Automation is transforming the workplace in every industry. But, unfortunately, it’s also changing how people do their jobs. Current estimates reveal that 51% of work activities could be fully automated, whether the salesperson is looking for prospecting solutions or the eCommerce giant is using it for email marketing.
The accounting business also turns to automation to eliminate paper-based tasks from their workflows. But, again, automation is a natural consequence of the digital revolution, and there are no signs it will slow down.
Why Accounting is Prime Territory for Automation
Financial accounting isn’t just confined to dedicated accountancy businesses. All organizations must manage their accounts, and financial accounting is one function known for being prone to human error.
Accounts Payable, Accounts Receivable, and General Ledger are all examples of low-hanging fruit for businesses looking to bring automation into their accountancy procedures. Both bookkeepers and accountants can benefit from introducing automation to speed up their work processes.
Accountancy firms also face a higher degree of liability because of their privileged positions. Making a mistake could cause chaos for your clients when forecasting the future or filing their tax returns. In addition, the regulatory authorities could fine you, and significant mistakes could even lead to you getting sued.
Accountancy is one of the professions that can benefit the most from researching automation solutions.
The challenge is determining which accounting practice management software can successfully deliver on your automation goals.
Save Time, Increase Productivity
How much time do you spend on manual tasks weekly?
Many accounting firms are surprised when conducting audits at how much time is taken up by basic administrative tasks. Running any business requires tracking the numbers to monitor its own financial position and ensure compliance with financial regulations. With the extra responsibilities imposed upon accountancy businesses, it’s no surprise that accountants waste considerable portions of their weeks on routine tasks.
Automation can mitigate how much manual labor is involved in completing basic accounting tasks. As a result, it frees up time to speak to clients, analyze data, and expand your business.
Implementing automation allows you to focus your efforts on the revenue-generating activities that empower your business to grow.
Improve Your Accuracy
Professional errors happen more than most accountants would like to admit. For example, 27.5% of professionals in one study said the wrong numbers had been added to their enterprise systems.
Ordinary companies would consider this an extremely damaging error, but accountants face severe penalties and legal action if they get their numbers wrong. You have a professional obligation that can result in enormous consequences if you breach that obligation.
Accounting automation increases the odds that the financial data you hold is accurate. Human error is a serious threat to your business, but automation improves the quality of your work.
Migrate to the Cloud
Accountants previously needed to keep folders and files from all their clients in large, dusty rooms. Managing large banks of filing cabinets was part of the trade, and if you visited your clients’ premises in person, you would also have to sort through their paperwork.
Cloud access is a considerable part of accounting automation. Bringing cloud computing and accounting automation together enables your files to be available as and when you need them. All you need is an Internet connection.
The cloud also has high levels of security to ensure compliance with data security and privacy regulations, thus protecting your business from potential lawsuits.
Safely Store Files
Accountancy firms are bound by regulations to save files for several years, even if they’re no longer working with the same clients.
Physical files pose a problem because they’re vulnerable to fires, floors, spills, theft, and other disasters. Automation ensures that your files are saved through your accountancy software without any input from you.
Another advantage of an automated file storage system is they’re far easier to organize and search, saving you countless hours on pinpointing a particular file.
Additionally, you have the bonus of saving money on storage costs, enhancing your cash flow.
Reduce Your Costs
Some professional accountants might look at automation solutions and balk at the initial cost. The outlay is considerable if you’re starting from nothing, but you’re guaranteed to save money in the long term.
Firstly, accounting automation eliminates most manual entry tasks. Time is money, so if you’re saving time, you’re saving money.
Secondly, it reduces the time you spend finding financial information because one of the bonuses of automation solutions is that they will be well-organized. So, over time, automation will provide a positive return on your investment.
Remember, as an accountancy firm, you’re also vulnerable to regulatory penalties. So even if you made an innocent error, the wrong number could land you in serious hot water.
How Difficult are Accounting Automation Solutions to Implement?
With these advantages in mind, you’re likely wondering how difficult it will be to implement automation solutions. It’s surprisingly easy. The state-of-the-art automation solutions of today are designed to be integrated into accountancy firms without hiring an expensive consultant, burdening your IT department, or investing in training.
Most automation solutions can be brought into your workflow within a day. The work mainly required depends on what you want to automate.
Some accountancy firms choose small-scale solutions aimed at a particular process. In contrast, others look to all-in-one software that automates all the most common processes as part of a single software package.
Do your research and talk to automation solution providers to learn more about what they offer and how easy or difficult it is to integrate.
Conclusion
Automation is a concept that has come to every industry recently. The advantages to productivity and the bottom line mean that this will be a concept that will be around for a while.
Accountancy firms that need to switch to automation are leaving themselves wide open to be overtaken by the competition. So act now to give your firm a facelift, whether you’re a one-man operation or a sprawling enterprise.
Have you brought automation into your business yet?