Businesses spend a lot of time managing expenses, invoicing, preparing reports, and performing other routine tasks. But what if you entrusted all these operations to software? Your accounting department will be able to solve bigger problems, getting more done in less time. We’ll walk you through how to integrate automated accounting software into your business to track real-time financial performance and gain other valuable benefits.
Accounting automation vs manual accounting
Accounting automation means that the software takes over part of the accounting tasks. A program calculates taxes, creates financial reports, stores data, fills out receipts and invoices, and performs other operations.
When operations such as filling out invoices are automated, the program automatically retrieves data from an invoice and enters it into your accounting software. Once the payment is made, the program automatically sends a confirmation to the counterparty.
Automated accounting software improves accounting of a company and gives it many advantages.
Experts quickly find the information they need. The accounting program stores all the information about your counterparties and payments. This program facilitates the classification and storage of documents and general ledger items; in addition, it integrates with other business platforms and tools.
The company saves time and optimizes costs. Automation makes getting things done faster. Accounting software links each transaction to a general ledger record. Therefore, the records are automatically downloaded, combined and entered in certain fields. All of this saves the company money as specialists get more done in less time.
The company penetrates international markets. When a business feels ready to join
international markets, it needs modern solutions to manage accounting, personnel and resources. Thanks to them, the company will be able to comply with the regulatory requirements of different countries, benefit from multilingual support, be able to manage accounts in its foreign branches and process multi-currency transactions.
The main functions that the accounting software automates are:
Keeping of accounting records;
Calculation of the payroll taking into account the premiums of specialists;
Reconciliation of data from different sources: account statements, tables, accounting systems, etc.
Custom software vs. out-of-the-box solutions
Accounting automation requires a whole range of actions on the part of companies. When developing custom automated accounting software, IT companies outfit the program with all the functions a particular business needs, configure the system, train the client’s employees, and provide product support.
A standard solution does not always match the business needs of the company that purchased it. Created for a wide range of clients, such a program has standard design and functionality. You will need to hire a dedicated team to
customize software according to the needs of your business.
The choice is up to the business owner. You can experiment with trial versions of out-of-the-box programs or order custom software development for your business.
Main features of the accounting software
When a company is going to automate its accounting, it must know which functionality to choose. Robust automated accounting software typically includes:
possibility of connecting cloud services;
integration with third party applications;
automatic sorting of sales, expenses, taxes, etc. ;
cash flow management;
It is possible to extend the functionality. A custom software development company will take into account the wishes of managers and the needs of the business in order to make the program as convenient and useful as possible.
How to switch to an automated accounting system
Whether you opt for out-of-the-box accounting management solutions or plan to commission custom software development, the steps to introduce automation are almost the same.
Step 1. Gather information on accounting operations
To understand what kind of accounting automation software you need, you need to delve into the specifics of accounting in your organization. Explore accounting policies and document flow, assess your existing accounting tools.
Step 2. Preparation of requirements
When information is gathered, it must be systematized. The requirements for automated accounting software should specify the structure of the accounting department (roles and functions it performs), a list of documents and records, the extent of automation (for one department or all branches), etc. The company must decide on the budget it is prepared to allocate for development. Based on all of this information, the software development company will be able to determine which features to include in the program.
Step 3. Development of the accounting system.
With a clear goal and budget, managers choose a software outsourcing company that will build a solution from scratch. Business analysts at the custom software company communicate with client representatives, learn from them the requirements of the accounting product, and look at the specifics of the business. Then the development company and the client agree on the terms and budget for the project.
Step 4. Program implementation and staff training.
Developers connect the program and train company staff. If employees have questions, they contact Technical Support.
With automated accounting software, managers are always aware of the state of the business: how their financial processes are going, how many goods are in their warehouses, what the company’s revenue is, etc. All operations are controlled, so the likelihood of errors is minimal and managers have more confidence in making important business decisions.