Automated bookkeeping makes manual tasks easy or reliable for every financial institution to save money or time. That’s why 85% of financial organisations have implemented automated bookkeeping in every department.
Almost 24% of companies implement digital bookkeeping, specifically for accounts receivable, payable, and scanning invoices. Hence, the procedure of recording, tracking, and managing financial statements enhance rational decision-making.
Today’s automated accounting services improve creativity as employees can utilize more time to increase their technical skills.
Widespread Figures about Automated Bookkeeping
- Financial institutes spent 58.3$ Billion on AI in 2021, and this investment has possibility to increase up to dollar 309.6 Billion, by 2026
- Artificial intelligence expected market value in North America will grow to 24.9$ Billion by ….
- The international accounting software market value expects to hit 20$ million, by 2026
What is Automated Bookkeeping?
It’s the procedure to track, record and manage financial transactions by utilizing web-based services. Cloud computing services doesn’t completely removes human intervention but it’s a combination of artificial intelligence, robotic process automation, and machine learning.
Traditional Bookkeeping Challenges
Financial institutions encounter many traditional bookkeeping challenges like:
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Expensive processes
Manual bookkeeping is a completely different method in contrast to web-based software, because it requires more organizational resources and professionals to execute tasks.
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Physical Record Maintainance
Managing hard copies of financial entries is a challenging job. Not only this, storage of these copies is crucial as it requires a lot of energy and effort.
Valuable and sensitive data can be destroyed or lost that causes a lot of disturbances in managing financial records. The topic doesn’t close here as tracking and storing financial records is tedious task.
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Data Entry Errors
Manual bookkeeping software causes many data entry errors. Keeping record of a physical record is tedious and hefty, so there is 85% possibility that recorded financial data is not right. These financial mistakes proves that processing time is costly and consuming.
Impact of AI on Bookkeeping Services
AI reforms manual bookkeeping systems to advanced cloud-computing software. The services it provides are: avoids repetitive tasks that utilize a lot of time and makes sure financial institutes are on right track.
Let’s explore interesting user impacts that automation brings to the financial industry:
1. Avoid Financial Fraud Possibilities
In manual bookkeeping practices, employees have the access to financial cash flows and other statements. This ease in accessibility leads to many financial frauds in the finance industry history. That’s why automated bookkeeping Process
guarantees that organisational financial statements are secured and confidential.
The benefit it includes is that only authorized employees can access digital software. Authorized users are responsible to instruct software when and how to send invoice reminders to suppliers and investors. Also, the employee who is responsible has a unique account, password, or fingerprint scanner that reduces fraud chances.
2. Improves the Quality
Web-based software improves productivity and readability.
Traditional bookkeeping was less efficient as it required financial and material resources and more manpower. Accomplished tasks without any set of rules and regulations result in overtime, mistakes and long work hours.
put the necessary information in it. It automatically discards wrong data and reports the error.
3. Transforms the Traditional Bookkeeping Services
Usually duties and tasks are assigned to every employee in their job description and specifications that keeps them aligned with the company goals.
AI advancements reduce the hassle of writing financial statements by hand and it was a crucial task that needed a huge employee workforce.
Not only this it also saves essential resources of organisation i.e. time and cost. Moreover, Automation improves accuracy, reliability and provides financial statements instantly.
4. Oversee Back End Tasks
The concluding automation benefit is that it doesn’t need any employee 24/7. Obviously, manual bookkeeping is tedious, but employees aren’t robots. They can have medical urgency or any other situation where they can’t give their 100% to the task. It’s natural and not in their control.
But there are many things that can support employees i.e. technological advancements. The automated bookkeeping feature provides remarkable support to employees.
Key Takeaways
Thanks to technological advancements it provides a tool like automated bookkeeping. It supports employees by removing repetitive tasks so that they can focus on more technical tasks. But it’s doesn’t totally omit the need for employees.
Automation works best with the help of machines or deep learning and it does wonders when combining the power of AI with the human mind. Decisions become accurate and reliable and tax reports become instantly available.
