Most businesses are already using cloud accounting software to manage their finances. However, not all of them are taking full advantage of automated processes to streamline their accounting process.
There are various types of apps and software services available that can simplify your processes, by reducing the need for manual data entry and bookkeeping.
By prioritising time-consuming and labour-intensive tasks, automating processes in your business’ accounting saves valuable time that you and your employees can put back into other areas of your business.
Processes you can automate
There are a range of processes that can be automated by apps and software. A select few are:
- Accounts payable
- Accounts receivable
- Payroll
- Month-end financial reports
- Procurement
- Expense reports
- Sales order processes
Knowing where to start when it comes to automation isn’t easy and it’s important not to change too much too soon.
With insight on your business operations, an accountant can guide you on where you can save time and which processes are worth tackling first, to save you money in the long run.
Benefits
As mentioned above, there are a host of benefits to implementing automated processes into your accounting. Whilst saving time is the biggest reason people use automation, other benefits include:
- Reduced costs: as these processes are faster and require less human intervention, the cost of accounting processes goes down.
- Higher data quality: no manual data entry means no room for human error, making data more accurate.
- Easier access to data: using apps or software to automate processes means that important data is kept all in one place.
- Healthier business relationships: automation in accounting processes means that invoices and payments are always made on time.
- Ensured compliance: your software can automate tax returns, financial statements, and update tax documents in line with the most recent regulations.
- Making Tax Digital: HMRC is moving towards fully digitising tax. By using cloud accounting software, it will be easier to comply with tax regulations.
Choosing the right software
Ensuring that you not only have the right software for your business accounts but that it is also running smoothly can be a difficult task. This is where hiring an accountant is essential.
An accountant can advise which software is best suited to your business, along with how to implement the software into your practice.
Even with the power of automation, you also need to know how to interpret the data and use it to inform your decisions.
With the guidance of an accountant, you can leverage this information to inform your business decisions and guide your strategy.
Need advice on cloud accounting and unlocking the power of automation? Get in touch today.