Manual bookkeeping is a hectic task and needs more time and workforce. The process takes time, like generating and recording the payroll of every employee.
The time-consuming tasks of employees can now be done in minutes through automated bookkeeping services. These services solve the problem of payroll as they fully automate the payroll procedure.
It automatically transfers the amount to the employee account at the end of the month and generates a payslip.
Automation has improved the situation of the company by analyzing and evaluating financial statements.
What is Automated Bookkeeping
Automated bookkeeping records, manages, and categorizes financial entries in a shorter time than manual bookkeeping. Cloud-computing software generates automatic payroll slips and sends reminders to customers and suppliers.
It saves time, and money and enhances the productivity of the company by minimizing costs. Small businesses can be in the long run by acquiring automated bookkeeping services.
It is affecting globally as it reduces the employee workforce, but the purpose is not to reduce the workforce but to enhance productivity. Many small and medium size companies are moving towards automated bookkeeping software to minimize human errors and mistakes.
Compelling Facts about Automation
- Automation minimizes wastage of time by 69%.
- It reduces repetitive jobs and spares six hours per week by 59%.
- Manually it takes 18 minutes to search for a document and spend 50% of the time.
- Small and medium organizations are forecasted to grow by US $1600 million within 2017-2026.
Why Automated Bookkeeping is Important
- No Repetitive Task
A lot of repetition is recorded in manual bookkeeping, like double entries, overwritten digits, and the same tasks over and over again.
Automated bookkeeping has solved this problem by introducing the OCR method. OCR is optical character recognition; it scans receipts, retrieves data, and automatically places them in the required place.
It also solves issue of repetition in other tasks like sending and receiving payables, payroll services, and audit-required data.
- Less Human Error
Human error is natural and can be done at any time or at any place. But errors in a financial transaction can lead to more serious problems. The addition or subtraction of a single digit can disturb relationships with vendors and customers.
Cover these issues; automated bookkeeping plays a crucial role. It minimizes errors and alerts authorized persons about wrong information.
For example, someone scans a receipt that has already been added. The software will automatically alert the person that this entry has already taken place.
- Saves Time
Recording and categorizing financial data in hard copies is an extremely time-consuming task. Some tasks need hours to complete.
Automation saves time by completing work in minutes. For example, manually, it takes 10 minutes to record any expense entry, while automation will do it in 1 minute.
Generating payrolls, sending and receiving payments, and categorizing transactions can now be done in minutes. Small businesses automate the most time-consuming tasks, like 50% of payroll and 71% of task preparations.
- Less Paperwork
Companies are utilizing more automated bookkeeping services to reduce paperwork. Just think that bundles of papers are now transformed into one web-based software.
The chances of theft are high in a manual bookkeeping system. Everyone in the company can access manual paperwork, but automation requires only one authorized person.
This authorized user has a unique id, password, and fingerprint that is used to access the financial statements. This has also reduced the chances of loss, fraud, and theft.
Automating reduces the hassle of compiling papers, along with reducing errors, mistakes, and human intervention.
- Accounts Payable and Receivables
Manually done receivables and payables are the challenging tasks said by most bookkeepers.
Bookkeepers needs alot of time to send a reminder to customers and vendors, while automation can do this task in minutes.
24/7 approach to payment information, improved efficiency, remote payment options, and fast track of payments are the factors behind automation.
It also simplifies the process of correcting errors and the detection process by making them more effective in the market. It also allows tasks to be done with greater reliability and authenticity.
Automated bookkeeping solutions are enhancing the productivity and efficiency of the company. In contrast to manual bookkeeping, automation is increasing the global market by reducing errors and mistakes.
Moreover, automation provides opportunities to expand business by reducing cost and time. This time and cost can be utilized elsewhere to make tasks more authentic and reliable.
CEOs can use audit-ready reports instantly to make better decisions.