The Future of Financial Management: Embracing Bookkeeping Automation
Businesses have long left behind the monotonous, tiresome, and tedious manual financial tasks that they needed to carry out every day and sought the help of technology. They also understand that they must embrace automation to carry out financial tasks to stay in the competition.
According to a recent statistic on accounting automation, it has been seen that up to 50% of all accounting tasks can be successfully executed through accounting automation tools.
We will explore how exactly automated bookkeeping is carried out by a reputed Bookkeeping Automation Companylike Finscanner, the key areas of automated bookkeeping we cover, the benefits that automation can bring to your business, the necessity of automation for future finance purposes, and more.
Let’s begin by trying to understand how automated bookkeeping works.
How Does Automated Bookkeeping Work?
Assimilation of Optical Character Recognition or OCR and AI-based bookkeeping Software for Accounts or Robotic Process Automation (RPA) technologies makes automated bookkeeping systems process financial data with absolute precision.
These advanced systems have the unique capacity to independently extract relevant information from invoices, receipts, and various financial documents without the need for human assistance.
Essential Elements of Automated Bookkeeping
if you want to value automated bookkeeping’s full capabilities genuinely, then you need to explore its essential elements:
- Document Capture
- Automated Optical Character Recognition or OCR
It has been seen on average; OCR possesses a much higher (around 96%-99%) data entry accuracy rate than in comparison to manual data entry (about 90%). It also processes physical documents into digital format.
- Machine Learning
Machine learning amplifies the automation process’s power to decipher and learn from data patterns, improving its accuracy and efficiency eventually. It also ensures that the data entry process takes place speedily and accurately.
- Robotic Process Automation or RPA
RPA automates those tasks that are done by humans repeatedly every day and those in which they follow certain rules. These tasks involve data extraction, entry, and transfer between systems. RPA helps in completing various tasks seamlessly.
- Data Extraction
Extraction of particular data from data fields from documents like invoices or receipts into an organized format for further processing is what data extraction is all about.
This involves the collection and digitization of documents from different sources namely, emails, web forms, and file systems, automatically and efficiently handling the data input process.
The #5 Benefits of Automating Finance
There are numerous benefits of automating finance processes and they are:
- Abolishing Repetitive Tasks
- Speedy Invoice Processing
Streamlining invoice processing is a hallmark of automation in finance, typically reducing the time required by up to 80% and exemplifying the benefits of automating financial reporting.
- Greater Accuracy in Financial Reporting
With the help of automation, the generation of exact and effortless reports can be made. It also supports informed decision-making and provides strategic insights as well resulting in greater accuracy in financial reporting.
- Upgrades Data Accuracy
Automation helps in producing a reliable financial report and reduces the risk of fraud to a great extent. This is considered as one of the core advantages of automation.
- Enhances Clarity
Automation helps in gauging the trends, and the inefficiencies thereby bringing in greater clarity to some of the key performance metrics.
Artificial Intelligence Bookkeeping or Robotic Process Automation (RPA) tools remove time-consuming tasks like data entry and invoice processing fully. This way the finance teams get the chance to carry out their strategic roles more efficiently and accurately.
Why Automation Will Be a Big Necessity for Futuristic Accountancy Practice?
In this superbly fast-paced world of 2024, the pressure on the accounting firms is much much more than it was previously. At this juncture, automation has emerged as a real difference-maker that can address all of these challenges with extreme proficiency. We will try to find out why it has come to stay and will be a big necessity for accountancy practices of the future:
- Efficient Time Manager
- Minimises Errors
As we all know, humans are prone to error-making. Automation plays a big role in reducing inaccuracies and executes tasks with greater accuracy. Get hold of your Automation in Finance Software from Finscanner and make your transactions error-free.
- Perfectly Adapts Itself to Regulatory Changes
Regulatory changes are a frequent thing for businesses now. One of the most fascinating things about automated systems is that they are easily updatable and these kinds of frequent changes can be easily updated in it. It also removes the compliance risks fully.
- Strengthens Client Relationship
One of the toughest challenges that any business faces at a given time is meeting the clients’ expectations and they very well know that they always expect and appreciate efficiency and transparency. A trusted bookkeeping automation company like ours will help your accountants meet those expectations and strengthen your relationship with the client.
As automation frees accountants from the daily task of manual data entry completely, they can devote themselves more to strategy development and tasks that add value to the business in general.
Why Embracing Bookkeeping Automation is a must?
In today’s business scenario, bookkeeping automation is vital advantageous, and essential for running a business efficiently and successfully. The judicious use of automation can bring about boundless advantages for the user.
It is a great time saver and error corrector. With the help of automation, finance teams can free themselves from the routine and the mundane and concentrate on strategic planning and analysis that ultimately results in significant growth in businesses.
As you can already see, automation helps finance processes to evolve which is very critical for making businesses future-proof in a digital world.
Predictions on the Future of Bookkeeping Automation
- According to a statistic, business firms’ adoption of Artificial Intelligence Bookkeeping or robotic process automation (RPA) has risen by 24% in the past year.
- Automation can reduce the time accountants devote to day-to-day tasks like data entry by up to 75%.
- As per another statistic, 75% of big business firms are already using or are contemplating using robotic process automation.
- According to a report by Oxford University, there is a 99% chance that the jobs of tax preparers will be automated and around 98% chance that bookkeepers and accountants will become automated as well.
Finscanner, a renowned Bookkeeping Automation Company, offers automated bookkeeping services which is a must for streamlining your business expenses. With Finscanner, you can judiciously manage your spending, track them, and manage all kinds of business expenses through auto-categorization of your expenses through our Account Management Automate Bookkeeping software. Reduce the administrative burden from the shoulders of your financial team now!
Sources: Wifitalents, DocuClipper
