The prevalence of conventional, paper-based tasks in different organizations is increasingly diminishing as digital transformation transforms industries. This unbeatable trend is revolutionizing the way organizations function. According to IDC, global expenses on software, hardware, and services that encourage business process automation can reach $3.4 trillion by 2026.
When undertaking the accounting automation journey, many organizations choose to begin with their accounting process. The logic behind this decision depends on the fact that financial accounting is notorious for its manual nature. Not only this, but a few areas, such as accounts receivables, payables, and general ledger, are also prone to errors. Automating these areas performs as the low-hanging fruit to present the automation advantages to other aspects of the business.
Let’s dive into five instances of automated bookkeeping showcasing the tangible benefits:
1. Strategies and Techniques to Speed up Journal Entries
The conventional data input through the SAP Graphical User Interface (GUI) is time-consuming and monotonous and usually results in costly errors that need extensive rework. The necessity for traditional data entry into SAP is eradicated by enforcing SAP-enables Excel workbooks.
Hence, employees can execute their tasks more effectively by reducing errors and assisting them to dedicate more time to apprehend and clarify anomalies.
2. Eradicate Unnecessary Invoicing Traffic Jams
By month end, the AR and AP teams usually face piles of physical papers on their desks or diligently enter an endless amount of data into the ERP systems. Creating and paying invoices is repetitive, implicates a high volume of work, and is time-sensitive. Rather than manually entering supplier invoices or building client invoices, using different automated software helps streamline their workflow.
This technique lets them effectively clear their invoice backlog and stay on top of new tasks. By doing so, accountants or other professionals can easily manage invoices more effectively, leading to enhanced payment and fewer errors.
3. Optimize the Accuracy of Mastering Data
The precision and efficiency of financial accounting procedures depend heavily on the accuracy of mastering data. Omissions or mistakes in client and supplier master records result in payment delays or invoicing. It also leads to time-intensive or costly complications.
By enforcing automation in this process, the finance professional teams can instantly revise or generate master data using SAP-enabled workbooks or web forms. This automation streamlines the generation and creation of master data, ensuring its completeness and correctness. Therefore, it minimizes the error risks by reducing the effort and time needed to rectify issues.
4. Improve Compliance Across Key Business Processes
In a few cases, adhering to rigid business processes requires the involvement of diverse stakeholders within an organization to provide or authorize data. Digital automated bookkeeping comes to the rescue in difficult situations by providing a solution that improves the efficiency of a process and can easily save time.
Consider, for example, a capital expense request system that uses web-based software to direct requests to the relevant approver. It takes into account aspects like the business code and proposal amount. This streamlined strategy ensures practical routing and eliminates excessive delays in the approval procedure.
5. Minimize the Time Invested in Audit Preparation
The arrival of finance professionals doesn’t have to be stressed and feared. Internal and external audits are an ordinary part of an accounting team, so preparing for them in a tension-free zone is crucial.
To achieve this, web-based software can be designed to fetch any needed document that auditors may need instantly. Enforcing automated bookkeeping eradicates the time spent on audit preparation and helps cut costs. It minimizes the time duration of external auditors’ on-site visits.
Automated bookkeeping increases productivity, data accuracy, and efficiency for companies. It also enables them to adhere better to internal and external processes and regulations. Moreover, when employees are alleviated from repetitive and mundane tasks, they can easily dedicate their time to more operational tasks. It boosts morale and offers added value to the organization.
The adoption of bookkeeping services online provides immense benefits to the finance industry. It also revolutionizes organizations and the way they function. Organizations can unlock tangible advantages by automating conventional tasks and eradicating paper-based processes.
Streamlining journal entries, data mastering, invoice management, and compliance through automation improves accuracy, productivity, and efficiency. Employees are spared from error-prone and time-intensive activities, assisting them to concentrate on more operational and strategic tasks.
Automated bookkeeping processes ensure accurate and timely financial data and optimize adherence to external or internal regulations. Moreover, using bookkeeping solutions and automation tools reduces the time invested in audit preparation.