Accounting automation is becoming increasingly popular in the finance industry. Several sectors are headed for further disruption due to emerging technologies such as artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA).
According to MarketWatch(1), automation will reach nearly $9 billion by 2026, representing a compound annual growth rate (CAGR) of nearly 29%. Accounting and finance tools will make up the majority of these technologies.
The benefits of cloud computing include real-time access to information, more accurate projections, and fast access to data for decision-making. A human touch, however, will remain necessary for the foreseeable future when it comes to financial automation.
What is Accounting Automation?
Accounting automation automates the tasks that an accountant must perform daily, often instantly. Often referred to as computerized accounting software, these programs crunch numbers, and track transactions automatically.
Creating complex ledger files and entering countless rows of data is no longer necessary. You can easily create reports with built-in formulae. The goal is to simplify accounting processes that were previously too complex and to make them more efficient overall.
The automation of accounting today removes the most inefficient aspects of accountants’ jobs and leaves them with more time to analyze, strategize, and interact with people.
Benefits of Accounting Automation
Accounting automation software is becoming more popular over time because of its amazing accounting automation tools, the ease it provides, and how easy it makes one’s life. Here are a few more benefits of accounting automation software:
Once time has passed, it can never be reclaimed. By automating the accounting process, you can save a lot of time and effort. You can then devote your time to other important tasks.
The financial closing process is entirely a challenge for accountants because it takes a lot of time, but if you use accounting automation tools properly, you are left with nothing to reconcile.
2. Improve productivity
The time saved can now be used for other important tasks. Using the accounting automation tools, you can manage one of the most complex and essential tasks, namely accounting. If you delegate one of your crucial responsibilities, you can perform better. This increases productivity.
3. Quick retrieval of data
Previously, accountants had to store information in the files manually, so when someone needed specific information about a transaction, they would have to find the file first, then scan the entire file for it. There were times when the files were not in the same building or even lost.
Fortunately, today one can easily find the required file or document with one click almost instantly.
4. Reliable data
In contrast to machines, humans are known to make mistakes, as there is a well-known quote, “to err is human.”.
A machine’s beauty is that it rarely commits small computing errors. Multiple ledger entries can be created in seconds by accounting automation tools without the risk of errors. Yes, the data still needs to be verified and modified by an efficient accountant, but this will be done soon.
5. Access to the cloud
People who use cloud programs regularly can compare and judge whether their lives are more convenient now than in the old days of floppy disks or even USB sticks. All the essential software, processes, and files are now available wherever you are.
When you quickly need to check a document or process a check, don’t worry about the time, unlike before when you had to be at your desk or have paper files in hand.
6. Safely storing files
Documentation must be stored on paper for approximately 7-10 years, depending on the accounting firm’s policy. It is a good thing that tax offices worldwide are gradually converting to electronic receipt storage for their documents. Nowadays, documents can be received digitally.
7. Integration in real-time
As a company’s processes and procedures become more digitized, you will be able to better utilize these solutions in sequence. The payroll tools combine the accounting platform with the spent management software, and so on.
Using this method, you never have to transcribe data from one place to another. You can use the cloud to manage all your accounting and financial processes as well.
( Also Read: How to Automate Your Accounting Process )
8. Growth as a professional
The role of an accountant is highly skilled, similar to chess masters and surgeons; they have to complete their tasks with great care since a single mistake could affect the entire balance sheet.
Automation can be applied to any job requiring repetitive manual labor. Automation can help a company to grow. Hence, a good accountant is always needed as the computer can do everything on its own.
9. Value for money
You need fewer outside resources if you use accounting systems to handle several critical administrative tasks. Using this approach, you can work with a relatively small team or avoid using an outside supplier to handle all of your financial requirements.
Automating the major accounting activities can put your assets to the best use. As a bonus, when you hire accounting specialists, you can focus on more important tasks.
10. Effective decision-making
Facts, figures, trends, and charts form the basis of business decisions. When data is gathered and analyzed from all ends, these types of meaningful information can be obtained.
Data from multiple sources is inserted into accounting software, and then the program manages, stores, retrieves and produces sheets from that data. AR-based advanced software provides easy access to future projections and market trends on the meeting room screen.
11. Fewer human interruptions and errors
As humans are exposed to more information, there are more chances for leaks and inaccuracies. By using accounting applications and business solutions, human interpretation is reduced, and precision is increased.
It is not human errors here, but machine-based errors that are caused by humans. Programmed software makes predictions, decisions, and projections based on facts and data.
12. Better KPIs
Often, what gets measured gets done. Accounting automation platforms not only improve accounting teams’ process efficiency, scale growth, and provide insights, but they also enable better tracking.
Accounting teams can keep track of KPIs like unrecorded adjustments, open tasks, and late journal entries through a single point of collaboration. As well as enabling better business decisions, these metrics can also drive accountability and change within the accounting organization.
There is no better way than having a fully automated business solution that is both holistic and automated. Use accounting automation software to automate typical accounting tasks.
Accounting automation has many benefits as you already know. With these solutions, you can save time, eliminate costly mistakes, and stay organized. What could be better? Expenditure management software provides all of the above benefits.
Today, you can manage costs with ease, while giving your finance staff complete control over any funds spent.