Bookkeeping is something no business can avoid but everyone is annoyed by. Yet the importance of clean accounting is undeniable, for potential investors, for auditing, and for having a clear general overview over the companies financial transactions. Automated bookkeeping promises professional bookkeeping with less effort – how exactly does this look like? Let’s find out!
Automated bookkeeping involves software, artificial intelligence and machine learning technologies. With the help of those tools you can simplify the process of recording and managing financial transactions. Therefore automated bookkeeping mimics human data entry in finance software tools. By integrating such a tool, you can automate various tasks:
Automated bookkeeping software can be integrated with your financial systems, such as bank accounts, credit card accounts, e-commerce platforms and payroll systems. This allows the tool to retrieve important data from those sources, for example from bank statements, invoices, receipts or sales records. My using ML (machine learning) technologies, transactions get directly sorted into the relevant categories. Automating comes in handy especially for high-volume transactions that regularly repeat.
Furthermore, employees can scan or upload images of receipts and the set up system will extract the key information. This way the data gets added to your accounting software while eliminating the need to keep track of paper receipts. You can even trigger reimbursement payments to the person who submits the expense. The automated workflow can be connected to cloud storage solutions like Dropbox or Google Drive to track expenses.
The advantages you will experience after successfully integrating automation into your accounting can be basically broken down in three main points:
In order to achieve correct and clean bookkeeping with manual labor, you need to invest a lot of time. Given the fact that it is repetitive task that needs to be done regularly, it doesn’t only waste time but also money. Automated bookkeeping saves you time and therefore resources as it is scalable, allowing businesses to handle growing transaction volumes without increasing the administrative workload. This way you can increase efficiency and spend more time on the tasks that matter.
As with all important documents, your accounting data should be organized so you can easily find what you are looking for and understand the information. With automated bookkeeping, you can generate financial reports and analytics which provide valuable insights into the financial records of the business. Additionally, you will always work with real-time data and have the possibility to collaborate between multiple users on financial tasks. Automated bookkeeping also enhances transparency when it comes to internal and external audits, as it creates an audit trail for every financial entry.
By switching manual labour for automation, you minimize the risk of human error. This way you make sure that the transaction details match across your finance systems and discrepancies get detected faster. Calculating the payroll for example can be quite complex as there are numerous laws to follow, but automated accounting will track hours, calculate salaries, tax amounts and generate paychecks.
There are lots of tools out there that can help you to set up an automated bookkeeping system – but today we will present you three that really stick out:
The cloud-based accounting software is suitable for small and medium-sized businesses. With a range of features and a user-friendly interface it ticks all the boxes and is a valuable resource for those who seek to save time and improve financial accuracy.
The Swiss business management software allows you to focus on various aspects of running a business in general, including accounting. Thanks to its features like bank reconciliation or expanse tracking, companies ensure tax compliance and can optimize their bookkeeping processes.
The invoicing and accounting software is a handy tool for small businesses and freelancers, offering features like automatic data capture and financial reporting. Designed to simplify certain aspects of bookkeeping, it is a reliable partner to reduce the administrative burden of manual data entry.
As nerve-wracking as bookkeeping can be, it no longer has to be if you start to use financial software for bookkeeping services. By automating this complex yet highly important task, you can increase efficiency, enjoy structured financial data and reduce errors. Let’s take accounting back to what it should be: a base to carry the rest of the business, and not a burden.
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