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THE IMPACT OF TECHNOLOGY

AND ARTIFICIAL INTELLIGENCE ON MASTERING EFFICIENCY:

MODERN ACCOUNTING THE ROLE OF COST

ACCOUNTING IN

By- Clara Ginoshi

AUTOMATION OF ROUTINE CHANGING ROLE OF BUSINESS SUCCESS.
TASKS THEACCOUNTANT
AI has made a huge impact by As AI takes over repetitive tasks, the SMART COSTING, SMARTER BUSINESS
automating many of the tasks that role of the accountant is changing.
used to take up a lot of time. Tasks Accountants are no longer just By- Lilashi Chandrakumar
like entering data, categorising focused on entering data; they now
transactions, and reconciling bank focus more on strategic decisions
statements can now be done quickly and analysing data. To stay relevant, STANDARD COSTING JOB ORDER COSTING
and accurately by AI-powered tools. accountants need to learn new skills,
Software like QuickBooks and Xero like using AI tools, data analytics, Sets predetermined costs for Tracks costs by individual jobs or
can automate things like invoicing, and financial software. Those who materials, labour, and overhead, orders, allowing for precise cost
payroll, and expense tracking, embrace these changes will be able then compares them to actual measurement, better pricing, and
freeing up accountants to focus on to add more value by offering insights costs to identify variances, improved resource allocation.
more important work like analysing and consulting services. helping control budgets and
finances and giving business advice. pinpoint inefficiencies. LEAN ACCOUNTING
Technology and artificial IN CONCLUSION, PROCESS COSTING Simplifies costtracking to
intelligence (AI) are ENHANCED ACCURACY AI is reshaping modern accounting Assigns costs to each production focuson value-addedactivities,
rapidly transforming ANDREDUCED ERRORS by streamlining tasks, improving stage, ideal for industries like helping eliminate wasteand
improveefficiency.
precision, and offering valuable
industries across the AI helps reduce human errors that insights for better decision-making. chemicals or food manufacturing Technology and artificial
can be costly in accounting. In the
globe, and accounting past, mistakes in financial reports As the profession evolves with where products are mass- In conclusion, cost accounting intelligence (AI) are rapidly
produced and indistinguishable.
is no exception. These or tax returns were common, often these technological advancements, techniques play a crucial transforming industries across
accountants who embrace AI will
innovations are reshaping due to oversight or tiredness. unlock new opportunities for growth ACTIVITY-BASED COSTING role in enhancing business the globe, and accounting is no
efficiency by providing detailed
With AI, large amounts of data
the way accounting can be processed quickly, and any and innovation, ensuring they remain (ABC) insights into cost structures exception. These innovations
essential contributors to the future of
professionals work, inconsistencies can be flagged, finance. Allocates overhead based on and resource utilisation. By are reshaping the way
implementing methods such
improving efficiency, ensuring financial records are actual activities, offering a more as standard costing, activity- accounting professionals work,
accurate. AI tools also help auditors
accuracy, and by analysing large data sets to spot accurate cost analysis and based costing, and just-in-time improving efficiency, accuracy,
optimising resource usage.
decision-making. As AI fraud or mistakes that might be costing, businesses can identify and decision-making. As AI
inefficiencies, reduce waste,
missed in manual checks.
continues to evolve, it JUST-IN-TIME (JIT) COSTING and improve decision-making. continues to evolve, it plays
plays a crucial role in ETHICAL CONSIDERATIONS Minimises inventory by producing These techniques not only a crucial role in automating
automating routine tasks AND CHALLENGES only what’s needed, reducing help companies manage their routine tasks and providing
budgets more effectively but
and providing deeper With the rise of AI, there are important storage costs and streamlining also support strategic initiatives deeper insights. Understanding
insights. Understanding issues to consider, such as data production. aimed at optimising production these advancements is
these advancements is privacy and security. Financial data TROUGHPUT ACCOUNTING and increasing profitability. In an essential for both current
increasingly competitive market,
is sensitive, so protecting it and
essential for both current following regulations is key. There leveraging cost accounting is professionals and the next
professionals and the next are also concerns about job loss, Focuses on maximising sales essential for businesses seeking generation of leaders in finance
generation, identifying production
to. sustainable growth and
generation of leaders in but AI is likely to create new roles bottlenecks to improve resource long-term success. and business.
for professionals who can work
finance and business. alongside technology. flow.

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