You may have heard about ChatGPT from your friends, colleagues, or social media posts. Let me tell you what ChatGPT is. It’s an AI-based chatbot technology that allows users to chat with an AI and ask questions on any topic. ChatGPT provides specific answers to the questions you ask, unlike Google, where you have to search and select websites. ChatGPT can even help with various academic fields like science, math, and accounting. It can even write code.
Now, let’s discuss the future of finance, accounting, and taxation with the introduction of ChatGPT in the professional lives of Chartered Accountants (CAs), specifically those in practice or working as consultants. CAs play a crucial role in the growth of the Indian economy, client financial planning, valuation, tax planning, audits, and more. With the increasing complexity of financial matters, taxation laws, and the introduction of new technologies, CAs need to focus on gaining knowledge in this area to stay updated and provide seamless services to their clients.
Now, let’s explore the advantages of using ChatGPT for CAs:
1. Financial Reporting
ChatGPT will be a game-changer for CAs as they can instantly access information on various Indian Accounting Standards (IND AS). It can help CAs provide timely consultancy to clients, especially when implementing IND AS for new clients. Additionally, ChatGPT can provide various formats of financial statements required by the Ministry of Corporate Affairs (MCA). Imagine a scenario where a CA is auditing a client’s financial statements and needs to verify information related to IND AS 115 (revenue recognition). ChatGPT can provide the specific answer to that query quickly.
2. Tax Planning
ChatGPT can assist CAs in providing accurate tax advice to clients. CAs can instantly access information on specific tax topics, enabling them to provide better tax planning services. While ChatGPT can calculate taxes, it’s important to note that the current version (ChatGPT 3.5) may not provide accurate calculations as it only contains information up until 2021. CAs should use ChatGPT to enhance their knowledge and skills while verifying information as per their expertise.
3. Financial Planning
CAs play a crucial role in financial planning, especially for client projects. Each client has different financial targets, and CAs need to provide accurate advice. ChatGPT can assist CAs by providing valuable inputs such as calculating key financial ratios and projected financial information.
Auditing is a critical field for CAs in practice. An audit expresses an opinion on the financial statements, determining whether they are free from material misstatements. The auditor’s opinion is vital for stakeholders such as investors, customers, shareholders, and creditors. With the introduction of ChatGPT, auditors can leverage its capabilities to automate audit procedures, ensuring accuracy and saving time. Here are a few ways ChatGPT can be used in auditing:
(a) ChatGPT can analyze company data, detect abnormalities, and identify patterns or trends.
(b) ChatGPT can assist with risk assessment procedures by analyzing company data, helping auditors identify potential misstatements related to credit risk, liquidity risk, and performance risk.
(c) ChatGPT can detect fraud by analyzing data patterns such as embezzlement and accounting fraud.
(d) It can help auditors produce audit report formats and automate various repetitive processes, saving time.
5. MS Excel
MS Excel is an important tool for CAs for various calculations and to analyze any data. With the help of ChatGPT, Excel functions can be automated to provide quick results. It can automate the repetitive process of excel functions and also can write complex formulas and users can copy such formula. it can also create VBA and rnacros to automate the repetitive procedures. It is important for the users to provide clear instructions to ChatGPT then only it can provide correct formulas. It is better to cross check the output.
6. Writing E-Mails
Now you can write mails, you need to provide valid details and subject matter of the mail then ChatGPT will write the mail for you. It is important for the professionals to not to just copy paste the mail, they should thoroughly analyze the mail before sending it to the clients. If you need to analyze any specific document, you can attach such document transcript to ChatGPT and can ask any queries regarding that document and ChatGPT will provide you the answers. It is a very interesting feature to get the specific information from a document which will eventually saves time.
It is important for CAs to use ChatGPT with caution as it provides information and data, to help your process to provide better services to client CAs should not depend on ChatGPT for important decisions like expressing the audit report, deciding the important accounting standards to adopt, deciding whether the project is feasible or not etc. CAs are expected to use their professional judgement in all the important matters and should see ChatGPT as a helping tool to improve their performance. Currently, in some technical topics, ChatGPT provides incorrect information also and the information is limited till September 2021 and it is important for CAs to cross check all the information and calculations correctly. The current version of ChatGPT is 3.5 and latest version i.e. ChatGPT 4 is also released by open Al which will provide more accurate and latest information’s. Every decade the technology is advancing, and it is important for CAs to have overview and knowledge of all the recent technological developments for their own individual growth and also to provide high quality services to their clients.
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The views expressed in this article are solely those of the author and do not necessarily reflect the opinions or beliefs of the publisher, its affiliates, or any individuals or organizations associated with them. The purpose of this article is to provide information and stimulate thoughtful discussion on the subject matter.