Accounting automation software systems are brilliant at crunching big numbers and can keep a track of each real-time transaction of a business without fail. And that’s why accounting automation is eventually imperative to any successful business. 

Now, the question is — why do CFOs, and people in the accounting industry fear that automating accounting will take away their jobs?

Automation is innate to human nature. From eating your food to driving to work, it’s all automated. The human brain is wired to automate every menial task that would save them energy to perform more complex ones. We automate to make ourselves able with more free time and energy. Businesses do the same. After all, a business is like a living, breathing, organism and so it’s no surprise that it evolves as we do. As a small business entrepreneur, you have to keep a track of a multitude of tasks including the accounting ones such as cash flow management, purchase orders, payroll, taxes, ledgers et cetera. Delegation is one option but that allows scope for human error, now and then. Now, this is a very complex system just like the human body. You have to automate what you can because that’s the way forward. 

Automating accounting won’t make accountants obsolete but make more room for them to work on creating better accounting strategies as well as work on analysis and tasks that require even more intelligence. This makes it an obvious choice: why should an accountant’s time or a business’ time be wasted on data entry and in between countless columns and rows, when automation is readily available?

AI-powered accounting software systems are here and they are already working hand-in-hand with humans to make financial operations more productive and effective. The built-in formulae make it super easy to create and send reports with the click of a button. The change is easy to accept if you and your team are ready to upgrade. 

Let’s learn how automated accounting could help your business:

1. Automation is a time-saver

Time saved, that’s what automation is for. Humans may be more creative but machines are no doubt much more accurate and efficient with the task defined for them. All your tedious manual work related to accounting such as managing and exporting expense reports and other costs can be completed by automated accounting software. The time your team saves can be used in making analytical and strategic decisions in their department. 

2. Cash Flow management

Cash flow management is as vital for your business as is blood flow for the human body. Negative cash flow is one of the major reasons why so many businesses go bankrupt. The problem arises with a lack of knowledge on the subject and poor management of cash flow. On the other hand, automation helps businesses manage and see where the cash has flowed. 

It helps in:

• Quickly estimating the business’ profit
• Figuring out where the business is spending most of its money and when can it expect income
• Collating financial reports in one place. 

3. Flexible features & system functionality

With advanced versions of accounting software coming in day in and day out in the market, it is necessary for them to be compatible with varied businesses and ever-changing business environments. Integrated software provides customizable templates to formulate different ledgers and also allows standard formatting. 

4. Cloud access, storage, and data organization

With cloud technology becoming a norm in businesses, life has become much easier when document sharing and accessing your data is just one click away. With cloud access, you can now literally take your important files and accounting software with you anywhere you go. Even the activities such as processing a payment or checking a document feel like a piece of cake. 

Automated accounting software ensures automatic saving of every piece of data in the cloud storage. This real-time backup of data prevents businesses from losing any crucial information. It enables the systematic organization of data with accurate data entry, storage, and processing.  

5. Tax compliance and deductions

With recent tax compliance developments in the country, it has become typical for startup owners to keep a track of those developments. Automated accounting software systems have eliminated the need to manually enter each and every transaction data thereby helping entrepreneurs keep on the same pace with such tax compliance developments. Accounting automation makes GST & TDS calculations one less of a headache for your business. 

6. Better data security

Technology that has helped reduce accounting stress can also be harmful when in the wrong hands. To tame cyberattacks and such events from happening, accounting automation is enabled with encrypted technology to ensure critical data protection.  

7. Quick data retrieval

The better you organize things, the faster you could retrieve them at the time of need. Gone are the days of physical file storage, with automated accounting, it has nearly become an effortless activity to find records online.   

8. Complete data analysis

Data analysis is something that could make all the difference in the success of your business. If you could analyze each and every bit of information and make good use of it, you would always be two steps ahead of your competitors. The latest accounting software provides a quick representation of your financial data in a matter of seconds. This, in turn, enables accountants to quickly assess the information and make better business decisions.   

These were some of the benefits of automating your business accounting. This definitely doesn’t end here. 

9. Generate invoice on mail and get paid faster

Create and forward GST-compliant invoices to your customer’s email address and get paid directly through the payment link that is integrated into the invoice. With accounting automation software, it’s a fast and easy process – via net banking, UPI or credit cards, or debit cards.

Here is a quick overview of accounting tasks you can automate with accounting software systems:

• Automated reconciliation makes sure that your accounts are accurate and consistent. It helps you quickly rectify any instances of your money going into the wrong account.
• It can help you create purchase orders, review them and also approve contracts.
• Helps you create expense reports including details such as the date an item was brought, client details, and the total amount of the transaction. 
• It can automate your account payables thereby resulting in better cash flow management. 
• Payroll automation makes it much easier for the accounts team with quicker tax calculations and processing payslips. 
• Better and smoother employee reimbursements and expense claims. 

You can save even more labour & time on reporting and reconciliation by integrating your accounting software with UpScale. By automating your accounting system, you can stay up-to-date with all transactions, view sales, purchases, inventory & other data whenever and wherever you need it. It further enables you to connect all bank accounts & view statements & balances on a single dashboard thereby making your life a little bit easier and better. Give your business the UpScale advantage. To learn more, visit us here.