Top 10 Ways Accounting Automation Revolutionises Bookkeeping Tasks
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Companies are implementing AI automation in their financial operations to grow their business. Accounting automation service benefits the marketing and sales department while revolutionising every sector in this age of digitisation. The estimated value of the accounting software market would be $416.23 million in 2024.
Manually analysing all the business transactions and other bookkeeping tasks is challenging for businesses that deal with large amounts of financial operations. Thus, accounting automation revolutionises all bookkeeping tasks and helps firms complete other business tasks while providing real-time insights into financial data.
Accounting Automation – A Quick Overview
Accounting automation frequently completes daily chores for accountants instantly. Computerised accounting software is a term used to describe applications that automatically track transactions and crunch figures.
Creating complicated ledger files and entering endless rows of data is no longer required. With built-in formulas, an automated financial bot makes it simple for accountants to prepare reports. The objective is to streamline accounting procedures that were overly complicated in the past and increase their general efficiency. The most wasteful parts of an accountant’s work are automated, freeing up more time for analysis, planning, and interpersonal communication.
What is the Impact of Accounting Automation?
Accounting automation has significantly increased the efficiency of repetitive data entry and reconciliation tasks, reducing human errors while providing real-time financial insights. It has also enabled accountants to focus more on strategic analysis and decision-making.
What are the Challenges of Manual Accounting?
Here are some problems that businesses face due to manual accounting:
Subject to Errors
Manual accounting requires filling the data in papers and books by hand. However, there are many chances while entering the data manually, and it requires enough cost for correction. Harvard Business Review revealed that wrong data entry alone costs U.S. companies $3 trillion annually.
Loss of Physical Record
A reliable backup can restore the original files in the unlikely event of data corruption. This also applies to electronic copies kept in a safe cloud service. Books and physical records are vulnerable to being lost, stolen, or destroyed by fire or water. Proper backups would mean a comprehensive copying process, which can be time-consuming.
Accounting responsibilities extend far beyond filing returns and archiving expenditures. An accountant undertakes some things to keep a company profitable, as listed above. It is unfair that accountants and finance teams spend their most productive hours on menial duties like printing and making backups.
Poor Cash Flow Management
If companies continue to handle accounting documents manually, keeping track of every document, from bank statements to bills, is challenging. They would require further knowledge of cash flow. It can be difficult to keep track of, report, and monitor incoming and outgoing money.
With all the aforementioned difficulties, companies should consider switching to an automated accounting system.
10 Ways Accounting Automation Transforms Businesses
According to 40% of small business owners in the US, taxes and bookkeeping are the most challenging aspects of running a company. An average business owner spends over 80 hours a year preparing taxes and handling other automated transactional accounting duties. Using accounting automation software to streamline their accounting procedure is one method businesses may use to become more productive.
Here are the ways that help to automate bookkeeping tasks:
Easier Data Extraction
After a system is set up, a business can easily extract data from files and ledgers. Moreover, automated financial accounting services make responding to user inquiries on payroll and income statements quicker.
Faster Data Transfer
A business may access and share data without human interaction. There’s less likelihood of private information being shared with other parties or manipulated by inside actors. Accounting automation is, therefore, beneficial to cybersecurity.
Cloud-based accounting data storage allows for potential global accessibility. Due to its equal accessibility, accounting automation software facilitates tasks like writing a check when travelling far from the workplace. Also, data security will be far higher with cloud-based accounting software than on-site servers because it is cybersecure.
Organisations can save time by implementing accounting automation. Data entry, payroll management, and report generation take less time. The system already has the data, so information reconciliation happens quickly. It takes less billable hours for external accountants to complete the work than it does for in-house experts.
Fast Data Retrieval
Instantaneous data retrieval is possible with automated accounting. Finding cash flow or earnings information in the middle of an accounting period is just as simple as creating the statement after the quarter. Business choices are made more accessible by automatically pulling transactions into financial dashboards, which provide intuitive, personalised charts and graphs.
Maintain Tax Record
The IRS recommends retaining tax documents in hard copy for three years, often longer, which needs a lot of office space and file cabinets full of papers. Companies can save space in their offices by using accounting automation. Relevant tax documents can be quickly retrieved whenever they’re needed.
Accounting automation also benefits from automatically adding the appropriate sales tax rate. Accounting experts calculate the sales tax for each state if a customer buys and sells in multiple states.
Easier Cash Flow Tracking
Cash flow tracking is made simpler for businesses that automate accounting. They can quickly identify cash-flow issues if they pull the necessary data and estimates on a financial dashboard.
Painless Tax Time
When businesses have access to accounting automation software, filing taxes becomes easier. Collecting data and completing forms is now a completely automated process.
When it comes to accounting, an automated system is especially helpful for repeatedly addressing tasks that staff will perform. An AI-powered accounting software can handle recurring payables, billing, and journal entries.
Analysing Business Financial Health
However, assessing how well the firm is doing can be challenging without the proper measures. Corporations can get a clear picture of their financial health with the help of accounting automation software. As a bonus, it provides in-depth knowledge of their business performance for making informed, data-driven choices. Having this data available at any moment helps pinpoint improvement areas.
Accounting Automation – What RecordMe Brings to the Table?
Manual accounting is no longer practical in this era of widespread digitisation. It’s time to upgrade from manual accounting procedures to an automated system. RecordMe, a financial bot powered by AI, comes in. Our accounting automation system eliminates the inefficiencies of paper-based books and brings your company a new era of financial freedom.
Here are some reasons why RecordMe is an excellent choice to handle your accounting needs:
- Reduces the possibility of mistakes during data entry, such as recording a transaction into the incorrect category.
- Saves time by streamlining reconciliation and data entry, letting your staff focus on growth-oriented activities.
- Offers real-time data insights, helping you make informed decisions rapidly instead of waiting on static, manual reports.
- Eliminating the challenges of traditional data handling by associating them with the issues of conventional accounting.
- It saves money by decreasing the need for expensive hardware and extra hours of labour. We provide an inexpensive alternative to time-consuming bookkeeping.
- Protects your financial information by keeping an eye out for manipulation.
- Helps you keep track of your money in a way that allows you to claim any applicable deductions or savings.
- Helps make better financial decisions for businesses and reduces the chance of human error.
- Reduces the vulnerability of traditional record-keeping to data breaches and strengthens data security through encryption and access controls.
Automation may help you create efficiency, promote growth, and bring value to your organisation, whether you’re looking to scale up or expand. Do you need more explanation on how automation can help you succeed in the modern world? Connect with us!