With the innovation of data platforms, the finance and accounting (F&A) field embraces the drastic changes being brought about by business automation solutions, making accountants and finance professionals free of monotonous responsibilities.
What are the advantages of automation?
The emergence of business process automation has paved the way for reduced costs, higher efficiency, and a more streamlined process for businesses. A shift to automated process can trim down the problems caused by manual efforts and save time for more value-adding work. Without adaptation of robotic automation, these can lead to serious issues.
Data and Security Issues
Looking for a particular file in a pile of documents and invoices can be very time-consuming. Other than that, storing data in an offline repository poses the risk of getting breached by any third party, exposing confidential customer data, and impede client relationships. This kind of business problem can cost future ties with potential consumers.
“The fact that the end customer or the accountancy practice has to deal with that manual process, and that being extremely inefficient and time consuming, can lead to data and security issues. So not being able to reconcile, by easily getting that data back from the bank into the accounting platform or payroll platform,” says Modulr CEO Myles Stephenson.
With cloud-based technology, data security can be guaranteed. Other than helping accountants to manage administrative tasks, cloud software also store classified information in remote online servers which are hard to replicate.
Accuracy plays an important role in business growth, and this rings true especially for the accounting department. Managing finances and revenue is crucial; that’s why there is a need to be precise when it comes to inputting numbers and figures. Data entry should be consistent and up to date to avoid any errors.
Automation raised the bar in process transparency as automated solutions has made it easy to track cash movement within the company. If accountants manage finances and reconcile data accordingly, chances are high that CFOs can know where to cut down costs and expenses.
Manual Data Entry Cost
According to Canoe, there are many variables affecting the costs associated with traditional operational and data processes. The number of documents, amount of data gleaned from each document, the time it takes to triage email and categorize documents, error checking efficiency, and the hourly rates of employees or resources. Even applying rudimentary and conservative assumptions around these variables, costs can add up quickly.
On these grounds, it is certain that a shift to automation will spare accountants from the laborious and repetitive process of manual data management. Moreover, it gives them more time to do more productive work for the firm.
Taking on a heavy workload is challenging and consumes a lot of time of professionals. Repetitive tasks can take away a huge portion of an accountant’s time, and it’s not the best way to leverage employees’ finance talents. Manual data filing and data retrieval can be simplified through automated solutions, creating a more efficient data processing and faster turnaround time for accountants.
The use of business automated solutions marks the trends the current digital landscape has to offer. Along with optimal results, automation alters finance and accounting responsibilities along the process.
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