Artificial Intelligence Positioned for Bigger Role in Corporate Finance & Accounting Decision Making

Ned Piplovic

Artificial Intelligence

Results of a new survey by Censuswide indicates that Artificial Intelligence applications are becoming significant drivers of process transformation in Finance & Accounting departments across the world. And investors are seeking to profit from of the growing interest in artificial intelligence.

As one of the leading providers of Continuous Accounting – a new approach that some companies use to manage and automate their accounting cycle – BlackLine, Inc. (NASDAQ:BL) emphasizes that automating the current accounting and financial reporting cycles is crucial. Such automation would let accounting and financial information be used to make tactical and strategic decisions on a continuous basis in real time – instead of the current system in which relevant data are available only after each reporting period closes.

The primary goals of the continuous accounting concept are automation of repetitive accounting processes, distribution of the workload across the entire accounting calendar to avoid workload spikes at the end of each period and development of a continuous improvement mindset throughout the accounting cycle. Those processes are used by manufacturing and logistics departments.

Censuswide gathered responses from 300 CFOs, accountants and finance directors of U.S. companies that generate at least $150 million in annual revenue. Among the surveyed companies, three-quarters indicated that Artificial Intelligence (AI) either already plays a significant role in their company (46%) or that their company is seriously investigating implementation for finance and accounting applications (30%).

When asked to indicate the specific area in which artificial intelligence will have the most significant impact, 56% of the survey respondents stated that the AI applications will allow them to fully automate accounts payable (AP) and accounts receivable (AR) functions. Plus, 49% indicated that they could automate reconciliations and 31% would see the greatest help automating period-end closing routines.

Exclusive  Daily Data Flow: U.S. Stocks Little Changed; Fed Minutes Released

However, possibly the most interesting answer was that nearly a quarter (24%) of the respondents believe that AI applications will be able to manage a portion of strategic decision making in financial and accounting matters

Therese Tucker, the founder and CEO of BlackLine, said, “The responses underscore the growing power and use of AI tools and the implications for the finance organization.”

Tucker added that a “finance department of the future will be a very different place,” once artificial intelligence is fully integrated into the current processes.

BlackLine, Inc. provides financial accounting closing solutions to help its customers to address various aspects of their financial closing process, including account reconciliations, variance analysis of account balances and journal entry capabilities, as well as a range of data matching capabilities. Additionally, the company offers a range of key performance indicators that let clients compare metrics across their own operating entities, set goals and gauge their performance over time.

 

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Gold fell to start this week from previous week’s levels, which were the highest price levels fo rthe precious metal in the past 15 weeks, according to a Reuters report. The gold price drop, compared to the U.S. dollar, comes in the wake of a weaker-than-expected payroll data report last Friday and a statement by the San Francisco Fed President John Williams on Saturday that the Federal Reserve

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen publishes 5 different investment newsletter advisories, including the award-winning Forecasts & Strategies, which has beaten the market over the last 15 years.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays. Bryan's four newsletter and trading services include:

Product Details

LEARN MORE HERE

Jim Woods

A 20-plus-year veteran of the markets, Jim Woods has varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.

Product Details

LEARN MORE HERE

Bob Carlson

In Bob's monthly newsletter, Retirement Watch, he provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE