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Accounts & Bookkeeping

Bookkeeping Automation: Here’s What You Need to Know

Written by Analytix Editorial Team | June 7, 2021

As business communication and transactions go digital, it is important to remember that accounting as a function has always embraced technology. Automation for bookkeeping and accounting practices has proven to be effective. Most number-crunching tasks associated with bookkeeping and accounting are both time and attention-consuming, as well as prone to human error. Automation of basic but essential bookkeeping tasks can greatly reduce errors associated with manual data entry. Automation can be customized to manage repetitive tasks and those with high volumes of data entry. These automated computations and calculations involving accounting data are therefore more accurate and thus more reliable than manual computations.

When looking to automate bookkeeping and accounting functions, evaluate the various options judiciously. Carefully consider the tasks that need to be automated and to what extent. The benefits of automation are best leveraged when software is insightfully applied to specific tasks, addresses business needs, and reduces costs. Simply downloading a program without understanding how it fits with your automation goals will most likely lead to disappointment.

Choosing what to automate can make a measurable difference

While bookkeeping automation depends primarily on the business needs, size of business, clients, vendors, and other factors such as products and services offered, a significant aspect of automated bookkeeping is choosing the right functionalities to automate. This decision is dependent on your unique business needs. For example, digitizing all business receipts can reduce the administrative burden on personnel, while ensuring transactions are diligently recorded and receipts are not misplaced. This is also true with invoicing. Automated invoices can help improve financial management through efficient ledger management. Automating invoicing also means that payment processing begins as soon as the work is executed. In manual systems, invoicing may get pushed out to a later date, leading to longer accounts aging and higher AR counts.

Bookkeeping Automation Infographics

 

Help your business improve operations

Automation is geared toward reducing administrative burdens and reducing vulnerabilities that lead to errors, especially when it comes to calculating money owed to the business or at tax time. Judiciously choosing what to automate can help businesses optimize the cost for the automation. Time saved through automation can be used by business owners to pursue new business opportunities or extend products and services to clients.

Professionally-deployed automation support

Partnering with professionals who specialize in bookkeeping automation can help businesses evaluate the areas that will serve them best if automated.

For most startups and small businesses, the challenges of operating with minimal staff often overshadows business-building opportunities because of the need to address critical client demands. This can derail the business in the long run. Leveraging professional assistance for tasks, such as assessing your automation needs, can be extremely useful, both in understanding your financial situation and reducing the time required to complete tasks. Partnering with professionals who specialize in providing bookkeeping services also offers the opportunity to leverage their business insights into industry trends, in addition to their infrastructure and expertise, which is a huge value add for their clients.

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