A manual accounting system relies heavily on inputs from humans and is ineffective and prone to error. Also, manual accounting systems aren’t designed to handle large volumes of data. If you still rely on a manual accounting system, it’s time to automate your accounting process. Accounting automation makes life easier for accountants in Sonoma County.
What is Accounting Automation?
Accounting automation involves using software to automate repetitive manual accounting tasks such as accounts payable, audit documentation, and procurement. With accounting software, you don’t need to create detailed ledger files and enter data rows. Important formulas are already integrated, allowing you to generate reports with just a few clicks of the mouse.
The aim is to simplify the accounting process by streamlining complicated, repetitive, and tedious tasks. Accounting software speeds up your accounting process by automatically processing transactions, generating organized reports, and handling data entry tasks.
Benefits of Accounting Automation
Thanks to automation, monotonous and time-consuming manual accounting tasks have become a thing of the past. By handling tedious tasks, accounting software frees up accountants’ time so they can stay focused on their most important tasks such as creating projections, analyzing financial statements, and providing financial advice to management.
Here are some advantages of accounting automation.
You can Save Time and Money
Ask accountants in Sonoma County which accounting task they hate the most, and many will say data entry. Manual data entry is not just time-consuming and tedious, it can also lead to costly errors. Accounting software can automatically enter data, check calculations, and generate reports. Reconciliation is swift since all the necessary data is already present in the system.
Accounting automation can also help ensure a stress-free year-end close. If you’re already using automation tools, your accountant won’t need to do a bank reconciliation as much of the data you’d typically verify and transfer between systems has already been validated and copied.
Let’s say you utilize a spend management platform for handling expenses. When a team member submits an expense claim, they log it into the system and fill in all the details. The person also attaches the expense receipt and other relevant documents.
With all relevant information uploaded into your system, you have a comprehensive record of expenses. With just a click, you can easily export data from your spend management platform to your accounting and reporting software. Tasks that usually take days or even weeks can now be completed in a few minutes.
How can Accounting Automation Save you Money?
Even the most careful and experienced accountant isn’t immune to making errors. The purpose of automation is to reduce reliance on human operators. Accounting automation tools need zero or minimal input from human operators and therefore, reduce the risk of human errors.
Accounting software and other automation tools can eliminate the need for a big in-house accounting team, helping you cut hiring costs and costs associated with retaining employees. Accounting software can assist you in analyzing your business costs and identifying cost-saving opportunities.
Improved Productivity
With accounting software, accountants in Sonoma County can get more done in less time. The time saved can be used for more important tasks. Rather than being buried in books and paperwork, your accountant can analyze transactions, identify trends, and extract actionable insights from your financial statements. Management can use financial data and insights when making important business decisions.
Data Accuracy
Data guides decision-making. Inaccurate data can lead to erroneous conclusions and do more harm than good. You may go down the wrong path and make a bad business decision that can haunt your business for years.
Unlike humans, machines don’t make mistakes when entering data into systems or processing transactions. Accounting tools can create thousands of ledger entries accurately in just a few seconds. Data generated by automation tools will still need to be verified by a trusted accountant, such as Virtual Jeanie, but the process will be much more streamlined, easier, and smoother than before.
Fast Data Retrieval
In the past, accountants manually archived data in files. When specific transaction details were required, they first had to locate the appropriate file and then comb through it to find the information. Sometimes, these files weren’t even in the same building or, in some instances, went missing altogether.
Automated accounting makes data extraction a breeze. Transactions are seamlessly pulled into your financial dashboards, and you get tailored charts and graphs. Accounting tools help categorize, name, and store ledgers and documents easily. With just a few clicks of a mouse, you can view your customer, vendor, sales, and expense data.
Hassle-free Storage
Businesses that rely on manual accounting must maintain paper records. It’s easy to misplace paper records. Also, they can also get damaged easily. Moreover, paper documents can take up a lot of space in your office.
Automated accounting eliminates the need for paper documents by automating paper-based manual processes. Accounting automation tools allow you to create digital copies of documents and store them digitally (in the appropriate folder or the cloud). An automated accounting system can even receive documents digitally. If you use a cloud-based system, you can easily access your documents from anywhere.
Data Security
A data breach can hit your business where it hurts the most. It can easily run into hundreds of thousands, even millions of dollars, and may even dent your reputation or lead to lawsuits.
Accounting automation tools come equipped with advanced security features that allow business owners and managers to restrict access to certain files. All your data will be encrypted for enhanced security. With an automated accounting system, you know when users log into the system and can even track changes made by them. You can choose settings to make sure users get access to only the information they need to do their job.
Whether you want to design a new accounting system or automate an existing one, Virtual Jeannie Bookkeeping Services, Inc. can help. Equipped with specialized knowledge, our experts can uncover hidden patterns and trends and extract insights from accounting data. To learn more, call 707-664-1425.