The size of the accounting firms may differ, but the bookkeeping practice has mostly remained the same for decades. The bookkeepers are often called as ‘gatekeepers’ and their tasks include…

• Recording and categorizing transactions in the ledger
• Posting and reconciliation with bank accounts
• Preparing key financial statements
• Handling bills and initiating invoices for accounts receivable processes
• Maintaining payroll

Reasons why bookkeeping is important for accounting firms

• It is a reliable measure to understand the financial strength of the firm
• It sets a standard to know where investment and income / expenses and liabilities occurred
• Helps in making crucial decisions for the management
• Gives external users (investors, government) to promote a healthy image of the firm
• Balancing of books lets accountants to complete yearend financial review and prepare for tax filing

Why automation for bookkeeping?

Bookkeepers main task is to post endless number of transactions and often end up spending highly unproductive hours. Despite this, accuracy cannot be relied upon.

While some bookkeepers rely on desktop accounting software (like Quickbooks Desktop), accessibility to information is limited since the program is installed only for a few computers. A solution for this is to move to cloud accounting software like Quickbooks online, Xero, Sage etc.,

However, the hard copies of invoices, receipts and checks must be entered manually into the software, resulting in time wasted due to inefficient processes. Therefore, it opens an opportunity for finding a different solution.

The tool of the current digital age to co-share the work of bookkeepers is ‘Bookkeeping robots’. This technology brings alignment to the bookkeeping workflow with a mix of cloud technologies, artificial intelligence, machine learning and other technologies.

Robots integrate easily with accounting software and produces effective and efficient results.   

9 reasons for adopting bookkeeping automation:

Automating bookkeeping is not about introducing a new technology for the finance & accounting division. It is the main root supporting the entire financial system at an organization. Let us look at 9 reasons why bookkeeping automation must be adopted.

1. Stress relief:

Using robotic automation, bookkeepers are able to handle their tasks easier with minimal errors. So, bookkeepers are relieved from the stress faced during the closings (monthly, yearly etc).  

2.  Accuracy:

In terms of accuracy, there is a wide gap between human and digital workers. In the case of bookkeeping robots, the margin of error is almost negligible, whereas the same cannot be said about human intensive bookkeeping.

3.  Digital Storage: 

The era of maintaining files safely for future reference occupying a lot of valuable office space is over.  Through automated bookkeeping all-important documents like receipt, invoices are stored conveniently in computer folders occupying very little space. 

4.  Retrieval of Data: 

Both documentation and retrieval of documents or data from archives is a time-consuming job. Automation frees us from the trouble and data can be instantly retrieved.

5.  Time Saver: 

With automation, simple but tedious jobs are done by bots accurately.  Humans can utilize the freed-up time in a productive manner.  

6.  Cloud computing: 

Since bookkeeping automation functions through cloud computing humans can work remotely.  Further, everyone will have access to information to do theirwork any time. This is an added advantage for both the employer and employees. 

7.  Simpler Integration: 

Bookkeeping automation gives us means for having a smoother integration between all our financial systems. Integration helps in getting accurate and real time data across the platform for making crucial decisions, by management.  

8.  Cost savings: 

Automation can save significant amount of labor cost and the ROI is achieved by most firms within a year.

9.  Affordability: 

The initial set-up cost is relatively affordable, helping smaller accounting firms also join the automation race.  Further, bots give the flexibility to automate processes or tasks, by phases.  

Bookkeeping automation is the magic potion within the reach of firms doing accounting.  The idea behind automation is to expand human involvement to a greater extent and allow them to do many productive and creative tasks. 

If you are an accounting firm, you should seriously consider bookkeeping automation now. Talk to us and view our demo, we are here to help you add automation to your bookkeeping process.