As companies respond to today’s labor scarcity, record price inflation and ongoing supply chain disruptions, they are looking for new areas where it makes sense to automate their business processes. Accounting, long a bastion of manual processes, has emerged as a great candidate for automation. New software makes this possible. With that in mind, here are five benefits of accounting automation.
What is accounting automation?
Accounting automation is the application of business process automation to the work of accounting and financial management. It’s not an entirely new field. Indeed, accounting was one of the very first business processes to be computerized back in the 1960s. However, since then, accounting has remained a collection of manual process performed using software. Instead of updating paper ledgers with a pen, accounting staff posted journal entries into software-based ledgers. It was, at best, a partially automated process.
This is starting to change with new advances in accounting automation software. With automation, accounting software can now perform transaction steps like posting an invoice to accounting payable, without human intervention. The process eliminates manual data re-entry.
5 ways accounting automation can benefit businesses
There are many benefits of accounting automation, including:
#1 — Time savings: The most apparent benefit of accounting automation is that it can save you a significant amount of time. By automating repetitive and time-consuming tasks, like invoicing, billing, and payments, you can free up valuable time to focus on other aspects of your business.
#2 — Improved accuracy: Accounting automation can also help improve the accuracy of your financial data. With manual accounting, there’s always the risk of human error. But with automation, your data is accurate and up to date.
#3 — Insightful reporting: Software that automates accounting also enables fast, sophisticated reporting. With this information, you can identify areas of improvement and make more informed decisions about your business.
#4 — Risk mitigation: Businesses with poor financial management are more likely to be taken advantage of than those with effective financial governance. Automating accounting processes can help mitigate the risk of fraud and theft by enforcing security and financial governance policies.
#5— Competitive Advantage: Automating your accounting can give you a competitive advantage. By operating more efficiently and accurately, you are better able to gauge the condition of your business at a particular time in the market. You can make competitive decisions, like offering free shipping, if it will help you win business.
How to select the right accounting software
Not all accounting software is created equal. When selecting accounting software for your business, you’ll want to consider features, pricing, and scalability.
- Features: First, you’ll want to consider the software’s features. Does it meet your needs? Does it have all the features you’re looking for?
- Pricing: Second, you’ll want to consider pricing. Is the software affordable? Does it offer a free demo?
- Scalability: Finally, you’ll want to consider scalability. Can the software grow with your business? Does it offer a pay-as-you-go option?
How Acumatica can help with accounting automation
Acumatica is a cloud-based enterprise software that offers a complete suite of financial management tools. With Acumatica, you can automate your accounting processes, from invoicing and billing to payments and reporting.
Acumatica is an affordable, scalable solution that can grow with your business. Acumatica offers a free demo, so you can try it before you buy it.
Accounting automation should be a priority for any business that wants to improve efficiency, accuracy, and competitiveness. With the right software, you can save time, money, and valuable resources. If you’re ready to take your business to the next level, Acumatica can help. Contact us today to learn more about our accounting automation solutions.
Additional Accounting Resources
6 Benefits of ERP for Accounting and Financial Management
Fixed-Asset Accounting Basics (And How Cloud ERP Can Manage)