ChatGPT and Process Improvement in Accounting: An Example
In the world of accounting, finding ways to improve processes is key to saving time and reducing errors. In this post, I’ll share my personal experience with process improvements as a CPA before and after the rise of ChatGPT. Spoiler alert? You should give ChatGPT or generative AI a try if you haven’t already as it took me half the time with ChatGPT.
Building Commission Workbook With Excel From Scratch Before ChatGPT
I’ve significantly improved the commission calculation process twice in my career—once as a Senior Accountant and more recently as a Controller. The first time, my predecessor was using a cloud-based commission software called CaptivateIQ. When I took over the role, a colleague spent hours training me on the software and the process. He was an excellent trainer and knew the process well, but since I hadn’t handled commissions before, I faced a steep learning curve. Despite this, I always knew that once I got the hang of it, I should explore alternative methods, as the software was more complex than necessary for our relatively simple needs (a team of about 15 on commissions under two different compensation plans with some variations). My manager at the time was supportive of change, which was a great help.
As I became more comfortable with the process, I explored other cloud-based options but ultimately decided to use an accountant’s favourite: Excel. By then, I was quite proficient in Excel, so a few months after taking on the role, I began building the working paper from scratch. I designed the new process with our users (sales reps and sales engineers) in mind, aiming to keep it at least as user-friendly as before, if not better. My backend priorities were to:
- to make the process more user-friendly for calculating, training and reviewing
- improve accuracy
- save labour hours
The original commission process took hours every quarter between my manager and me—precious hours that could be spent on more value-added tasks. The revamp took several months from start to finish, as it was my first time building a workbook of that complexity, and my other tasks took priority. My manager, who was also proficient in Excel, helped me put the finishing touches on it before we launched. I estimate the actual working time on this was around 40 hours.
The Excel method was a significant improvement compared to the software we had been paying for monthly. I ensured the workbook was easy to follow for intermediate to advanced Excel users, which many accountants are. We used the first versions of that workbook for about a year before making a series of minor revisions that further improved it.
My Second Time Revamping Commission Calculation
A year later, I faced another time-consuming commission process. This time, the calculation was already being done in Excel, but instead of one consolidated workbook, I inherited 15 to 20 separate Excel files—one per employee. To make matters worse, I wasn’t working on a powerful laptop, so opening each file and performing calculations was time-consuming. Additionally, I loathed copying and pasting the same data repeatedly, as the workbooks weren’t linked.
This time was more challenging for two reasons:
- I was under much greater pressure to improve the process ASAP as I couldn’t afford to spend hours each month calculating commissions that the old process took
- There were 10+ different commission plans
So, instead of taking the day off on Canada Day, I spent the holiday building a new workbook from scratch.
How ChatGPT Helped Me With Process Improvement in Accounting
Fortunately, I was able to finish a rough draft much quicker than last time, thanks to my prior experience and the help of ChatGPT. While the compensation plans were quite different between the companies, the underlying concept was the same (e.g., reps are compensated for deals closed). I understood the different compensation plans more quickly than my first time and based the commission statement on what I had built previously (compared to last time where I spent quite a bit of time Googling for examples). ChatGPT helped significantly in multiple ways: writing complex Excel formula with multiple functions meant for different scenarios, writing VBA code for automation (e.g., draft an Outlook email and attach the active sheet as PDF) and brainstorming. While I could have done it all by myself, I leveraged ChatGPT wherever I could to save time while maintaining the same quality.
This time, the whole process took about three weeks from start to finish, as I struggled to find time to work on it while busy with quarter-end tasks. I estimate the actual working time on this was around 20 hours which was half of what it took last time.
The finished product was a consolidated workbook that hosted the commission calculation for everyone on a variable compensation structure. Instead of a manual, error-prone process that involved multiple workbooks and at least a full day of work, I managed to shorten it to just a few hours (with a target of less than 2) with improved accuracy.
Final Thoughts on Process Improvement in Accounting & ChatGPT
Revamping processes isn’t just about making things easier-it’s about adding value, saving time, and ultimately, driving better results for the company. Whether it’s leveraging tools like Excel or getting a little help from ChatGPT, the key is to always look for ways to improve. I hope this example gives you some ideas on how you can make impactful changes in your own work. Remember, the goal is to keep refining your approach until you’ve built something that not only works but works well.