Essential accounting departments are replacing their routine, time-consuming tasks with automated solutions.
FREMONT, CA: Accounting has conventionally been heavily dependent on manual operations, but there has been an increase in automated solutions in recent times. Firms have been implementing technologies to boost operations and streamline workflow to save costs and time. Technology deployment is important for finance professionals to increase productivity, mitigate human error, and have staff focus on strategic activities. Essential accounting departments replace their routine, time-consuming tasks with automated solutions to make the best use of their resources. Here are some accounting processes the business should automate to save costs and time.
• Accounts Payable
The accounts payable section is often overloaded and prone to errors due to the heavy dependence on manual activities. It is no surprise that the top pain points for firms, small to large-scale, are centered around manual operations, like data-entry, approval follow-up, searching for lost or missing invoices, filing, and resolving discrepancies. These issues can all be addressed with automation. An AP allows stronger controls, enhanced quality, the decline in errors and duplicate payments, and reduces major AP risks like fraudulent payments.
• Accounts Receivable
Manual AR systems comprise preparing and mailing invoices, depositing checks and waiting for funds to settle, poor visibility in payment status, and a delay of repetitive tasks resulting in employee exhaustion. AR automation will result in time savings of work hours. The cost to prepare an invoice in AR can be as high as $11.50. With AR automation, firms can bring the cost closer to approximately $0.71 per invoice.
The more repetitive the accounting process, the more advantageous an automated solution could be for the business. Discrepancies within a payroll system can have far-reaching impacts, often resulting in the firm's deterioration of trust. Payroll can become a complicated function without the right set of automated tools and features. The amount of data processing that goes into payroll can get overwhelming from calculation accuracy to intricate activities like compliance with tax law. Manual operations pose a high-risk in times of heightened data protection within payroll.