Why Accounting Software Growth and Evolution Fits Today’s Business

Aftab Vasiwala
Read Time: 3 Minutes
Why Accounting Software Growth and Evolution Fits Today’s Business

In recent times, the acceptance of accounting software has resulted in growth and evolution to fit modern business requirements. Several accounting processes can be automated such as invoices and email. The data from an invoice can be automatically entered, the mouse clicks and navigations can be taken over by an automated bot, and many more. 

Lastly, when the predefined processes are done, the bot also sends a confirmation email to the vendor. The minimal intervention of humans is required; only to initiate the process and release of payment. The rest is automated. 

The following are a few of the benefits of the accounting Software process automation that fits today’s business. 

(1) Increased productivity

  • When the processes are automated, the software bots take charge and unlike humans, they never rest. The bots keep on working 24*7 and all throughout the year. This significantly boosts the productivity of any business unit. 

(2) Boosting efficiency

  • If the processes are automated through the bots, the automated software click through the multiple pages, verification transactions, enter data and do a lot more in just a few seconds. This usually takes 4-5 employees to complete the work. 

(3) Reduced errors

  • The work of bots is more accurate than humans. Although setting up and making a bot function properly requires a lot of effort and testing with data, but once a bot is set up, it is always accurate that the humans. 

(4) Scalable

  • To scale the operations done by humans, the company needs to hire new employees, train them, and set up the operational processes to reduce errors and overheads. To scale the automated system, it is hassle-free and dependencies depend on tasks to be performed that can be easily changed by adjusting rules. 

(5)Secure

  • Many companies deal with a vast amount of confidential data and hence they go through a lot of legal hassles in the loss of data and ensuring employees stay compliant with confidentiality rules and regulations. With an automated bot, these can be eliminated. 

(6) Adherences to compliance

  • Finance is an industry that needs to be compliant with government rules and tax-related rules and regulations. Any non-compliance may be high penalized and might lead to millions of penalties and fines. As a company, none of them wish to get into trouble. With automated bots, it is time-relief to companies. 

(7) Increased cost saving

  • With all the listed benefits, the added advantage of cost-saving is a plus. Most of the labor-intensive tasks that were previously outsourced by companies and had a lot of human dependence, with automated bots such is eliminated and a lot of money is saved. 

(8) Improved customer success

  • As most of the labor-intensive account processes are automated, the human resources used for such tasks are now put for better use. For instance, better customer support to the existing customers and increased chances of success. The client feels valued and the value increased as a service provider. 

We saw major benefits of automation but when this digitization is used by companies, it helps them gain a significant advantage over their competitors. Now we have few main functions to automate the work zone with minimal disruptions and maximum benefits. 

(1) Expenses automation

  • Previously the accountants has to check thousands of bills to track expenses and was indeed unending. Using the services to track employee expenses digitally can make a huge difference. Most of the services sync easily with the accounting software in India reducing hurdles in data entry. 

(2) Payroll automation

  • The payroll Software needs to be processed every month and its management is a fixed process that has to be done compulsorily. Most of the time, a single employee handles the task, and manual handling results in many challenges. Automation of such can stress out the process. 

(3) Managing the credit cards

  • Many tasks right from the application of credit card to background verification of applicant, KYC checking, creditworthiness, issues or cards, managing interests, cancellation of cards, fees and processing payments and many more take at least two by for any employee to complete. With automation, such tasks can speed up all these operations and reduce costs. It also leads to better customer satisfaction. manage to cash flow.

(4) Account receivable and payables

  • With the appropriate implementation of RPA, there stays better transparency in account receivables and payables. The addition of vendors, approvals, and KYC and payment management can be automated when the payables are concerned. Creation of customer accounts, approvals, credit reports, and receiving payments can be done easily.

(5) Employee benefits

  • When employees are hired, a lot of them need to be managed along with managing their benefits. All the benefits come with associated costs and it is important to link such with software. Automating benefits will result in faster tricks. With automation, these can be easily tracked by generating reports out of the system.

(6) Reconciliation

  • The reconciliation process involves reviewing data from the spreadsheets, account statements, and accounting system to cross-check. With the appropriate implementation of RPA, all these can be done easily by bots, discrepancies can be compared easily in a matter of seconds or minutes.

(7) Bookkeeping

  • Traditional bookkeeping included manual entries into a spreadsheet or software. With automation, it is much easier to perform API transactions. The data from statement can be fetch automatically and entered into the software. 

Conclusion

  • It is not mandatory to implement robotic process automation in the organization but on the other side, it is suggested to do so to get maximum benefits out of it. The above points included a few of the benefits of using automated processes for the accounting activities of the organization and apart from these, there exist many more benefits.
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