What is Cloud Accounting Automation: Benefits & Tools?

It’s another day for the finance team– stacks of paper documents fill up the tables and countless hours are spent searching for that one spreadsheet with the exact information needed to finish a task. Sound familiar?

Cloud accounting automation is resolving these headaches by connecting data systems, providing real-time information, and removing the need for manual and tedious to-do lists. We’re going to uncover the best cloud accounting software and see how accounting automation examples can become your reality.

Coming Up

What is Cloud Accounting Automation?

What are the Benefits of Cloud Accounting Automation?

Will Cloud Accounting Automation Replace People?

What Areas Can You Automate Accounting?

What are the Steps to Cloud Accounting Automation?

How to Choose Cloud Accounting Automation Software?

What are the Best Cloud Accounting Automation Tools?

Wrap Up

What is Cloud Accounting Automation?

Cloud accounting automation is software that automates processes and is hosted on the cloud, making it accessible over the internet from anywhere.

It provides:

1. Back-end Infrastructure

Once upon a time, accounting software had to be physically installed onto desktops or connected through IT infrastructure. Cloud-based software simply requires an internet connection to be usable.

With remote teams the norm these days and businesses that operate across locations globally, cloud-based infrastructure expands accessibility and enables easy collaboration.

2. Interoperability

Cloud-based accounting solutions like SolveXia are set up to function alongside your existing tech stack. It can connect with ERP systems and even spreadsheets, so that you can connect all your data systems into a centralized location.

3. Security

Since the software exists on the cloud, it can be updated easily by the vendor. Bank-grade security protects your most important data, so you can rest assured that your company’s data and clients’ data is always secure.

What are the Benefits of Cloud Accounting Automation?

Cloud accounting adds digital connectivity and provides real-time data for your business processes and insights.

There are many benefits of implementing cloud-based accounting automation, such as:

1. Scalability

The goal of any company is to grow and expand, right? On-premise solutions require IT teams to update hardware as operations scale.

With cloud-based solutions, data-storage costs are no longer a constraint as data is stored and maintained via the internet. All you have to do is select more storage when the need to scale arises.

2. Affordability

Data services and on-premise solutions are costly from a monetary standpoint, as well as a time to implement opportunity cost standpoint. Cloud applications are a more cost effective solution because there’s no need to overhaul or maintain physical data centers.

Additionally, cloud-based finance software such as SolveXia is user-friendly, so there’s no need for a dedicated IT team to deploy or oversee its use.

3. Accessibility

Cloud-based accounting software is accessible to anyone, no matter where they work from, as long as they have the Internet and a compatible device.

Companies with remote teams and global offices can all connect into the same centralized system and ensure they are accessing the most up-to-date information.

4. Transparency

If you’re stuck using spreadsheets, then different information will be updated on different desktops. This leaves room for major errors as version control is no longer part of the picture.

With a shared cloud-based solution, anyone with access can see the latest version of both data and insights, as well as check in on the status of a running process.

5. Accuracy

When you use a cloud-based accounting solution, data can be automated, removing the need for manual data entry and manipulation. Manual work leads to human error, which causes a lot of risk when it comes to financial data and information.

Automation software improves accuracy and streamlines processes. In fact, a finance tool like SolveXia can help you complete processes 85x faster with 90% less errors.

Will Cloud Accounting Automation Replace People?

When people hear about accounting automation, the common fear is that it will replace their jobs. In actuality, AI and machine learning isn’t intended to replace people, but rather it is used to augment human capabilities.

Accountants and financial professionals can apply cloud accounting automation to handle the repetitive and data-heavy manual tasks. As a result, high-level professionals can focus their time instead on value-added responsibilities, strategy, and analysis of information to help advise business leaders accordingly.

In actuality, cloud accounting automation can lead to happier and more satisfied employees as they no longer feel bogged down by monotonous tasks.

What Areas Can You Automate Accounting?

Accounting automation can be used for many critical and simple tasks. Here’s a look at some accounting automation examples:

1. Invoicing

You can automatically send out invoices and bills based on contract terms and/or purchase history.

2. Expense Management

Rather than waiting to pay out employees on expense reports due to having a lengthy approval process, automation removes the manual tracking of employee expenses.

3. Reconciliation

As one of the most important tasks during the month-end close process, reconciliation is often time-consuming and error-prone. Automation software dramatically cuts down the time it takes to conduct reconciliations and makes it possible to reconcile accounts more frequently.

4. Accounts Payable

You can use cloud-based accounting automation to automate the process of paying bills.

5. Accounts Receivable

Similarly, you can track payments and delinquent accounts with automation software that will remind customers about overdue invoices.

6. Forecasting

Tracking budgets and analyzing data to prepare for the future doesn’t have to be difficult. Automation software can apply advanced analytics for accurate forecasting and informed decision making.

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To learn more about SolveXia’s capabilities in all of these areas, check out this page!

What are the Steps to Cloud Accounting Automation?

Cloud accounting automation is made straightforward with little to no learning curve because it is designed to provide immediate ROI.

For companies looking to get started, consider the following to be a guide as to the necessary steps:

1. Identify Processes

Start by analyzing and listing the current processes you execute. Take stock of which processes are most time-consuming, error-prone, manual, and repetitive. Then, consider which processes would benefit most from automation.

2. Select Your Software

Once you have your clear list of needs, it’s time to search for the right solution. We’ll share a few more tidbits on how to properly choose cloud accounting automation software in the next section.

3. Train and Educate Employees

Make sure that everyone involved in using the selected software knows what it is, why it’s being used, and how it should be used. Employees and stakeholders need to give their buy-in for the organizational shift to succeed.

4. Ensure Compliance

Since you’re dealing with data and finances, which are regulated, be sure to remain compliant in how you run your processes. The good news is that software like SolveXia adheres to regulatory rules and also helps ensure compliance by providing standardization and security.

5. Continuously Monitor

Given the scalability of software and the ever growing nature of business, it’s paramount to continuously monitor your processes and look for ways to improve upon them.

How to Choose Cloud Accounting Automation Software?

Every business has their own set of priorities and considerations when it comes to choosing a cloud accounting automation software to fill their needs.

That being said, there are a few non negotiable things to take into account when comparing software. That list consists of:

1. Cost: Budget is definitely a top factor when shopping around for software.

2. Security: When dealing with data, top-grade security measures are top of mind.

3. Customer service: You’ll want a tool that provides resources and a team that’s ready to assist if need be.

4. Scalability: When your business grows, you shouldn’t have to reconfigure software solutions, but rather, have a software that grows with you.

5. Ease-of-use: The intention behind cloud accounting automation is to boost productivity, so you want to find a solution that’s easy to use for everyone, no matter their technical abilities.

6. Interoperability: Interoperability means that the software will work alongside your existing tech stack and integrate accordingly.

What are the Best Cloud Accounting Automation Tools?

Cloud accounting automation is our business, so in your best interest, we’re going to share some of the best options in the market.

1. SolveXia

SolveXia is a low-code platform that automates spreadsheet-drive data preparation and removes the need for manual processes. Finance teams can use SolveXia for regulatory reporting, reconciliation, expense analytics, rebate management, and more.

As a result, your team will have more time to focus on value-add responsibilities. With personalized implementation and support, any team can be up-and-running with ease to automate and customize your own process flows.

SolveXia connects data and ensures you always have ready-to-use analysis so you have deep insights to make smarter decisions.

2. Xero

For small businesses looking to automate workflows, Xero provides accounting automation and detailed reporting functions. You can centralize all your finances with the secure cloud accounting software and utilize trend analysis for decision making.

3. QuickBooks

QuickBooks by Intuit is cloud accounting software for payroll, accounting, and more. It offers several different subscription plan options. QuickBooks allows you to automate many functions, including: payroll, time tracking, tax management, money management, and profit analysis.

Wrap Up

Cloud accounting automation transforms how businesses complete day-to-day activities and prepare for the future. Cloud accounting automation is cost effective, easy-to-use, scalable, and secure.

It is a great option for businesses of all sizes that are looking to optimize their workflows, remove key person dependencies, and meet critical deadlines and compliance regulations.

Interested to see how SolveXia can help your business save time, money, and errors from happening? Request a demo!