Botkeeper
Yep, automated bookkeeping is bringing efficiency to accounting firms like never before, but this doesn’t mean we should ditch the past of accounting practices and forget everything we know. George Santayana once said, “Those who cannot remember the past are condemned to repeat it.” Not to get too philosophical (that’s what three mimosas do to us), but this phrase is perfect for this blog.
While we are not talking about the fundamental principles that move entire civilizations here, we are talking about the essential practices that made accounting what it is today that can’t be overlooked in automation. Let’s get into why.
What Is Automation in Bookkeeping?
Automation in bookkeeping refers to using technology, such as artificial intelligence (AI) and robotic process automation (RPA), to streamline and perform repetitive tasks automatically — that’s your everyday data entry, transactions, documentation, you name it.
By automating these repetitive tasks, accounting firms increase efficiency, save time, reduce errors, enhance accuracy, and improve scalability. So automation allows accountants to focus on more strategic and analytical tasks, leading to better client service, increased productivity, and overall operational effectiveness.
And the cherry on top? Automation helps meet regulatory requirements, provides real-time data insights, enhances compliance, and transforms the structure of accounting firms towards more strategic roles, including decision-making, data analysis, and overall more autonomy to do what they do best.
Benefits of Automation in Accounting and Bookkeeping
Let us tell you a little secret: What automation handles, it handles reliably, EVERY time. So, no matter the task, automation would make everything far more accurate. Having said that, here’s how you can benefit from automation in your daily operations:
In short, automation is a reliable and efficient solution that ensures accurate categorization and streamlined identification of exceptions and variances. By implementing it, businesses can maintain far more accurate and accessible financial data infrastructure. This can help you make better decisions based on insights from high-quality data. No more guessing or miscalculating anything — get proven results using automation.
While all these tools can feel like shiny new toys you can use, it’s important to remember that traditional accounting practices should not be overlooked. In fact, tried-and-true accounting fundamentals complement automation very well. You don’t have to ditch the basics; you have to apply them to automate your accounting processes.
You Can Never Go Wrong with the Basics
Combining traditional accounting strategies with advanced automation could be the key to ensuring a secure and efficient financial future. Robust financial integrity, open communication, and proactive audits are the principles of accounting you shouldn’t forget about when automating your processes.
Let’s bring these accounting fundamentals to the future of automation — but with style, unlike when someone decided to bring mullets back into fashion.
Strengthening Financial Integrity
To strengthen the financial integrity of any organization, you need to separate duties and regularly review your financial transactions. This approach helps distribute responsibilities among people, reducing the risk of errors and fraud by establishing clear lines of work. Additionally, consistent review and documentation of paperwork, bank and credit card statements, and inventory checks can provide precise insights to detect discrepancies early and ensure the accuracy of financial records.
Open Communication Equals Better Security
A culture of open communication is key when establishing access controls on company resources to enhance organizational security. First, a communicative team improves the information channels, as clear communication allows employees to receive the right data at the right time, ensuring that sensitive information remains private.
Second, open communication also plays a role in cybersecurity best practices as it can enable employees to identify potential threats better, follow standard procedures, and report incidents to the right channels. To start doing this, you can implement regular internal training sessions that teach your employees to identify scams and verify the information they receive.
The Wax On, Wax Off of Accounting: Bookkeeping and Proactive Audits
Adopting bookkeeping and conducting proactive audits are strategic practices that help organizations maintain their financial health. Through built-in checks and balances, bookkeeping helps ensure accurate transactions and reliable financial statements. Regular audits and stringent internal controls can prevent theft and misconduct within an organization.
Keeping the Essentials while Improving the Automation Game
Think of automation as the high-tech car that gets you places fast and the basics of accounting as the traffic laws that keep everyone safe on the roads. So, when you pair them up, you get the best of both worlds: fast, accurate bookkeeping without any bumps.
If you’d like to start with bookkeeping automation for your firm, try Botkeeper Infinite — it’s like putting your bookkeeping on cruise control while still keeping your hands on the wheel.
