Manual bookkeeping is not only tedious but also leads to employee demotivation, less revenue, more paperwork and raises the cost. Employees don’t want to perform repetitive financial tasks as it is time-intensive and also consumes their whole energy.
So, a solution is required to overcome these situations that technological advancements provide; in the form of financial bots. Let’s open the discussion with what these bots are and how they can overcome various finance department issues.
Automated Bookkeeping Features
Some unique web-based apps can record, reconcile and gather all the financial data in one place without involving any employee effort. Authorized users scan the receipt through the optical character recognition facility and it extracts all the required information.
That’s why automation has the potential to reduce employee workload as they have to do nothing, just bring a purchasing slip and scan. In this way, it also reduces the hassle of finding financial information from a bundle of books.
Automation features don’t end here, so let’s explore more:
- Saves Time
- Reduces Errors
- Expense Management
- Ensures Greater Consistency
- Invoice Management
- Enhanced Collaboration
- Simple Implementation
- Customer Onboarding
Don’t worry, these are as simple as making a meal; let’s break them down one by one to understand the concept easily.
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Saves Time
Managing finances in the traditional way is a difficult task for a bookkeeper. Recording and controlling figures in balance sheets, journals, trial balances, and other financial statements are time-intensive.
Besides this, hiring a whole team for financial management and getting work done traditionally takes more time. That’s why automated bookkeeping is a unique way to record every transaction. These cloud-computing apps are purposely built to improve accuracy and efficiency.
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Reduces Errors
Bookkeepers are humans and humans are designed in the way to make mistakes. They sometimes record wrong entries, place wrong digits and overwrite any financial entry that is hard to find. These factors made the situation worse because it disturbs the whole financial sheet.
Not only this but these mistakes also make an impact on the owner’s decision. That’s why companies acquire automated bookkeeping services to reduce human errors.
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Expense Management
The business’s sole purpose is to save money by any means and they know that automation will help them in doing so. But most companies are still confused about adopting automated software because they want to know how much return it will provide on their investments.
Of course, there is no magic formula as every company has separate needs and diverse cultures. That’s why financial bots result in a cost saving of 40% to 75%, with payback that ranges from several months to years.
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Ensures Greater Consistency
Consistency in manual bookkeeping is like eating with a foot, which means it’s impossible to produce consistent results in financial statements. However, these are just numbers but still dealing with a large portion of financial crunches isn’t easy.
A rapid change in both bookkeeping and accounting practices occurs due to the introduction of financial bots. This software permits SMBs to edit and enter financial transactions on their own so that they can ensure consistency in a much more effective way.
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Invoice Software
The excellent free invoice software isn’t only easy on a bank account but is packed with features that the company needs to convert projects or quotes into invoices easily. So that it’s easy to send them to customers and get paid instantly, there are also several billing software available, but companies should choose one that provides the most value and has various inclusions and features.
For example, a free plan can limit the invoice number employees can send but includes unlimited client numbers, while another plan offers the opposite.
Best free billing software has no hidden fees, but a few limitations exist. For example, all free plans don’t give companies a choice of payment gateway but they all integrate with payment processors. Few plans are free, but companies still have to pay transaction fees to the payment processors.
These reasons state that it’s worth considering what service providers offer in terms of paid plans, in case the company later decides to upgrade the software as the business grows.
Key Takeaways
This is all for this blog now. Thus, automated bookkeeping software has the potential to stand any financial institution on its own.
