Tips to Choose the Right Automated Accounting Solutions
Gone are the days of manual accounting, when you had to hire a personal accountant to do the job for you. With advanced technology in place now, all your accounting processes can be completed with the click of a button. For beginners, automated accounting refers to using software to perform your accounting tasks. It involves using technology to address and eliminate all your manual accounting pain points.
Accounting Automation - Benefits
Now that we have dealt with what automated accounting is, let’s take a look at how it benefits your business.
- Saves time
With automated accounting software, you do not have to manually enter journal entries each day. Let automation do its job for you. And with excessive data from various sources on your table, there is nothing better than technology to help you deal with them in a matter of only a few minutes!
- Reduces human error
As mentioned previously, too much data can be cumbersome and stressful for a human accountant, leading to unintentional errors. With an automated accounting system implemented in your company, you can stay cucumber cool, as it does all the work for you.
- Increased Productivity
Now that all the manual work is taken care of, you and your team can focus on your priority tasks that require to be completed.
- Healthy cash flow management
Managing your cash flows gets easier by automating your accounting process. Seamlessly track your accounts receivables, accounts payables, etc., and generate invoices or send payment reminders to your customers in no time!
Choosing the Right Accounting Automation Solution
No matter how big or small your company is, you would still need to adopt automated accounting technology. There are several factors to consider when looking for the right solution. What are they? Here are some points that industry experts and researchers recommend while looking for your required product -
- Focusing on Intelligent technology
One of the major accounting trends in the present is intelligent technology, and will continue to be in the future. As an involved individual, it is important to focus on how relevantly intelligent the technology would be for your company and team, rather than purchasing a set of technologies that may not be relevant to your requirements. Collaborate with the technology provider to understand how the team can use the product, the setting up costs, tech training, etc. Understanding all of them can help you and your team make informed choices.
- Picking the right automation functions
It is advisable to automate bookkeeping and accounting functions more than just entries. For instance, reconciling invoices, creating and following up with approvals, etc., which are all time consuming. Implementing the right automation solution will solve all your accounting issues.
It is important to invest some thinking time while considering an accounting solution purchase. Perform your accounting needs analysis and list down a set of questions that would help you make the right purchase. Here are a few to help you get started thinking -
- Identifying your business requirements
With the right online research, you can study your required software and look for its compatibility with your business requirements. Visit their website and learn their technical specifications to understand more in detail.
- Multi-currency and bank compatibility
Only if your business is operating in other countries, would you need to consider the multicurrency factor? However, bank compatibility is important for downloading your statement and reconciling your transactions.
- The scalability factor
As your business grows, you may need a software package that is flexible to meet your growing business requirements.
- User security
With a plethora of sensitive financial and other data involved, user security is a mandatory feature of any accounting product. And when you have multiple users, it is recommended to opt for role-based security features, granting access to only the involved users.
While looking at any feature-centric accounting product, it is important to customize them as per your business requirements. You might not want to pay for features that are not relevant to your needs. Demos/free trials are the perfect way to look for what you need.
The price may vary depending on your business requirements, product features, security levels, etc. Ensure you make the purchase that you feel is suitable for your business and budget.
- Gadget Compatibility
If you are constantly on the move, it is recommended that your desired product is accessible from other devices, such as smartphones and tablets.
A Quick Glance of Automatable Accounting Tasks
It refers to the amount of money due to you by your debtors for a product/service availed by them on credit. In simpler words, your business’s pending invoices that are yet to be closed. Automating your accounts receivables means you can save loads of time, reduce payment processing costs, reduce human errors, and quicken the payments between your company and customers.
- Invoice creation and generation
As a business, when you are required to dispatch invoices to all your customers, it consumes loads of time. Hence, this is one ideal task for automation and simplifies your lives. It means you can now generate invoices in no time.
- Customer support request
For a thriving business, it is important to be available for the customers as and when they require product use support. With an implemented AR automation mechanism, you can help them resolve any issues without any hassles.
- Payment reminders
Timely payment reminders to your customers can help maintain a healthy debtor turnover ratio for your company. An automated payment reminder system can help you focus on other important tasks.
- Invoice reconciliation
Track all the debtor accounts that owe your business through an automated invoice reconciliation system.
Check out CratoRev, designed to assist you with accounts receivables management.
Accounts payable refer to the amount of money you owe your creditors for any product/service provided by them on credit, in the short term. By automating your accounts payable, you can help your business keep a healthy accounts payable turnover ratio, which is also integral for sound financial health. Not just that, an improved process efficiency, a good productivity rate, and a high invoice accuracy rate will add to your business health.
Tasks that can be automated:
- Data entry
If you are a business with multiple vendors, you may have to make multiple payments for products or services availed. You may receive your invoices in various forms, such as physical paper, fax, or email. Automating this process lets you prioritize other important work. All you may need to do is upload those invoices, and the platform will take care of the rest.
- Invoice matching
It is essential to validate the invoices received by you. With automation, cut down on your pain points and let the software do all the work for you, with intelligent technology such as OCR at your disposal.
- Payment approvals
There may be multiple stakeholders involved in an approval process, and without an automated system implemented, it may take forever to complete the same. It can all be done on a single dashboard on your system.
- Invoice coding
Organizing your expenses also makes it easier to keep a track of them. Without an automation system, it may consume more time than intended. Your invoices will be collected, the documents will be scanned using intelligent technology, followed by invoice data verification and input, and finally the confirmation.
- Vendor Payments
If you are making repeated payments to the same vendor, using the automation software, you can set up recurring payments.
Check out CratoPay to simplify your financial lives!
Bank Reconciliation Statements
Bank Reconciliation refers to the comparison of your company’s cash and bank balances for financial accuracy. It also helps detect fraudulent financial activities, if any. Differences in the two accounts may arise due to in-transit deposits, pending checks, bank service fees, etc. An automated bank reconciliation means less time consumption, fewer errors, and higher financial transparency, leading to more trust.
Streamline your bank reconciliation process using our CratoMatch.
There are too many solutions out there that may leave you overwhelmed with options. Accounting automation comes with several benefits that literally leave you spoiled for choice. Apart from industry experts, there are other factors that play an integral role in choosing the right product for your business. Some of the most accountable tasks include accounts payable, accounts receivables, bank reconciliation, etc. So, what are you waiting for? Automate your accounting process right now!