2025 will be the year that small and medium businesses (SMBs) as well as accounting practices in South Africa start to tap into the power of generative artificial intelligence (GenAI) technologies to unleash higher levels of productivity and uncover fresh data-driven insights across their finance and accounting operations.<\/p>\n
That\u2019s according to Elricco Govindasamy, Director: Accountants at Sage, who says that accountants are already experiencing significant efficiencies through using AI and machine learning for applications such as data analytics, optical character recognition for extracting data from scanned images, and automation of repetitive tasks such as data entry and invoice processing.<\/p>\n
\u201cIn this coming year, the integration of generative AI into accounting and finance applications will take AI-powered accounting to a whole new level,\u201d says Govindasamy. \u201cGenAI copilots will serve as smart assistants to accountants and finance officers, enabling them to automate more complex workflows as well as uncover rich insights from their data.<\/p>\n
\u201cOne of the most exciting elements of GenAI is that it will allow us to interact with complex financial data in natural spoken or typed language. It will be a powerful workmate that can collaborate with financial professionals to check data for mistakes, patterns or opportunities so that they can make faster, better-informed decisions.<\/p>\n
\u201cGenAI-infused software can learn based on collaboration and feedback from users, so that it evolves in response to real-world use cases. As accountants strive to move traditional, retrospective accounting cycles, GenAI will enable them to free up more time and to act as strategic counsel to the business or their clients.\u201d<\/p>\n
Aaron Harris, CTO at Sage, says that 2025 will see the continued proliferation of AI in the accounting industry. \u201cIt will be the year where we start to see AI agents take over responsibilities for accounting functions, showcasing the full potential of gen AI,\u201d says Harris.<\/p>\n
\u201cAs AI effectively becomes a \u2018user\u2019 in accounting software to automate tasks, we will reach a tipping point where accountants will be able to focus more on high-value activities like strategic planning and advisory services \u2013 so long as the industry applies the necessary safeguards for these AI agents.\u201d<\/p>\n
Although GenAI is accessible and intuitive by design, accountants may still need to learn new skills to uncover its full potential. \u201cIn 2025, accountants will need to embrace \u2018prompt engineering\u2019. It is vital they learn how to effectively interact with the large language models that underpin the AI technologies that are transforming the industry,\u201d says Harris.<\/p>\n
\u201cThat doesn\u2019t mean accountants need to master coding or become technical experts. Rather, it is about understanding how to communicate with and guide their AI copilots to achieve desired outcomes, asking the right questions and, over time, training AI behaviour to optimise performance.\u201d<\/p>\n
Harris adds: \u201cThe biggest benefit of AI and automation in the accounting space is that it can lead to greater accuracy and efficiency, free up time for humans to spend on high-level tasks such as replacing monthly closes with continuous accounting. In 2025, this will manifest itself in the next step on the industry\u2019s journey towards continuous accounting, continuous assurance, and continuous insights.<\/p>\n
For instance, advising clients on the cost-benefit analysis of adding a new warehouse or helping a business department to understand whether they can afford to hire more salespeople or launch a new product in a new country. It can also be used to minimise business risks, such as erratic cash flow or rising debtor days.<\/p>\n
Moving away from these cycles would mark the biggest changes to accounting for centuries. There\u2019s no denying that AI will have a big impact on how accountants in business and practice, think, work and create value for their clients.<\/p>\n
\u201cGenerative AI allows us to move faster towards those goals and this shift will empower businesses with unparalleled operational efficiency, improved compliance, robust risk management, and more accurate financial forecasting,\u201d Harris concludes.<\/p>\n
About Sage<\/strong>
\nSage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.<\/p>\n