If you are doing the accounting process manually and as a one-person team, you will know how slow-paced yet rigid this process is. Even maintaining records, bookkeeping, and journaling alone can be taxing, consuming both your time and patience, especially if this is not something you trained for in school. This is especially aggravating for companies as businesses need to be time conscious and always up to date on finances to make good financial calls and business decisions.
You may be tired of this drawn-out system, and when you are caught up in the accounting cycle, it may seem like an endless pile of papers that you need to record, double-check, post, and audit. However, it does not have to be that way. With the advent of technology, you can take measures to make this process more expedient, effective, and efficient. One great measure you can take is to leverage technology with automation.
Accounting automation allows you to expeditiously manage, measure, and analyze your business finances, enabling you to track immediate data, such as cash flow movement. Doing this shall help you identify areas of your company that need more resources, or conversely, areas where budget cuts may be made. The word “automation” may sound scary and technical, but it is actually very easy to implement with technological advancements in the accounting scene. Here is how you can incorporate automation into your business’ accountingprocess:
1. Assess Your Current Accounting Processes
Before switching to an automated accounting interface, it is best to evaluate your practices and find the right timing to do so. One helpful thing to do would be to ask the following questions as honestly as possible:
– How much time, on average, do you spend on each bookkeeping and accounting task?
– Do you do these tasks repetitively and frequently?
– Is your data often prone to errors?
– What current tools are you using to carry out accounting tasks? A calculator? Notebook or Ledger?
– Is it mentally draining and stifling your creativity?
If you find that you are spending way too much time on certain tasks, doing these tasks repeatedly and frequently, or finding errors in your work, it may be time to invest in automation to ensure your company’s fiscal health. That’s not to say that you are incapable; but it is alright to ask for assistance when the going gets tough.
2. Research on the Best Accounting Software and Select the Right One
There are many accounting software options there. It is always best to research each one and note down the specs included, like required storage space, cloud-based, wifi dependence, etc.
Additionally, it would be best if you considered whether it has all the features you need. Assess the following:
-Does it fit within your budget?
-Will it meet your long-term accounting needs?
-Are there any better applications than the one you may currently be using?
3. Begin Automating Your Entire Operations with Proper On-Boarding
Once you have found the right software, you may proceed with accounting automation. Most software will have a helpful on-boarding tutorial for you and the team. It is usually a very easy process as it involves setting up the software.
Then, you can customize pre-built reports, link accounts to the database for easier reconciliation, and integrate other tools you need. For example, you can add customer support, app payment feature, and the like.
What Accounting Processes Can You Automate?
Accountingtasks that can be automated includes:
– Payroll services
– Payment reminders
– Books of Accounts (for all assets, liabilities, and equity)
– Tax reporting
Note that other features may be added and customized to your liking depending on the flexibility offered by your chosen software. Some systems are directly linked to POS systems and may be useful depending on the nature of your business.
Seeking Professional Help for Accuracy
If you feel like a fish out of water when you deal you’re your company’s bookkeeping and accounting, it is time to put yourself out of your misery. Though an accounting software will help you record every aspect accurately and minimize mistakes, nothing can compensate for the help of a certified public accountant.
A professional can help you audit your books and make sure everything is in order. Then, with the right insight, you can lower your tax dues with the correct deductibles and ensure tax compliance. If you need help, don’t hesitate to call our team of CPAs. We can set up the right practices for your team, audit your documents, and ensure tax compliance to prevent penalties. We offer free 30-minute consultations.