Companies spend a lot of time managing expenses, preparing invoices, preparing reports, and performing other routine tasks. But what if you entrust all these operations to programs? Your accounting department will be able to solve the most important issues, and do more in less time. We’ll tell you how to integrate automated accounting software into your company to track real-time financial performance and get other valuable benefits.
Accounting automation vs manual accounting
Accounting automation means that the software takes on part of the accounting tasks. The program calculates taxes, creates financial reports, stores data, fills in receipts and invoices, and performs other operations.
When processes such as filling out invoices are automated, the software automatically takes the data from the invoice and enters it into your accounting software. After payment, the program automatically sends a confirmation to the counterparty.
Automated accounting software improves a company’s bookkeeping and gives it a number of advantages.
Experts quickly find the information they need. Accounting software stores all information about counterparties and payments. This software facilitates the classification and storage of documents and ledger items; Also, it integrates with the company’s other platforms and tools.
The company saves time and optimizes costs. Automation speeds up the completion of tasks. The accounting software associates each transaction with the ledger record. As a result, records are automatically loaded, combined and entered into certain fields. All this saves the company money because professionals get more tasks done in less time.
The company’s entry into global markets. When a company feels ready to enter international markets, it needs modern solutions for managing accounting, personnel and resources. With them, the company will be able to comply with the regulatory requirements of different countries, receive multilingual support, be able to maintain accounts in its foreign branches, and process multi-currency transactions.
The main functions that automate accounting software are:
keeping of accounting records;
Payroll calculation, taking into account bonuses for specialists;
Matching data from different sources: account statements, tables, accounting systems, etc.
Custom Software vs. Turnkey Solutions
Accounting automation requires a whole set of actions from companies. When developing a customized automated accounting software, IT companies provide the software with all the functions needed by a particular business, configure the system, train customer staff, and provide product support.
A turnkey solution does not always match the business needs of the company that purchased it. Created for a wide range of clients, this software has a standard design and functionality. You will have to hire a dedicated team to customize the software as per your business requirements.
The choice is up to the employer. You can try trial versions of off-the-shelf software or order custom software development for your business.
Key Features of Accounting Software
When a company is automating its accounts, it needs to know which job to choose. A robust automated accounting software typically includes:
easy to use interface;
possibility of connecting cloud services;
integration with third-party applications;
automatic sorting of sales, expenses, taxes, etc.;
cash flow management;
It is possible to expand the functionality. A custom software development company will take the managers’ wishes and business needs into consideration in order to make the software as convenient and useful as possible.
How to switch to an automated accounting system
Whether you choose off-the-shelf accounting management solutions or plan to require custom software development, the stages of introducing automation are almost the same.
Stage 1. Gathering information about accounting operations
To understand what kind of accounting automation software you need, you should delve into the specifics of accounting in your organization. Explore accounting policies and document flow, and evaluate your current accounting tools.
Stage 2. Preparation of requirements
When information is collected, it must be structured. The requirements for the automated accounting program should specify the structure of the accounting department (the roles and functions they perform), a list of documents and records, a measure of automation (for one department or for all branches), etc. The company must decide what budget it is willing to allocate for development. Based on all this information, the software development company will be able to figure out what features should be included in the software.
Stage 3. Accounting system development.
With a clear goal and budget in place, managers choose a software outsourcing company that will build a solution from scratch. Business analysts of a custom software company communicate with client representatives, learn about the accounting product requirements from them, and delve into business specifics. Next, the developer and client agree on project terms and budget.
Stage 4. Program implementation and staff training.
The developers link the software and train the company’s employees. If employees have questions, they contact the technical support service.
Using automated accounting software, managers are always aware of the state of the business: how their financial operations are going, how many goods are in their warehouse, what is the company’s revenue, etc. All processes are controlled, so the probability of errors is minimal, and managers are more confident in making important business decisions.