Manual bookkeeping has many disadvantages that should be replaced with automated bookkeeping solutions. Keeping records, managing, and reconciliation of financial statements is not easy in traditional bookkeeping.
That is why employees find it hard to execute this tedious task. Anyways, automated bookkeeping has the solution for every problem of the finance department.
Almost 58% of enterprises have already moved their concern to adopt technological advancements. Rest of the organizations are planning to adopt cloud-based services.
Before moving to the benefits of automation; let’s understand what it is.
What is Automated Bookkeeping?
It allows employees to store their data in one place through different techniques. Authentic users can find their data with just one click at any place at any time. However, automation benefits exceed in contrast to manual bookkeeping. That’s why more and more companies are heading towards it.
Let’s discuss the in-depth benefits of automated bookkeeping.
1. Less Chances of Fraud
Of course, manual bookkeeping has failed in detecting fraud as many employees are involved in keeping records. It is very difficult to understand who is involved in the fraud process and why.
But, fraud can even push the organization to exit the state. In which sense fraud can lead to the dissolution of a business? Let’s understand this with an example.
When an employee intentionally adds a wrong entry with the name of a person who is not even on the list, obviously the company will pay the amount to the wrong supplier.
What does this mean? A large amount of money has been sent to the wrong person. This person is not going to send this money back at any cost and the cash that can be used elsewhere for any startup or investment, is of no use.
These situations can be reduced with the help of bookkeeping bots. These financial bots automatically discard wrong or malicious entries by sending a warning sign to users. So, no one can do fraud with finances.
2. 24/7 Accessibility
Let’s imagine another situation; the CEO wants financial statements after working hours but no employee is willing to do overtime. Who is responsible? Obviously, employees are not robots and they can’t work 24/7 as it is out of their control.
So, automated bookkeeping is the way to access financial statements anytime at any place. No employee is required to access them and the CEO or CFOs can directly access them by inserting their login password.
It is now easy, right?
3. Cloud Storage Capacity
It’s quite difficult for CFOs to record and manage all the financial statements manually and the most critical part is to store them. It requires infrastructure, not only this but maybe lots and lots of rooms are only filled with hard copies that may be useless for the company. But, the company can overcome this issue by acquiring automated bookkeeping services.
How can automation play its role effectively?
Automated cloud computing services can increase the storage capacity of any company. It transforms the procedure of manual bookkeeping into scanning invoices and receipts.
Users can access this financial information with just one click at any place and at any time.
4. Increases Employees Productivity
Manual bookkeeping is tedious and consumes employees’ energy to an extent that becomes furious and unable to produce productive data. Obviously, emotions matter everywhere and the company can’t ignore them at any cost.
Again the solution is automated bookkeeping. It reduces employees’ workload and spares time for them to gain expertise in analytical and operational skills.
It not only helps employees but also the company because after learning, employees will apply these skills.
Key Takeaways
Automated bookkeeping is a best practice to gain a competitive edge. Many companies already shifted their concern towards cloud-based software and the rest of them are considering doing so.
Keeping records and managing financial transactions is a crucial state of business. It should be secure with all types of locks as it is the company’s most sensitive data.
Moreover, automated bookkeeping is a game changer in the financial world as it has the capacity to transform all the manual tedious tasks. Almost more than 58% of companies invest in accounting solutions after analyzing their more positive outcomes.
Let’s conclude this blog by highlighting the most important aspect of automation, which is to maintain a good relationship with customers.
