Automated Bookkeeping: What is it & How it Impacts Small Businesses?
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There’s been much to talk about automated bookkeeping with sound reasons. It handles entirely, from basic customer communication to company logistics to driving cars. How can the potential to put automation by working on progressively complex tasks help financial professionals? Can this process be incremental or a sea change for the finance industry? 2021-2028 will enhance the value of the international market for cloud-computing storage by more than $390 Billion.
It’s impressive how you caught up in the news and online social media platforms about automated bookkeeping services displacing human employees. However, the potential impact on manual tasks and repetitive processes is all real. Now in the modern world, artificial intelligence disrupts individual lives and the international economy. It goes beyond doubt that human labour is less required with automated bookkeeping solutions. Automation and human intervention go parallel. If automation is efficient as it should be, then the finance department has the right tools to make strategic decisions. Because 32% of customers quit connecting to a brand after one poor experience.
What is Automated Bookkeeping?
Automated bookkeeping gives higher ROI by saving time and money. It can record, categorize and manage financial transactions without any human intervention in a timely manner. You can use automation services to minimize repetitive tasks and process employee payments. Sends a reminder to pay invoices to customers and suppliers.
Impact of Automation on Small Businesses
Implementing automation in small businesses has numerous benefits. The cloud-computing allows for easier analysis and sorting of an enormous data set.
1) Web-Based Software is the Future
Technology is drastically increasing globally, and older accountants are hesitant to use this, especially in SMBs. Software is playing a bigger role that can replace brick-and-mortar firms with web-based coaches. The automated bookkeeping helps you work with different apps in real-time to automate and customize all manual workflows. 63% of retailers are thinking of spending on business intelligence and 35% on AI.
2) Finance Professionals are More Strategic
The reconciliation, managing cash applications, and cutting checks were the most time-consuming activities. These are replaced by auto-reconciling, smarter billing, and auto-execution of payment and contract terms. It frees up time for the finance teams to be more strategic.
3) Virtual CFO Services
Business owners want instant financial data to run their firms efficiently and effectively. Virtual CFO Services leverages online software to integrate billing, payroll, and financial statements. It allows business owners to have free time to do what they want to do.
Benefits of Automated Bookkeeping
89% of companies have adopted a digital business strategy. So, automating finances in small businesses helps in achieving targeted goals. Systematically create positive long-term habits while keeping your employees aligned with goals.
1) Save Time and Money
Small companies have identified the need for building automated bookkeeping solutions and efficiency. Their intention is clear, and they want to replace older ways of doing business with automation. For example, RecordMe has established tools to record payments and cash flows. Enable others to quickly onboard more clients. It also generates customized reports according to the customer’s demand that is audit ready. Money and time can be utilized in a more efficient way by utilizing the services of accounting automation.
2) High-Level Accuracy
Small businesses are highly dependent upon accuracy when the topic is financial reporting. Individual business finance and market conditions change on a daily basis. Gartner states that 56% of executives agree that automation increases revenue. So, stakeholders require fully updated and verified financial reports to anticipate future decisions.
3) Excellent Customer Experience
It is surprising that some small business owners are still afraid about the result. What will be the outcome if they give all authority to robots and machine learning? What they don’t know is that automation has the potential to transform unpleasant experiences completely. It can drastically improve customer interaction with the brand. For example, if a customer contacts a bank call center every day to transfer the funds or check the balance.
Machine learning will automatically understand what the customer wants, whether it is an online profile or any new type of account. A customer representative will use this information, and they will eventually provide a solution in the long run.
4) Enhanced Decision Making
Automated bookkeeping is empowering small and middle size companies that improve efficiency and safety. The analysts can make better data-driven decisions by having the guidance of automated bookkeeping systems Reducing human involvement is an ideal process because it reduces many human errors. Automated real financial insights provide accuracy in data that can help in making faster decisions.
What Service RecordMe can provide to SMBs?
Customers, in the modern world, have high expectations. Automated bookkeeping provides complete service and more information to you than humans. By 2023, international spending on advanced technologies will by $2.3 trillion. RecordMe minimizes human error and provides you with up-to-date information. Repetition of tasks is also reduced, which enhances the decision-making process.
It provides accurate and timely financial reports that is reduced to remove costs. It is also providing services like automated payroll, automated accounts payable and receivable, and inventory management. 29% of the organization states that modern digitization returns the best ROI.