Tag: technology

Posted on

Limitations of AI 

At risk of sounding like a luddite: AI is not the answer to everything. 

AI has the potential for so much good but people really don’t understand the limitations.  

  • The main one for accountants is that information put into the free version of ChatGPT is not confidential. For this reason we use Copilot as our default sand other Ais as needed so that client information is never accidentally compromised. 
  • The free version of ChatGPT is only based on information available up to a certain point in time so it excludes more recent updates and data.  
  • AI is the answer to all the problems that you never knew you had! Originally AI was developed as a solution to certain problems but now developers are busy creating solutions to problems that don’t really exist … until their product team tell you that they do. 
  • AI is only as good as the user. As with all technology, garbage in = garbage out. You need to train your AI in exactly the same way that you would train a new apprentice in your organisation. 

The biggest problem is that LLMs (large language models) like ChatGPT are prone to ‘hallucination’. They extrapolate the known data in order to fill in any gaps. Like the accountant’s nightmare ‘Dave at the pub’, who tries to help everybody with doubtful tax advice, hallucinating AI is about as reliable as a toddler with a face full of chocolate denying that they’ve been stealing Easter eggs. 

One AI quoted from my talk at an accounting conference earlier this year. It was probably a great talk but … I didn’t speak at that event! If a journalist was to report this badly they would be out of a job and probably laughed out of their industry.  

I love AI and use it regularly in my businesses but please remember to approach with caution. 

PS If the conference in question would like me to do a talk on this topic I’d be happy to oblige 😉 

Posted on

How can tech help a small business?

With MTD on its way for sole traders and then limited companies it is essential to get everybody keeping digital records sooner rather than later. But, while MTD are wielding the big MTD stick, what are the benefits to small business owners of using modern cloud software for their bookkeeping?

  1. Multiple users can log in at the same time so accountants can help clients more proactively with queries or business issues
  2. Gone are the days of manually typing everything. Software can link to data entry apps to do your bookkeeping from a photograph or PDF thanks to OCR (Optical Character Recognition) or can link directly to electronic tills or online shops as well as automatically uploading your bank statements.
  3. Invoices can be raised from the app on a phone and card payments taken before leaving site. Saving Friday nights for relaxing rather than paperwork
  4. All this automation means that business owners can do some of the work themselves to reduce their bookkeeping bills.
  5. With remote access to the business numbers accountants can finally be more proactive
  6. Management information is available at the touch of a button. Of course, more complex businesses may need proper management accounts but even that is quicker with up to date bookkeeping.
  7. We run monthly bookkeeping health checks* for all our clients so that, even when they do it themselves, we can ensure that their record are up to date and in a good state each month.
  8. With up to date bookkeeping year end accounts can be produced much faster.
  9. Accounting software can be attached to hundreds of apps to help project management, staff scheduling, stock control, and all sorts of other parts of the business.
  10. It is easier to have regular contact between business owner, bookkeeper and accountant and to provide the best service possible.

*At Minerva Accountants we use Dext Precision, formerly Xavier, for most of our health check reports.

Proudly powered by WordPress