One can get to know about automation testing with the help guides found online. Automation testing paved the way for implementing automation in business processes. Repeatable business process workflow adds value to each step of the process.
However, we can’t automate every single business process. But some operations are perfect for automation. Luckily for business owners, bookkeeping, tax computations, and accounting are just some of these processes.
The Benefits of Automating Accounting
There’s a long list of benefits to automating business processes like bookkeeping and tax calculations. But, before we dive into how you can automate accounting, let’s take a quick look at why you should turn to automation.
Automation Saves Time
There may be minimal reconciliation needed. The accountant only needs to double-check what the system prepared. Confirming the classifications are right, and that the system has posted transactions in the right account initially while remaining in balance are the critical steps. Pre-accounting tools like Vic.ai or Dext are currently doing this type of work. The accountant can then spend the rest of their day doing more productive tasks.
Automation Reduces Human Error
Learning how to utilize automation properly for accounting tasks can help streamline business processes. Making sure your automated processes are correctly working is key to ensuring the accuracy of your reports.
But, whether you’re planning to optimize your existing accounting program or you’re looking at the top accounting software systems in the market, it’s best that you also learn automation testing. Learning automation testing allows you to check whether your automation efforts are working and how well they’re performing to achieve your goals. Automation testing also helps ensure the accuracy of your reports and the reliability of your data.
Automation Boosts Productivity
When you learn to make computer programs work for you, you can get more things done for more clients with less effort. You even free up your schedule for something you’re more useful for — like guiding clients and helping them manage and grow their financial wealth. If you have built a Client Accounting Services (CAS) practice, you can add Advisory Services for greater client satisfaction.
5 Steps to Automating the Accounting Process
Step 1: Know Where You Stand
This task may take you a while, but you need to understand how the people involved in accounting processes do their jobs. These aren’t just your junior and senior accountants. First, you need to list all the tools that you currently use, who uses them, and what you use them for.
For example, you might be using Excel for budgeting, forecasting, and expense management. The finance department, accounting department, and finance manager use Excel for one or more of these functions.
On the other hand, payroll managers and junior accountants may be using another software for payroll management. Therefore, if secondary tools are required for any core accounting tool to function, you should include them in the list.
Step 2: Choose an Accounting System
Consider your accounting goals, your budget, and your workforce when you’re choosing a core accounting system. Aside from the basic features, it would help to consider security features, customer support, automation integration, and user experience.
Step 3: Migrate Your Data
This step should also allow everyone involved in the accounting process to adjust to the new system. Training should be provided to employees. Primary users should learn the best way to navigate the system because they will work with it more often than any other employee.
Adjustment can take weeks or months, depending on how much of a change you’re implementing. However, by the end of the adjustment period, primary users of this core system should already be confident in the automation performing basic and complex accounting tasks.
Step 4: Automate, Test, Integrate
An accounting system that isn’t customized for your business is doubtful to serve as an all-in-one solution. However, it’s typical for business owners who already use an off-the-shelf accounting system to integrate additional automation functions.
Businesses rarely use just one system for all their financial management needs. While you already have a core accounting system, you may want to utilize additional tools to help your employees. In addition, some accounting systems allow automation integrations. As always, automation testing should be performed before any of these functions deal with any actual data.
Step 5: Monitor
- Data reports are more accurate, and there are fewer accounting errors.
- Accounting teams are more efficient and productive. They should be spending less time generating results and more time performing analysis.
- Redundancies are found, and accounting processes are optimized.
You should be seeing an increase in the quality of work produced, an increase in employee productivity, and a decrease in human errors. In other words, the business should now benefit from automating the accounting process.
Accounting automation isn’t just about choosing the most expensive or the most popular accounting system in the market. Instead, it’s about knowing where you stand and choosing an automated accounting system that helps you achieve your goals.
Learn more about emerging technologies, RPA and accounting software with K2E Canada Inc. CPD courses.