What are the 4 Benefits of Automating your Accounting Processes?
What is Accounting Automation?
To navigate today's dynamic business climate, there has never been a greater need for on-demand visibility and actionable data. Accounting automation, in particular, can serve as a platform for providing timely and continuous information to important stakeholders, allowing for the agile decision-making that is required to make critical judgments. Traditional manual accounting methods generate risk and consume so much capacity that they make it impossible to make informed decisions. According to a recent study, nearly 70% of global business leaders and finance professionals said their company has made a major business decision based on inaccurate financial data. Accounting automation decreases the amount of time and effort necessary to complete processes and access data. More time can be spent on meaningful analysis and planning thanks to configurable rules and workflows, global visibility from anywhere, faster reconciliations, and journal entries.
One of the biggest advantages of automation is saving a significant amount of time. By automating procedures and providing a consolidated source of data for all teams within your firm, an enterprise resource planning (ERP) system may boost corporate productivity and efficiency. However, ERP implementations can be complicated and difficult, owing to the fact that they touch people and business processes across the whole organization. Accounting employees can be re-deployed to more strategic responsibilities, and teams can scale to accommodate growth without adding extra headcount, thanks to the time savings. Accounting automation helps you save time when it comes to planning spending, comparing actuals to budget, and creating year-end tax reports. Accounting automation is used to copy data from his company's spending account and business bank account directly into his accounting spreadsheet, as well as to build a complete cash flow report and forecast cash flow month to month. This automation not only saves us time but also assures that we are continually looking forward by using time efficiently.
Even for seasoned accountants and bookkeepers, a human mistake is common in accounting. No one is flawless, and items are frequently neglected as a result of stress, lack of sleep, high workloads, and other factors—though some procedures appear to be more prone to errors than others. Reconciliation is a time-consuming operation that necessitates hours of data entry and is prone to error, therefore automating it saves time and ensures data correctness, preventing incorrect account balances. You save time reconciling statements and eliminate the possibility of duplicate transactions. Automating your reconciliation process also makes sure that you have your all financial ledgers up-to-date and error-free. Accounting tools save time by registering thousands of ledger entries in a minute and without any data mismanaging.
Insight and Analysis
Accounting automation enables you to unify data in a timely and consistent manner. Without having to wait for period-end close, this allows for the more frequent study of trends, exceptions, and insights. You'll be better positioned to enable agile decision-making if you have more time for analysis and quality insights. Accounting personnel can quickly create reports and dashboards that can be modified as new revenue streams, cost centers, and other business changes emerge. Accounting and their business partners can engage in new projects without worrying about needless bottlenecks because they are not reliant on IT for maintenance.
Keep Your Data Secure
Data Security is the top priority for any business. Manual accounting tasks necessitate the use of spreadsheets, which are insecure, lack preventive controls, and raise the danger of cyber-attacks and errors. Accounting automation eliminates the need for sending and receiving spreadsheets in favor of a single version of the truth with embedded processes and job separation. Auditors can securely access information in a self-service model when they need it, avoiding the danger of sending audit requests via paper, flash drives, or other less secure methods. If you install any cloud accounting software like Dynamics 365 Business Central, you will get the assistance of the cloud and quickly process payments or check a document. It also allows you to assign varying levels of access to each client's portal, allowing different user roles (e.g., partner, relationship manager, administrator, etc.) to view data relevant to their duties. You can also limit who has access to specific files and folders.