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Are you still stuck with the old-school manual accounting work for your company? Well, it is high time to bring some changes. Automation of the accounting or bookkeeping process is taking over the entire world. Statistics show that 29% of this automated technology is being used for bookkeeping tasks in 2021.
It is expected to touch 50% soon. There are many reasons why this automated process is getting so much popularity. First of all, this can help you to save money a lot that you currently spend on manual accounting. Also, automated processes can be more accurate, fast and free of any errors. With the right strategies to use accounting software for small businesses, you can completely succeed in automating your bookkeeping process. Read on to know more.
Benefits of Automated Accounting
Before we start providing you the best ways on how you can automate your bookkeeping process, you should have an idea about how valuable it can be. Here are some of the benefits that you will enjoy:
Increase speed and efficiency
There is no doubt that automated accounting can help you in speeding up the entries. Thus, it can increase your productivity as well as efficiency.
Improves accuracy
Humans are more liable to make mistakes while making entries or calculating in the bookkeeping process. But you can go error-free and increase the accuracy rate by option automated accounting systems.
Saves money
Of course, it is not possible for a person or two to manage the entire account of a company manually. But you can cut down the labor cost by implementing automated bookkeeping systems in your company. It will hardly take any time to make entries, calculate and prepare for audits.
Cloud accounting
There are numerous benefits of cloud accounting. You can work from anywhere and anytime remotely using the accounting software or tools. This also can also keep the accounts data safe and secure in cloud technology that you can access from anywhere.
7 Best Ways on How To Automate Your Bookkeeping Process
If you are a business owner and are wondering how to automate your bookkeeping or accounting process, then we are here to help you. Whether you have a large, medium or small business, here are 7 best steps that you need to take to automate your business accounting process:
Analysis of current accounting processes and tools
This is the first step that you need to take towards the automation of the bookkeeping process of your company. You have to analyze all the existing processes and tools that you have in order to identify the points that can be a disadvantage for you. Also, this step can help you in identifying the systems that work the best for your company. So for that you have to:
- Create one list of all the tools that you use for accounting process
- Make a chart of all the processes that are involved in bookkeeping
- Now, pinpoint the areas that you can improve
- Similarly, look for the ones that are doing great for your company
Choose the best software tool
When you want to automate your bookkeeping process, the next step is to find the best suited core software tool. The basic software tools like Excel etc. cannot help you with this. There are different software tools available for different company needs. As much as you can find several options for large or medium sized businesses, you can also find some best tools for small businesses. But while choosing, keep these points in mind:
- Choose an app that can store data efficiently based on your company needs
- Look for the advanced features such as recurring payments, customization of reports etc.
- Make sure the security features are really strict and up to the mark
Transfer your data
The next step that you have to take after you have found the best app for bookkeeping automation is to transfer all your data. Most of the apps will provide you with an option to migrate all your data. Once you do that, you have to allow some time for the adjustment. Here, you have to make sure that your finance team is getting enough time to get fully adjusted with the automation software. A few weeks will be enough for them to fully understand the process and integrate the bookkeeping process into this new app.
Find additional tools for automation
Once you have found the core software and it is fully integrated into your bookkeeping system, you have to start looking for additional opportunities. Are there any additional opportunities available for the automation of the accounting system?
You can look for:
- Some additional apps that can support your core software
- Find some app that can simplify our expenses properly
- Additional tools to analyze the finance and expenses
Test and integrate the additional automation tools
When you have added some of the additional automation tools for your bookkeeping process, you have to integrate those tools and test them. You need to check whether or not those tools are getting along well with your workflow. The best way is to make a dry run. It can help you to efficiently integrate the additional tools.
Inform the accounting team
Once all the automated software tools (both core and additional) are properly integrated with your bookkeeping system, it is time for you to inform the team. Now that the process of accounting has changed, informing the team is important to make sure that they are well aware of how this works and functions. Communication is important and you must make sure that everyone on the team gets to know this system better. A training session or a meeting/discussion can be quite helpful.
Monitoring the progress
This is the last step towards the automation of the bookkeeping process of your company. But it is quite an important step as you have to monitor whether or not everything is going well.
- Make sure the employees can adapt properly to the new tools
- All the previous pain points are successfully resolved
- Workflow is efficient, accurate and fast with highly quality data entry and processing
Conclusion
These are some of the steps that you have to take in order to automate the entire bookkeeping process of your company. Now that you know the advantages of cloud accounting, what are you waiting for? Look for the best app that can help you to automate the accounting or bookkeeping system of your company and apply the strategies mentioned above.
