It’s no secret that accounting is vital for running a business, but it can be a very time-consuming and tedious process. That’s why businesses have started to rely heavily on accounting software.
According to ReportLinker, the global accounting software market will reach a value of $45.3 billion by 2028. In the past, accounting meant hiring an accountant to manage your books or learning how to do it yourself.
Then, it is transitioned to accountants using specialized accounting software to streamline the tasks. However, automation tools are available that make accounting significantly easier and more efficient these days.
Here are seven ways you’ll benefit from automating your business accounting process.
#1 Gain Efficiency
Having an automated business accounting system means you can spend less time on day-to-day tasks. You won’t have to worry about creating invoices, paying bills, or reconciling bank accounts because it will all be done automatically. This is great news for your bottom line, as you can focus on other areas of your business where you can add more value and make a bigger impact on your company.
Another benefit of automating your accounting processes is that it gives you a bird’s eye view of everything that is happening within your company in or near real-time. This will allow you to see exactly what sales are doing relative to costs at any given point in time.
#2 Avoid Mistakes
Automating your business accounting process will help you avoid mistakes in the data, calculations, reporting, and invoices. When you don’t have to worry about double entry or manual errors, it’s easy to focus more on your core business activities.
Also, by automating your financial management processes, you’ll be able to better track and manage business expenses. You won’t have any issues with payroll either since the software can easily handle all aspects of employee payment processing.
Recently, Aviation Pros reported that Hawaiian Airlines suffered a loss of around $20 million due to accounting errors. The errors went unnoticed and ultimately resulted in a huge loss. That’s why automating the accounting process is vital, as it provides the best chance of avoiding such errors.
#3 Get Clear Insights
Setting up automated systems will give you the ability to track your financial health. You will be able to see what is happening with your cash flow and where you can make improvements. The system will also help you see where the money is coming from and where it is going.
With the right system, you will be able to see how much money is coming in and going out. You can see where the problem areas are, what needs to be changed, and how it can be done.
Work with a service provider that’s a Sage Intacct partner. These services will provide you with the best possible support when it comes to accounting or financial reporting. Businesses have been using Sage Intacct to save time and streamline their accounting processes. Partnering up with services that are Safe Intacct partners will also guarantee you the same quality and efficiency.
#4 Save Time
Automating your accounting process saves you time. This means you can spend more of your day focused on growing and managing the business rather than entering manual data into spreadsheets. If a task takes less time to complete, it’s almost always worth automating.
#5 Stay Compliant
One of the most important benefits of automating your bookkeeping is staying compliant.
Tax laws are constantly changing, and if you don’t stay on top of them and keep up with the latest information, there’s a chance that you’ll make a mistake. The last thing you want to do is get audited by the IRS or fail to submit your taxes correctly.
Automation helps because it allows you to track what expenses are eligible for deductions and can calculate them automatically. This means less time spent doing calculations manually or worrying about making mistakes, which will save both time and money in the long run.
At best, you might have to manually adjust a few settings or parameters for the system to deliver accurate results. Other than that, you don’t have to give too much effort here.
#6 Have a Backup
It’s essential to have a backup of your accounting data, software, and hardware. If something goes wrong with the computer server or network connection, you won’t be able to access any information if there is no backup.
Typically, this means keeping an off-site copy of all financial data as well as copies of your accounting software and hardware. Most automated-accounting software will back up your data by default. Currently, these systems use cloud-based servers to store the backup data, so there’s no scope for you to lose it.
#7 Be Better at Your Job
The most important benefit of accounting automation is that it frees up your time. This means that you can spend more time on the important things, such as growing your business and focusing on your team and yourself.
As a business owner, you have a lot of responsibilities to take care of each day. If you have not been able to take care of all of these tasks because there are too many administrative tasks for you to handle, then this is where accounting automation comes in handy.
With automated bookkeeping software, all the tedious work gets done for you, so all you need to do is pay attention to what matters most: growing your business.
Grand View Research’s insights show that the global industrial automation market is valued at $172.26 billion. This gives a rough idea regarding the scale of automation usage in our daily business affairs.
Since we’re already heavily dependent on automation in a lot of sectors, it’s only logical that we switch our accounting processes to automated systems as well.
If you’re looking to save time, avoid mistakes, and get a clear picture of your business finances, it might be time to consider automating your accounting process.