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Archive for the ‘Accounting’ Category

Can A.I. Handle Accounting?

Posted by taxguru on July 29, 2020

Over the past few years, as robots and artificial intelligence (AI) have made huge inroads into several industries, I have seen many CPAs and bookkeepers fret over the possibility of having no work to do.  DIY tax return programs and AI were supposedly going to make them obsolete and they sincerely worried about their futures.

Whenever possible, I have assured these doomsayers that as long as they are not just “form-fillers” they will never run out of work.  Tax and accounting rules and regulations will continue to grow more and more complicated until the end of time.  There will thus always be a need for people to apply their knowledge and experience to solving and complying with those rules and regs. 

Having been in this business for almost 45 years, I have seen and been a part of the evolution from doing books manually in big heavy ledgers, to in-house computers,  to working in the cloud.  These have all been means of recording transactions for businesses, much like going from a pencil to a typewriter.  There has always been a need for humans with proper accounting expertise to determine where and when transactions should be recorded in a company’s books.  While it may be possible for a computer to be programmed to play games such as Chess, being able to analyze and properly book accounting entries is too much science fiction for me to accept.

However, that doesn’t mean that other people who are less grounded in the realities of making accounting decisions don’t think it’s possible.  This article in Forbes about a company called ScaleFactor, that was able to con investors out of $100 million dollars for its promised AI accounting system, is very interesting.  I have to admit that I had never heard of this company before seeing this Forbes article.  Surprisingly, their website is still active; so the Forbes expose hasn’t shut them down yet.

Reading the Forbes article, describing how the company used actual human accountants in the Philippines to perform the shoddy accounting tasks while claiming that their magical AI software was actually doing it, reminded me of the extremely interesting documentary I saw not too long ago about Theranos, called The Inventor: Out for Blood in Silicon Valley.  That company claimed to have invented a one drop blood testing machine that could quickly test for a huge number of things, including cancer.  It turned out that the machine didn’t work, but they pretended it did and had human lab workers run tests, often erroneously, in their “fake it ‘til you make it” scheme to con over $700 million from gullible investors.  Paying powerful celebrities for their endorsements also helped convince people that it was worth sinking their money into.  They literally bought credibility because they couldn’t earn it properly.

As always, we should try to learn from these kinds of mistakes that other people make so that we don’t need to suffer the same kinds of losses that they had.  The “fake it ‘til you make it” approach to start-up companies isn’t new by any means.  Sometimes they actually work.  I remember attending meetings in Silicon Valley where some successful entrepreneurs actually bragged about using that tactic.  I have no statistics on how many of the fakers actually made it to their goals and produced real products and services.  I would hazard a guess that for every one that did make it, there are dozens of fakers who didn’t make it, often crashing in flames.  Investors, which include employees of companies promising “magical” things, should be extra cautious.

Posted in Accounting, scams | Comments Off on Can A.I. Handle Accounting?

Elements of Accounting

Posted by taxguru on November 24, 2014

  photo accounting-elements_zps21ff2e6c.pngAccounting aficionados should appreciate the creativity that went into this large chart of accounting terms in the style of  the Periodic Table of Elements.  When you hover over each element, it pops up with a definition.

Thanks to Titus Dalisay, Community Outreach Specialist at Open Colleges in Australia for the heads-up on this.  

 

 

 

Posted in Accounting | Comments Off on Elements of Accounting

Why be an accountant?

Posted by taxguru on November 22, 2012

Funny bit from Parks & Recreation after one of the characters quits his new job at an accounting firm.

 

 

Posted in Accounting, video | Comments Off on Why be an accountant?

Demand for accountants continues to grow

Posted by taxguru on July 1, 2012

Just as the IRS needed to hire 16,000 new auditors to police the various provisions of ObamaCare, private companies will need to hire ever more accountants to keep track of all of the data that our imperial overlords in DC are requiring us to maintain in order to stay in their good graces. 

This summary of the employment environment from Kiplinger shows that job growth in the accounting sector will just continue to expand for at least the rest of this decade.

What Will Be the Jobs of Tomorrow?

 

Posted in Accounting | Comments Off on Demand for accountants continues to grow

Where our replacements will come from?

Posted by taxguru on February 1, 2012

Here is a funny video that was mentioned during today’s TaxCoach Weekly Member Call-In.

When I Grow Up, I Want to be a Tax Accountant

 

Posted in Accounting, video | Comments Off on Where our replacements will come from?

Is Accountant a derogatory term?

Posted by taxguru on January 26, 2012

Some people get all bent out of shape when they are referred to as Accountants, as in this scene from a recent episode of the British TV show, Mad Dogs.

Warning: British TV censorship standards are very similar to what we have on HBO and Showtime in the USA.  In other words, this clip does contain the F word. 

 

Posted in Accounting, video | Comments Off on Is Accountant a derogatory term?

Accounting will never die out

Posted by taxguru on January 24, 2012

As I constantly remind everyone, the demand for accountants will never disappear.  And, with the unending growth in the size and scope of government, the need for people to handle all of the paperwork will only continue to grow.

This article confirms that.

6 Careers to Watch in 2012

1. Accountant
2. Registered Nurse
3. Computer Systems Analyst
4. Social Worker
5. Dental Hygienist
6. Sales Manager and Representative

 

 

 

 

 

 

 

Posted in Accounting | Comments Off on Accounting will never die out

We still get no respect…

Posted by taxguru on January 21, 2012

I’m obviously biased, but it seems that when Hollyweird writers need an example of a soul-less person, they often use accountants, as in this clip from last night’s Fringe episode.

“Oh, she’s not dead.  Though in a manner of speaking, she was. 
A bookkeeper for an accounting firm.  Can you imagine anything more lifeless?”

 

Posted in Accounting, video | Comments Off on We still get no respect…

Some people appreciate creative accounting…

Posted by taxguru on August 24, 2011

From Blog Comix

Posted in Accounting, comix | Comments Off on Some people appreciate creative accounting…

New Accounting Specialty?

Posted by taxguru on August 3, 2011

From Blog Comix

Posted in Accounting, comix | Comments Off on New Accounting Specialty?