Autonomous accounting: the future of accounting is here, and AFAH is at the forefront

What is autonomous accounting?

Autonomous accounting is a concept defined by analysts such as Gartner. It refers to the use of artificial intelligence (AI) to automate and empower accounting tasks. The aim is to create an intelligent accounting function capable of operating independently, with minimal human intervention.

Why use autonomous accounting?

Automating accounting tasks can improve the efficiency of the accounting function by reducing the time and effort required to complete them, leading to a significant reduction in labor costs. This frees up accounting teams to focus on higher value-added tasks such as financial analysis, strategic planning and advising other company departments.

What’s more, AI and Machine Learning (ML) can help reduce accounting errors, which could improve the accuracy of financial statements.

In the end, it’s not all that revolutionary… once again, it’s about doing more with less:

• More compliance
• More data
• More efficiency
• More responsiveness
• In less time
• For less money
• With fewer people

Five benefits of autonomous accounting

A technological paradigm shift

Existing systems are often obsolete, and investment in modernizing “support” functions is not always on the agenda. To achieve the necessary agility and power, component-based systems need to be easily integrated to provide end-to-end process automation.

Accounting data modeling

All components must share a clear and consistent view of business models, accounting standards and transaction attributes, to enable transparent operational reconciliations and meet legal and regulatory obligations.

Continuous accounting

Accounting cycles can become virtually continuous. With more frequent and accurate accounting data, accountants can now concentrate on moving operational closing tasks, such as itemized account reconciliations, out of the closing period.

Data governance and compliance

Increasing levels of automation create new mandates for methods and solutions supporting strong compliance, data governance, quality control, completeness, consistency and conditions of data availability and use.

Transformation approach and implementation

This is a profound transformation that requires the implementation of methods, tools and governance to ensure success.

Look out for these challenges when adopting autonomous accounting

To make a successful transition to autonomous accounting, you will need to overcome a number of difficulties:

To date, there is no “turnkey” autonomous accounting solution, and the cost of acquiring the multiple components can exceed the budget.

Finance and IT must work together effectively, which is not always easy for everyone. Similarly, transforming teams and acquiring the necessary skills is a real challenge.

A project like this entails organizational and operational changes, which can often give rise to a great deal of resistance.

Systematic AI integration may not be simple

Using AI and ML to process accounting data raises multiple questions:

• Data security and confidentiality risks;
• Regulatory uncertainties (how to demonstrate the application of imposed accounting methods and rules?);
• Difficulty in providing the volumes of quality data required for the algorithms to function properly, and consequently a reduced level of confidence in autonomous accounting.

Thus, the use of generative AI to produce accounting entries comes up against a number of obstacles:

• Processing is not powerful enough;
• The technologies used (GPU, datacenter, etc.) are costly in terms of both budget and carbon footprint.

Axway’s approach to autonomous accounting with AFAH

Axway is convinced that the future of accounting lies in a hybrid approach that combines automation, autonomy, and human expertise.

Here are the key elements of our vision:

Automation: Automating repetitive, time-consuming accounting tasks is essential to freeing accountants to concentrate on higher value-added tasks.

Axway’s accounting interpretation engine has been at work for decades in most French banks, among others, generating billions of accounting entries every day, with rejection rates of less than 2%.

Today, complementary next-generation AI-based functions could play a crucial role in automating tasks such as data entry, account reconciliation and reporting.

Finance autonomy from IT and the move to DevOps for finance: It is important for the finance function to have a degree of autonomy from IT, so that it can effectively manage its tools and processes.

The move to DevOps for finance can facilitate this autonomy by enabling finance teams to work more closely with IT teams to develop and deploy software solutions.

Data exposure and use: Confidence in data that meets all quality criteria (integrity, availability, traceability, correct, up-to-date, consistent, and interpretable) is a strength for the accounting department, which can leverage it to help controllers propose optimization solutions to the business, speed up closings and reports, make predictions more reliable, etc.

Leveraging data and metadata to automate (via ML): AI can be used to leverage accounting data and metadata to automate a number of tasks, including:

• Reconciliation and error handling: AI can identify anomalies and errors in accounting data and suggest corrections.
• Retro documentation of accounting methods and processes: AI can analyze accounting data to automatically document existing accounting methods and processes.
• Auto-completion of mappings for interface realization: AI can automatically identify and complete mappings between accounting systems and other business systems.
• Assisted design of new accounting schemes: AI can assist in the design of new accounting schemes by analyzing existing accounting data and processes, or by drawing on reference schemes.

The Axway Financial Accounting Hub platform already provides numerous functionalities for accounting and finance departments to accelerate their progress towards autonomous accounting.

Above all, AFAH streamlines the process by reducing the need to use shared services, applications dedicated to correcting problems linked to inadequate data quality.

Axway is at your disposal to set up a workshop based on your specific needs

Autonomous Accounting is a fast-growing concept with the potential to revolutionize the accounting function. By combining automation, autonomy and human expertise, companies can create a more efficient, accurate and strategic accounting function.

Axway Financial Accounting Hub is at the forefront of this transformation, offering an accounting and financial integration platform that can help companies achieve their Autonomous Accounting goals.