6 Ways to Improve Your Accounting Processes With Digital Bookkeeping
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Businesses worldwide are rapidly evolving with the rise of intelligent technology. Even the accounting industry is experiencing an unparalleled push to automate bookkeeping due to this demand for technological efficiency. However, as a Gartner survey notes, “94% of controllers put high energy and resources into closing company books but could curb deadline pressure and the risk of error by revamping the structure, operations, and behaviors underlying how their team completes the closing.” To put it differently, even though the need for efficiency is currently dominant, companies can achieve more success by revamping the underlying structure. Yet, it can be troublesome for organizations to implement an accounting strategy from scratch. This is where digital bookkeeping can help. Instead of pushing accountants to get work done faster, here are some ways to improve accounting processes using digital bookkeeping:
Many companies experience a frenzy at the month-end close, which can involve overworking accounting professionals. In addition to the added work, the finance department experiences undue stress and pressure that can lead to an unhealthy company environment. These situations can be proactively mitigated by implementing a thorough pre-accounting phase in your accounting processes. Even though it does not sound much, it can save a company’s precious resources while increasing employee retention. Since pre-accounting involves getting data ready for accounting, online accounting software is the best option to get started with it. These solutions use optical and intelligent character recognition to collect receipts data instantly.
Centralizing Accounting Structure
A critical factor behind the success of accounting processes is how the leadership structures them. Distributed channels for delivering financial reports and analyses can result in communication errors. On the other hand, centralized online accounting software can reduce the overall accounting cycle time. Moreover, it makes defining and achieving goals more manageable. Phoenix Business Journal reports that only 6% of companies regularly visit aligned goals. Therefore, it is essential to establish an accessible way of assessing company goals. To achieve this, digital bookkeeping services offer a synchronized dashboard to monitor the accounting processes and activity across the firm.
Digital bookkeeping services can significantly enhance the performance of accounting processes. However, an essential prerequisite of automation is process standardization. Clarity of accounting procedures goes hand in hand with accounting centralization as well. The primary goal of automation is to replace repetitive tasks with a computer-based solution. If the company implements multiple ways to perform a task, it can be troublesome for digital bookkeeping services to automate them. Apart from standardizing processes, assigning ownership is necessary to improve overall efficiency. Creating checklists for manual tasks makes it easy for employees to be on the same page. With this, even fresh hires can carry out tasks as efficiently as experienced employees.
Manual data entry not only takes more time but also introduces the possibility of errors in the data. Similarly, report preparation, audits, and payroll management can be labor-intensive tasks. Bookkeeping services automate time-consuming tasks, freeing up professionals for high-value work. In fact, a survey reveals that 83% of accountants respond that digitization is necessary in the accounting field. While digital bookkeeping is the answer to these woes, centralized online accounting software and task standardization come first. It is vital to streamline these processes to maximize the performance of online accounting solutions. Therefore, companies must look for automation services that integrate with existing financial software. Thus, ensuring that unnecessary friction is not introduced into the workflow during the upgrade.
Enhance Data Integrity with Cloud
The US remains the target of 46% of global cyberattacks, and unfortunately, phishing attacks cost companies $12 million in the first half of 2022. Since financial data is paramount to the success of a business, it becomes even more critical to implement a robust data security strategy. On the same note, the rising cases of cyberattacks prompted international authorities to enforce stringent data governance laws. Therefore, it is no longer an option to skip data security measures. Digital bookkeeping services utilize the latest cloud technologies to provide data optimization and outstanding security features.
Leverage AI and Emerging Technologies
Even a seasoned accounting firm must utilize cutting-edge technology to maintain its market position. Currently, cloud and AI tools are the most sought-after technologies in accounting. According to FinancesOnline, 58% of companies utilize cloud technology, whereas 67% of accountants prefer online digital bookkeeping services over onsite accounting software. Using AI, companies can discover financial patterns and generate reports without much intervention. Apart from increased efficiency, automation allows companies to achieve better retention rates and improved business operations.
Streamline Your Accounting Processes with RecordMe
Bookkeeping services are undeniably changing the landscape of accounting. With the advent of AI tools, implementing intelligent technology becomes even more necessary. Future accounting firms and professionals must be digitally-savvy to take advantage of time-saving resources. RecordMe provides your accounting firm with an easy and accessible way to get started on your technological journey. Leverage our AI bookkeeping solutions to streamline your accounting processes and stay ahead of the competition.