Introduction
In the midst of digital disruption, traditional accounting practices are undergoing a seismic shift. Artificial Intelligence (AI) has brought about tools like ChatGPT, which have the potential to revolutionise the profession with unprecedented efficiency and accuracy.
ChatGPT is an AI language model developed by OpenAI (https://openai.com/chatgpt) that’s able to comprehend, generate, and interact in human language. Envision it as your new-age digital colleague in the realm of accounting – a first year graduate student in training.
Harnessing the Power of ChatGPT
ChatGPT simplifies mundane accounting tasks, streamlines operations, and significantly reduces human error. Here are a few examples how I have achieved this.
1. Efficiency in Repetitive Tasks
- Data entry and repetitive calculations are effortlessly executed.
- Drafting financial reports can be facilitated by providing your data (e.g. transactions on a bank statement) and letting ChatGPT weave it into a professional report, with comments.
- The risk of minor errors, such as misplaced decimal points, becomes a concern of the past.
2. Intelligent Assistant (IA)
- Drafting and Editing Text – From drafting emails to editing reports, ChatGPT can be a valuable tool. If you provide the essential details, ChatGPT can help draft a professional email.
- You can use it to proofread documents and check for grammatical errors, ensuring that your written communication is always professional. You can always rephrase responses to be friendlier, stricter, formal, assertive etc.
- It can also be used to summarize lengthy documents.
Useful Prompts:
- Write an email to my client explaining why I can’t give a reduction in my Independent Review fees.
- Provide a response to the following email: [Insert email from sender]
3. Real-Time Complex Calculations
- ChatGPT not only assists with routine tasks but also excels in performing complex calculations. For example, if you need to compute depreciation using the straight-line method over five years, a simple request to ChatGPT will yield an instant, accurate response.
- It can also perform tax calculations. But beware, ChatGPT information only goes up to September 2021 and will therefore not have the latest tax tables and rebates.
Useful Prompts:
- If I earned R40,000 per month in South Africa, what would my tax liability be for the year ended February 2021? Assume there is no medical aid and no car allowances or any other allowances and benefits. I am also under 65 years.
4. Self-Learning and Knowledge Enhancement
- ChatGPT is also a phenomenal self-learning tool. Curious about an accounting standard, a complex calculation method, or a trending financial concept? ChatGPT is at your service. It derives its responses from vast datasets, delivering explanations and insights in a digestible format. You can also ask it to explain it as if you’re a Grade 12.
- Accountants have been using it in assisting them to write tax opinions for their client.
Useful Prompts:
- What is IFRS 15 and how does it work?
- Explain IFRS 15 to my colleague from the sales department.
- What are the steps involved in auditing IFRS15 at a client?
- Can you provide me with an example of note to financial statements for Property, plant and equipment under IAS 16. If there is any financial information to provide, please use a table as format. We need a table by category showing the cost, depreciation and net value. We need also to present the useful lives by category.
Remember, while ChatGPT can aid with the above tasks, it doesn’t replace human oversight or decision-making. Always ensure the information provided by ChatGPT is verified and relevant to your specific situation.
Embracing the Future of Accounting with AI
As technology and accounting become increasingly intertwined, adopting tools like ChatGPT provides a considerable competitive edge. Far from replacing the human element, the goal is to leverage AI to augment our abilities, freeing us up to concentrate on strategic tasks that require our distinctive human creativity and expertise.
By welcoming the possibilities of AI, we position ourselves at the forefront of technological advancement in our profession. In embracing AI tools like ChatGPT, we take a decisive step toward a future where our work is more purposeful, satisfying, efficient, and fulfilling.
Conclusion: Shape Your Future with ChatGPT
The waves of technological transformation are reshaping the landscape of accounting. With ChatGPT and other AI tools, you are not merely a passenger but the driver of this change.
Recall that every significant progression in our profession started as a daring idea – Remember cloud accounting or eFiling? Embrace AI. Welcome the future. With ChatGPT as your digital ally, the future of accounting holds immense promise. The future is not something that merely transpires – We are the accountants of the future, ensuring the ledger of tomorrow balances through our actions today. “The best way to predict the future is to create it.” – Peter Drucker
Stay tuned, as I’ll be posting more articles, videos, and prompts in the coming weeks to help Accountants use ChatGPT more effectively. Don’t forget to check out www.tbaccountants.co.za/chat-GPT
