The use of AI-powered big data accounting tools can help non-profit organizations to see their finances in a whole new light. Big data is the era of data analytics. With organizations now having access to an abundance of data, it can be difficult to know where to start or what to do with it. This is where AI comes in.
Today’s non-profit organizations that use AI-powered solutions are often able to more thoroughly vet grant applications, make better decisions about how to allocate their funding, and understand their donors better. This, in turn, leads to even more grant funding. In this article, you’ll learn how big data and AI impacts non-profit accounting and how they can help your organization.
The Challenges of Big Data in Non-Profit Accounting
Big Data is the term digital experts use to refer to the growing volume of digital information created and shared on the Web and electronic devices. Digitization of physical data or content (also called “datafication”) accelerates data creation, especially as the internet becomes more and more accessible. While it may seem a good thing, it poses some challenges for non-profit organizations, particularly when it comes to accounting.
Information is becoming increasingly difficult to handle
Big data is exactly what you think it is—a massive amount of information. The amount of financial and legal information your organization generates, stores, and processes today is probably gargantuan. The scale will only increase as you implement more projects, get more sponsorships, and adopt new data sources. As a result, you will also face more accounting and auditing challenges.
Client expectations are changing
As big data prompts technological advances in accounting, it also changes how a non-profit works with benefactors, beneficiaries, and government agencies. Your sponsors’ expectations have expanded because of new technology, and they require that you be even more transparent, accountable, and successful.
What is AI, and what role does it play in accounting innovation?
Artificial Intelligence (AI) is one of the latest technologies revolutionizing accounting. It’s a collection of many different technologies that use machines (particularly computer systems) to simulate human intelligence processes. Initially used for basic applications such as speech recognition and natural language processions, AI has made its way into financial and legal data analytics.
AI’s primary function is to copy how the human brain assesses or analyzes data by interpreting patterns and correlations. They are programmed to scan and analyze existing data and look for configurations that a human brain would assume relevant to decision-making. One fascinating thing about AI is that you can integrate it into any computer program, including accounting analytics.
AI’s power to analyze data has many benefits for non-profits, although it can’t replace the human brain nor reduce the importance of deep industry experience. Essentially, AI can replace some of the responsibilities of your accounting staff but not your CFO.
What are the benefits of using accounting software with AI?
When integrated into your accounting software, AI can do wonders for your non-profit organization. Here are some of the significant benefits your organization can enjoy.
Increase your processing speed
AI can help you finish all your accounting tasks, from identifying and sorting transactions to making sense of unstructured data within a fraction of the time it usually takes you to complete them. If you want your accounting department to concentrate on higher-value tasks, then AI-powered solutions are precisely what you need.
Automate your processes
AI allows you to fully automate the accounting cycle to ensure that all transactions performed in your organization are correctly accounted for and recorded. It also makes sure that everything is up-to-date and accurate at all times. AI can also organize your accounting data by placing it in its correct category, cross-referencing every entry, and ensuring every transaction with multiple entries is all in one place on the same day.
Reduce the risk of human errors
AI-powered solutions allow you to check and correct any errors you or your team may have made. This ability means you can streamline your process and cut the probability of human error to a great extent. Remember that small mistakes can undermine sponsor confidence and result in lost donations, so just imagine what a large discrepancy could do. AI can serve as a set of fresh eyes. After memorizing patterns in your processes, it can instantly detect errors that you have overlooked.
Experience AI-powered accounting with LTD Global
Are you ready for a new chapter for your non-profit organization? If you want to experience AI-powered accounting solutions without making another significant investment, consider outsourcing your organization’s accounting tasks to LTD Global. Not only do we use AI in our accounting software, but we also have a big pool of highly qualified accounting experts who can validate all outcomes. Work with us, and we’ll take you to the next level.
Sources:
What is artificial intelligence?, TechTarget.com
https://searchenterpriseai.techtarget.com/definition/AI-Artificial-Intelligence
How Much Should Accounting Cost a Small Business?, PatriotSoftware.com
https://www.patriotsoftware.com/blog/accounting/how-much-should-accounting-cost/