Reducing costs and increasing revenue is the basic formula behind every successful business. Technological advancements in the form of automation have made it much easier for businesses to put this formula into action. In fact, if you are not automating certain parts of your business the resistance is likely costing you money. For businesses large and small, manual accounting can cost your business time, money, and result in unreliable financial data. However, you can save money by automating accounting processes at your business. Below you will see the benefits of automating accounting so you can increase your profit margins.
What is automated accounting?
Automated accounting removes the manual elements of accounting. It also reduces the need for complex ledgers as accounting automation has everything built into the program already. The purpose of automating accounting is to make the process smoother and simplify your business finances. Automation just removes the least efficient parts of accounting so you can focus on more strategic planning to improve your business. Your accountant can also divert more of their time that was otherwise spent on mundane data entry tasks on short-and long-term financial planning to help your business get to the next level.
Part of the resistance towards automation is that it is the unknown for some. While this is understandable, automation is the new normal for certain business processes. Investing in a new process or automating an area of one’s business can cost both time and money, two of the most valuable resource in any business. Despite any hesitations you may have as a business owner, automating accounting is necessary and cost-effective for any business. This includes offsetting the cost of implementing the automation system.
The Benefits of Automating Accounting Processes
There are a variety of benefits to automating your accounting processes. Consider the following if you are unsure about the way in which accounting automation can improve your business.
Save on Payroll Taxes:
Tax season is likely the least exciting time for any business. However, with automated accounting it can be just like any other time of year. Automated accounting can actually help you save money on taxes. More than half of small businesses pay more than $800 in preventable payroll tax fines each year. Much of this is due to the failure to keep up with employment regulations which can result in unnecessary fines. Automated accounting can help organize your finances and even calculate payroll tax deductions based on real-time transactions. Automating your finances can help you save money during tax season due to the organized financial data at your fingertips.
Depending on the type of business you have, you’ll likely need to keep certain records for a few years. Automated accounting allows you to save the documentation related to your data in a reliable and safe place. This can come in handy for your day-to-day business needs, but it can also be helpful during tax season or if you are audited.
Automated Sales and Invoices:
Automated accounting platforms can import online payments and automate invoices. This can help take so much off of your mundane to-do list as e-mailing invoices and manually entering sales data can take unnecessary time. Synchronizing your accounts, in addition to automating certain financial tasks, can help streamline your financial processes and leave time for more strategic tasks focused on growth.
Accurate and Reliable Data:
One of the major drawbacks of manual accounting is how inaccurate and unreliable the data is. Accurate financial data is integral for the short- and long-term success of your business. This is because the crucial business decisions that you make rely on accurate accounting. Automating your accounting processes can provide this which will save you time and money, eliminating any worries you have about the reliability of your financial data.
Timely and Efficient Reporting:
Without automated accounting processes in place, bookkeeping can often be placed on the backburner. Businesses often have day-to-day tasks that have to be performed for the business to run. While accounting should be one of those priorities, it can often be pushed off of the list of priorities. Automated accounting can provide timely and efficient reporting. You won’t have to wait for an accountant to give you a deadline on when they can provide you with the numbers you requested as they will be at your fingertips in no time with automation.
Saves Time and Money:
Time is an important business resource, so saving time inevitably results in saving money. Automating your accounting procedures, including all implementation costs, will save you time and money. Your accounting team will no longer need to spend time on mundane tasks, which results in increased productivity and a better use of their time.
Automating your business’s finances can help you and your employees get tasks done in a fraction of the time. It helps save time, reduce resources, decrease costs, and eliminate unnecessary errors caused by manual accounting. Consider automated accounting for your business and contact the experts at Indevia accouting for more information.