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International Journal of Science and Research (IJSR)
ISSN: 2319-7064
SJIF (2022): 7.942
Volume 13 Issue 3, March 2024
Fully Refereed | Open Access | Double Blind Peer Reviewed Journal
www.ijsr.net
Enhancing Journal Accounting and Month-End
Closing Processes through AI: A Comprehensive
Analysis
Shreekant Mandvikar1, Manoj Kumar Vandanapu2
1Independent Researcher, North Carolina, United States of America
2Independent Researcher, Aurora, IL, United States of America
Abstract: The advent of Artificial Intelligence AI has paved the way for significant advancements across industries, with the accounting
sector witnessing substantial transformations. This research paper delves into the impact of AI Actions on journal accounting and month-
end closing processes, highlighting the automation of routine tasks, reduction of errors, enhancement of efficiency, and the facilitation of
real-time financial insights. Through a detailed analysis of AI Actions capabilities, this study demonstrates their pivotal role in
revolutionizing traditional accounting practices, thereby allowing professionals to allocate their time to more strategic functions. The
findings underscore the necessity for organizations to adapt to these technological advancements to achieve operational excellence and
maintain competitive advantage.
Keywords: Artificial Intelligence, Journal Accounting, Month-End Closing, Process Automation, Operational Efficiency
1. Introduction
Accounting is a crucial function in any organization, journal
accounting and month-end closing as two of the most critical
processes Traditionally, these processes have been time-
consuming, error-prone, and resource-intensive. However,
with the introduction of AI Actions, the accounting industry
is experiencing a significant shift towards automation and
efficiency.
AI Actions are a set of pre-built, customizable AI components
that can be easily integrated into existing accounting systems.
These actions leverage machine learning algorithms to
automate repetitive tasks, such as data entry, reconciliation,
and financial reporting. By doing so, AI Actions are
transforming the way accountants work, allowing them to
focus on more strategic and value-added activities.
2. History of automation
The history of automation in accounting can be categorized
into four major stages, as illustrated in the table below. This
simplifies the evolution from manual processes to the
integration of AI.
1st stage
2nd Stage
3rd Stage
2024 and beyond
Tech stack Macros & VBScript Robotic Process Automation
Intelligent Process Automation(IPA)
AI Actions
How to automate Code based
Drag and Drop based
RPA + AI \ ML IPA + Self learns
Missing Feature Ease of build Human Intelligence Self-heal Self-learn and self-heal
% automation possible 3-5% 15-25% 20-35% 30-60%
Automating Routine Tasks:
One of the primary benefits of AI Actions is their ability to
automate routine tasks. Accountants spend a significant
amount of time on data entry, reconciling accounts, and
generating financial reports. These tasks are not only time-
consuming but also prone to human error. With AI Actions,
these tasks can be automated, reducing the risk of errors and
freeing up accountants' time to focus on more strategic tasks.
For example, AI Actions can automatically extract data from
invoices, receipts, and other financial documents using
optical character recognition (OCR) technology. This data can
then be automatically entered into the accounting system,
eliminating the need for manual data entry. Similarly, AI
Actions can automate the reconciliation process by
comparing financial records from different sources and
identifying discrepancies.
Paper ID: ES24326100738
DOI: https://dx.doi.org/10.21275/ES24326100738
1717
International Journal of Science and Research (IJSR)
ISSN: 2319-7064
SJIF (2022): 7.942
Volume 13 Issue 3, March 2024
Fully Refereed | Open Access | Double Blind Peer Reviewed Journal
www.ijsr.net
Figure 1: Journal Entry using AI Actions
Reducing Errors and Increasing Efficiency:
Manual data entry and reconciliation, not only time-
consuming, are also prone to errors. Even the most diligent
accountants can make mistakes when entering data or
reconciling accounts. These errors can have significant
consequences, leading to inaccurate financial statements and
poor decision-making.
AI Actions significantly reduce the risk of errors by
automating these tasks. By leveraging machine learning
algorithms, AI Actions can accurately extract data from
financial documents and enter it into the accounting system.
Similarly, the reconciliation process can be automated,
ensuring that financial records are accurate and up-to-date.
Moreover, AI Actions increase efficiency by streamlining
accounting processes. By automating routine tasks,
accountants can complete their work faster and more
accurately. This increased efficiency allows organizations to
close their books faster and provide stakeholders with timely
financial information.
Improving Month-End Closing:
Month-end closing is a critical process for any organization.
It involves reconciling accounts, generating financial
statements, and providing stakeholders with an accurate
picture of the organization's financial health. However, the
month-end closing process can be time-consuming and
resource-intensive, often requiring accountants to work long
hours to complete the process on time.
AI Actions are transforming the month-end closing process
by automating many of the tasks involved. For example, AI
Actions can automatically reconcile accounts, generate
financial statements, and provide real-time financial insights.
This automation significantly reduces the time required to
complete the month-end closing process, allowing
organizations to close their books faster and more accurately.
Furthermore, AI Actions provide real-time financial insights,
allowing organizations to make informed decisions based on
up-to-date financial information. This is particularly
important in today's fast-paced business environment, where
quick decision-making can be the difference between success
and failure.
3. Challenges and Considerations
While AI Actions offer significant benefits, there are also
challenges and considerations that organizations must keep in
mind. One of the primary challenges is the need for
specialized skills to implement and maintain these systems.
Organizations must invest in training their accounting staff or
hire specialized talent to ensure that AI Actions are
implemented and used effectively.
Another consideration is the cost of implementing AI Actions.
While these systems can significantly reduce costs in the long
run, there is an initial investment required to purchase and
implement the technology. Organizations must carefully
evaluate the costs and benefits of implementing AI Actions to
ensure that they are making a sound investment.
Moreover, organizations must ensure that their accounting
processes are well-defined and standardized before
implementing AI Actions. These systems rely on consistent
and accurate data to function effectively, so organizations
must have clear processes in place to ensure that data is
entered consistently and accurately.
Paper ID: ES24326100738
DOI: https://dx.doi.org/10.21275/ES24326100738
1718
International Journal of Science and Research (IJSR)
ISSN: 2319-7064
SJIF (2022): 7.942
Volume 13 Issue 3, March 2024
Fully Refereed | Open Access | Double Blind Peer Reviewed Journal
www.ijsr.net
4. Conclusion
AI Actions are revolutionizing the way we approach Finance
and impact can be seen on journal accounting and month-end
closing specifically. By automating routine tasks, reducing
errors, increasing efficiency, and providing real-time financial
insights, these systems are transforming the accounting
landscape. Organizations that adopt AI Actions can expect to
see significant improvements in their accounting processes,
including faster month-end closing, more accurate financial
statements, and better decision-making.
However, organizations must also be aware of the challenges
and considerations associated with implementing AI Actions.
AI Actions products are new to market and in 2024 there will
be launch of multiple Action based AI Products will be
available. They must invest in specialized skills, carefully
evaluate the costs and benefits, and ensure that their
accounting processes are well-defined and standardized.
Despite these challenges, the benefits of AI Actions are clear.
As more organizations adopt these systems, we can expect to
see a significant shift towards automation and efficiency in
the accounting industry. AI Actions are not just a trend, but a
necessary evolution in the way we approach accounting in the
digital age.
References
[1] Robocorp. (2024). AI Actions for Accounting.
Retrieved from https://robocorp.com/blog/from-
thinking-to-doing-introducing-ai-actions
[2] Deloitte. (2023). Generative AI in accounting
https://www2.deloitte.com/us/en/blog/accounting-
finance-blog/2023/generative-ai-auditing.html
[3] PwC. (2023). Future of finance: Turn tech into a
competitive advantage
https://www.pwc.com/us/en/services/consulting/busine
ss-transformation/library/future-of-finance.html
[4] KPMG. (2023). Generative AI in Finance.
https://kpmg.com/us/en/articles/2023/generative-ai-
finance.html
[5] Forbes. (2024). The (Very) Emerging Role Of AI In The
Accounting Industry.
[6] https://www.forbes.com/sites/quickerbettertech/2024/0
1/01/the-very-emerging-role-of-ai-in-the-accounting-
industry/?sh=2cd43c07190f
Paper ID: ES24326100738
DOI: https://dx.doi.org/10.21275/ES24326100738
1719
