What is Accounting Process Automation? How to Automate Essential Accounting Tasks and Save Time
In the Accounting world, there is a big move toward process automation. In fact, according to a study by Aberdeen Group, best-in-class companies are 3x more likely to have fully automated their accounting processes than their peers. The benefits of automation are vast and can save your company significant time and money.
Many organizations still use legacy accounting procedures. These processes involve the usage of a large number of Excel spreadsheets, which are either emailed or shared via a common repository. All of this entails manual work to generate and review.
Multiplying this time by the number of people who worked on the spreadsheets might result in significant delays in processing and obtaining permissions. And there’s an increased chance of human error when you have more spreadsheets, resulting in potential danger.
All of these reports need to be consolidated, which delays the process even further (possibly days, weeks, or months).
There is a way to avoid all of this wasted time and potential risk. You can save significant time by automating some of the most essential accounting tasks like consolidation, account reconciliation, and validation/approvals by accessing real-time data.
Accounting Process Automation
What is Accounting Process Automation?
Accounting process automation is the use of technology to automate time-consuming, manual tasks in the accounting department. The goal is to streamline processes, improve efficiency and accuracy, and free up employees’ time so they can focus on higher-level work.
There are many stages involved in automating an Accounting process:
Identifying which processes can be automated
The first step is to identify which Accounting processes can be automated. This will vary from organization to organization, but some common examples include financial statement consolidation, account reconciliation, and tax return preparation.
Assessing the current state of those processes
The next step is to assess the current state of those processes. This will give you a good understanding of where improvements can be made and what needs to be done in order to automate the process.
Designing the future state processes
The third step is to design the future state processes. This is where you will map out how the process will work once it has been automated.
Implementing the automation solution
The fourth step is to implement the automation solution. This will involve selecting the right software and putting in place the necessary infrastructure to support it.
Monitoring and maintaining the automation solution
The fifth and final step is to monitor and maintain the automation solution. This includes ensuring that the software is up-to-date and making sure that the processes are running smoothly.
Automating your Accounting processes can save your organization a significant amount of time and money. It is important to carefully consider which processes to automate and to put in place the necessary infrastructure to support it. But the benefits are well worth the effort.
Benefits of Automation in Accounting
There are many benefits of automating accounting processes. Perhaps the most obvious benefit is increased efficiency and accuracy. When tasks are automated, there is less room for human error. Automation can also speed up processes that would otherwise take a long time to complete manually. This can free up employees’ time so they can focus on other tasks, such as strategic planning or analysis.
Another benefit of automation is that it can improve compliance with regulations. When accounting processes are automated, it’s easier to track and audit transactions. This can help prevent fraud and ensure that your company is adhering to all relevant laws and regulations.
Automating accounting processes can also improve customer service. For example, if invoices are generated and sent automatically, customers will receive them more quickly. This can lead to faster payments and improved relationships with your customers.
Overall, automation can help your accounting department run more smoothly and efficiently. It can save time, improve accuracy and compliance, and free up employees to do higher-level work. If you’re looking to streamline your accounting processes, automation may be the answer.