Technological advancements have substantially revolutionized the industrial landscape and the way of operations, strategic initiatives and decision-making. The breakthrough innovations aim at improving business function efficiency, reduce human error, obtain cost-efficiency while influencing a boost of business revenue, and growth. Most businesses have embraced the tech-innovations to stay competitive in the wake of globalization and economic shift.
Automation is one of the technological advancements and innovations that have gained ground in quite a rapid pace. It has paved its way through most of the business aspects, gradually. In this article, we are going to discuss how automation has impacted the accounting ecosystem and what the future holds.
Accounting and bookkeeping are considered as the basic pillars of a business. When planned, and executed efficiently, accounting offers the actionable insights on how a business is performing today, and what strategic initiatives pertaining to the financial aspect can be undertaken to improve the business prospect in the longer run. While accounting holds such significance, automating this crucial business function is the only logical step. Here comes the role of a computerized accounting system into play! So, what’s the definition of computerized accounting? Computerized accounting systems are important to business in several ways as they help businesses in making their staff efficient, productive and also save their valuable time.
It is a common notion that automation involves robotic usage that completely eliminates human intervention. Many might wonder if automation in the accounting space is going to risk the careers of accountants. Well, absolutely not! Automation in accounting is set out to promote the concept of symbiotic computing wherein the human-led manual accounting processes will be substantially, and strategically assisted by technology.
Now, many might question, when we have skilled accountants, what’s the need for such automation initiatives? To answer this, accounting involves a lot of dealing with financial and sensitive data and human error has been the greatest challenge. By automating accounting functions, this human error share can be reduced substantially. Automation in accounting introduces trends like Artificial Intelligence, Robotic Process Automation to update accounting records, make data entry less cumbersome, reduce the error quotient for accounts payable, and account receivable.
Before we highlight some of the outstanding benefits of automated accounting, let’s first understand the cons associated with manual accounting.
Conventional Accounting Requires A Full-time Workforce
Conventional accounting involves manual processes for the entire operations, from accounting record entry to tax management. This requires a skilled-enough workforce available for in-house operations at all times. The challenge? To acquire a professional accountancy degree takes years of academic involvement and practice. Apart, maintaining an in-house team of accountants may become pricey if the business is operating on a small or medium scale.
Cost Saving Might Not Be Wise At All Times
Let’s consider a scenario where a business is unable to afford professional accountants. Here, the business owner will either try to get the accounting tasks done by himself or else will employ an entry-level accounting individual. Bear in mind, either case might lead to less productivity and errors.
In today’s time, data security is of utmost importance. Businesses by any means must ensure the security of their accounting records, clients’ sensitive financial data. And, keeping all these details in physical documents, accounting ledgers might pose a severe threat to their security.
How Automation in Accounting is a Game Changer?
Now that we have discussed the challenges associated with manual accounting, most of us all would vote in favor of automated accounting practices. If you are yet to be confident, here are some of the features of computerized accounting and the major advantages of automated accounting.
- By automating certain accounting tasks, businesses can acquire a holistic visibility of their business functions and their performance. This will enable them to make appropriate forecasts, prepare according to the current and future business scenarios and ensure their profitability, success, and growth at all circumstances.
- Automated accounting will enable businesses to save a great deal of time that can be leveraged for other core business functions, and strategic decision-making.
- Scientific accuracy and precision in accounting record entry, processing, and storage is one of the most crucial advantages of automated accounting systems.
- Accounting automation leverages encryption technology that goes a long way in ensuring data and information security.
There are still activities that overwhelm the accounts team, even with technological advancements. However, with automation in accounting, the future is lucrative and secure.