According to this PwC report there’s a 97.5% probability that basic bookkeeping and accounting will be replaced by automation over the next decade.

With automation, the role of bookkeepers must evolve from their traditional role of dealing data entry and numbers. They should evolve into offering strategic solutions, adherence to compliance; identify areas of cost reduction and cash flow projections.

Any accounting firm, once adapt bookkeeping robots as part of their workforce, can free up their accounting team and channel them into doing more productive tasks. 

The tasks ready for automation under the bookkeeping ambit are stated below.

What are the bookkeeping tasks that can be automated?

1. Extracting data from statements (Bank/Credit cards)

• Accessing statements from bank accounts and recording those simultaneously in accounting software (like QBO Online, Xero etc).
• Ensures accuracy of transactions

2. Sorting and categorizations of transactions

• When rules are configured through automation, banking transactions are easily sorted and categorized in the accounting software
• It is precise especially for repeated transactions

3. Initiating accounts payable processes:

• Automation set-up helps in detecting emails with invoices attachment
• Matches the invoices to the relevant expenses code along with supporting documents like (PO, delivery slip etc.)
• Commences the workflow to the assigned person for approving payment

4. Managing Payroll:

• Automation helps in tracking monthly salary payment to employees
• Calculate payment by adding commission or deducting leave etc
• Apply tax deductions in compliance with government rules
• Generate payment by either paychecks or bank transfers

5. Reimbursement process:

• Automation extracts the needed information from receipts and posts in the accounting software.
• The payment teams will be notified for payment approval

Results achieved through bookkeeping automation:

Firms, recognizing and using digital workers in bookkeeping tasks will gain immensely due to

1. Improved accuracy of records:

Traditional accounting uses ‘manual data entry’ and it is always subject to human errors. When firms adopt Bookkeeping automation, it wipes out errors and replaces with high standards of accuracy and audit ready records.

2. Shifting focus

Traditional accounting teams generate billing only in time consuming tasks like

• Sorting, categorizing, and recording transactions
• Processing and posting reconciliations

With automation, the team can shift its focus on complex and planning tasks like financial analysis.

3. Financial data availability:

The time taken for availability of data and waiting for the month end reporting cycle is eliminated by using robotic automation. For decision making purposes, management needs real time financial insights and automation can make it possible.

4. Gaining time and saving cost:

Statistics support a cost reduction of 80% and time saved to perform tasks by 80 – 90%.

5. Facilitates business development:

As per reports, automation aids in business growth along with improved accuracy. Helps to develop new business models and expand into new markets with quick real time data.

Whether we like it or not, bookkeeping automation is here to imprint its footprints in the accounting industry. It is better to be part of the movement rather than neglect it. If you are an accounting firm (of any size), you can start hiring a digital worker (or bookkeeping robot) to co-share the burden of your bookkeeper. We are available to guide you into the world of bookkeeping automation.