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My Weekly AI Hallucination

Have you heard about the "Boiling Frog" syndrome? That's exactly what's going to happen to companies and professionals who ignore AI. Wake up! The future is NOW!

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• My Weekly Editorial: Offshoring Is Dead. The Age of Automatization Is Here

• Latest AI Investing Stats

• Schools Can Leverage AI and Games to Combat Accountant Shortage

• 20 ChatGPT Tools to Boost Your Sales

• AI News

My Weekly Editorial: Offshoring Is Dead. The Age of Automatization is Here!

Disclaimer: The views expressed in this article are my personal views. They do not express the views of my firm, my family or friends. In addition, these views represent my modest reflections at the current moment. I reserve the right to change or modify my views in the future.

Background

Offshoring is not yet dead and it might continue to grow a bit it in the next few years. However, its long-term outlook is not looking good. For many years, offshoring was the preferred strategy for companies looking to reduce costs in accounting processes. It involved outsourcing financial tasks to countries with lower labor costs, promising significant savings in operational expenses. In accounting, the Big 4 firms led this wave. I recall my auditing days in 2006 when I worked for a Big 4 firm. Every day before heading home, I would have a call with someone from our team in India, walking them through the tasks I needed them to complete so that it would be ready for my review the next day. Typically, the work we sent their way was the most tedious and manual, involving tasks like invoice data entry, testing, or summarizing revenue/lease contracts. This made our jobs more enjoyable, as we focus on the analysis and critical thinking side, leaving the manual, repetitive tasks behind. Today, the Big 4 firms still offshore their services, and the scope has expanded to include almost all the service lines, audit, tax and and advisory. Medium and small firms have also adopted this strategy, with some embracing it earlier than others. How can they resist? The cost-saving opportunity and the increase in capacity were too significant to ignore. Large corporations have also followed suit and their CFOs offshored some of their accounting and finance processes to countries like India and the Philippines. However, as we delve deeper into the 21st century, it has become increasingly evident that offshoring is no longer a viable option. Instead, the spotlight is now on automation as the superior alternative.

Why automatization is better than offshoring

Here are some compelling reasons why offshoring is losing its luster and why automation is emerging as the future of accounting:

1. Cost Efficiency Reimagined: While offshoring did offer cost savings at one point, it came with its own set of challenges, such as communication gaps, time zone differences, and quality control issues. Automation, on the other hand, is a one-time investment that pays off in the long run. Once set up, automated systems can efficiently and accurately perform repetitive tasks, reducing the need for labor-intensive offshoring.

2. Accuracy and Consistency: Human errors are inherent in offshoring, no matter how skilled the workforce. Automation eliminates this risk by performing calculations and data entry tasks with unmatched precision. Consistency in financial reporting is crucial for compliance and decision-making, a feat that automation accomplishes effortlessly.

3. Scalability and Flexibility: As businesses grow, so do their accounting needs. Offshoring often struggles to keep up with ever-changing demands, leading to increased complexity and higher costs. Automation, on the other hand, can be easily scaled up or down to adapt to business fluctuations, offering unmatched flexibility and cost-effectiveness.

4. Data Security: In an era marked by heightened concerns about data security and privacy, entrusting sensitive financial information to offshore teams carries significant risks. Automation systems can be designed with robust security protocols, minimizing the chances of data breaches and ensuring compliance with data protection regulations.

5. Time and Speed: Automation processes are lightning-fast, capable of handling vast amounts of data in a fraction of the time it would take human accountants or offshore teams. This acceleration in workflow translates to quicker decision-making and a more responsive financial department.

6. Enhanced Analytical Capabilities: Beyond handling routine tasks, automation empowers accountants to focus on higher-value activities, such as financial analysis, forecasting, and strategic planning. This shift from data entry to data interpretation adds immense value to businesses.

7. Adaptation to Regulatory Changes: The accounting world is subject to constant regulatory changes and updates. Keeping up with these changes can be a daunting task for offshore teams. Automation, on the other hand, can be programmed to adapt swiftly to new regulations, ensuring compliance without the hassle of retraining.

The wave of insourcing is real and is driven not only by technological advances but also by political and societal pressures. COVID has shown us in the West that we may depend too much on other countries. Both political parties, as well as several leading businesses, have recently advocated for bringing certain industries and functions back.

Takeaway

The age of automation in accounting is upon us, and it's time for us, as accountants, to embrace this transformative shift. Offshoring, with its inherent limitations and challenges, no longer aligns with the evolving needs of modern businesses. Automation not only offers cost efficiency but also elevates the quality, speed, and security of accounting processes.

By adopting automation, we can position ourselves as strategic partners within our organizations, leveraging technology to enhance our roles rather than fearing it as a threat to our jobs. It's a paradigm shift that promises to redefine our profession and make us more indispensable than ever before.

The choice is clear: evolve with the times or risk being left behind. The age of automation is here, and it's time to seize the opportunities it presents.

Latest AI Investing Stats

Part 1: Countries Winning the AI Race

The U.S. is leading the pack by $249 Billion. We except the pace of investing will only accelerate, not only in new startups but in existing companies. The big ones will lead the charge through larger AI R&D projects as well as M&A transactions. .

Part 2: Adoption By Industry

It’s no surprise that accounting & finance as well as risk and services operations are the front runners by 21%, 19%, and 19% respectively. People-based professions will likely continue to outspend other professions.

Schools Can Leverage Games and AI to Combat Accountant Shortage

The article discusses a shortage of accountants in the U.S. but notes a recent increase in enrollment in an accounting course, signaling renewed interest. Possible reasons include higher salaries and gamified learning methods. The future of accounting involves a blend of traditional and innovative approaches to reinvigorate the profession.

Follow the link to read the entire article. 

20 ChatGPT Prompts to Boost your Sales

ChatGPT can assist you in many aspect of the business. It can be a Great and Free Sales Coach. I’ve personally always believed that sales coaches are too expensive for the services they provide. I once argued with a co-worker that reading a $15 sales book will yield more ROI than paying for a sales coach. I once bought a book titled, Pitch Anything: An Innovative Method for Presenting, Persuading, and Winning the Deal, by Oren Klaff. Immediately after I read the book and applied few of the technics it recommended, I closed two major wins. I highly recommend you buy it.

Top 20 Sales-Boosting ChatGPT Prompt Ideas to 10x your revenue.

1. Create a sequence of follow-up emails after a trade show or event.

2. Provide tips for building and maintaining strong relationships with clients.

3. Help me brainstorm unique selling propositions for productservice X.

4. Generate a pitch for selling our service packages.

5. Write an email to a client explaining a delay in service or product delivery.

6. Provide strategies for cross-selling related products.

7. Generate a series of tweets promoting a new product.

8. Write a script for a voicemail to a potential customer.

9. Help me create a one-pager on the main selling points of product Z.

10. Explain how to effectively communicate the return on investment (ROI) to potential clients.

11. Write an email informing customers about an upcoming sale.

12. Create a plan for re-engaging with dormant clients.

13. Provide suggestions for overcoming sales objections.

14. Generate a follow-up email after a product demonstration.

15. Provide a strategy for increasing product Y's market share.

16. Develop a script for handling a difficult customer on a call.

17. Help me draft a response to a customer requesting a discount.

18. Write a response to a customer's positive feedback.

19. Create a template for a sales proposal.

20. Generate a catchy headline for a sales campaign.

21. Provide an outline for a product demonstration

To get the complete list, click here.

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