Complete Automated Bookkeeping Guide for Small Businesses in 2023

The automation topic is currently a subject of debate, generating a wide range of opinions. Depending on individual philosophies, technology has the potential to greatly enhance the efficiency of finance professionals while also introducing negative changes to the industry.

However, it’s important to view automation as more than just an innovation, rather than a complete replacement. As a result, accountants will continue to play a crucial role and have the opportunity to enhance their skills.

Advanced software unlocks the full potential of accounting professionals, allowing them to eliminate tedious and slow tasks that are often encountered. With access to accurate and up-to-date data, accountants are recognized as trusted and impactful business partners, effectively meeting the needs of their companies.

What is Accounting Automation? 

Accounting automation simplifies the conventional tasks typically handled by accountants by performing them automatically through computerized accounting software. These online systems handle number crunching and transaction tracking on behalf of the users.

Gone are the days of creating complex ledger files and manually entering rows of data. These automated systems come with built-in formulas, enabling companies to generate reports with just a few clicks. The main objective is to streamline previously complex procedures and enhance the overall efficiency of accounting processes.

While accounting software is not a new concept and various computerized accounting software have been available since the late 1800s, it is only recently that these tools have started to require less manual operation and consume less time.

Advanced accounting automation software eliminates the least efficient aspects of an accountant’s work, freeing up more time for strategic planning, analysis, and meaningful human interaction.

Benefits of Accounting Automation Software 

For owners who may be uncertain about the advantages of accounting automation tasks, the reasons are quite clear. The simplicity and ease of use of this software make it an essential tool for organizations that utilize it.

Saves Valuable Time 

The primary advantage of automation is the time it saves. By delegating traditional tasks to advanced software, employees gain more available time. In the context of financial closures, accountants and professionals benefit from significant time savings when automation is properly utilized. Reconciliation becomes unnecessary when the tools are used effectively.

For instance, consider the use of spend management platforms for cost and expense management. Employees can input all the necessary data and associated documents, such as creating comprehensive entries from the outset and including receipts.

With a simple click, these entries can be exported to accounting and reporting tools. As a result, tasks that typically require days or weeks can now be completed in a matter of minutes.

Higher Productivity 

The time saved through automation leads to increased productivity within the same timeframe. This can result in fewer billable hours for external accountants, causing some concerns. Similarly, staff accountants may worry about the potential impact on their job security.

However, in reality, automation provides employees with the opportunity to allocate more time to their core responsibilities, such as partnering with and advising clients to improve their financial well-being. By delegating routine tasks to automation, accountants can engage with a larger customer base more frequently and expand their services accordingly.

Data Accuracy 

The well-known saying “humans are prone to errors” is universally understood. It is a fact that people are susceptible to making mistakes, which is why machines have an advantage in minimizing computational errors. Automated bookkeeping systems can swiftly generate thousands of ledger entries, greatly reducing the risk of data mismanagement.

Fast Data Retrieval

Historically, accountants relied on physical storage rooms containing numerous files, leading to time-consuming searches for document retrieval. Even when using Excel, finding specific customer, vendor, sales, or expense information instantly was challenging due to the lack of a centralized data location. However, technological advancements have simplified the process of locating desired files and documents.

Furthermore, automated bookkeeping has enhanced this procedure even further. Accounting automation is specifically designed to streamline the categorization, naming, and secure storage of information, making the retrieval of required data effortless.

Cloud Access

Those acquainted with cloud programs can confirm the convenience they provide, surpassing the era of floppy disks and USB sticks. Presently, businesses have the ability to carry all their vital accounting software, processes, and files wherever they go.

Whether it’s prompt payment processing or document verification, there’s no cause for concern. In the past, owners had to be physically present at their designated desks or have physical paper files in their possession. However, now everything they require is readily accessible online.

This notion is remarkably uncomplicated, yet it was almost inconceivable merely a decade ago.

Key Takeaways 

The Complete Bookkeeping Guide for Small Businesses highlights the advantages of accounting automation in today’s digital era. By embracing advanced software and cloud technology, small businesses can simplify their financial tasks, save time, improve data accuracy, and enhance productivity.