In the traditional way of bookkeeping, the whole workforce team of finance records daily transactions. They record transactions of expenses, the amount of cash the company has in hand, and current assets and liabilities.
A bookkeeper records all necessary details in a ledger, trial balance, balance sheet, or profit and loss statement. Recording every detail is very difficult.
To overcome these difficulties, AI has introduced financial bots. These financial bots are not robots but AI and ML-driven software or apps that help reduce workload.
It can save time, enhance productivity, and reduce the workforce. The main purpose of automated bookkeeping is not to reduce the workforce but to reduce stress along with increasing productivity.
What is Automated Bookkeeping?
It is the procedure of recording, interpreting, and organizing daily financial dealings. These financial transactions involve expenses, cash in hand, and closing of every month.
Every entry is properly placed in every financial statement. An authorized person signs in with his unique ID through which he can access the system. This authorization saves companies from fraud as financial statements remain confidential. Not everyone can access these statements like in traditional bookkeeping.
3 Reasons Why Businesses Need Automated Bookkeeping
Automated bookkeeping is a necessity of every business nowadays. The world is transforming rapidly so is the advancement of technology. This technology helps the finance department to boost its productivity with the combination of AI and ML.
Let’s discuss the major three reasons why every business needs automation.
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Cost Saver
Traditional bookkeeping was not interesting and employees felt a burden to record every transaction. Sometimes the loss of information and overwriting leads to wrong entries.
Automated bookkeeping solves these issues, and business owners just have to pay the required initial investment to buy the software. It frees them from the cost of hiring a whole finance team and its training. 89% of companies are planning to adopt cloud computing software.
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Enhance Record Accuracy
Manual data entry has many human errors and mistakes that make financial records less accurate and reliable. Human error is natural but it can be minimized now through automated bookkeeping solutions.
As 16% of company employees state productivity has enhanced and there is long-term sustainability through automation.
An authorized person just has to scan or upload a document or receipt. Automated bookkeeping services will automatically retrieve all the data and direct it to the desired location.
By mistake, if any entry is overwritten or wrong, the software automatically warns the user. This process enhances the reliability and accuracy of data because there is no room for error now.
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Enhance productivity
As 90% of accidents are due to human errors in traditional bookkeeping. It is due to more workload and less resources. This wastes time, money, and less productivity.
AI contributes to boosting productivity as less human intervention is needed. Everything is automatically done by web-based software so there is no room for human error.
Less workforce is needed so hiring and training a financial team is not a headache now. AI along with ML is contributing a lot in the finance department to boost productivity.
Everything will automatically upload by just scanning and uploading any handwritten document, text, or receipt.
Small and midsize businesses should concentrate more on moving towards an automated bookkeeping system. This software can be really helpful in the long run and to stay competitive.
Diversified Aspects of Automated Bookkeeping and Tax Service
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Employees spend 50% of their time hunting files.
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To reduce operational expenses 24% of every business uses automation.
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Automated software minimizes labor costs stated by 31% of business executives.
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70% of business executives state that they spend almost 45 minutes to 2 hours per day on repetitive tasks.
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It is forecasted that 1 out of 4 occupations in the US will be automated by 2030.
Key Takeaways
Automated bookkeeping is affecting every business globally in a positive way. Automation in every business is doing wonders by saving time and money. It also improves the accuracy level of financial statements.
The above-detailed automated benefits show the importance of automation. If any company automates its all departments they can depict the opportunities and possibilities.
It’s high time for many small and medium companies to invest in automation. Automation will boost their productivity and efficiency level to remain competitive.
