Accounting Automation – What it means for your business

From artificial intelligence to cloud-based accounting software, automation in the business world has seen growing significance in transforming the way people work. Particularly over the last year and a half, with the majority of the office-based workforce finding themselves working remotely, automation of time-consuming manual tasks has been of high priority.

In the accounting world, this automation has not only been necessary but has actually demonstrated leadership in automation. Many of the growing automation and technological advances made in the accounting space have profoundly influenced the digital revolution and, in many ways, made it possible.

Data security, for example, has many of its roots in keeping people’s personal and financial information safe. These are frequently the first targets of data breaches, and keeping customer and supplier information secure has always been vitally important in the financial industry.

But what does it mean for your small business?

There is, of course, no one-size-fits-all approach to automation and artificial intelligence. What works for a multinational corporation in terms of AI, robotics and machine learning, will be different than what works for a small, solo operator. That, however, is not to say that automation doesn’t apply.

A small business, for example, may need to streamline its accounting practices for the sake of dedicating its time to money-earning activities. This could mean automating invoicing, receipting, payments and so forth. It can also mean tracking inventory, automating filing, handling quotes and purchase orders, etc.

With the right levels of automation, a small business can efficiently automate almost all of its manual entry accounting work. Whether the business employs a full-time accountant or team, or outsources parts of it like the collection of money to a company like Three Peaks, it effectively means significant time saved on manual admin.

Cloud-based accounting software

With so many people still working remotely, and with many smaller businesses opting to go fully remote as a business model, ensuring your accounting and payroll can be safely accessed online is important.

The types of previously manual entry tasks that online accounting software automates include, for example, payroll, including expense claims and pay runs. Making and accepting payments can easily be automated, as can bank reconciliations and reporting, and even data capture of original documents.

Among the benefits of using cloud-based accounting software are knowledge that your data is not only secure, but is also accurate, having removed the potential for manual entry error. Features like importing bank transactional data and syncing it with your invoicing and financial reporting can ensure that nothing is missed, and all data is correct and up to date at all times.

There is also, always, the time saving to consider. So many of these manual tasks take valuable time from your accounts team, and implementing cloud-based software with automation can increase their efficiency and productivity almost immediately.

Three Peaks is currently in the process of integrating with Xero, one of the leading cloud-based accounting software providers on the market. We expect this will help our clients allocate their monthly payments much more easily, and that it will allow us to provide an even better, more tailored service.

Have any comments or questions about transitioning to cloud-based accounting software and the automation benefits for your small business? Contact Three Peaks for information and assistance.