How Technology Impacts Finance With The Help Of Automated Bookkeeping?
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Businesses across every industry have witnessed a profound impact of technology and automation on their operational efficiency. The finance field is no different. Traditionally, bookkeeping professionals and management accountants were responsible for conducting financial tasks manually. Their responsibilities included but were not limited to collecting, verifying, reconciling, and analyzing data. Unsurprisingly, this was not only a time and labor-intensive task but was also highly error-prone due to its manual nature.
With the advent of technology, especially AI and automated bookkeeping tools, accounting professionals can now delegate their repetitive tasks to software. This frees the human resources to focus on high-value tasks, such as strategic analyses. In addition, digital bookkeeping can help organizations catch discrepancies in their existing system, enabling them to streamline the accounting workflow. Recent studies indicate that 29% of tasks in the accounting industry are already automated, and the indsutry was valued at $868 billion in the last year. This post discusses the impact of automated bookkeeping on accounting processes and how businesses can use a digital bookkeeping solution to optimize their financial operations.
Impact of Technology on Management Accounting
The first and foremost change technology brings to the finance field is replacing manual processes, such as data entry and report generation, with automated tools. Apart from saving accountants’ time, automation increases the overall efficiency and accuracy of the gathered data. Research indicates that bookkeeping automation can improve job processes by 90%.
Secondly, data analytics and AI allow companies to analyze vast amounts of data more quickly than manual processes. This allows accountants to identify the fiscal trends of the company and generate future prediction reports on their basis. According to McKinsey, implementing AI to replace manual processes resulted in increased revenue for 66% of companies.
Major Use Case of Automated Bookkeeping
With digital bookkeeping services on the rise, it becomes important for finance and business leaders to harness the power of this technology. Otherwise, companies can risk losing out to competitors. However, before choosing an automated bookkeeping service, the decision-makers must understand the prime uses of such solutions and whether they will benefit your company. Here are some use cases that most companies can look for when they try to automate bookkeeping:
Streamline Invoicing Process
Managing invoices makes up for most of the data entry manual processes. However, it’s not only the initial data entry task that is challenging, but the subsequent storage and retrieval processes pose a significant challenge as well. Advanced digital bookkeeping solutions like RecordMe, provide automated invoicing services to get rid of these manual processes. This service utilizes state-of-the-art optical character recognition (OCR) to automatically and accurately extract data from the receipts and store the data in respective fields. RecordMe utilizes advanced mapping features to harmonize the data in specified areas accurately and uses thorough validation to ensure utmost accuracy in the gathered data.
Another crucial area in the finance department that requires automation is the payment workflow. The human resource department and accounting personnel of a company collaborate to calculate employee salaries, accounts payable, and any other costs incurred by the business. Manual reconciliations of these payments can result in significant time and resource costs for a company. Whereas using an automated bookkeeping system to process payments can result in swift uploads and effortless data extraction. Moreover, advanced solutions, such as RecordMe, employ AI-enabled features to carry out accurate payment categorization. Our finance bot automatically distinguishes between pending bills and invoices, ensuring a streamlined payment processing workflow.
Integrate File Requests
Besides the actual accounting work, finance professionals have to deal with the file maintenance and bookkeeping requests received in document form. Such labor-intensive work can add a substantial burden on the accounting team. On the other hand, RecordMe’s automated bookkeeping solution provides a seamless platform for file management. Our intuitive platform allows you to upload files of various formats to ease your accounting procedures. Moreover, you can easily merge and split uploaded files to create single or multiple digital bookkeeping requests respectively. Similarly, RecordMe allows you to upload files in bulk, and the AI automatically handles each file as an individual request.
Effortless Approval Control
Conducting data collection, analysis, and file management is one thing, but collaborating across departments for approvals is another. It can create a backlog in the system and result in unwanted delays across the board. For this purpose, RecordMe has developed its approval system that allows organizations to set up rule-based access for their employees. Moreover, the system empowers companies to assign employees to different projects, simplifying inter-departmental collaboration. For business owners, it means that they can now handle all their business entities from a single portal rather than juggling multiple platforms for each process.
Redefine Automated Bookkeeping with RecordMe
RecordMe is more than just a financial bot that replaces your manual data entry tasks with a software alternative. Instead, it is built by veterans of the accounting industry, with each feature carefully designed to ease your accounting pains. When you invest in RecordMe, you do not get an automated bookkeeping solution. But you gain a partner that strives for your business growth.