Posted by Angelica Garcia
Jul 18, 2023
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Automation has become a buzzword in the business world and for good reason. By automating certain tasks and processes, businesses can save time and money while increasing efficiency.
But how exactly can automation help your business and how much money does automation save? And most importantly, will automation eventually replace accountants? Let’s take a closer look on how automating your business processes may just be what your company needs.
How Automation Can Help Your Business?
Automation is the use of technology to perform tasks or processes that would otherwise be done manually by humans. It can be used in a wide range of industries, such us finance and accounting.
The many benefits of automation includes:
Increased efficiency: Automation can help businesses to streamline their processes and reduce the amount of time and resources that are wasted on manual tasks. This can lead to significant cost savings and productivity improvements.
Improved accuracy: Automation can help to reduce errors in data entry and other tasks. This can help improve the quality of products and services and reduce the risk of compliance violations.
Free-up time: Automation can free up employees' time so that they can focus on more strategic and value-added tasks. This can lead to increased job satisfaction and a more productive workforce.
How Much Money Does Automation Save?
The amount of money that automation can save businesses varies depending on the industry and the specific tasks that are being automated. However, studies have shown that automation can save businesses an average of 10-20% of their operating costs.
For example, a study by Dock Treece and Andrew Martins from business news daily found that process accounting automation can save businesses more than 20,000 man-hours and hundreds of thousands of dollars in operating expenses each year. These savings can be achieved by reducing labor costs, eliminating errors and improving efficiency.
Read: Future-Proof Your Firm: Preparing for Accounting Automation
How to Implement Accounting Automation in Your Business
If you are considering implementing automation in your business, there are a few things you need to do.
Here are the 6 steps to automate your accounting process, according to NetSuite:
- Analyze current accounting processes
The first step is to analyze your current accounting processes. This includes identifying the tasks currently performed manually and areas where there are opportunities for automation. You should also consider the goals of your automation project, such as reducing costs, improving efficiency or increasing accuracy.
- Evaluate existing technologies
Once you have a good understanding of your current processes, you can start to evaluate existing technologies. There are a number of different software solutions available that can help you automate your accounting processes. You should consider the features of each solution, as well as your budget and your company's specific needs.
- Assign a project owner
It is important to assign a project owner to your automation project. This person will be responsible for overseeing the project, ensuring that it stays on track and communicating with stakeholders. The project owner should have a good understanding of your company's accounting processes and the goals of your automation project.
- Create and document current workflows
Once you have selected a software solution, you need to create and document your current workflows. This will help you to identify the steps that need to be automated and to develop a plan for automating your processes. You should also document the new workflows so that they can be easily understood and implemented by employees.
- Automate based on the updated workflow
Once you have a documented workflow, you can start to automate your processes. This may involve using the software solution to create automated tasks or to integrate the solution with other systems. You should test the automated processes to ensure that they are working correctly.
- Test and iterate
Once you have automated your processes, you need to test them to ensure that they are working correctly. You should also monitor the results of your automation project to identify areas where you can improve the processes. You may need to iterate on your automation project several times before you achieve the desired results.
By following these steps, you can automate your accounting processes and improve the efficiency and accuracy of your accounting department.
Will Automation Replace Accountants?
Automation is rapidly changing the accounting profession, but it is unlikely to replace accountants altogether. While automation can certainly replace some accounting tasks, such as data entry and reconciliation, it will not be able to replace the human judgment and critical thinking skills that are essential to the profession.
A study by Oxford University predicted that by 2033, more than 40% of jobs would be automated. However, this does not mean that accountants will be out of work. Instead, automation is likely to change the role of accountants, as they will need to focus on more strategic and value-added tasks.
The Bottom Line
Accounting Automation is a powerful tool that can help businesses to improve efficiency, accuracy and productivity. However, it is important to consider the ethical implications of automation. By implementing automation in a thoughtful and strategic way, businesses can reap the benefits of automation while minimizing its potential negative impact on the workforce.
Are you looking to automate your accounting? D&V Philippines can help!
We are a trusted finance and accounting outsourcing powerhouse with extensive experience and top-notch services. We can help you prepare for your accounting automation journey and ensure that your business is in good hands. Contact us today! to learn more about how we can help you automate your accounting.
You can also read our whitepaper, D&V Philippines: Your Talent Sourcing Partner, to learn how we can help you find the right finance and accounting talent that your firm needs.
