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For many accounting professionals, the idea of accounting automation conjures images of AI taking over their jobs. Rest assured, no program is ever going to be able to replace a good CFO or veteran bookkeeper, and accounting automation only stands to make your job easier.
The fact is, too often startup accountants are wasting their time on manual data entry and other tedious tasks. Automation allows an accountant to save time, avoid data errors and integrate their accounting with all your startup’s software and programs.
We’ll explain some of the many accounting automation benefits, and how they can take your startup’s bookkeeping to the next level.
1. Saving Time
Everyone loves to save time. With an automated accounting solution in place, your team members can focus on data analytics and strategy, instead of mind-numbing data entry. An automated accounting program can work around the clock throughout the whole week, freeing up multiple team members for other tasks.
These automated programs also make retrieving data a much simpler process. This makes it amazingly simple to make accurate graphics or spreadsheets regarding any data point you desire. With this, your team can easily organize tax planning and cash flow optimization, as well as breeze through accounts receivable and accounts payable.
2. Avoiding Human Error
It is estimated that 9 out of every 10 startups will fail. Out of these, 16%, on average, fail because of a problem with finances. If a startup is struggling to grow because of a difficult market, that’s just the nature of the game. But how do startups that should be doing well manage to bungle their financial estimations?
The fact of the matter is that humans make errors. Data can be input incorrectly, estimations and math can be off, and oftentimes people come up with the result they want first and try to make their accounting support that number.
Accounting software with automation removes the wildcard factor of human error entirely. It reduces speculation and physical entry into a set of well-defined and repeatable processes that you can trust to be always accurate.
3. Retrieve Information Faster
We’ve already mentioned how retrieving information faster from your files saves you a ton of time. There are other benefits to having this information available at a moment’s notice. Having easy data retrieval can help immensely with compliance. Tax time can be a headache for any business - with automated accounting processes, you can instantly pull up the information you need instead of going digging for it.
This ease of access is a major benefit for your employees as well. Rather than replacing accountants, being able to easily and intuitively call up data frees up your financial officers to focus on strategy and planning. The ease of data access also makes it easy for any accountant to use your system, making it much simpler to onboard new employees.
In many businesses, fast data retrieval is also incredibly useful when it comes to customer service. Instead of having to promise to get back to a customer or partner with financial information later, you can immediately pull up the required data. This can amazingly improve your relations with customers and partners alike.
4. Better Integration
A good data accounting tool won’t work in isolation. Instead, they will be updating information instantly across multiple software platforms in your business. This can allow your financial data to be instantly available for usage in management software, dashboards, and payroll software. All team members of your startup will be on the same financial page, with no room for communication errors in financial data.
This also allows all of your finances to be put through the same security tools and managed under the same security software. Just as automated accounting can help make tax compliance simpler for your employees, it can also help make security compliance easier as well.
Want To Learn More About Accounting Tools?
As you can see, automated accounting can be truly transformative for startups, affecting every level of your operations. They can help make bookkeeping a breeze, letting you focus on growing your business. Picking the right tools can often be difficult - but a financial expert can help you navigate these choices.
At Punch Financial we specialize in providing high-growth companies with a modern accounting experience. Instead of hiring an in-house accounting team at great expense, you can outsource your strategic needs to a firm with proven results for a fraction of the cost.
Our mission is to help you streamline your back office and to provide you with actionable data and reduce your overhead. Let’s connect to give you a customized quote and free consultation. You have nothing to lose but so much to gain.