Modern software allows accountants and finance departments to unlock their full potential. They can move beyond many tedious, slow tasks that they often have to do.
Accounting can be trusted and influential business partners for their businesses if they have the most up-to-date, accurate data.
This post will discuss the best features of accounting software. These tools will make your life much easier, no matter how you feel.
What is accounting automation?
Accounting automation automates the manual tasks of an accountant and often does it instantly. These systems, also known as computerized accounting software or accounting software, are responsible for transaction tracking and number crunching.
No need to create complicated ledger files or enter countless rows. You can easily create reports with fundamental formulae built-in. It is done to simplify complicated tasks and make accounting easier.
Accounting software has been around for a while. We’ll see that we have had various forms of computerized accounting systems since the late 1800s. These tools were still operated manually and took a lot of time until recent times.
Today, accounting automation removes the inefficient aspects of accountants’ work, leaving more time for analysis, strategy, and human interactions.
A brief history of automation and accounting
Since the beginning of time, accountants have used software in some form or other. Excel and other classics can automate or enhance any number of tasks. The new technology tools that we are referring to go one step further.
Since then, we’ve seen many software updates and new tools. However, the profession hasn’t seen significant progress until recently since processes began becoming automated.
Accounting automation won’t likely make Excel obsolete. Spreadsheets can be handy and provide almost unlimited options for users.
Automation can also do the grunt work. It copies data from one file to another, finds discrepancies, missing information, and deletes as much data as possible.
Automated accounting systems offer many benefits.
Automating accounting tasks is a great way to save time and reduce errors. This software is indispensable for companies because it is straightforward.
- Save time
Automation’s most obvious benefit is its ability to save time. You’ll have more time if someone (or something) does the manual work that you would typically do.
Financial closing is the most time-saving for accountants. The majority of data you would typically copy and check across systems has been copied and reviewed. There shouldn’t be any reconciliations if your team uses their tools correctly.
Let’s say, for example, that you use a spending management platform to manage your expenses and other costs. Each team member creates an expense claim in the system. You will have a complete entry starting from the beginning, including receipts and documents. This entry includes all necessary information.
The export of this expense claim, along with all others, to your accounting or reporting software takes only a click. What usually takes days or weeks can now be done in minutes.
- Productivity increases
The apparent outcome of time savings is producing more in the same amount of time.
It could mean fewer billable hours for external accountants, which can be scary. Staff accountants may feel the same way and worry about their job security.
Automation allows you more time to be the partner and advisor that your clients need to achieve financial success. You can do it more often and with more clients.
- Data accuracy
We all know the expression, “You’re only human.” People make mistakes.
Machines aren’t known for making minor errors in computation. Accounting software can generate thousands of ledger entries in just seconds with no risk of mishandling data.
It requires an accountant to verify and manipulate the data. More information will follow.
- Fast data retrieval
Many accountants will recall the days of physical storage rooms that housed hundreds of files. Sometimes files were not even in the same room! You had to search in another room to retrieve or review a document.
It is now easy to locate any file in your software within seconds. You can find any entry in your personal finance software almost immediately.
The new tools are even more effective than their older counterparts. It is almost impossible to locate a crucial detail quickly.
Accounting automation makes it easy to store and name documents and ledger items. It makes it easy to find them.
- Secure file storage
Another burden for companies and accountant firms is keeping paper records for between 7-10 years, depending on local regulations. The good news is that many government tax offices worldwide are now using E-Receipt Storage to store documents instead of paper files digitally.
It is fantastic news! The software allows you to receive documents digitally, such as a proof-of-purchase for a business expense. You can instantly enter the data in your ledger and store the proof of purchase within the appropriate folder.
No matter where you may be, every document can then access. You don’t need to search through the filing cabinets or walk down the hall to find a storage cabinet.
- Cloud access
Anyone who has used cloud software regularly knows how much easier life is compared to the days of using floppy disks or USB sticks. Every accounting software can be taken with you wherever you go.
You can quickly check documents or process payments online. You don’t need to be present at the correct desk or have paper files on hand to get what you need. Now, you can do everything online.
This idea is simple and yet so unimaginable 10 years ago.
- Integrations in real-time
You can use these solutions together if you digitize your company processes. Your accounting platform integrates with your payroll tool, which receives information from your spending management software.
It is a great advantage because you don’t have to copy data from one place to another. All platforms have the most current, accurate data.
Your accounting systems can host in the cloud, a great advantage. The beauty of this is that all your financial processes can live in the shadow, so they can talk to each other whenever you need.
- Professional development
Automating any job that requires repetitive manual work is possible for anyone with a high skill level, such as a surgeon or chess master. This category includes accountants.
This change is a chance for growth. The machines can’t do it all by themselves, so competent accountants are needed to help drive the software and ensure it works well.
Accounting automation, when used correctly, should remove all the frustrating and tedious parts of the job and leave room for good communication, strategy and management accounting.
These tools are an excellent opportunity for accountants to learn more about accounting software and become experts in the field.
Accounting automation is a great tool that saves time, avoids costly errors, and keeps all critical documents at your fingertips. These platforms can save you time and prevent expensive mistakes. They also allow you to keep all your essential records in one place. What’s not love about these platforms?
The benefits mentioned above are also available for spend management software. This software can make it easier to manage expenses and give your finance team more control of all funds spent.