Accounting Process Automation: Keys to Success

Accounting and finance departments are filled to the brim with time-consuming, yet critical tasks. Accounting process automation streamlines workflows and enables operational efficiency.

Accounting in automation and finance is a must-have these days, so let’s take a look at what the benefits of automation in accounting can mean for your business.

Coming Up

What Is Accounting Process Automation?

What are the Challenges of Manual Accounting?

What are the Benefits of Accounting Process Automation?

What are the Challenges of Accounting Process Automation?

What Accounting Process Tasks Can You Automate?

What are the Steps for Accounting Process Automation?

What is the History of Accounting Automation?

How to Evaluate Your Current Accounting Processes?

What to Look for In Accounting Process Automation Software?

Closing Words

What Is Accounting Process Automation?

Accounting process automation is the application of technology to remove the need for manual processes. Process automation software automates workflows to streamline operations, maximize productivity, and reduce errors.

It’s not intended to replace humans, but rather augments their capabilities and frees up their time to focus on high-level tasks.

While accounting process automation may utilize robotic process automation, it is a bigger ticket strategy for efficient operations. It involves rethinking and reimagining accounting departments to leverage technology to assist with mission-critical responsibilities.

Depending on the type of finance automation solution you choose, it can be either out-of-the-box and require no code (such as SolveXia) or it could require an IT team to set up and train staff on its use.

What are the Challenges of Manual Accounting?

If you’re looking towards accounting process automation, then you’re probably already well aware of the challenges that plague manual accounting.

Manual accounting is cause for concern because it can lead to:

• Incorrect data entry and duplication
• Wasted time
• Inefficiencies
• Fraud
• Compliance risk
• Lack of visibility

No matter how effective your accounting and finance professionals are, the influx of transactions and the use of multiple payment processors, along with time-sensitive deadlines, all combine to make manual accounting and processes a risky business practice.

With automation technology like SolveXia, you can immediately overcome these hurdles and make use of pre-built workflows to run your process flows. By deploying SolveXia, you’ll be able to reduce errors by 90% and execute processes 85x faster than you otherwise would do so manually.

The software removes key person dependencies, improves compliance through internal control, and provides real-time analytics so you can make informed decisions. Importantly, SolveXia frees your team’s time up so they can focus on value add tasks and strategic initiatives.

What are the Benefits of Accounting Process Automation?

Accounting process automation can dramatically improve how your business functions on both a day-to-day basis, as well as overall in the long-term. Once you deploy a finance automation software within your departments, you’ll witness:

1. Increased Efficiency

Manual processes are naturally time-consuming. With all the time-savings you stand to gain when you deploy automation technology, your organization’s efficiency and productivity will trend upwards quickly.

2. Enhanced Data Quality

Finance automation software connects and transforms data for use. The system will naturally eliminate duplicate entries and erroneous records. In turn, you’ll trust your reports and analytics more.

Plus, when your team is busy dealing with a high volume of transactions and multiple payment processors, they’ll be searching for more time. Automation software reduces reconciliations from days to minutes, thereby granting back the time they need in their day to get high level tasks completed.

3. Improved Internal Control

Since all processes can run through the software, stakeholders and managers can check in on the process’ status while it’s in progress. Plus, with the possibility for standardization and the ability to run audit trails, internal control is enhanced while compliance risk is mitigated.

With automated forms and pre-submission validation, you can easily increase submission accuracy. At the same time, you gain transparency of end-to-end processes and can consistently meet compliance deadlines 10x faster.

4. Happier Employees and Customers

Automated accounting services leads to a more satisfied workforce. Manual and repetitive data can be a dreadful pain point for employees.

By freeing up their time, you give them the opportunity to focus on value-add tasks and take part in strategic initiatives. At the same time, customers receive better and quicker service, leading to enhanced customer loyalty.

What are the Challenges of Accounting Process Automation?

Accounting process automation is straightforward, especially when you implement a robust and easy-to-use solution such as SolveXia. However, companies may run into challenges when implementing accounting process automation for these reasons:

1. Outdated Workflows

Before deploying automation, ensure that your processes are running in good order. Process mapping can help visualize responsible parties and steps so you can remove any steps that are unnecessary.

2. Change Management

It’s important to communicate the value of accounting process automation with employees before you update your technologies. By properly handling change management, everyone will understand the benefits and be motivated to adopt the software.

3. Usability

Some automation software may be too complex or require coding to customize. This can cause pushback. Rather, find a solution that is user friendly.

What Accounting Process Tasks Can You Automate?

Finance and accounting processes are well-suited for automation inherently. The best processes for automation are those that are:

• Repetitive
• Data-heavy
• Time-sensitive
• Involve multiple people
• Regulated

Take a look at some of the processes you can automate within these departments:

1. Accounts Payable Processing

Rather than manually entering receipts into your system for verification and payment, allow the software to do it for you and connect your systems. The software can extract financial data and sync it with your technologies.

2. Reconciliation

Reconciliation is a critical part of the month-end close process. However, it becomes complex and challenging as transaction volume grows, along with the use of various payment processors (i.e. WorldPay, Stripe, eBay, etc.).

The best reconciliation software connects your data, performs transaction matching, and alerts you of exceptions.

What are the Steps for Accounting Process Automation?

Once you’ve found your chosen software, it’s time to start implementing it strategically.

Follow these steps:

1. Define business goals

Make note of your business goals and ensure that your current processes support said goals. It’s a good idea to include your teams on the ground, as well as major stakeholders to be sure everyone is in alignment.

2. Visualize Processes

Outline your current processes and find places for improvement. You can use process mapping software to assist.

3. Adjust Processes

Make necessary adjustments so that when you deploy automation, your workflows will run as you intend. Be sure to communicate and involve key players in this step.

4. Test it Out

Test out the process before pushing it live across the entire organization. Review the outcome. If all looks good, expand.

5. Monitor

Continuously monitor and analyze the success of your automation solution. It’s an ongoing process so you will always have room for improvement.

What is the History of Accounting Automation?

Accounting automation is all the buzz in this day and age because it’s effective, easy to implement, and simple to use. But, like everything in life, timing is what matters.

Back in the day, accounting automation existed, but it looked a bit different. Since technology innovates exponentially, a lot can change in the matter of years. For example, the world’s first punch card, which can be considered accounting automation, entered the universe during the 19th century when it was used for the United States Census.

Thereafter, accounting machines were developed right around the end of World War II in the early 1950s. The accounting automation we’re used to seeing today started to take shape during the computer age and has proliferated with each passing day.

How to Evaluate Your Current Accounting Processes?

To help fulfill the above steps for accounting automation implementation, ask yourself the following questions when evaluating how your current workflows stand:

• How are your accounting processes executed?
• Where do bottlenecks exist?
• What steps are working well?
• What steps need improvement?
• What accounting technology is in use?
• What stakeholders should be involved in process redesigns?
• What are the upsides of your current tools? What are the downsides?

In order to know where to start, think about the processes that can be automated quickly and easily. Also, think about what processes are necessary to complete in order to move forward with other tasks.

These domino effect processes should be considered most crucial to automate a ripple effect that will take place thereafter.

What to Look for In Accounting Process Automation Software?

Successful accounting process automation relies on a strong automation software. When sifting through the best options on the market, look out for software that is:

1. User-Friendly

At the top of the list for important factors is usability. Not everyone operates with the same level of tech abilities, so a simple user interface can make the world of difference, especially for technophobic employees.

2. Cost Effective

Your software should ultimately help the business, not bleed it dry. Set a budget and review your options within that threshold.

3. Scalable

The goal is for your business to grow over time, but you won’t want to have to replace software frequently because of all the time and investment you will have already made. Choose a software like SolveXia that can scale with your business and handle big data.

4. Cloud-Based

Cloud-based software offers an advantage, and not only because it’s more cost effective. With cloud-based solutions, you can trust that security is automatically updated, and users can access data from wherever they may be at any time.

Closing Words

Once you get started with accounting process automation, you may wonder what took you so long to get going.

Your business’ processes will flow with ease, your employees will feel lighter, and you’ll be able to reduce mistakes without even having to try. There’s a lot to gain from finance automation software.

Book a demo to see how an automation tool like SolveXia can be used to automate critical finance functions, including: reconciliation, regulatory reporting, expense analytics, rebate management, APRA reporting, and more!