How To Automate Your Business Using An Accounting Software_ A Guide

How To Automate Your Business Using An Accounting Software_ A Guide

Jul 11, 2022, 8:05:01 AM Business

Accounting is full of repetitive and tedious processes that can be made lightning-fast and much more efficient with the power of automation. From payroll management to expense reports, you can automate every function to unlock higher operational efficiency. Other than saving a lot of time, money, and resources, automating your accounting operations will help you focus more on the product or service and customer experience.


In this article, we’ll take a look at the accounting tasks that can be automated and also how you can automate these processes. Let’s dive in!


5 Accounting Processes that You Can Automate Completely

Here are 5 accounting processes that can be fully automated:


1. Accounts Receivable

Streamlining Accounts Receivable should be one of the first things you do after investing in accounting software. Getting the accounts receivable right is vital for a healthy cash flow, especially for small and midsize businesses. AR includes issuing and tracking invoices effectively to ensure that you receive your payments on time.

It involves working with different teams and hence can be time-consuming and susceptible to errors. Automating AR will allow you to ensure higher accuracy in invoicing and faster approvals. You will also be able to set up effective communication channels with customers to issue prompt payment reminders.

 

2. Accounts Payable

Tracking accounts payable can be extremely time-consuming and tedious if done manually by working through a trail of invoices. UK accounting software has feature-rich receipt scanning tools which allow you to store and manage receipts digitally. Solutions with OCR that leverages powerful AI algorithms also allow you to process both structured and unstructured invoice data without any hassle.

This promises increased operational efficiency, and better accuracy, and prevents the possibility of late fees for late vendor payments. Automating AP also offers other benefits like auto-matching invoices against deliveries, automating approval procedures, and recording transactions automatically.

 

3. Expense Management

Chasing employees to collect receipts and expense reports is full of time delays. You can ensure faster approval and reimbursements by automating expense management with the help of UK accounting software. It eliminates the need of tracking spending by working through paper receipts and storing them digitally.

Furthermore, automating expense management will help you improve accuracy by automatically matching data from company credit cards. It creates an easy and quick approval process by bringing both the employees and the managers to the same place.

 

4. Payroll Management

Something as repetitive and as tedious as payroll management has “needs automation” written all over it. Working your way through employees’ working hours, tax documents, and employment types manually is tedious, time-consuming, and prone to error.

Calculate the net pay for each employee using UK accounting software and disburse checks with a click. Process payslips more quickly and accurately without leaving overtime, bonuses, and commissions out of the picture.

 

5. Bank Reconciliation

Bank Reconciliation is the process of matching your books to your bank accounts to identify and rectify any discrepancies. While many business owners believe that human judgment is essential in that process, it can be streamlined with a little manual intervention.

It will slash down the time it takes to check your records and seamlessly flags any missing or double entries. Furthermore, you can automatically rectify inconsistencies within cash records and improve data accuracy. This also helps in detecting fraud in real-time by initiating periodic reconciliations.

These were 5 primary accounting tasks that you can automate to ensure faster, more efficient and errorless processes. Now, let’s take a look at how you can automate these processes.


How to Automate Accounting for Your Business?

Automation clearly has a lot of wide-ranging benefits to offer for your business. But the question is, how do you automate these tasks effectively. Automating any of the aforementioned accounting tasks will require 4 steps:

Choose a Template: Pick the relevant template for the accounting processes that you wish to automate.

- Invest in the Right Software: Choosing the right accounting software in UK is essential to ensure that your processes are streamlined effectively. Evaluate the software based on price. Security. Integrations, User experience, and additional tools to invest in the right software. Choosing software that perfectly suits your business needs goes a long way in growing your business.

Integrate with the right payment platform: Integrating your UK accounting software with a reliable payment platform allows both making and receiving payments easier. This hugely impacts your cash flow and promises fuss-free accounting.

Determine the workflow: Finally, you need to decide on the steps to be automated. This includes identifying a trigger which is a predefined event that will initiate the process of automation. Further, you should establish an action and result.

This applies to all of the accounting tasks you wish to automate. In conclusion, automation has a lot of wide-ranging benefits when it comes to accounting. Other than saving a lot of time and money, it allows your business to be more efficient and accurate with the accounting processes. Automating accounting also improves the cash flow and the overall health of the business.

Published by Stacy Blake

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