What does dinner have to do with Blockchain and Artificial Intelligence? the level of importance they have in your mind. If you have a relatively standard eating cycle, eating dinner takes precedence over other tasks on your to-do list. Not eating has an immediate effect on your current state, so a plan is always made and executed to deliver tasteful results.
As a CPA firm, bookkeeper, or accounting professional, what level of importance do blockchain and article intelligence have on your mind? For a fair amount of individuals it has no importance, simply because they don’t know what it is. For other individuals, it ranks higher because they have looked-up the definition on Google. The rest seem to be posting articles about disrupting accounting. Like dinner, incorporating blockchain or AI at your next partner meeting won’t happen unless it’s going to affect your current state.
To know which individuals should be concerned, let’s break down each technology and how it applies to your firm or business.
BLOCKCHAIN: An incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions, but virtually everything of value.
Historically society has relied on third party entities when conducting transactions. Buying from an untrusted site? PayPal brings a sense of security that the transaction will be on record and you will receive a product in exchange for your money. Blockchain suggests the same concept; the main difference is that it is not owned by any corporation or government. Everything can be tracked without reliance on a third party institutions, thanks to the power of a highly sophisticated global network of users.
ARTIFICIAL INTELLIGENCE: a machine capable of producing results using data to present the most logical solution. Artificial intelligence shouldn’t be confused with Machine Learning, defined as a systems ability to automatically improve and evolve in processes without being explicitly programmed
What is the effect on my firm?
Businesses and firms should implement new technologies to provide a better client experience. Whether you’re a bookkeeping, outsourced accounting, risk, or audit firm, new technologies can’t be ignored.
For now, blockchain is being implemented by the largest firms. It’s tough to provide a use case for a ‘typical’ everyday accounting firm today. What is going to happen when a corporation decides it is tired of paying taxes and switches to blockchain currencies the IRS has no jurisdiction on? What happens to audit firms when other smaller business follow suit? It is easy to see why governments demand regulations but independent enterprises can’t resist.
AI is more straightforward. Ultimately best used as a efficiency tool to crunch data and review work. Leveraging intelligent software is a cost-effective and accessible step forward for firms of every size. AI enables accountants to find answers to research and client questions in real time. It will free time to focus on higher level tasks and provide a more advisory approach.
Blockchains future depends on where businesses and firms decide to put their faith. AI standard and automation has its place in accounting and all business practices. Adopting new technologies is a stepping stone process, it’s going to be hard to understand AI if your firm doesn’t understand or adopt something more simple first. As an example, the cloud.
The Right Networks Cloud,with an application directory of 200+ industry standard applications and over 130,000+ users on board, helps firms gain a competitive advantage now. Start your next partner meeting by asking how the cloud can impact you today!