Only three percent of accountants representing small and medium enterprises (SME) in India use high-end technologies like artificial intelligence, whereas, 52 percent others are "optimistic" about the use of automation in tasks such as preparing financial closure reports, states a recent study conducted by the Dubai-based Entera Global.
The study, conducted among 600 Indian accounting representatives from January-June 2023, found that "72 percent of respondents consider reducing manual intervention and fostering increased automation as pivotal drivers for their business case", said a media release issued by the company on August 14.
"However, only three percent of Indian SME representatives have adopted cutting-edge technologies such as AI, while 52 percent are optimistic about the potential of automation to assist them in this domain," added Entera Global, which, according to its website, provides cloud-based accountancy software solutions to clients in Europe, Middle East and North Africa.
The company, citing its study, claims that 95 percent of specialists in the Indian accounting and financial monitoring domain, within both large and small businesses face, a "challenge of ensuring data entry accuracy during manual input".
Over 78 percent of respondents said they experienced the need for accuracy verification in entered data, resulting in heightened labor-intensity during audit preparations, it added.
"An area that warrants attention is the absence of a unified electronic document circulation system within companies. Remarkably, 30 percent of consulting firms require data input across three distinct systems: Tally, Zoho, and QuickBooks," the release pointed out.
As many as 73 percent of specialists in India dedicate a considerable amount of time during their day to searching for essential documents scattered across various locations, the study claimed. This, in turn, affects their overall productivity, it added.
"With the current economic growth and governmental digital initiatives, finance professionals urgently need to adopt digital technologies, streamline their processes, and foster robust business growth. Automation is a pivotal element on this transformative journey," Entera Global's co-founder Dmitry Makhlin said.
"With AI and machine learning on the rise, the accounting and bookkeeping industry can anticipate even more sophisticated automation tools capable of handling complex tasks," he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
