We are very very close to the point where AI can...

1. Review the P&L and all its entries, supplier names and attached invoice details

2. Consider both the tax and accounting implications of each transaction based on its knowledge of (say) tax deductibility and normal coding

3. Compare expenses to previous periods

4. Flag any entry it considers may be incorrectly coded, or may require adjustment for tax purposes

5. Propose journal entries or re-coding, requiring a human to just approve or not (like reconciling bank transactions in QBO or Xero)

6. Propose tax adjustments to populate the tax return and the tax reconciliation, requiring a human to just approve or not

That's according to Giles Pearson, who has been testing ChatGPT 4's capabilities against his company’s skills tests for accountants.

ChatGPT scored 18 out of 20 on the Debits & Credits test. The score to show an intuitive understanding is 15 out of 20.

Read the full article here.