10 Ways to Automate Your Business Finance and Accounting System
If an organization's accounting system is outdated, it might be time for them to automate their company system. Not only can they streamline their financial reporting, but it will also give them peace of mind to know that everything is up-to-date after looking at the financial reports.
“Automation does not remove humans from the process”; it empowers them by providing a solution. Apart from this, automation serves as an auxiliary solution, which, in turn, helps bring efficiency and productivity into an existing financial system.
Different Organizations tend to automate their financial method as it helps them in time and cost savings, being audit-ready on time and helps in acquiring total visibility on accounts payable, account receivable and key financial indicator. Listed below are the top ten ways to enhance the company's performance by automation, therefore improving its financial efficiency.
1. Data Collection and sharing
Technology has changed the way of data collection. A database management system is available to create data, store, and manage the data. Today several organizations have been linked with their clients, customers, vendors, and employees as the data prevailing within the firm can depict a story about its relationship with other sources. They can improve their operational tasks with this relevant information. Using Microsoft one drive where the information has been kept confidentially, an organization can arrange its data month wise in one place.
2. Cloud-based accounting software
A cloud based accounting software like Zoho books and quick book, which is the most trusted accounting software used by most of the business to run its operations smoothly. Below are the benefits briefed by the cloud based accounting outsourcing firm, which help in the functioning of the business efficiently:
By installing the software by the firm for the entire accounting process, it will help in reducing the manual work done by the different people, such as capturing and examination of every business transaction that will be done by the software itself.
To survive in the market and for the fruitful results, the businessman automates their company’s technology by installing the best software for their firm.
3. Payroll and attendance
Technology automations ensure that managing the payroll should not be stressful for our clients. Software like “Greathr and Zoho Payroll” is used to track the working hours, calculating wages, taxes, and other such deductions, delivering paychecks and paying the taxes to the government. The benefits of using this software has been listed below:
Able to manage the leaves and the attendance
Self service window to each employee
Helps in claiming for the compensation related to the various office expenditure
Generate accurate salary by the finance team by calculating the attendance and deduction of the claims
4. Banking Automation and reconciliation
A cloud based accounting software fetch the banking transaction from banking server and make available automated bank reconciliation. It helps in removing the involvement of a human being while recording the transaction, therefore, reducing the risk of fraud. Hence, every firm needs to follow the real-time cash flow management system as it gives an accurate picture of the past, current, and future cash flow, which guides a firm in making strategic decisions for the business's brighter future.
5. Expense Management
By using the software such as “Expensify and Zoho Expense”, various organizations' workload has become quite a natural process, such as managing the travel claims and reimbursement submitted by their employees. By switching to automated expense management software, many firms can enjoy the benefits of dynamic automation, which will reduce errors.
6. Regular compliance
It is difficult to remember many passwords of various tax sites and keeping records of monthly returns in folder consume too much time. Using software “compute office” help to calculate the taxes and filing of all regular returns and forms. It also help in securing the login details of an individual with limited access to the information related to the process.
7. Vendor payment automation
Managing account payable or vendor payments was never a smooth function for a business owner. He is always dependent on accountant for invoice booking, party balance and issue of cheques. Being Bookkeeping outsourcing company, we use secured software to automate all these processes. With the help of this technology, business owner can check invoice status, party balance, overdue payments and has access to make payment on single click from anywhere.
8. Invoice from anywhere and Payment collection
Thanks to technology, now every business can auto-generate the recurring invoices; therefore, helping an organization has more robust reporting options. It is helpful to analyse receivable aging and sending auto reminders to customers. Also, it is suitable for the customers to manage their payments online as they can make the payment through the various online payment mode such as through debit cards, credit cards, or through the payment link received from the firm right in their email with the invoices. Business owner can plan his cash flow runway as he can check expected payment receivable in coming month.
9. Communication with client
With the help of “Microsoft Team”, bookkeepers and accounting team can interact with business owners and management. A channel based communication system provides a single window for chatting, online meeting, group discussion, data sharing and task tracking for effective performance. Though, Client’s books are maintained by virtual accounting department, but this tool gives experience of in-house account department.
10. Real-time reporting dashboard
With data analysis dashboard software like “Zoho analysis and Fathom”, companies can monitor business performance and identify the improvement opportunities for its smooth operations. It provides you real time business key financial indicators, cash flow statement to plan your cash runway, Budgeting, financial statement and account receivable and account payable aging and many more as per management requirement at a single click of your desktop or mobile phone.
Peace of mind
I hope that the Top 10 ways shared with you to automate your finance department are quite useful. With the implementation of an automated financial system, it can help in improving the efficiency of operational work. Many start-ups and small and medium companies are reducing accounts department costs by “outsourcing finance department” to us.
Every organization should have dashboard to check-in and ensure that things are running as expected. It can help in eliminating the redundancy and repeated tasks.
Automation is available for your small business bookkeeping and accounting now - it’s time to look into implementing these tools to optimize your back office operations.
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