Shifting your Company from Manual to Automated Accounting
As digitalization allowed industries to evolve and integrate technology into their processes, it also empowered many to start their own ventures and enter the market. With the oversaturation that this resulted in, companies must constantly be competitive to stay ahead. But how do you stay competitive?
Staying competitive means being able to adapt to any and all changes in your industry’s landscape – including embracing technological advancements to optimize your operations. This sentiment is true for the finance and accounting industry and, one way to do this is to completely transition your company from manual to automated accounting processes to optimize your operations, increase productivity and overall stay ahead.
Transitioning from manual to automated accounting smoothly
Transitioning from manual to automated accounting may seem like a daunting task. But if done right, this transition can effortlessly streamline your processes. To help with the transition, here are some things you may do.
Fully understand your current Accounting Processes
The first step to a seamless transition is to fully understand your current manual processes. This allows you to identify the extent of the processes you will be automating and employ the right accounting software that suits all your accounting needs. To do this, make a detailed list of your current processes to use as a basis for your automation strategy.
Set Clear Objectives
Define your objectives for transitioning to automated accounting – this will make sure that your transition aligns with company goals. To do this, identify the benefits you wish to have by automating your accounting processes. Is it to opt for a cost-effective solution? Learn how to automate your bookkeeping and other processes to reduce the risk of human error?
Common goals include reducing manual data entry, decreasing errors, increasing efficiency, and gaining real-time access to financial data. By setting one or all of these as your objective, everyone involved in the transition process will be working towards the same collective goal, ensuring the success of your automation efforts.
Choose the Right Accounting Software
Once the planning stage of your automation efforts is done, the next step is to choose the right software to use to automate your accounting process. Now, selecting the right accounting software is a crucial step and while there are various options available, from entry-level solutions for small businesses to comprehensive systems for larger enterprises, you should consider what best fits your company.
Consider your budget, the size of your company, the industry you are in, the extent of your services, and your specific needs when making your choice. By choosing a software whose readily available services match everything you need, you will be able to streamline your accounting processes while securing your company data as there is no need for cross-referencing and data transfers between different software.
Migrate your Financial Data
Once you've chosen your accounting software, you'll need to migrate your existing financial data into the new system. To do this, you have to ensure the integrity of the data you are migrating in the first place is accurate and reflects your company’s history. While this may be a taxing task, remember that this may just be the last manual process you will be doing before you automate completely. Once it is all uploaded into your chosen software, you’re good to go!
Company Training and Integration
While the right software has the potential to optimize your processes, your team should be capable of handling the change and be adept in your chosen software. To do this, you must train your team on how to use your automated accounting software as the transition is ongoing to become proficient in the automation. A great tip here is that most accounting software providers offer training resources, including tutorials and user guides.
As they become more proficient with the software, they might be able to explore and offer new and innovative ways to utilize it further in streamlining and optimizing your company’s processes, empowering them to directly contribute to your company’s growth.
Automate Routine Tasks
Once everything is set up, you can begin your automation efforts, starting with your routine tasks. Take advantage of your chosen software’s features like recurring invoices, automatic bank feeds, and expense categorization.
Automation reduces the time and effort required for data entry and minimizes the risk of human error, increasing the quality of your outputs and allowing your company access to these data in record time than if it were a human analyzing and completing these tasks.
Monitor your Company’s Finances
With your accounting processes automated, you'll have access to real-time financial data. Use this information to monitor your financial health closely. Regularly analyze your financial reports to make informed decisions, identify trends, and plan for the future. You can also use this to perform regular financial audits for your company, giving you the information, you need to identify areas of improvement that will help your company.
As you shift your company from manual accounting to automated accounting processes, keep in mind that the primary goal is to ensure that your company remains competitive. As technology further develops, keep an open eye on how it is integrated more and more into the finance and accounting industry and proactively adopt it into your company’s workflow. While it may seem like constant change, this constant change allows you to navigate any situation that you may face, truly ensuring your company’s longevity and success.
Need help in automating your accounting processes?
D&V Philippines’ commitment to staying on top of all the new technologies used in accounting allows us to stay proficient and in the know in the finance and accounting industry. Contact us today and we’ll help you find the right solution for your needs.
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