If you have any exposure at all to the business world, you have likely heard of accounting automation as one of the up-and-coming technologies when it comes to business planning and optimization. Having an automated accounting system is now considered a must-have for larger companies that deal with thousands of transactions a day, but it’s a relatively well-kept secret when it comes to smaller and medium-sized businesses.
While there’s no real reason that all businesses can’t use the power of automated accounting, there is one real barrier that businesses face—understanding and implementing an automated solution. Here is everything you need to know about automating the accounting processes for your company.
What Needs to be Optimized?
This is an important question to consider before taking any concrete steps in automating your accounting processes. While almost every single company can benefit from accounting automation, every business is unique and has specific transactions and tasks that they prioritize.
The first step in implementing an automated accounting solution is identifying which processes can benefit from technology. It would be nice to automate everything, but it’s not always practical. First, identify the pain points in your business and determine what you are spending the most time and effort on.
You’ll save a lot of time and money by methodically moving through the workflows of your business and identifying what can benefit from automation.
Find a Configurable Solution
This is a crucially important characteristic of whichever solution you decide to implement. You want your automated accounting solution to be configurable. But what does this mean? It means that you can enter your settings and parameters to determine which jobs your software does and how it does them. Generally, a configurable software has an easy-to-use interface and will allow you to command your automated accounting software at will.
One area of confusion in this realm is configurable vs. customizable. A customizable automated accounting solution is different—with this feature you’ll need to alter the program code to fully operate and change the software. This isn’t ideal for small or medium-sized businesses.
To avoid having to involve IT and other employees in your accounting processes, it’s best to implement a solution that can be easily configured by the main users.
This is one of the most common roadblocks that businesses face. Scalability is an incredibly important property for your automated accounting software to have and will allow your business to grow freely without being hindered.
As you grow, some of your processes will no longer be applicable or sufficient to aid your business. In most cases, this will mean having to implement an entirely new solution, retrain staff, and reconfigure all of your settings and programs, which could take months to fully implement.
A scalable automated accounting system will grow with your business to meet your needs. It will either initially have the right capacity for your specific workload, or it will be built in a way that makes it easy for you to add on functions and tasks in the future.
The business world is always finding ways to adapt and optimize different processes to increase profits and decrease waste. Now that you know what an automated accounting solution is, what it does, and what the benefits are, you are ready to start the journey towards implementing the right solution for you.