Right now, automation is a hot topic. It has the power to make accounting processes more efficient than ever before, or transform businesses for the worse.
Some are calling the rise of automation to be “the death of the accountant.” However, you should consider it more of an evolution than an extinction. Accountants aren’t going away, and their role is becoming more and more important in the market.
Accounting and financial teams can realize their full potential thanks to modern tools. They can now easily go beyond many of the slow, repetitive tasks that they are obliged to perform. Whatever your feelings are regarding this technology, it’s here to make your life easier.
How Small Businesses Can Benefit From Accounting Automation
Read on to find out how accounting automation can improve your business.
1. You will save a significant amount of time
The most obvious advantage of automation is the amount of time it saves. You’ll have more time on your hands if someone (or something) else does the manual labor you’d ordinarily do.
The biggest time-saver for your accounting team comes during financial close. If your team has been using its tools properly, there should be nothing to reconcile! The majority of the data that would typically be reviewed and duplicated across systems has already been examined and copied.
2. Increased and improved output
The ability to produce more in the same amount of time is an evident effect of the benefit discussed above. Automation frees up more time for you to do what you’re truly here for: generate finances and satisfy your customers. And you can now do it better with less stress.
3. Data precision
We’ve all heard the phrase “you’re only human.” People are notorious for making mistakes.
The beauty of machines is that they rarely make minor computational errors. Accounting software can generate thousands of entries in seconds with no significant risk of data corruption.
Of course, a professional accountant is still required to validate the work and alter the data.
4. Quick data retrieval
Some business owners will recall the (not-so-distant) days of physical storage rooms containing hundreds of files. To get a document or review a file, you had to go look for it in another room.
It is now exceedingly simple to find almost any file you require in seconds. Almost any entry in your software can be found in a matter of seconds.
Accounting automation is intended to make it simple to organize, name, and store documents. With accounting automation, discovering them is a piece of cake.
5. Safer storage
Another significant burden on businesses is the requirement to keep paper documents for 7-10 years (depending on local regulations). Fortunately, government tax offices around the world are gradually using e-receipt storage — digital versions of papers instead of paper files.
Software now allows you to receive a digital document, such as a proof of purchase for a business spend and then automatically save the proof of purchase in the proper folder.
You can then access any document you choose, no matter where you are. There’s no need to rummage through the filing cabinet or walk down the hall to a storage cabinet.
6. Integrations in real time
The more you can digitize business operations, the more effectively you can employ these technologies in tandem. Your payroll software communicates with your accounting platform, which receives data from your spend management program, and so on.
The benefit of this is that you practically never have to copy information from one place to another. Across all platforms, you have up-to-date, accurate data.
This is made easier by the fact that your accounting systems can be hosted on the cloud. But the benefit is that all of your financial procedures can communicate with one another whenever you need them to.
7. Professional advancement
Any job that requires a lot of repetitive, physical labor has the potential to be automated. Accounting is included in this category, with its own set of tedious tasks you can easily automate.
However, this shift provides an opportunity for development. Machines can’t accomplish everything on their own, so skilled accountants must be present to drive software and ensure it functions flawlessly.
Accounting automation, when utilized correctly, should simply remove all of the tiresome and frustrating aspects of the work, leaving room for management accounting, strategy, and better communication.
Final Thoughts: Reap the Benefits of Automated Accounting
The pandemic has hastened digital transformations among businesses. Businesses must now identify the suitable accounting automation software and payment platforms to prepare for the impact of digitization on their financial processes.
Not sure where and how to start the accounting transformation of your business? Visit Today CFO’s blog and contact us to hear our expert advice for free.