The opportunities for automation are only going to grow as more companies invest in updating their technology. Automation can offer solutions to recent labor shortage woes and persistent supply chain disruptions, but it’s not just about fixing large-scale global issues. Smart features embedded in accounting software and integrations make automation even more affordable and accessible to a broader range of companies—both in terms of ease of use and affordability. It’s easy to add tools to your tech stack only as they are needed, which is a great way to optimize resources.
Where to Start: Repetitive Accounting & Finance Tasks
Automating repetitive accounting and finance tasks like bookkeeping or data entry can help increase efficiency, improve accuracy and save time while offering better analytics.
Start by performing a self-audit to assess manual processes and redundancies that can be improved with automation. Transitioning these processes first can provide a great initial return on investment while freeing up employees from tedious tasks so they can be more productive and focus on higher functioning company goals. It also allows businesses to work with reduced staff since they are able to do more with less—a necessity with the current economic downturn, inflation and labor shortages.
There are infinite applications for automation, but focusing on repetitive accounting and reporting processes can help narrow it down. Leveraging or adding tools to your current tech stack makes it easier to get started than you may think. Here are some examples of simple places to start:
8 Processes to Automate
- Reconciliations – Most accounting software applications allow for direct sync with your bank accounts, automating the transaction flow and eliminating the need for manual reconciliations. Some applications also fetch bank statements for referencing.
- Bookkeeping – There are apps with smart scanning capabilities for receipts and invoices which can save time when processing and recording employee expense reports and vendor bills.
- Cash Collection – By automating cash collection activities and providing options to receive customer payments online, companies can cut down on the cost of manual processes and boost cash flow.
- Accounts Payable – Implementing a digital bill payment and approval workflow can increase the efficiency of payment workflows.
- Accounts Receivable – Automatically sending collection reminders on a consistent and timely basis increases the chances of getting paid, especially compared to more inconsistent manual processes.
- Payroll – Most payroll service providers offer direct transaction integration options to seamlessly integrate and record payroll data and transactions directly within a company’s accounting software.
- Transaction Categorization – Bots and machine learning can be used to help perform tasks such as applying specific rules to categorize transactions.
- Custom Reports – There is more data being collected than ever before. The best way to use that massive amount of data is to organize it in dashboards for better visual analysis. This helps companies monitor their most important KPIs to improve operations.
The Future of Automation
Automation can help create consistency and reliability by reducing human error. As the role of automation continues to grow, businesses that don’t want to get left behind need to start their plans to automate their core processes if they have not already done so.
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If your company needs assistance evaluating opportunities for automation—whether you are just getting started or want to know if you are on the right track—contact us today to connect with one of our advisors.