April 17, 2023

5 Ways Accounting Automation Boosts Efficiency In Firms


As advancements in technology continue to reshape the business landscape, accounting firms are increasingly turning to automation to streamline their processes and boost efficiency. Accounting automation has become a popular solution for reducing costs, increasing accuracy and improving decision-making. 

In this article, we will explore five ways in which accounting automation can benefit firms, including smoother compliance cycles, faster financial close processes and better KPI reporting.

Smoother Compliance Cycle

The compliance cycle is a critical part of any accounting process. It ensures that firms adhere to the rules and regulations set by regulatory bodies, such as the Association of Chartered Certified Accountants (ACCA) and  the Financial Reporting Council (FRC). Compliance can be a complex process, and it requires accountants to stay up to date with changes in regulations.

With automation, accounting firms can reduce the time and effort required to stay compliant. Automation can handle repetitive tasks like data entry, which improves accuracy and consistency in compliance reports. This can lead to better decision-making, increased efficiency, and ultimately, improved profitability.

Faster Financial Close

The financial close process involves finalising financial statements at the end of a reporting period, which can be a time-consuming and complex task. Automating the financial close can reduce the time it takes to complete the process, allowing firms to focus on other critical tasks.

Automation can handle many of the manual tasks required for the financial close process, such as reconciling accounts and compiling financial statements. This can help accountants save time and resources while also reducing errors. By implementing  automation, firms can close their books faster, freeing up time to focus on other critical tasks.

Improved Accuracy

Manual accounting processes are prone to errors, which can be costly to firms in terms of both time and money. Automation can help improve accuracy by eliminating many of the human errors that are commonly associated with manual processes. This can lead to increased efficiency, reduced costs, and better decision-making.

One of the primary causes of errors in manual accounting processes is data entry. Mistakes can occur when accountants manually input data into spreadsheets, financial statements, or other accounting documents. With automation, data entry is handled automatically , reducing the risk of errors and improving accuracy.

Automation can also identify errors in data and financial statements. By using algorithms and artificial intelligence, automation can flag potential mistypes or miscalculations, allowing accountants to correct them quickly. This can save firms time and resources while also ensuring financial information is correct.

Better KPI Reporting

Key Performance Indicators (KPIs) are critical for businesses looking to monitor and improve their financial performance. KPIs help businesses track progress toward specific goals, such as revenue growth or cost reduction. Automation can help firms generate KPI reports quickly and accurately, making it easier to identify areas of the business that require improvement.

Generating KPI reports manually can be a time-consuming and complex process. It requires accountants to pull data from multiple sources, analyse it, and present it in a meaningful way. Using automation, KPI reports can be generated quickly and easily, providing firms with the information they need to make informed decisions.

Automation can also help improve the accuracy of KPI reporting. By automating data entry and analysis, firms can reduce the risk of errors and inconsistencies in KPI reports. This can make sure organisations are on track to meet their goals.

Reduced Costs

Finally, automation can help firms reduce costs by eliminating the need for manual processes and tasks. This can free up resources and time that can be used to focus on more critical tasks, ultimately leading to better operational efficiency. 

Automation can also help reduce costs by eliminating the need for the physical storage of financial documents. By digitising documents, firms can save money on physical storage space, reduce the risk of lost or damaged documents, and improve sustainability by reducing their carbon footprint.

Learn more about accounting trends with INAA

Accounting automation has revolutionised the way accounting firms work, making it possible to save time, reduce errors, and improve accuracy. By streamlining compliance cycles, improving accuracy, generating KPI reports, and reducing costs, accounting automation can help firms to become more efficient and profitable.

If you’re interested in finding out more about the current trends within the accounting industry, be sure to take a look at what the INAA can do for you. You can discover the benefits of INAA membership here, or apply for your membership on our join us page.

Share this post
Table of Contents
    Add a header to begin generating the table of contents
    Scroll to Top