it can still take a considerable amount of time for one of your accountants or bookkeepers to learn the general ledger and the cost classifications for dozens of different clients.
This can be very mentally demanding with the switching time between clients -- which can slow them down tremendously throughout the day.
Companies organize their general ledger into a chart of accounts differently from other companies. And each company has a different take on how to classify their costs into various general ledger or GL accounts.
A high-quality AI platform needs to take that into account and understand the different kinds of incoming costs. Those costs need to be coded differently to the proper GL accounts. With these capabilities, AI can be a huge time saver. It even helps to improve accuracy since humans do make mistakes from time to time.
An AI platform is entirely driven by data. Much like anything you might buy, the quality of the AI can differ. There are two factors that impact how well an AI platform designed for accounting classifies costs. The level at which the AI can perform comes down to the algorithms and the sophistication of its technology and the amount of data used for training the technology.
Fun Fact: Vic.ai has trained our AI on more than 146 million records!
Imagine if your accountant was able to accurately remember the last 146 million invoices they processed, and your accountant used that information while processing upcoming invoices. Looking at the data another way, by knowing due dates on received invoices, the AI can predict cash flow more accurately. It is essential to have large amounts of data for an AI system to work properly.
Unique Local General Ledger Accounts
So how does this work for each individual client? Extracting and reading data from invoices is very similar, regardless of the client. But the general ledger, accounts, departments, projects, and dimensions are unique to each client.
As a result of that, the accountants have to switch between different buckets of knowledge every time they work on a different client. The accountant has to remember a lot of things about each client.
This type of routine is very taxing on the accountant’s cognitive abilities. It can cause boredom, fatigue, and a lack of focus, which can lead to mistakes. It also takes away the ability for others to step in and perform accounting work for each client.
Your AI platform needs to support each client’s list of general ledger accounts and learn and operate on a very granular, single-client basis. A well trained AI system can work on any client at any time, which is a significant advantage.
The Vic.ai platform is designed in a way where it draws on both a layer of global knowledge as well as knowledge built up on every specific client to reach its conclusion. It understands and perceives things on a global basis. But it’s also engineered in a way where it learns the nuances of each of your clients to be able to determine the specific GL dimensions for each client.
How similar are your clients’ general ledgers? Do they have identical charts of accounts, are they similar, or is every client different? Tell us your thoughts in the section for comments below.
To learn how CPAs and bookkeeping firms are transforming, watch the webinar recording on “AI Best Practices for CPAs and Bookkeepers (How Accounting and Bookkeeping Firms Can Grow with Artificial Intelligence and Machine Learning).”