Will Artificial Intelligence Replace Bookkeeping?

February 20, 2024
5
minutes to read
by
Alice Surdy
Table of Contents

In today's rapidly evolving business landscape, efficient financial management is crucial for the success of any organisation. Among the core pillars of financial management lies bookkeeping, a fundamental process that ensures the accurate recording, organising, and tracking of financial transactions. While traditional bookkeeping has been performed manually by human professionals, recent advancements in artificial intelligence (AI) have given rise to cutting-edge solutions like Thriday, revolutionising how bookkeeping is done. In this blog, we will explore the role of bookkeepers, their significance, and how Thriday's AI-powered automation can simplify and enhance the bookkeeping process.

What role do bookkeepers play? 

Bookkeepers play a vital role in maintaining the financial health of a business. They are responsible for recording and classifying financial transactions, such as sales, expenses, payroll, and purchases, into the appropriate accounts. By meticulously organising financial data, bookkeepers lay the foundation for accurate financial reporting and analysis. They also reconcile bank statements, manage accounts payable and receivable, and generate financial reports that provide valuable insights into the company's economic performance.

Why are bookkeepers important? 

Bookkeepers are essential for several reasons:

  • Accurate records: Bookkeepers ensure that all financial transactions are correctly recorded, creating a reliable audit trail. This accuracy is crucial for preparing tax returns, complying with legal requirements, and making informed financial decisions.
  • Financial analysis: Well-organised and up-to-date financial records allow businesses to analyse their financial performance, identify trends, and make informed strategic decisions. Bookkeepers provide the foundation for generating financial reports, which help monitor profitability, cash flow, and overall financial health.
  • Compliance and transparency: Bookkeepers ensure compliance with financial regulations and reporting standards. They help maintain transparency by providing stakeholders, such as investors, lenders, and tax authorities, with accurate and easily understandable financial information.

How much does a bookkeeper cost? 

The cost of hiring a bookkeeper can vary based on factors such as geographic location, experience level, and the complexity of the bookkeeping tasks required. Bookkeepers may charge an hourly rate or a fixed monthly fee. On average, the cost can range from $20 to $50 per hour, depending on the abovementioned factors. Small businesses with basic bookkeeping needs may opt for part-time bookkeepers or bookkeeping services to reduce costs.

Do you need a bookkeeper? 

The need for a bookkeeper depends on the size and complexity of your business and your comfort level with handling financial tasks. While small businesses or freelancers with straightforward financial transactions can manage their bookkeeping initially, it becomes increasingly important to delegate these responsibilities to a professional as the business grows. Hiring a bookkeeper ensures accuracy, saves time, and allows you to focus on core business activities.

Can Thriday automate bookkeeping? 

Yes, Thriday represents the cutting edge of bookkeeping automation. Leveraging AI and machine learning technologies, Thriday's intelligent software can automate many aspects of the bookkeeping process. By extracting relevant data from financial documents, such as invoices and receipts, Thriday eliminates the need for manual data entry. It can accurately categorise transactions, reconcile receipts and generate financial reports in a fraction of the time it would take a human bookkeeper. Thriday's automation saves time and reduces the potential for human error.

Final thoughts

Bookkeeping plays an essential role in businesses of all sizes by tracking income and expenses over time to ensure accuracy throughout the organisation. Based on your business preferences and comfort with technology, you might find that next-generation accounting platforms like Thriday can automate bookkeeping for your business – saving you money, time and hassle. If you are looking for ways to streamline your accounting processes, using Thriday could be just what you need.

While traditional bookkeeping methods require significant manual effort and can be prone to errors, innovative solutions like Thriday harness the power of AI to automate and streamline the process. Thriday's technology offers businesses a cost-effective alternative to hiring a human bookkeeper.

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360 AFSL 241167 (Regional Australia Bank). Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you. Team Thrive No 2 Pty Ltd ABN 26 677 263 606 (Thriday Accounting) is a Registered Tax Agent (No.26262416).

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