Are you still using paper or excel spreadsheets for accounting tasks in your business? Well, there are better ways to manage your data.
Yes, the manual accounting system may have worked in the past, when you were starting. Probably, the only tasks they had was to write checks, send paper invoices, and record payment details.
However, as your company grows, so does its accounting chores. Such include complex laws on taxation, payroll processing, and report generation. While an excel sheet can do this, it cannot offer a central location where financial data on your customers, vendors, and sales is present. Therefore, you cannot easily trace a critical detail with ease.
That’s the first benefit of using accounting automation tools. It ensures that all your financial data and transactionsare in a single place. Since you don’t need any paperwork, the accounting process is impeccable. You can pull any record within seconds. Other benefits of these tools include the following:
- Saves Time and Money
It’s perhaps the main reason behind accounting automation. Once you create a record for your suppliers, employees, and customers, you’ll never enter those details again.
Instead, forms like checks and invoices contain dropdown menus with a list for these records. Therefore, you select the document that you want to review.
Have you been experiencing troubles accessing any of your documents? Don’t worry! Contact the software developer or their agent; they’ll be able to fix it for you. That is the only way to ensure the accounting software is serving you for years without interruption.
- Ability to Customize Reports
Assembling financial reports manually to determine, for instance, who is late in honoring your invoices is time-consuming. Furthermore, you can fail to settle an account that’s due on your end.
Automating your accounting process works to ensure this does not happen. It does so by using a dozen of customizable report templates, and pre-defined tables that display your accounting data. With this, you’ll be able to settle your due accounts on time effectively building trust with your suppliers.
- Improves Your Accounting Accuracy
Since you don’t need to keep on re-entering data, the chances of making an error reduces. You might be a good accountant, but from time to time, you may make errors here and there.
A simple error like interchanging numbers or placing a decimal at the wrong place can be very costly, but not anymore.
Automating the data entry process allows the system to deal with basic arithmetic queries. Such include subtotals, and totals for these transactions (purchase order, sales order, and credit memo) payroll deductions, and sales tax.
- Easy Access
When making a business decision, it’s always advisable to consider the data and information that is available. In doing this, you will be able to make concrete decisions that address your specific needs.
Additionally, you don’t need to browse through files-which may take hours- to get the transaction details or the data that you need. The data is available at the touch of a button.
- Enhances Data Security
A business should do anything possible to keep its financial data private. That’s the only way for the company to make better use of the data and information they gather. However, if this information gets to your competitors, they’ll use the data to plot against your business. Don’t allow them to breach your data security.
As you know, paper and ledger documents can be stolen with ease. If these documents come into contact with water, they will be destroyed.
Manual records on the other hands are at risk of security breaches. Such cases will have severe consequences for your firm. No one wants to work or invest in an enterprise where their privacy is not guaranteed.
Automating accounting processes makes it easier to access all this data securely and with a lot of ease.
Making a transition from manual to automated accounting require some knowledge on the accounting, software or both. As such, look for the best accounting automation service in the industry. Use the opportunity to learn some basic concepts on accounting and bookkeeping. This way, you’re able to keep your data secure and save on time and money.