Running a successful business demands managing multiple tasks simultaneously in the accounting department. According to Emolument, a salary benchmarking website states that 66% of accountants are bored with their work. Traditionally, bookkeepers have the responsibility to execute all financial tasks manually. From recording to presenting audit reports, a bookkeeper is liable for every single detail.
Besides, manual data entry wastes a lot of time that can be utilized to do more important tasks. It is also prone to human error and leads to frustration because of repetitive tasks. Automation provides an effective solution for all these issues. Let's discuss in depth what automated bookkeeping is and how it can save time and cost for the organization.
What is Automated Bookkeeping?
Automation rapidly transforms the finance department. Recording financial transactions are easy now as cloud-computing software automatically fetches data from scanned documents. It can complete hourly work in minutes while offering an exceptional facility of 24/7 availability. Automation reduces fraud rates as only authorized users can access financial information.
The benefits of Automated Bookkeeping
Automation provides numerous as it is a time and cost saver, enhances efficiency, improves productivity, cloud support, 24/7 accessibility and reduces human errors. 60% of corporate data is saved in the cloud, so companies can process and store data easily on cloud servers. It also helps employees to enhance their productivity to an advanced level. It's good to explore more about automation, so let's see what benefits it provides.
24/7 Accessibility to Financial Reports
Accessing financial reports after working hours is not easy with traditional bookkeeping methods. Usually, the bookkeeper has to work overtime to complete the required tasks or if the CEO wants any report. But, automation reduces the bookkeeper's workload as software can access financial transactions anywhere and anytime without any help. Reports are just a click away due to ease of accessibility.
The association of CFE reports that U.S. businesses lose 5% of their revenues to fraud on average. Accountants are involved in multiple financial frauds in the last few years and it can take many forms including
- Manipulation of financial results
- Lack of incomplete, disclosure, or misleading disclosure
It hinders the growth of the company and sometimes leads to dissolution or exit points. Automated bookkeeping software is the solution as it drastically reduces fraud rates and enables companies to compete in the long run. Only authorized users have the authority to access software and instruct it.
Improves Employee Productivity
Employees often feel demotivated and frustrated as financial figures could be more exciting to handle. Repetitive tasks are more furious as bookkeepers have to find a hard copy from bundles of files and correct the mistakes. Automation improves employee morale and boosts their productivity as there is less repetitive work. The importance of automation can be seen in the fact that firms experience a 41% reduction in absenteeism and 59% less turnover. So, automated bookkeeping software is more important to gain a competitive edge in today’s advanced technological world.
Finding financial transactions from any manual record is difficult and needs more time. Moreover, placing hard copies in a room requires more physical space. It is easy to keep stock of copies at the time of startup but it gets difficult as the business grows over time. Automation doesn’t require any physical space to store the financial record. The huge cloud storage capacity enables bookkeepers to find any related financial document with just one click. By 2025, software will have the capacity to store over 100 zettabytes of data stored in the cloud. To clarify this, a zettabyte is a trillion gigabytes or a billion terabytes.
Optical Character Recognition (OCR)
Companies hire more talented employees to analyze financial statements, enter manual data, or verify data against supporting documents and process transactions. This long procedure wastes employees' and companies' time, so it needs a solution to overcome this situation. The solution that automation provides companies to save time is the facility of OCR. It retrieves information from images, documents, formal texts, or any handwritten texts. OCR saves plenty of time that employees can use to be more experts in their fields.
Minimizes Human Errors
Humans are more exposed to information in today’s world so there are more chances of human inaccuracies and human errors. Technological advancements have many solutions to deal with these errors but the best is to automate the finance department. It reduces errors as whenever the bookkeeper intentionally or unintentionally tries to add any wrong entry, the software automatically discards it. Moreover, automation also removes repetitive tasks.
Accurate and Reliable Data
Manual data entry is not reliable and accurate as it has more human mistakes. Human mistakes are natural and can’t be reduced at any cost. Anyways, automation provides more accurate and reliable data that owners can use instantly to make the best decisions. Record me provides accurate financial reports that help in making the best decisions. The work that a bookkeeper will execute in hours has now been reduced to minutes through automated software.
How RecordMe can Help Small Businesses?
Normally, small business owners hesitate to buy online software which hinders their capacity to produce more results. But, they need to remember that purchasing one-time software is a more accurate decision than small daily expenses. RecordMe covers provide ease in accessing financial data as it is online web-based software and can be accessed from anywhere at any time. 24/7 accessibility of financial reports reduce employee workload and strengthens the decisions of owners.
Moreover, AI executes half of the employee's work so they don’t feel frustrated and unmotivated. The phenomenon behind cloud-based software is to reduce cost, save time and improve productivity. Out of all these features, generating revenue is the top priority of every business.