Last Updated on November 15, 2021 by Rakesh Gupta
Click a button and it’s done – automation is a simple solution to very timely, and often complicated processes. This is especially true for accounting. But more than that, it’s a testament to how applying automation can inherently strengthen the function itself and its value to an organization. Let’s look at how automation is enhancing financial management from the inside out. We’ll also look at how accounting automation is impacting the role of accounting professionals.
Why Is Accounting Automation Now A Business Requirement?
Data is the lifeblood of modern business. Financial data, in particular, is essential for understanding what is driving a company’s success or revealing expenses or initiatives that threaten progress. Whatever your organization does, it carries financial weight. Being able to see and control these numbers offers a huge advantage for businesses.
We see several areas where automation actually enhances accounting, both as a process and the data directly. Automated accounting has evolved to not just process numbers faster, but also maintain the data, and help professionals use the data far more effectively. Here are a few ways automation enhances accounting software.
- Less manual data re-entry enables more financial analysis and strategy.
- Fewer data errors; automation reduces human-based entry errors.
- Faster, more actionable data available for business queries.
- More streamlined accounting processes for customers and internal teams.
- Security measures can be incorporated into accounting lifecycles automatically.
- Reports can be generated automatically to monitor projects and initiatives.
- Internal control, compliance requirements, and oversight steps can be automated into the accounting lifecycle.
Automated Accounting Is On The Rise
Let’s face it, businesses who are using automation are inherently more agile and efficient than those who aren’t. This is very clear with the use of automated accounting processes as well. During the COVID-19 shutdowns, a survey found that 45% of executives believe that the influence of accounting has grown. Of these leaders, 19% described this increased influence as ‘substantially’ impactful. We can derive that this means more organizations will want to leverage automated accounting to improve their standing as a company going forward. Here’s why:
- Financial data will be in higher demand to guide more cost-effective decision-making post COVID-19.
- Answers to return on investment, cash flow, and even forecasts will be needed in real-time, at a more frequent rate.
- Billing/accounts payable, accounts receivable, general ledger reconciliations, and other basic accounting procedures will be automated to free up time for financial analysis.
This is already taking shape as 75% of accounting tasks can now be automated. This means that professionals already have the potential to automate accounting processes to eliminate mistakes and streamline customer interactions. Of course, this also contributes to faster, more accurate reporting and billing cycles. Lastly, having more data to review and understand, gives business leaders the context they need to lead their organization towards growth while avoiding financial pitfalls.
Therefore, more accountants and companies will rely on accounting software with a focus on high-level automation. As a result, the role of accountants is changing in the face of accounting automation.
Accountants VS Automated Accounting?
While some financial professionals are hesitant to embrace automated accounting for fear of losing their careers, this is far from the case (Quite the opposite). While accounting automation will increase in demand and scope, so will the demand for skilled accountants who can manage the numbers. Instead of limiting or eliminating the human accountant’s role, automation will advance their potential. Instead, accountants will likely be required to be more proficient or knowledgeable of some IT processes surrounding the automation of accounting processes. Still, their role is not shifting into a tech position. Rather, accountants using automation are actually liberated to focus more on high-level, detailed financial analysis.
Accounting automation has enabled accountants to grow beyond just being bookkeepers and number crunchers. In fact, that is what automation is replacing – the manual entry. Tedious tasks of checking and rechecking, entering and updating account details is handled via automation. Instead, accountants are becoming the curators of the company’s financial data. Automation provides a valuable asset for financial experts to deliver analysis and advice sooner, and more effectively. For example, data analysis, risk management, and cash flow projection and conservation are more efficient with the use of automation. Accountants who leverage automation to get their data faster, and more accurately, and then deliver their advice at a faster rate will be forerunners of the market.
Accounting Automation, Good For Business And Customers
Who doesn’t want a more accurate, hands-free, efficient accounting lifecycle? Automation is not only beneficial to the company directly, it is a major resource for accountants looking to empower companies. But in the break-neck digital landscape, accounting automation is essential for keeping up with and surpassing competition. Like every other facet of business software, you need to smooth internal processes that allow you to prioritize customer engagement and satisfaction.
Automated accounting lets you do this on both fronts. It’s great for maintaining financial health and developing sustainable strategies, but it also means you get paid more efficiently without hassling the customer. Consider also, that the numbers you can analyze give you more insight into just how to continue pleasing your customers. On top of all that, organizations who’ve implemented automation in back office functions like accounting, often see a cost savings of at least 13 percent!
Ready to dive into the world of accounting automation? Download the Accounting Automation Guide today!
I want to hear from you!
What is one thing you learned from this post? How do you envision applying this new knowledge in the real world?
Let me know by Tweeting me at @automationchamp, or find me on LinkedIn.