Are you tired of tedious data entry tasks in your business? How about spending hours closing the books each month? If you answered yes to either of these questions, I have the perfect solution for you. Automation of accounting tasks is on the rise thanks to technological advancements and innovative companies. Recent statistics have shown that 75% of accounting tasks can be automated with the right programs. Accounting automation can provide your business with many different benefits, from cost-saving measures to improved employee efficiency, making it something to consider implementing in your industry.
What Areas Should be Automated?
Before we get into the benefits accounting automation can provide for your business, you should understand which areas can be automated. The first area that should be automated to avoid hours spent on data entry is the bank and credit card accounts. Many accounting software programs allow for seamless integration of monthly bank and credit card statements, replacing the time spent entering each transaction. You would still need to look over the accounts and complete the reconciliations, but most of the work is done for you.
Inventory and payroll should also be easily automated. The integration from your payroll software or payroll provider should be simple, with no extra work required on your end. Once the payroll is processed, the data will flow directly into your general ledger. The same goes for inventory. When supplies are bought or sold, your inventory account should automatically update with accounting automation to take any guesswork out of how much stock is on hand.
Perhaps the most critical business area that should be automated is the accounts payable category. When an invoice is received, you should not have to spend hours entering each piece of data by hand. You can have the invoice directly inputted into your accounting software to ensure timely payments and improve efficiency.
Saves You Time
The amount of time you can save with accounting automation is astronomical. You know the saying “time is money?” Well, that is especially true in business. The more time you or your employees spend on redundant data entry, the more money you will be paying. Accounting automation can allow you to pursue new clients or focus on other essential business areas instead of sitting at a computer entering transactions.
Reduce Costs Associated with Data Entry
Accounting automation allows you to reduce costs throughout your business. You can rest assured that accounting automation is the right move for your business, from less money spent paying a bookkeeper to taking advantage of supplier discounts due to the quicker invoice processing time. Old and outdated processing procedures can rack up your monthly expenses quickly. Reduce these expenses and put the money to alternative uses, such as purchasing more equipment or hiring an additional employee.
Improve Employee Productivity
Employee productivity is a concern in every business. You want to be sure your employees are getting their work done timely to maximize the benefit they are providing you fully. One of the top benefits accounting automation can provide for your employees is a boost in well-being. Employees will be less stressed over trying to complete all the tedious data entry, leading to improved efficiency and productivity. Accounting automation will take this burden off, giving your employees the ability to provide additional value in analysis and new ideas. It’s a win-win situation for you and your employees.
Produce Accurate Data
Another vital benefit accounting automation can provide you is accurate data. Accurate data entry leads to correct reports, which can be used for tax planning and business growth forecasting. Artificial intelligence systems used in accounting automation help eliminate the risk of human error. When a great deal of data entry is required, common human errors include duplicate entries, forgetting about admissions, and transposing data. All of these mistakes can be costly to fix. You don’t want to double-paying the same invoice or fail to pay an invoice altogether.
Leads to Data in Real-Time
When an accounting system is automated, you will have access to real-time data. There is no need to wait to view reports until the end of the month. Instead, you can view reports daily as they update with the latest invoice or transaction. This can give you insight into your business health, which can help you make more informed business decisions. Maybe you forgot about an invoice that was coming out or a check that was written. Seeing the information in real-time will assist you with getting the complete financial picture of your business.
Accounting automation can also give your business added security. Receiving multiple paper invoices or writing various checks can be a security threat since you have confidential information on those items. Automating your invoice process will reduce the risk of your data being breached. Additionally, you can implement more security measures with an accounting automation system, such as password-protected functions to deter employee fraud. If an employee quickly has access to a checkbook, they will be more likely to commit fraud since the opportunity is there.
Brings Cloud-Based Capabilities
Accounting automation is often done through a program that stores information on the cloud. This means you can access the information from virtually anywhere, and your data is always backed up. Switching to a virtual workplace has become a reality for many employers, creating the need for employers to adapt to the new change. Cloud-based capabilities let your employees work in various locations but still complete the necessary work. Furthermore, losing important data can be a disaster for many businesses. Luckily, accounting automation deters this disaster and gives you peace of mind that your data is secure and backed up.
Promotes Business Growth
Every business dreams of doubling in size and improving profit margins, and accounting automation give you the tools for that growth. As transaction levels increase and data flies in and out of your company, you want to be sure everything is recorded accurately and timely. Accounting automation grows with you, efficiently handling the increase in transactions. When everything is recorded timely and accurately, you can better plan for growth, from fully understanding labor needs to purchase the correct amount of inventory.