Accounting Process Automation: Benefits, Tools & Steps

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?

Why Manual Accounting Puts You at Risk

Top Benefits of Automating Your Accounting Workflow

Common Challenges in Accounting Process Automation

Which Accounting Tasks Can Be Automated?

Role of Technology in Accounting Automation

How to Implement Accounting Process Automation in 6 Steps

The History and Future of Accounting Automation

How to Evaluate Your Current Workflows for Automation

What to Look for in Accounting Automation Software

Real-World Use Case and Results

Final Thoughts: Get Started with Automated Accounting

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.

An automated accounting system enhances efficiency and accuracy by streamlining tasks such as data extraction and bookkeeping, allowing accountants to focus on more complex activities rather than repetitive tasks, ultimately improving overall productivity.

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.

Why Manual Accounting Puts You at Risk

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

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.

Top Benefits of Automating Your Accounting Workflow

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 automated accounting systems, 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. 

5. Significant Cost Savings

Accounting automation drastically reduces operational costs by eliminating the need for expensive manual processing and outsourcing. Companies typically see a 40-60% reduction in processing costs after implementation, with ROI often achieved within the first year. These savings come from reduced labor costs, fewer errors requiring correction, eliminated late payment penalties, and optimized cash flow management.

6. Scalable Financial Operations

As your business grows, automated accounting processes can scale without proportional increases in headcount or costs. The same systems that handle hundreds of transactions can efficiently process thousands or millions, supporting business expansion without the traditional growing pains in the finance department. This scalability ensures your financial operations remain robust and efficient regardless of transaction volume fluctuations.

Common Challenges in 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. 

Which Accounting Tasks Can Be Automated?

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. 

3. Payroll Processing

Payroll automation streamlines the entire compensation process, from time tracking to tax calculations and direct deposits. The software automatically applies the correct tax rates, calculates deductions, processes approved time entries, and generates paystubs. This eliminates manual data entry errors, ensures compliance with changing tax regulations, and significantly reduces the time required to complete each payroll cycle. Automated payroll systems also maintain detailed records for reporting and audit purposes.

4. Month-End Closing

The month-end closing process involves numerous sequential tasks that must be completed accurately and on time. Automation software can systematically work through closing checklists, automatically generating recurring journal entries, reconciling accounts, and producing standardized financial reports. This reduces closing time from weeks to days while improving accuracy and providing real-time visibility into completion status. Automated controls also ensure consistency in how closing procedures are performed each month.

Role of Technology in Accounting Automation

Technology plays a vital role in accounting automation, enabling businesses to streamline their financial processes, reduce errors, and improve efficiency. The following technologies are key drivers of accounting automation:

1. Robotic Process Automation (RPA)

Robotic Process Automation (RPA) is a technology that uses software robots to automate repetitive and rule-based tasks, such as data entry, invoicing, and reconciliations. By implementing RPA, accounting teams can significantly reduce manual errors and increase productivity. These software robots can handle high volumes of transactions quickly and accurately, freeing up time for accounting professionals to focus on more strategic activities. For instance, RPA can automatically extract data from invoices, match it with purchase orders, and update the accounting system, ensuring a seamless and error-free process.

2. Machine Learning

Machine learning, a subset of artificial intelligence (AI), enables accounting software to learn from data and improve its performance over time. This technology can automate complex tasks such as expense categorization, invoice processing, and financial forecasting. By analyzing historical data, machine learning algorithms can identify patterns and make predictions, helping accounting teams to make more informed decisions. For example, machine learning can automatically categorize expenses based on past behavior, reducing the need for manual intervention and increasing the accuracy of financial reports.

3. Data Migration and Integration

Data migration and integration are critical components of accounting automation, enabling businesses to transfer data from one system to another and integrate different accounting systems. This ensures that all financial data is consolidated and accessible in one place, streamlining processes such as data entry, reconciliations, and financial reporting. By automating data migration and integration, accounting teams can eliminate the need for manual data entry, reduce the risk of errors, and ensure that financial reports are accurate and up-to-date. This seamless integration of data across systems enhances the overall efficiency and effectiveness of accounting processes.

How to Implement Accounting Process Automation in 6 Steps

Successfully transitioning from manual accounting to automated processes requires strategic planning and execution. Follow this comprehensive implementation roadmap to ensure a smooth transition and maximize your return on investment.

1. Evaluate Current Processes

Begin by conducting a thorough assessment of your existing accounting workflows. Identify pain points, bottlenecks, and manual tasks that consume excessive time or are prone to errors. Document process cycle times, error rates, and labor costs to establish a baseline for measuring improvement. Prioritize processes with high transaction volumes or repetitive tasks, such as accounts payable, invoice processing, or monthly reconciliations, as these typically yield the greatest automation benefits.

2. Define Clear Automation Goals

Establish specific, measurable objectives for your accounting automation initiative. Common goals include:

• Reducing manual data entry by 70-80%
• Cutting processing time for monthly closes by 50%
• Improving compliance documentation by automating audit trails
• Enhancing reporting accuracy and reducing reconciliation discrepancies
• Freeing up staff time for higher-value analytical work

Align these goals with broader business objectives and secure buy-in from both leadership and the accounting team members who will use the systems daily.

3. Map & Standardize Workflows

Create detailed visualizations of your accounting process workflows using flowcharts or process mapping tools. Standardize procedures before automation to eliminate unnecessary variations and exceptions. This critical step ensures you're not simply automating inefficient processes. Consider:

• Creating standard templates for common transactions
• Establishing clear approval hierarchies
• Documenting process rules that can be translated into automation logic
• Identifying integration points between different accounting functions

4. Choose the Right Automation Software

Select accounting automation solutions that align with your specific needs and integrate with your existing systems. Consider factors such as:

• Compatibility with your ERP or accounting system
• Ease of implementation and user interface
• Scalability to accommodate business growth
• Advanced features like AI-powered data extraction and analysis
• Cloud-based accessibility for remote work capabilities
• Robust security features for financial data protection

Solutions like SolveXia offer comprehensive automation capabilities specifically designed for accounting workflows, with features that address compliance requirements and financial reporting needs.

5. Test and Train

Implement your automation solution using a phased approach:

• Start with a pilot project on a single accounting process
• Thoroughly test the automation with real-world data scenarios
• Document exceptions and edge cases that require special handling
• Provide comprehensive training for accounting staff, emphasizing how automation will enhance (not replace) their roles
• Create detailed documentation and support resources

Collect feedback from users and make necessary adjustments before expanding to additional accounting processes.

6. Monitor, Measure, and Continuously Improve

Accounting automation is not a "set and forget" solution but rather an ongoing journey of optimization. Establish:

• Regular performance reviews comparing results against your defined goals
• Dashboards tracking key metrics like processing times and error rates
• Feedback mechanisms for users to suggest improvements
• Quarterly optimization sessions to refine automation rules
• Processes for staying current with software updates and new features

As your team becomes more comfortable with automation, continually look for new opportunities to expand its application across your accounting function.

By following these six steps, your organization can successfully transform manual accounting tasks into streamlined, automated workflows that reduce costs, improve accuracy, and allow your finance team to focus on strategic initiatives rather than repetitive data processing.

The History and Future of Accounting Automation

Accounting automation's journey began with punch card systems in the late 19th century, evolving through mechanical calculators in the 1950s to early computerized systems in the 1960s. The 1980s brought desktop accounting software like QuickBooks, democratizing access for smaller businesses, while the 1990s introduced integrated ERP systems connecting accounting with broader operations.

The cloud revolution of the 2000s eliminated infrastructure barriers, while APIs created interconnected financial ecosystems. Today's robotic accounting leverages RPA for repetitive tasks, OCR for document processing, and machine learning for continuous improvement.

Looking forward, AI will transform accounting from transaction processing to strategic insight generation. Predictive analytics will forecast financial trends before they emerge, while seamless integrations will enable continuous accounting that replaces traditional period-end closes. As these technologies advance, accountants will shift from data processors to strategic advisors, and organizations adopting these innovations will gain significant competitive advantages through improved accuracy, reduced costs, and enhanced financial intelligence.

How to Evaluate Your Current Workflows for Automation

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 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. 

Real-World Use Case and Results

Accounting process automation delivers remarkable results across diverse industries, as demonstrated by Emma Sleep's successful implementation. This global D2C sleep brand, operating in over 30 countries with 200,000+ monthly mattress sales, faced significant challenges managing transactions from multiple payment service providers across their omnichannel sales approach. By implementing specialized finance automation software, Emma Sleep achieved extraordinary efficiency gains in their accounts receivable processes.

The company now reconciles transactions 500% faster, matches over 100,000 transactions daily (previously only possible weekly), and has eliminated costly business process outsourcing for manual matching. As Accounts Receivable Accountant Alisa Donato noted, "SolveXia is a vital part of our current ERP because without it summarizing the transactions, we wouldn't be able to push through with the current setup that we have." The automated solution has also simplified knowledge transfer and freed staff to focus on higher-value projects, demonstrating how automated accounts technology delivers measurable real results in accounting automation.

Final Thoughts: Get Started with Automated Accounting

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!