Expert Recommendations About Accounting Automation for Business Growth
In This Post
Evolving technology, as always, continues to pave the way for a faster, more efficient way of doing things. It allows us to achieve more in less time while reducing the risk of human errors and delays. It has the potential to streamline accounting procedures and minimise the burden on accounting professionals. However, most financial leaders are still hesitant to adopt accounting automation because of the overwhelming thought of overhauling their entire process. However, the growing need for such solutions projects that their global annual market will reach $70.2 billion by 2030. Therefore, it becomes crucial to identify how you can benefit from this technology. This guide aims to take some burden off of you by breaking down the complex process of accounting automation. Continue reading to learn what our experts have to say on how to leverage automation for business growth.
Understanding Accounting Automation
As the name suggests, accounting automation is the process of replacing traditional bookkeeping processes with digital ones. This can constitute Robotic Process Automation (RPA) and Artificial Intelligence (AI). The critical point to understand here is that accounting accrues a lot of highly repetitive tasks, such as data collection, report generation, and statement reconciliation. These tasks can eat up precious hours of the professionals, leaving no time for high-value tasks. To break the repetitive cycle of such tasks, companies have started implementing accounting automation.
5 Steps to Simplified Digital Accounting
Even before you begin the search for digital accounting solutions, it is imperative to understand what it really entails. Unlike popular belief, you do not have to replace your entire workflow to accommodate automation in finance and accounting. Instead, it can be as simple as layering a financial bot over your existing solutions. Although there are electronic accounting solutions that offer a complete upheaval of traditional processes, they can pose a significant accounting automation risk in your departments. For instance, poor integration, lack of flexibility, and timeline delays can hinder the smooth functioning of business operations. Considering these issues, our experts recommend the following steps to ensure streamlined accounting process automation.
Step 1: Assess Your Current Procedures
The first step to implementing automation in accounting is to study your current workflow. It must be remembered not to rush through this step, as it will allow your firm or enterprise to understand the ‘why’ and ‘how’ behind your processes. To ensure it is as thorough as possible, direct your team to scrutinize each task, irrespective of its value. For instance, it is equally important to assess how data is extracted from invoices as it is to understand how clients are billed. This will make it easier for the decision-makers to pick out undocumented and unreliable tasks.
Step 2: Identify Gaps in Workflow
After you completely understand your current accounting system, identify tasks that are ideal for automation. The easiest way to do this is by picking out tasks that take more time and require little or no human interference. A thumb rule for this is to identify processes that take up the most time of your workforce and are not high value. For instance, extracting data from forms and entering it into a spreadsheet is one area where automation can significantly save time and other resources. A research indicates that 58% of accountants report increased productivity after implementing accounting automation. Similarly, tasks that result in high errors are prime candidates for accounting system automation. Apart from tax time blues, accountants fear mistakes the most. Therefore, it is beneficial to hand over error-prone tasks to the automation system.
Step 3: Pick the Right Accounting Automation Services
In the current market, different digital accounting solutions, including RPA and scripting methods, are available. However, you must pick one that fulfills your unique needs. For this purpose, refer to the assessments made in the first step. They will help you find a solution that can work in unison with your workflows. As a general guideline, look for services that do not cause issues with your current accounting software. Therefore, you do not have to replace your entire system to implement automation. On the same note, AI-based digital accounting is all the rage today, and due to good reason. It not only saves time and reduces errors but also provides you with advanced financial insights for better decision-making. Looking for a solution that utilizes AI in its tools will enable you to maximize the returns of your investment.
Step 4: Implement Automation Strategies
After picking the right solution, ensure it seamlessly integrates with your current processes. Rushing this step can result in botched operations, significantly hurting company finances and client relations. Therefore, work closely with the automation provider to combat any risks that might occur due to mishandling.
Step 5: Embrace Continuous Improvement
It is important to understand that technology continues to improve and reiterate. Therefore, it is necessary for business and finance leaders to employ cutting-edge accounting solutions to stay ahead of the competition. Moreover, it ensures the organization will not conform to outdated processes, but rather it will keep innovating and restructuring to achieve financial success.
How can RecordMe Help?
The role of technology is not to replace professionals. Instead, it makes their workload easier and allows them to focus on providing critical support for business growth. The core value of RecordMe is to ensure your growth while we take on your mundane and repetitive tasks. We are aware that your business is distinctive, as such, we first understand how you work. And only then we offer a customized approach to accounting automation. If you are ready to kickstart your digital accounting journey, simply send us a message, and our experts will reach out to you.