Automation of Repetitive Bookkeeping Tasks through Technology

For anyone who has been in this profession for at least the last two generations, you can readily understand that bookkeeping has gone through a metamorphosis from clunky manual role to lean, mean efficient machine. Finance for Start-ups: Finance can be a messy affair to keep up with, especially when it comes to start-ups. But as more than 4,400 seed-stage companies work to land a Series A round in 2020, the impetus to manage those resources wisely is only mounting. The faster and more accurate accounting is, the better financial insights can be obtained before they affect performance, and growth, hit a KPI, or open up a new revenue stream. But with a lot of businesses, traditional accounting and bookkeeping methods can be time-consuming, error-prone, or even overwhelming for busy business owners.

It is where automation can help. Such a newly innovative technology had proved itself to be a game-changer in the domain of bookkeeping, giving power to startup owners and C-suite executives in an effortless ability to oversee their financial data, keep track of accounting books, and enable them to make informed decisions with 100% automation. In this blog, we will discuss the key benefits and innovations replacing bookkeeping for startups due to technological changes.

Automated Bookkeeping

Automated bookkeeping is where technologies such as artificial intelligence (AI) and machine learning (ML) are used to reduce the manual intervention in recording, entering, and retrieving historical financial transactions of an organization. This is using bookkeeping automation software to perform all the different accounting functions, from basic inexpensive journal entries fast forward to some of the most complex activities such as rendering financial statements, generating reports, and so much more.

While you may think automated bookkeeping means software is out with the human touch, that could not be further from the truth. Instead, we use automation to complete tasks that are extremely time-consuming and repetitive—so that your team can concentrate on analysis and interpretation at a higher level.

How to Automate Your Bookkeeping

This guide is going to help you transition over to an automated bookkeeping system:

Evaluate Just What You’re Doing

Although that may sound like a great option, before you automate anything in accounting, consider stepping back and analyzing your current bookkeeping system. This means you need to document your workflows, tools, and bottlenecks. This will enable you to identify further areas of work.

Research Options

Please start your search based on your business size, budget, and exact requirements. Most options even have free trials to test out the features and see if they work for your needs. Take into account aspects like ease of use, customer support, payment processors, and scalability so you can make an informed decision.

Data Migration Set Up & Prepare

After selecting the software, you need to implement it. That means getting bank connections established, automation rules configured for how transactions should be categorized, and knowing what kind of reporting is available. And you probably need to also migrate historical financial data. The software that you choose to use may provide migration tools or services and support to help facilitate this process.

Train and Communicate

This will be the last step, and all you need to do is inform your bookkeeping, accounting, finance, and other teams if you have any. now it’s time we are implementing a new automated system. You can approach the software vendor to train your team members for them to be familiar with the new workflows, as well as where they fit into the automated system.

Bookkeeping Emerging Technologies

As fresh technology springs, which is designed to automate and streamline work, enhance accuracy, and furnish beneficial financial information, the bookkeeping business has always been moving, but at no other time significantly more than now. Check this out for a few of the innovative technologies that make bookkeeping appear to be like child’s play nowadays.

• Artificial Intelligence (AI)
• Machine Learning
• Cloud-Based Solutions
• Automation
• Natural Language Processing (NLP)
• Artificial Intelligence (AI)

AI is not just about shuffling figures on a spreadsheet. Can forecast future business performance and can notice large financial risks ahead of time; be able to predict potential revenue using past data and industry trends. Organizations could also leverage artificial intelligence (AI) for data-driven decision-making and pinning down financial control to contribute a way forward into the future of their fiscal strength, as well as having access to informed information.

Machine Learning (ML)

Backed by AI, machine learning algorithms automate bookkeeping efforts by enhancing their ability to learn from previous data. Allowing bookkeepers or accountants to spend less time doing mundane tasks such as categorizing expenses and processing invoices, leaving them more time to focus on strategic analysis and financial planning.

Cloud-Based Solutions

Internet-based accounting platforms operate in the cloud and have revolutionized money management for businesses. No longer are the days of complex installation software and restricted availability. Through cloud-based technologies, financial information can now be accessed securely and instantly at any time, from anywhere a user has an internet connection. This promotes easy, remote communication among internal teams and external bookkeepers. In addition, strong security measures such as multi-factor authentication and encryption ensure the protection of all financial data, freeing up time for business owners to focus on other matters.

Recurring task automation

The most obvious way in which technology has impacted the bookkeeping sector is through the automation of repetitive tasks. Software now handles accounting, invoice processing, and data entry with lightning speed and perfect accuracy. This feature allows the accounting professional to save time and focus on complex tasks such as budgeting, tax planning, or financial analysis. Moreover, automation eliminates human error to ensure the accuracy and dependability of financial information. This ultimately means fewer headaches during tax season and more reliability in the data that fuels the decision-making within the organization.

Understanding Natural Language (NLP)

This technology has enabled computers to understand and analyze human language. Over time, natural language processing (NLP)-enabled financial applications could potentially read spoken directions or written notes from receipts, further automating data input and classification. Think of using your camera to scan a receipt or speak about what you spend—and voila, the NLP program would directly enter this into your accounting application. It will dramatically improve data input accuracy and bookkeeping speed.

Why switch to automated bookkeeping?

Silent & Effective: Eliminates costly outsourced bookkeeping expenses by automating, reducing the need for additional staff while minimizing the expense of software and upkeep.

Efficient Processes: Make procedures easier and quicker to achieve more results in less time.

Seamless Integration: Connects with e-commerce POS and CRM systems to add consistency and remove mistakes in manual data entry.

Real-Time Analytics: Instant insights with state-of-the-art analytics tools to drive data-driven decisions most effectively and optimize financial performance.

Instead, AI-powered software scales up and down according to the transaction volume as your business grows.

Better Collaboration: Provides secure web portals with real-time communication and data sharing between your team, bookkeepers, and tax professionals.

Increased Precision: Reduces errors by employing automated and simplified procedures.

Higher productivity: releases time and resources for strategic growth and profitability.

These advantages turn bookkeeping into a useful strategic asset, aiding business development, efforts, and returns.

Conclusion

Of course, the role technology plays in bookkeeping is far larger than just automation. It is designed to become a more cost-effective, scalable, and accessible financial management system that helps companies make process-based decisions, encourage efficient collaboration, and realize long-term financial success. The good part about bookkeeping is that it will provide insight for businesses irrespective of size, and as the technology continues to evolve, we can rightly state that the future of bookkeeping will be much greater insights.

Make sure you also visit our site for more information on our bookkeeping offer. We can assist you by regularly updating your books of accounts and submitting the various reports and information you need to understand the financial health of your business.