Automation has redefined human effort. It has removed a load of manual labour and other tedious and time-consuming tasks, thus, allowing humans to focus more on the areas that require knowledge and intelligence. Quite simply, it refers to the technique of making an apparatus, a process, or a system, that can operate automatically, without the intervention of human beings.
Accounting has long been infamous for its tediousness and that it requires human effort. The unvarying and in-interesting work of collecting, organizing and storing thousands of data, often, reduces the working capacity of an accountant.
Accounting automation is an excellent way of unlocking the potential of the accountants. While many might argue that automation will lead to unemployment, it is quite the opposite. It manages the manual transactional entries while leaving more time for the accountants to focus on analysis, strategies and interaction with clients.
What is Accounting Automation?
Use of Software in the Account firms has always been there. From the early punch cards to the magnetic tapes for storing data, and later the ever-efficient Microsoft Excel, accounting has truly evolved over the past few decades. While the spreadsheets are still essentials and might even seem irreplaceable, automation is here to stay.
Entering long rows of data from the day into the day out will now get taken care of by automation. This will be especially beneficial during the financial year-end. It will increase productivity as the accountants can now focus on contacting and guiding a greater number of clients, instead of spending their billable hours on feeding data into a system.
As humans, we are prone to making mistakes or causing errors. These small computing errors often turn out to be extremely expensive. So, when accounting tools create thousands of ledger entries in seconds with zero error, the risk associated with mishandling of data is eliminated. Retrieval of data, as a consequence, also becomes easier. In addition to the computerizing the Bookkeeping inputs, the automated file reviews also help in the verification of the information that has been entered.
User Experience is another aspect of a business that is taken care of by automation. Faster turnaround time of the required deliverables will help in strengthening the interpersonal bond between an accounting firm and its clients.
Most automation tools come equipped with the latest security policies and checksums in place. So, if there are any attempts at security breach, the attacker will get flagged and the encrypted information stored in the system, will not get compromised. Natural calamities or other disasters can cause harm to the physical location of the files. Therefore, Cloud Access is also available for disaster recovery and business contingency plans.
Automation in Accounting is already underway. Increase in the sophistication of technology is pushing the auditors and accountants to learn new skills and negate the risks of unemployment. All the global leaders have agreed upon the fact that professionals would get a better opportunity to focus more on value-added services with automation in place. Learning to evolve with the changing business landscape is now a necessity for the accounting industry.