Part of running a successful business includes ensuring that your accounting systems are up to date, accurate and as efficient as possible. Bookkeeping, which is a process that comes before accounting, is the record keeping of the financial affairs of a business. Using this data, accountants can then analyse business finances and make suggestions on how to improve financial health. Because of this, bookkeeping is a vital part of the business process. In today’s article, we have a look at why you should automate your bookkeeping process in 2020. Read on to find out more!
1. Reduction in Human Error
When accounting and bookkeeping processes are handled manually, there is always a possibility of human error. For this reason alone, accounting software and bookkeeping is superior in ensuring full accuracy of sensitive financial data. Humans are prone to making mistakes, whereas software utilises AI to ensure that all data is kept accurate at all times. If you are looking to reduce human error and any potential mishaps with your accounting, we highly recommend automating the bookkeeping process.
2. Increased Levels of Security
A company’s financial data is sensitive and should be kept confidential at all times. The last thing a business needs is for its financial data to be leaked or even worse, lost. If you rely solely on manual accounting processes, it is near impossible to ensure 100% security of your financial records. This is because paperwork can be misplaced and data can be easily lost on basic computer software. With automated bookkeeping, all information is stored securely on the cloud network, ensuring that data is always accessible, even remotely. In the ill chance of disasters such as fires or floods, businesses will be able to ensure that data is not destroyed and that all financial data is securely stored within the cloud computing network.
3. Reduce Overspending
If you don’t have an in-house bookkeeper, chances are you have been outsourcing your bookkeeping and accounting. Outsourcing these aspects of business can often become an incredibly expensive process, especially since bookkeeping is a year-round affair. Many outsourced sources of accounting services tend to be priced exorbitantly, and may be out of reach if your business is in its infant stages. Instead of spending money hiring an outsourced bookkeeper, automated bookkeeping systems allow you to handle your bookkeeping on your own and with minimal costs, thus saving you thousands in the long run.
4. Real Time Metrics
One of the biggest advantages of switching to an automated bookkeeping process is the access you will have to real-time metrics about your company’s financial health. Since the automation process ensures that everything is kept up to date in real time, you won’t have to wait days or even weeks to analyse metrics and make better financial decisions for the business. This can aid you in spotting problems early on and help you implement changes as soon as they are needed.
5. Streamline The Business Process
Streamlining the business process is a fantastic way to ensure high productivity levels, especially amongst employees. With automated bookkeeping, you can free up employee time that would otherwise be spent on manual bookkeeping processes. This can in turn allow your staff to better utilise their time on more revenue generating tasks and activities. Increased productivity is key in business growth, and more room is made for expansion when your team members are made more efficient in their job with the help of automated bookkeeping.
And there you have it – just a few of the numerous benefits that automating your bookkeeping process can bring to your business. We hope that this article has given you the insight you were looking for when it comes to streamlining your business accounting processes.