Tag Archive for: ai

The Future of AI in Bookkeeping: What It Really Means for Businesses

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What does the future of AI in bookkeeping look like?

Artificial intelligence is increasingly integrating into everyday business systems. From automated bank feeds to smart data matching, bookkeeping has quietly evolved over the past few years. With Making Tax Digital encouraging businesses to adopt digital record-keeping, questions about AI are becoming more frequent.

Many business owners are asking the same question. Will AI completely transform bookkeeping, and will bookkeepers still be required?

The short answer is yes, AI will change bookkeeping. But no, it will not eliminate the need for professional bookkeepers.

How AI is already used in bookkeeping

AI is not new to bookkeeping. Many tools already use it in practical ways, even if it is not always labelled as AI.

Examples include:

  • Automatically matching bank transactions to invoices
  • Suggesting expense categories based on past behaviour
  • Flagging unusual activity or duplicate entries
  • Speeding up data entry through scanning and recognition

These tools minimise manual labour and boost efficiency. They enable bookkeepers to spend less time on typing and more on verifying accuracy.

Making Tax Digital is accelerating automation

Making Tax Digital has heightened the need for tidy, consistent digital records. This change complements automation well.

Under MTD, records flow digitally into submissions. AI helps by:

  • Reducing manual input errors
  • Keeping records updated more frequently
  • Supporting regular reporting instead of annual catch-ups

However, automation only functions effectively when the data is accurate. AI can process information swiftly, but it cannot assess whether something makes sense for your business.

What AI cannot do in bookkeeping

AI recognises patterns but lacks a true understanding of context as humans do.

It cannot:

  • Decide whether an expense is genuinely business-related
  • Understand unusual one-off transactions
  • Explain figures in plain language
  • Spot problems caused by changes in how a business operates

This is where professional judgement is important. Bookkeeping is not merely about recording numbers; it involves understanding what those numbers signify.

Will AI change the role of a bookkeeper?

Yes, the role is evolving. But it is evolving positively.

Bookkeepers are dedicating less time to repetitive tasks and more time to:

  • Reviewing accuracy
  • Identifying issues early
  • Supporting better decision-making
  • Helping businesses stay compliant with MTD

AI assists the process. It does not take over it.

As reporting becomes more frequent under MTD for Income Tax, the need for oversight, consistency, and explanation grows. That enhances the importance of a skilled bookkeeper.

Why human oversight matters more, not less

With AI controlling speed, the risk shifts to over-reliance. Mistakes can occur again quickly if no one checks them. Misclassifications can spread across multiple submissions.

A bookkeeper provides:

  • Quality control
  • Context
  • Accountability
  • Confidence in the figures being submitted

This becomes even more significant as penalties under MTD apply to repeated submissions, not just annual returns.

What this means for businesses

The future of bookkeeping combines technology with expertise. Businesses that depend solely on software might progress more quickly, but they also assume greater risk.

Those who integrate digital tools with professional support benefit from increased efficiency and accuracy. They gain clearer insights, fewer surprises, and better compliance.

How Rosemary Bookkeeping fits into the future

Rosemary Bookkeeping employs modern systems while prioritising people. Our local bookkeepers understand how technology works and where it requires human judgement.

We help businesses:

  • Use digital tools properly
  • Stay compliant with Making Tax Digital
  • Understand their figures, not just record them
  • Prepare confidently for future changes

Don’t be scared of the future of AI in bookkeeping; it’s inevitable that it will continue to influence it. The role of the bookkeeper is not disappearing; it is becoming more vital.

Find your nearest Rosemary Bookkeeper today.

How will AI affect the bookkeeping industry?

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We sat down with the CEO of MYT AI Powered Accounting Software, Oumesh Sauba, to see how he sees AI as shaping the bookkeeping landscape.

It’s fair to say that AI has exploded onto the scene for businesses worldwide in recent years.

As such, many are keen to see how AI will affect the bookkeeping industry.

The CEO of MyT, an app that utilises AI to automate accounting processes, has embraced AI for longer than it has been a hot-button topic.

We sat down with him to discuss the burning question: How will AI affect the bookkeeping industry as we know it today?

Oumesh and AI

As AI only began making a splash, many were unsure what it could do, yet Oumesh Sauba and MyT were making waves and winning awards for innovation using AI as early as 2021.

But, as Oumesh tells us, his relationship with AI and its processes began in 1999 when his IT-savvy cousin developed technology to recognise objects in photos.

As soon as this began to take shape, he says they knew the only limitation was the tools at their disposal.

“We knew the power of technology at the time that [and] what you could do. The only limitation in those days was the capacity of the computer or the telephone or the instrument.”

In 2013, Oumesh’s business realised they could do much better with the improved hardware and software and started to test a form recognition system using optical character recognition (OCR) technology.

This has allowed them to create MyT, which can use photo recognition and learn from data to streamline many accounting processes.

How does this technology relate to bookkeeping?

The draw of AI within the accountancy sector is its potential to simplify and automate its repetitive procedures like processing invoices, reconciling bank statements and data entry.

In 2013, when Oumesh was developing the technology that now makes up MyT, the challenge was not just reading the information but extracting specific details like VAT, dates, and supplier names, as the computer’s binary nature required training the system to recognise these elements.

Today, AI systems like MyT can automatically process invoices, posting the entries into the system.

This provides significant value for accuracy and efficiency when handling a vast amount of data simultaneously.

Will AI change the role of a bookkeeper?

For bookkeepers, the changes AI could bring is the potential – due to the automation of repetitive tasks – to focus more on strategic and advisory services.

AI-powered accounting software may be able to recognise patterns, differentiate between different types of invoices or bank statements, and automatically categorise and process the information.

This has the potential to increase the capacity of bookkeepers and provide more accurate and timely financial information.

Who will be accountable?

With concern about how AI will be held accountable in case of error and other potential issues, Oumesh argues the role of a bookkeeper may change, but not become obsolete.

In his view, bookkeepers and accountants will still be liable for the data and the processes, as they cannot simply shift the responsibility to the AI system.

He argues that AI should be seen as a tool that can help improve efficiency, accuracy, and capacity, like the evolution from paper to spreadsheets and desktop software to cloud-based solutions.

The key, he says, is understanding how the system works and how to use it effectively.

“A lot of these AI tools are tools”, he says.

“They’re like a screwdriver. Before, you had a hand screwdriver, now you’ve got an electric screwdriver. They’re still the same thing. People will use the technology, but it doesn’t absolve them of responsibility.”

As such, Oumesh sees that regulation and responsibility may focus more on harmonising global standards rather than significant changes to the existing accounting regulations.

The key takeaway for Oumesh is that AI could transform the sector by allowing bookkeepers and accountants to focus more on their customers and become more competitive.

However, it requires successful integration, upskilling, and resilience to address any issues that may arise.

Advancements in bookkeeping: MTD 

With the rise of digitalised solutions to support businesses with Making Tax Digital – AI presents a hugely interesting topic of conversation.

Making Tax Digital is the government’s plan to make fundamental changes to the tax system – transforming tax administration by making it more effective, efficient, and simpler for taxpayers.

As such, businesses are now required to:

  • Keep their VAT records digitally
  • Provide their VAT return information to HMRC through Making Tax Digital compatible software

AI may support accounting software and bookkeepers to aid in the processes and compliance with MTD, making it a more attractive and simpler process for businesses across the UK.

Watch this space for more on the future of bookkeeping!

Need a bookkeeper?

With legislation and technology changing regularly, for simpler, effective bookkeeping, find your local Rosemary Bookkeeping expert or call 0345 862 0072 today.

Thank you to Oumesh Sauba from MyT and Dean Kokshun from Rosemary Bookkeeping Croydon for their help in bringing this article together.