7 Reasons Your Firm Should Move to Digital Bookkeeping
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Automation is notorious for replacing human talent with robotic processes. Depending on personal preferences and philosophy, technology will either change the accounting industry for the worse or make accountants more efficient. However, firms, especially accounting ones, believe in data, and historical data suggests one thing – technology evolves current mundane procedures and only replaces repetitive tasks. Thus, accountants get an opportunity to use their skills in higher-value work, such as decision-making. Modern digital bookkeeping services unlock the full potential of financial advisors and accountants. With real-time data collection and analysis, they can now quickly gather insights and create impactful plans.
Microsoft created Excel in 1987 and revolutionized accounting. Since then, apart from software advancements and tool updates, accountancy hasn’t seen any major stride until now. Automation, to be precise AI-powered digital accounting, is the future that will make boring Excel sheets obsolete. Although spreadsheets are still helpful in countless scenarios, online accounting services greatly enhance and simplify pre-accounting processes. As the name suggests, this phase typically involves data collection and cleaning, which can be cumbersome, to say the least. Most firms still operate on physical receipts and accounts payable forms, which can prove tedious due to the long hours taken up by data entry. On the other hand, online accounting software utilizes optical character recognition to automate this process.
For accountants and financial firms, the most tangible advantage of digital bookkeeping services is the saved time and increased productivity. For these institutions, financial closing can be a challenging time. Since most firms delay reconciling receipts and invoices, they are stretched thin at the end of the financial cycle. In comparison, AI bookkeeping services ensure data is collected and entered automatically. Even though it might not sound much, manual data entry can increase the billable hours of accountants. To put into perspective, online accounting solutions can save a company at least $16 per invoice. Another obvious benefit of time savings is the increased productivity of the business. The team can now utilize the long hours previously spent on manual entry for gathering insights and planning.
Data Accuracy and Integrity
Whether it’s a financial company or a consumer-facing business, data is at the core of its business drive. However, companies must conduct significant quality checks and maintain centralized data pools to ensure bad data does not impact critical decisions. A Gartner research reveals an organization’s annual cost of data errors is $12.9 million on average. Even more alarming research indicates that 60% of businesses do not understand how data can undermine their competitive advantage. In this landscape, accounting automation using online accounting software can restore and enhance data accuracy, consistency, and integrity across all fronts. Machines, especially AI, do not often make mistakes, thus helping a company save precious resources in the long term.
Utilize Cloud Accounting
In 2020, 78% of small companies and 52% of enterprises benefited from cloud accounting. In the two years since then, the popularity of digital bookkeeping services has only increased. One primary driver of this success is the seamless integration with existing accounting software and scalability options. Even a small company comprising a few employees can automate bookkeeping bots according to their needs. In stark contrast with on-premise accounting software, cloud bookkeeping services allow fast data access from anywhere. Thus, accountants are not tied up to physical access limitations.
Secure Data Storage
Another significant burden on accounting firms and financial institutions is the requirement to store records. Typically, local and international authorities require firms to keep the data secure for at least 7-10 years. It can be resource-intensive and time-consuming to comply with these regulations. Fortunately, authorities are now accepting e-receipts of data files. Thus, providing another benefit of online accounting software. As mentioned, modern companies automate accounting systems using cloud solutions, providing robust data storage and retrieval.
Real-time Report Generation
Optical and intelligent character recognition allows AI bookkeeping services to maintain data in the system accurately. Another advantage of having clean data is that the system can automatically generate financial reports. Whether the company requires VAT reports, invoices, or bill claims, bookkeeping services only need a moment to generate them. This can help companies make more informed decisions, identify areas for improvement, and track progress in real-time.
Automating data entry is only the first step to increasing the productivity and output of an accounting firm. Digital bookkeeping services integrate with existing accounting, management, and communication software to provide an unparalleled experience. This can further streamline accounting processes and improve overall efficiency.
Move Forward with RecordMe
Making the right choices for a company is not always easy, especially when it comes to accounting. However, the right choice of digital bookkeeping services can make all the difference in your firm. RecordMe is not a new player in the market – with a proven record in the financial industry, we aim to simplify accounting for you. It does not have to be the boring profession it always was. Instead, RecordMe takes the grunt work and automates it so that you can allocate resources toward the long-term planning of your company. Also, a few simple steps will integrate all your CRM and management software, creating a seamless workflow across your business.