The accounting industry in the United States is facing a significant shortage of professionals, with fewer first-time candidates taking the Certified Public Accountant (CPA) exam in 2022 than in 2006, according to the American Institute of Certified Public Accountants.
Why are People Not Interested in Accounting?
One possible reason for this decline in interest is the amount of drudge work involved in accounting. Accountants often have to sift through large amounts of unstructured data to perform audits or find answers to their questions. This repetitive and time-consuming task can be overwhelming, even for those who are passionate about numbers.
A Personal Experience
Kevin Merlini, co-founder and CEO of Materia, left the accounting field due to this very reason. After only four months as an auditor at KPMG, he realized that the industry was not for him. Despite studying accounting and earning a master’s degree in the subject, he found it too monotonous.
The Problem is Not Just About Numbers
Merlini pointed out that when people study accounting, they often find it fascinating. They enjoy taking complex data and boiling it down to numbers that can be compared across companies. However, when it comes to actual work in a big four accounting firm, the drudgery of repetitive tasks becomes overwhelming.
A Solution to This Problem
Merlini worked in tech for eight years before launching Materia, a company that aims to reduce the burden of accounting professionals by automating and augmenting mundane tasks. With advances in Artificial Intelligence (AI), Merlini realized that he could fix the problems he experienced during his time as an auditor.
What is Materia?
Materia integrates with existing workflow software and applications like Microsoft Excel and Teams to help break down silos in accounting firms’ unstructured data. This allows accountants to focus on high-risk areas that need special attention, rather than getting bogged down by repetitive tasks.
The company also offers a way for accountants to easily search across their firm’s data and documents to get answers. Materia uses generative AI platforms like OpenAI to process information from a firm’s data.
A Game-Changer in the Accounting Industry
Merlini is excited about the potential impact of Materia on the accounting industry. "One of the reasons that there is a shortage of folks [in accounting] is there is a lot of attrition," he said. "Until recently, this automation wasn’t practical or possible. We are just excited to get started."
Topics Covered
- AI and its applications in the accounting industry
- The challenges faced by accountants in terms of repetitive tasks
- Materia’s solution to these challenges using AI
- The potential impact of Materia on the accounting industry
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