Manual bookkeeping doesn’t have the potential to streamline financial books. Managing records is a tedious task and requires more employees to complete it. However, the only solution to remove this tedious task is to introduce automated bookkeeping in the organization.
It not only reduces cost but also increases employee productivity, and enhances efficiency. Many small businesses are hesitant in acquiring automated bookkeeping services because they think that it requires heavy investment.
But they are not aware that it is only a one-time investment that will remove all other short investments. Another reason can be that their auditors are honest, expert and they don’t need any software to replace them.
Let’s learn what automated bookkeeping is and how it streamlines financial books.
What is Automated Bookkeeping?
Advancements in technology have introduced much-automated bookkeeping software that can help streamline financial reports. They generate instant tax audit reports on demand without taking much time like in the traditional way.
How to Streamline Bookkeeping Services to Improve Financial Management?
Automated bookkeeping software supports employees by providing them with enough time to polish their skills. They keep records, manage inventory records, and automate accounts payable or receivables.
It is not like automated bookkeeping software doesn’t need employees, as someone is required to give instructions.
Benefits of Automated Bookkeeping
Automation benefits exceed manual task capability to outperform tasks. Transformation of manual accounts payable to automated supports employees by reducing their workload. Let’s explore more automated bookkeeping benefits to understand its phenomena.
1. Track Invoices and Payments
Automated bookkeeping allows you to manage invoices and payments to keep a record of every employee’s salary. On the due date, this software automatically processes employees’ payments without any confirmation.
See how drastically it reduces employees’ workload by completing their hourly work in minutes. As 58% 0f enterprises use cloud accounting software
to minimize the employee’s workload.
2. Optical Character Recognition (OCR)
Let’s suppose that companies are recording financial transactions manually and employees are frustrated due to this extremely tedious task. Suddenly, a magician appears and gives them a surprise in the form of automation.
Automation reduces half of the employees’ tasks by just OCR. It actually scans receipts, images, hand-written texts and many more. This facility can help in scalability by providing a competitive edge.
3. Error-Free Tasks
Humans make mistakes, which is a natural phenomenon. But, these mistakes in financial departments can lead to such drastic losses that can not be repaired.
Automated bookkeeping software helps companies to reduce these manual tasks and lets employees focus on more strategic tasks. That is why automation has the potential to make error-free reports that are more realistic and accurate.
4. Cloud-Storage Capacity
In today’s technological world, there are fewer chances to store financial copies in the form of hard copies. This not only increases infrastructure costs but also requires more human energy to record every transaction.
That is why technological advancements introduce a solution in terms of automated bookkeeping. This software has the capacity to store a large amount of information and it can be retrieved with just one click. Isn’t it amazing?
5. Repetition in Financial Statements
Chances of repetition are more in manual bookkeeping data processes. While automated bookkeeping generates financial statements that help bookkeepers or CFOs to make decisions. More than 50% of revenues are generated by the largest U.S firms.
These decisions strengthen their forecasting ability as generated financial reports are reliable and accurate.
6. Real-Time Financial Insights
Manual bookkeeping can’t provide accuracy and reliability in data. However, automation has the capacity to provide real-time financial insights that support employees’ and CFOs’ decisions to forecast the future.
These analytical and strategic insights can help in forecasting the future with a 99% accuracy rate.
Key Takeaways
Automated bookkeeping helps employees to utilize more spare time in order to polish their analytical skills. Forecasting the future with the help of automated bookkeeping software is a norm now and almost every company is shifting their concern towards it.
Yes, it’s necessary to acquire automated bookkeeping services to reduce the employee burden, cost, time usage capacity, increase ROI, employee productivity and efficiency.
Automation is almost providing its service in every department-marketing, finance, HR and most importantly customer relationship. The reason behind mentioning all these departments is to highlight the importance of automation as 94% of accountants already adopt automated services.
