The temps are heating up in many parts of the United States—but so too is AI (artificial intelligence) in many areas of business. Are you ready for the next evolution of accounting? That is what we will be looking at today—how AI is impacting accounting and ERP (enterprise-resource planning).
Accounting and job costing are one of the most foundational processes in the construction industry, as they enable large or small enterprises to keep track of expenses for projects. The information collected here is critical for a number of reasons: it ensures the project runs on budget and the information could theoretically be used to better plan for similar projects in the future.
Certainly, ERP (enterprise-resource planning) solutions combine many of the core components of a business including project management and accounting.
AI in Accounting
There are many opportunities for AI to completely disrupt accounting, helping with invoice processing, reconciliation, accounts payable, financial forecasting, quality control, and more. Let’s consider some as example. AI could potentially automate accounts payable processes. CFMA (Construction Financial Management Assn.) suggests solutions have helped to reduce invoice processing by 5-10 times, which has confined the entire process by 3-5 days. Of course, this is simply one example.
Machine learning, in particular, can help in job costing and accounting, as it can analyze a large amount of financial data very quickly and identify patterns and trends. Another benefit here is machine learning can help detect potential fraud in financial transactions, ultimately mitigating risk.
And, we know, machine learning is projected to grow. Research shows by 2031, AI will surpass $1 trillion in value, and 56% of that figure will come from machine learning.
In the end, all of this will ultimately heighten accuracy and productivity in accounting. Chances are many of the programs your company is using already have AI embedded into it. It might be worth asking what new features in your technology could help improve your accounting processes.
AI in ERP
At its core, ERP technologies combine data from a number of different areas of a business, including, but not limited to, accounting/job costing, project management, sales and CRM (customer-relationship management), project management, human resources, service, and more. Naturally, different companies will have different needs when it comes to an ERP implementation, which can be costly and time intensive.
Here at Constructech we have been covering the ERP landscape for more than 20 years, exploring new trends, implementation strategies, and all the latest technologies. One of the current hottest trends is certainly AI, which offers big opportunities in ERP, ultimately allowing construction companies to create greater operational efficiency and to streamline business processes.
The bottomline is for any business process data is king, enabling businesses to make informed decisions. Do you have accounting technology designed specifically for the construction industry? We want to hear about it! Consider submitting for our 2026 Constructech Top Products award program. Make sure to enter your product for consideration.
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