The role of AI in preventing bookkeeping errors & fraud detection

Amidst today's fast-changing financial environment, accuracy and integrity within bookkeeping have never been so vital before. But despite robust checks and human consciousness, opportunities always exist for deceit and error to occur. That’s where Artificial Intelligence (AI) fits the picture; not as much an aid but rather as an evolving factor making history in how bookkeeping is being achieved.

Let's see what AI is doing to transform bookkeeping by reducing errors and boosting fraud detection for today's accounting staff.

Why Do Bookkeeping Errors Happen?
Even the best bookkeepers can make mistakes. A missed entry, a number swapped, or a misclassified transaction can mushroom into serious reporting issues. Add to this the pressure of close deadlines, large volumes of transactions, and always changing compliance requirements, and the likelihood of mistakes increases.

A few of the most common bookkeeping errors include:

Incorrect classification of expenses
Re-entering
Missing entries
Typo entries in data
Bank reconciliation mismatches
Manual accounting relies on human double-glances and looks-over, yet the task is cumbersome and continues to contain potential for errors. Hello AI.