Bookkeeping services, or accounting, have always been integral to a business. From tracking financial records to facilitating business growth, they help companies streamline cash flow. Historically, accountants have used paper-based ledgers and registers to keep track of inflow and outflow. Despite their best efforts, manual data entry is prone to errors that can jeopardize a company’s reputation, not to mention monetary losses. Instead of leaving such a necessary process to chance, stakeholders need to implement modern solutions in the form of digital bookkeeping. In today's world, implementing a digital solution is no longer a matter of debate, instead, implementing AI-powered accounting automation has now become essential to keep up with the competitors.
What is Digital Bookkeeping?
At its core, digital bookkeeping replaces manual accounting processes with software. However, there is more to it than a few lines of code. It aims to reduce errors, provide real-time analysis, and secure data storage by automating manual processes.
Automation Reduces Human Error
Over the last few years, businesses have evolved, improving the acceptance of technological advancements. Companies rushed to automate repetitive tasks, with manual data entry foremost on the list. According to McKinsey, at least one-third of the processes in 60% of jobs worldwide can be automated. However, businesses that retain legacy data and accounting processes can face the following consequences:
- Gartner estimates average annual losses of $15 million due to poor data quality.
- AccountingWeb notes that almost 27.5% of accounting professionals report inaccuracies in data.
In addition to errors, manual accounting can accrue a high overhead cost due to human resources. Unlike a decade ago, businesses generate millions of transactions in a month alone. These bookkeeping services require permanent and interim accounting professionals working around the clock to ensure timely reports. On the contrary, accounting automation reduces the staff needed while keeping data inaccuracies in check.
Real-Time Data and Analysis
Needless to say, manual data entry is a time-consuming and tedious process, resulting in a slower turnaround. Accountants find it especially challenging during external audits. Moreover, the monotony can lead to boredom resulting in inaccurate analysis. On the same note, companies must wait until the data entry process is complete to get insights into the data. Every minute counts when it comes to making informed decisions from data. To solve this issue, online bookkeeping services update the database as soon as new entries are generated. Similarly, real-time data entry allows for faster analysis and quicker turnaround time.
Read more on making better decisions using accurate and reliable financial statements.
Secure Data Storage
On-site and physical data storage can result in duplication and inconsistency. Moreover, it is easier for internal and external malicious actors to bypass the security of physical servers. Since the modern consumer is more privacy and data-conscious than ever, it becomes essential for companies to implement secure data storage. Unlike traditional accounting software, digital bookkeeping services provide better data security and integrity. These services utilize cloud technology to ensure overall data accuracy, reliability, and completeness. Since cloud technology usually involves a handful of people for server maintenance, it keeps the data secure from illicit activities. Additionally, companies get the option to encrypt their data, providing an extra layer of security. These are some reasons why 67% of accountants prefer cloud-based accounting software.
Automated Backup and Recovery
In the current world scenario, data is the new currency. More importantly, historical data allows an organization to identify past consumer and business trends. Therefore, data backups hold immense significance in the decision-making process. One of the significant drawbacks of manual accounting is inadequate backup options. Apart from business needs, data backups also help in future legal and regulatory issues. Maintaining an on-site backup comes with additional responsibility for securing it against cybercriminals and natural disasters. Online bookkeeping services automate the data entry and maintain a secure backup in distributed servers.
Although humans will always be necessary for extracting valuable insights and perspectives from the data, an automated accounting system amplifies human efforts. For instance, even if accountants work tirelessly, they have a physical endurance limit. The business or accounting firm will need more resources to keep up with the work. The advantage of online bookkeeping services lies in their ease of scalability. As the demands of the company increase, the providers configure the servers to allow more computing power and storage resources. Therefore, the business continues functioning without any downtime.
Accessibility & Collaboration Tools
Inadequate accessibility options can hamper the accounting process and reduce the system's reliability. This is where accounting automation excels by providing seamless integration with multiple collaboration tools. Firstly, accountants can access system resources from anywhere in the world. Due to underlying cloud technology, there is also no data loss and penetration risk. Secondly, a finance bot allows integration with different data storage and communication tools. Apart from accuracy, reliability is the most critical factor in any business. Therefore, this seamless integration allows uninterrupted workflows and team collaboration.
The world is undergoing a digital revolution, and simple automation is not enough to keep up with the pace. With more and more consumers joining digital payment gateways, accounting is no longer what it was. Bookkeeping services provide more than automated bookkeeping services, they utilize the power of AI to deliver a robust finance bot.
Revolutionize Bookkeeping with RecordMe
RecordMe is one of the leading AI-based bookkeeping service providers. Whether a company aims to eliminate monotonous data entry tasks or increase accounting accuracy, RecordMe provides a seamless solution for all bookkeeping problems.
The AI enables RecordMe to provide state-of-the-art accuracy and reliability in the accounting process. Automation helps bring down the time and monetary costs starting with data entry. Real-time data analysis allows companies to make timely decisions and be proactive about market demands. Finally, cloud storage protects crucial business data while delivering lightning-fast server access.