Small Business Shared Interest Group

Hello, ALL,

Artificial intelligence (AI) plays a crucial role in helping auditors and accountants, particularly in small organizations, navigate crises effectively. Companies that adopt innovative strategies, such as integrating AI into their financial practices, are better positioned to exploit opportunities that arise during challenging times. AI can assist auditors and accountants in identifying risks, improving decision-making, and automating routine tasks, allowing them to focus on strategic explorative efforts toward new products and market developments. By leveraging AI, small organizations can enhance their ability to cope with crises, ensuring more resilient and adaptive business operations.

Has your organization utilized AI in any accounting or auditing activities? If so, could you briefly describe how AI has been integrated into these processes?

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Ahmad H. Juma'h, CMA, CPA
Professor of Accounting
University of Illinois Springfield
Illinois, USA
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can you please more elaborate, as i think implementing AI for small business is quite high, and cost benefit analysis should be done. i have try to implement in our company ERP system, but the cost was much more higher than expected for implementing and a high yearly fees around 7000 usd. 

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Karine Kamareddine CMA
CFO
Bluering SAL
Beirut
Lebanon
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Original Message:
Sent: 08-21-2024 04:58 PM
From: Ahmad Jumah
Subject: AI use in auditing and accounting

Hello, ALL,

Artificial intelligence (AI) plays a crucial role in helping auditors and accountants, particularly in small organizations, navigate crises effectively. Companies that adopt innovative strategies, such as integrating AI into their financial practices, are better positioned to exploit opportunities that arise during challenging times. AI can assist auditors and accountants in identifying risks, improving decision-making, and automating routine tasks, allowing them to focus on strategic explorative efforts toward new products and market developments. By leveraging AI, small organizations can enhance their ability to cope with crises, ensuring more resilient and adaptive business operations.

Has your organization utilized AI in any accounting or auditing activities? If so, could you briefly describe how AI has been integrated into these processes?

------------------------------
Ahmad H. Juma'h, CMA, CPA
Professor of Accounting
University of Illinois Springfield
Illinois, USA
------------------------------

Thank you, Karine Kamareddine, for this comment. for your insightful comment. I completely agree that cost is a significant consideration for small businesses when it comes to adopting ERP systems. When it comes to the use of AI by small businesses, it's crucial to explore the available options. I recommend starting by leveraging free AI tools to gain a better understanding of how AI can enhance various business activities. Ilya Ilienko has highlighted some key activities where AI can be particularly useful-please refer to his insights for more details.

Before diving into AI adoption, I suggest that small businesses first assess their specific needs, identify which activities could benefit the most from AI integration, and then explore the free AI tools that align with those needs. This approach can help ensure that the adoption of AI is both strategic and cost-effective.

I welcome any additional suggestions or comments from colleagues on this topic. Your input is invaluable.

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Ahmad H. Juma'h, CMA, CPA
Professor of Accounting
University of Illinois Springfield
Illinois, USA
------------------------------

Original Message:
Sent: 08-22-2024 02:45 AM
From: Karine Kamareddine
Subject: AI use in auditing and accounting

can you please more elaborate, as i think implementing AI for small business is quite high, and cost benefit analysis should be done. i have try to implement in our company ERP system, but the cost was much more higher than expected for implementing and a high yearly fees around 7000 usd. 

------------------------------
Karine Kamareddine CMA
CFO
Bluering SAL
Beirut
Lebanon

Original Message:
Sent: 08-21-2024 04:58 PM
From: Ahmad Jumah
Subject: AI use in auditing and accounting

Hello, ALL,

Artificial intelligence (AI) plays a crucial role in helping auditors and accountants, particularly in small organizations, navigate crises effectively. Companies that adopt innovative strategies, such as integrating AI into their financial practices, are better positioned to exploit opportunities that arise during challenging times. AI can assist auditors and accountants in identifying risks, improving decision-making, and automating routine tasks, allowing them to focus on strategic explorative efforts toward new products and market developments. By leveraging AI, small organizations can enhance their ability to cope with crises, ensuring more resilient and adaptive business operations.

Has your organization utilized AI in any accounting or auditing activities? If so, could you briefly describe how AI has been integrated into these processes?

------------------------------
Ahmad H. Juma'h, CMA, CPA
Professor of Accounting
University of Illinois Springfield
Illinois, USA
------------------------------

@Karine Kamareddine

You're absolutely right—AI implementation costs can vary widely. It’s not just about the initial setup but also the ongoing support, which can be quite tricky. 🤔 The total cost really depends on several factors, like the size of your business, the number of employees, how many people will actually use the AI, the industry you’re in, and specific regulations you have to follow.

For example, if you’re dealing with complex reporting or multiple product lines, or if you need AI to integrate with existing company platforms, the costs can add up quickly. On the other hand, if you’re running something like a small bakery with just a few employees, you might be able to tap into AI tools that are either low-cost or even free. 🍞👩‍🍳

Take Salesforce as an example—it’s a powerhouse, but it can also be very (VERY) pricey. Some businesses find it worth the investment, while others may find a lighter, more cost-effective solution works better for their needs. Sage Intacct - same, users/modules/support/volume . . .

So, what’s everyone’s take? Is AI worth the investment for small businesses, or does it depend too much on the situation? 🤷‍♂️

Yey - Woohoo - AI? 🎉
Boo - Poop - AI? 💩

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Ilya Ilienko, dual MBA, CPA, CMA
Board Member / Director
East Coast - United States
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@Ahmad Jumah  

Ahmad, this is a fantastic discussion point! AI’s role in accounting and auditing is very very transformative, in both crisis scenarios and ordinary course of business. 🌟

Analyzing Transactions and Unwinding Complex Entries: AI can be used to analyze transactions, unwind them, and apply the relevant GAAS and GAAP pronouncements to ensure they were booked, categorized, and treated correctly. This automation of compliance checks can save a lot of time and reduce errors.

Enhancing Research: AI can streamline research processes by quickly analyzing vast amounts of financial data, market trends, and regulatory updates. This allows auditors and accountants to identify relevant information more efficiently, leading to better-informed decisions and strategies.

Integrating Audit Tasks with Company Ops: AI can assist in merging the audit process with company operations by continuously monitoring operational data and flagging potential discrepancies in real-time. By linking operational data directly with financial accounting and reporting, AI can provide a more transparent and cohesive view of a company’s performance, making audits more efficient and insightful.

Risk Assessment and Fraud Detection: AI-driven tools can evaluate historical data to identify patterns and flag items that might suggest financial misstatements or fraudulent activities. By continuously learning from data, these systems can adapt and improve their detection capabilities.

Predictive Analytics for Financial Health: By analyzing trends in financial data, AI can provide predictive insights into a company’s financial health. This allows accountants to foresee potential issues and advise clients on actions to take to reduce risks.

Tax Compliance: AI can assist in ensuring tax compliance by analyzing transactions against tax laws and regulations, identifying potential issues, and suggesting corrections before filings are made.

AI-Assisted Financial Planning: By utilizing AI to analyze market conditions and historical data, small businesses can enhance their financial planning efforts, ensuring that their strategies are aligned with current economic trends.

Just a few examples of how AI can help our field. The possibilities are HUGE!!!   We'd love to hear more experiences and ideas from others in the community! What has your experience been with AI in accounting and auditing thus far? 🤔💬

#ai  #Audit#risk #business

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Ilya Ilienko, dual MBA, CPA, CMA
Board Member / Director
East Coast - United States
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Hello ilya @Ilya Ilienko

It appears that professionals outside our group are showing interest in the use of AI in SMEs.

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Ahmad H. Juma'h, CMA, CPA
Professor of Accounting
University of Illinois Springfield
Illinois, USA
------------------------------

Original Message:
Sent: 08-22-2024 12:50 PM
From: Ilya Ilienko
Subject: AI use in auditing and accounting

@Ahmad Jumah  

Ahmad, this is a fantastic discussion point! AI's role in accounting and auditing is very very transformative, in both crisis scenarios and ordinary course of business. 🌟

Analyzing Transactions and Unwinding Complex Entries: AI can be used to analyze transactions, unwind them, and apply the relevant GAAS and GAAP pronouncements to ensure they were booked, categorized, and treated correctly. This automation of compliance checks can save a lot of time and reduce errors.

Enhancing Research: AI can streamline research processes by quickly analyzing vast amounts of financial data, market trends, and regulatory updates. This allows auditors and accountants to identify relevant information more efficiently, leading to better-informed decisions and strategies.

Integrating Audit Tasks with Company Ops: AI can assist in merging the audit process with company operations by continuously monitoring operational data and flagging potential discrepancies in real-time. By linking operational data directly with financial accounting and reporting, AI can provide a more transparent and cohesive view of a company's performance, making audits more efficient and insightful.

Risk Assessment and Fraud Detection: AI-driven tools can evaluate historical data to identify patterns and flag items that might suggest financial misstatements or fraudulent activities. By continuously learning from data, these systems can adapt and improve their detection capabilities.

Predictive Analytics for Financial Health: By analyzing trends in financial data, AI can provide predictive insights into a company's financial health. This allows accountants to foresee potential issues and advise clients on actions to take to reduce risks.

Tax Compliance: AI can assist in ensuring tax compliance by analyzing transactions against tax laws and regulations, identifying potential issues, and suggesting corrections before filings are made.

AI-Assisted Financial Planning: By utilizing AI to analyze market conditions and historical data, small businesses can enhance their financial planning efforts, ensuring that their strategies are aligned with current economic trends.

Just a few examples of how AI can help our field. The possibilities are HUGE!!!   We'd love to hear more experiences and ideas from others in the community! What has your experience been with AI in accounting and auditing thus far? 🤔💬

#ai  #Audit#risk #business

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Ilya Ilienko, dual MBA, CPA, CMA
Board Member / Director
East Coast - United States
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Thats a very novel post Mr. Juma'h!!! I did not expect a snapshot of analytics related to #aiAI

Here is a random thought I had, I don't want to explore this angle too much, but I was just wondering:

AI Relies Heavily on Data.

• If AI systems require massive amounts of data to function effectively, then where do all these server farms go?
• How much space, energy will we need?
• Are we in an exponential increase now?

On a different note, see attached, its my co-authorship in academia some years ago.

We wrote about telecommunication sector in the emerging economies and its lifecycles.

This looks to me like a similar time now, just with AI. Thoughts?

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Ilya Ilienko, dual MBA, CPA, CMA
Board Member / Director
East Coast - United States
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