Accounting automation is increasingly gaining momentum in the finance world. The advent of different technologies, such as Machine Learning (ML), Artificial Intelligence (AI) and Robotic Process Automation (RPA), causes various sectors to undergo further transformation.
According to a report by MarketWatch, the automation industry is poised to execute a market valuation of approximately $9 Billion by 2026. Most of this growth is forecasted to be driven by the sector’s proliferation of accounting and finance tools.
However, automated bookkeeping offers several benefits, such as quick access to information, instant data retrieval and precise forecasting for informed decision-making. But, it’s expected that human intervention is quite necessary for financial automation in the foreseeable future.
What is Accounting Automation?
Accounting automation streamlines the day-to-day activities of accountants by swiftly performing them. This computerized software automates transaction tracking and number crunching, eliminating the need for creating intricate ledger files. Not only this, but it also enables effortless report generation using pre-set formulas.
With automated bookkeeping, the most laborious aspects of an accountant’s job are now removed, engaging with others and sparing time to analyze.
Benefits of Accounting Automation
With the passage of time, the popularity of automated bookkeeping is immensely growing due to the following factors:
- Automation Tools
- Ability to Simplify an Accountant’s or Expert’s Life
- User-Friendly nature
Moreover, there are more advantages to using automation tools:
- Time Saving
Time is a precious resource that can’t be regained once it’s gone. Automated bookkeeping helps the company in saving significant energy and time, enabling employees to focus on other crucial responsibilities. For accountants or experts, completing the financial closing procedure is daunting and consumes a lot of time.
- Improve Productivity
By utilizing automated bookkeeping tools, companies can effectively manage the demanding task of accounting, which is both intricate and critical. Empowering such a crucial responsibility enables employees to perform better, resulting in enhanced productivity.
- Quick Retrieval of Data
Historically, accountants and other professionals had to depend on manual information storage. It means that exploring for relevant transaction details restricts them from recognizing the corresponding file and manually searching through it. There were even illustrations when files were misplaced and located in different buildings altogether. With modern technology, one can easily find essential documents or files with just one click.
- Reliable Data
While employees are prone to making mistakes, robots have the advantage of seldom making minor computing errors. It can be more easily understood by this example “to err is human”.
Automated bookkeeping software can create multiple ledger entries within seconds without risking errors. However, it’s essential to note that the information must still be reviewed and modified by an expert, a task that can be executed promptly.
- Accessibility to the Cloud
Companies that utilize automated bookkeeping software regularly can easily consider and evaluate a few facts. They can understand whether their lives had become more convenient than when USB sticks or floppy disks were the norms.
Currently, all essential software, data and procedures can be accessed from anywhere and at any time. Employees no longer need to be seated in their chairs or carry physical files with them at the time of urgency.
- Safety Storing Files
It used to be necessary to keep documentation on paper for 7-10 years, depending on the accounting firm’s policy. Fortunately, tax offices worldwide are transitioning to electronic receipt storage for their records, which means that documents can be received digitally nowadays.
- Integration in Real-Time
As a company embraces more digital processes and procedures, it becomes easier to integrate different solutions seamlessly. Instead, they can leverage cloud-based solutions to streamline all their accounting and financial processes.
- Growth as a Professional
A high level of skill is required in the role of an accountant, comparable to that of chess masters and surgeons. Their tasks must be executed precisely, as even a minor error could impact the balance sheet. While automation can be employed for any job that involves repetitive manual tasks, it can also facilitate a company’s growth. Nonetheless, a competent accountant remains an indispensable asset since computers cannot handle all aspects of the role.
The adoption of accounting automation is becoming increasingly crucial these days. It streamlines complicated accounting procedures, enhances productivity or efficiency, improves access to financial information and saves time.