Accounting Software

Automation In The Accounting Industry (and how to adapt your small business!)

By May 24, 2018 No Comments

From self-driving vehicles and semi-autonomous robots to algorithms and predictive analytic tools, machines are becoming increasingly capable of performing tasks (and jobs) that have long been a part of the human domain. Its capabilities is the reason why automation has become essential for both small and medium size companies to remain competitive in today’s market.

As automation becomes a more prominent buzzword across a range of business sectors, the usage of AI and machine learning is no longer a fluff topic—there are now numbers to confirm it.

According to a recent study conducted by Three Deep and Ascend2, almost two-thirds of businesses that identify as “very successful” use automation software extensively throughout their operation.

In 2015, a PwC study identified several jobs that are most at risk from automation in the next 20 years. Fast forward to today, automation is no longer a distant dream like it was a few years ago. Nowadays, data-driven tools are affordable and simple-to-use so that small business owners can easily leverage and make the most of them.

Integrating automation and technology for your business helps alleviate unproductive, routine tasks so that you can focus on the good stuff: like strategy-planning and adding value. Find out why these trends matter, and how it affects your small business.

Decrease Unproductive Tasks

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Bookkeeping isn’t a stroll in the park—it requires a keen sense of detail, attention, and time—all of which many small business owners struggle  to have. According to CPA and founder of BAI  Bragonier &  Associates, Dwayne Bragonier, “What you have in our industry is a big spectrum that is really dealing with transaction recording. There is no question that it will become more and more automated in a very short period of time.”

Automating your bookkeeping offers many advantages for small business owners. Productivity increases when tedious tasks such as transaction recording is done for you.

Let’s look at this scenario:

If an accountant is able to have his or her bookkeeping tasks (filing, bill pay, transaction recording) automated, there would an increase in more productive tasks, which are to provide and interpret “dashboards” or reports that deal with value—including rising above the details and grasping the meaning from a set of information the company holds.

Similar to accounting work, small business owners also need to free up time for the more substantial work, like building your business, connecting with clients, analyzing competition, and finding ways to make your small business more profitable.

As you can see, a great deal of benefits comes from automating your accounting. Let computers take over routine tasks, while you switch your focus on tasks that make a real impact on your business.

Don’t Take Your Time

Technology futurist Rick Richardson, CPA/CITP, CGMA, managing partner of Richardson Media & Technologies informs us that there is no doubt that the new world revolves around:

  • data quality
  • data analytics
  • business intelligence
  • data modeling
  • data governance

Despite the digital era becoming increasingly prominent, some businesses are in danger for taking their time to adapt to technology and innovation including automating their bookkeeping.

Shaping your business’ technological advancement based on your client’s needs is important, but it shouldn’t be the only driving force—especially as we head over to the technological tipping point. You want to be a part of the small handful of businesses who are far better prepared than others.

Richardson predicts, “auditing is going to end up being done by 50-100 firms, and these firms are smartly building software and systems as we speak to start auditing in this new era.” Kashoo for example, uses automation match transactions from connected bank accounts to invoices and expenses—significantly reducing the amount of time needed for a bank reconciliation. Log everything in the cloud, on-the-go, and let our software take over the redundant tasks!

Know the Opportunities that Automation Brings to your Small Business

In a world of seemingly infinite data, it’s true that many processes in accounting and bookkeeping workflows are becoming increasingly automated. However, this doesn’t mean that accountants are going the same direction of telephone switch operators!

In fact, automation increases value—as long as new concepts of value are continually being developed. The freeing up of routine tasks through automation can actually be beneficial to many different professionals, including small business owners. Some of these include:

  • Less time spent on transactional, redundant tasks (i.e. document collection, data entry, bill pay)
  • More time spent to properly identify issues/uncovering insights
  • Less room for human error and redundancy
  • Data processing takes seconds, whereas it might take longer without automation
  • Bookkeeping transactions can take place anytime and anywhere from the ease of your smartphone or iPad

Understanding these key opportunities that come with every wave of innovation such as automation is critical to moving forward with the digital era and allowing your small business to thrive.

Just like Richardson’s predictions, adapting your business to your client’s needs is important, but remember that the needs of the industry amidst changing times are equally as important. And while technology innovations exceed human capacity in certain aspects, there are plenty of opportunities that automating your bookkeeping brings that benefit your business, rather than harm it. Interested in the future of accounting software? We go into detail in a previous blog post.

Automating your accounting is only the beginning. If you’re looking for an innovative accounting software to get some routine tasks off your plate so that you can focus on building your business, get ahead of the curve today and try Kashoo for free!

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