Imagine you’re shopping for a new washing machine and the cashier offers you a handwritten bill rather than a detailed invoice. Will you be satisfied with the shop? Will you ever visit the store again or recommend it to someone else?

If you are the service provider, consider yourself a customer to work in a customer-friendly manner.

Accounting automation aids in building a professional foundation for your company. Also, it contributes to giving excellent customer service. Customer satisfaction supports customer retention.

Accounting Automation ⏩ Better Service ⏩ Customer Satisfaction ⏩ Customer Retention ⏩ Profit

Role of automation in customer service

1. Higher Productivity

Any automated system’s principal purpose is to complete tasks in less time. Hence, using automated accounting software saves time. The time saved might be used to focus more on the product or service you offer.

Saved time means more time to focus on things like invention, creation, and strategy. Thus, client satisfaction gets priority.

2. Professional approach in everything

Accounting automation helps in generating detailed invoices, tax calculations, banking, and other accounting-related tasks. All of the system’s advantages serve in focusing on the professional manner of functioning.

3. Regular and easy services 

If you have an automated accounting system, it means you have all of the necessary records and information.

Customers may lose track of bills, warranty cards, and other documents. As a result, they may be unable to obtain services in the future. But, if you have the data saved, it won’t take much effort to recollect a customer’s details when they approach you for a service after a long time. Thus, it boosts your credibility.

Accounting automation works not just for accounting tasks alone, it provides more. Thus, make use of all the facilities provided by automated systems to build your business on a strong foundation of credibility, transparency, and customer service.

Running a business is not an easy task; it takes constant and diligent effort. We have seen businesses failing due to a number of issues. Damage can also be caused by a failure to analyze profit or loss over a given time period.

Do you think your firm will succeed if you don’t have a solid accounting system in place? Accounting is a necessary component of any business.  Automated accounting methods are the way to maintain records in place in these competitive times.

Why should you check your accounts on a regular basis?

To analyze the growth trajectory

The only method to determine the scale of growth you acquired is to examine your account statements. Change does not have to be profit-driven; it can also reveal the negative consequences of the decisions you’ve made.

1. To make necessary changes

Accounts that are reviewed on a regular basis provide insight into the company’s performance. As a result, if things aren’t going as planned, the authorities can make the required changes.

2. To track late payers

It could assist you in receiving payment properly. There may be situations when your client or customer does not complete the payment; monitoring accounts on a regular basis will assist you in quickly tracking late payers.

3. For keeping track of expenses

You may spend money without knowing how much money you have left in your account. You may make the assumption that you have a particular amount of money in your account and spend it accordingly. This can get you into a lot of trouble. Checking accounts can assist you in making sensible financial decisions.

How does Accounting Automation help to know your Profit?

When compared to traditional bookkeeping methods, automated technologies aid in the timely assessment of accounts. It saves a lot of time relative to going through the entire file. It makes it simple to determine whether the company is profitable or not. Every penny that comes in and goes out of your account contributes to the firm’s success. As a result, keeping track of everything is crucial. Accounting automation is the only way to maintain track of all of these documents and understand the company’s current situation. It assists you in making suitable decisions at the appropriate moment.

In short, reviewing your finances is critical, and having a user-friendly system to do so is essential for any company’s success.

“It’s not your salary that makes you rich, it’s your spending habits,” Charles A. Jaffe.

You have complete freedom to spend the money you’ve earned, but maintaining a healthy balance between income and expenses is the key.

Personal finance is defined as the way you manage your money and make financial plans for the future. Income, expenses, financial decisions, and activities all have a role in one’s financial well-being. There is no way a person can go broke if all these are balanced.

Accounting Automation

Accounting Automation is the process which involves the use of software to automate tasks related to finance and accounting. While automation can help to speed up the accounting process, it is not a replacement for manual labour.

Accountants

An accountant’s responsibilities include more than just preparing account files; they also include supporting businesses in achieving more while spending less.

• Accurate and proper financial documentation abiding to the laws and regulations.
• Preparation of financial reports
• Maintenance of reports
• Ensuring the taxes are paid on time
• Analyzing and filing the tax returns
• Timely evaluation of accounts to assist the firms in working efficiently
• Guiding the firms on ways to reduce expenses while maximizing the profits

Benefits of accounting automation for an accountant

1. Accounting and financial professionals are empowered by automation since it allows them to perform their jobs more efficiently and effectively.
2. Accounting is a time-consuming and complicated process. People used to work without a calculator in the early phases. Later on, as technology advanced, new improvements to all sectors were made. Calculators, computers, and other tools made it possible for people to get the most out of themselves in a short period of time.
3. Many common errors could be avoided with the use of technology. It is impossible to avoid making mistakes, especially when dealing with data and numbers.

Accountants have long used one or the other software system. The transition from paper to software was gradual, but it kept growing as a result of its advantages. Advantages include,

• Time saver
• Accuracy
• High productivity
• Data security
• Easy and fast data retrieval
• Cloud- access
• Data storage
• Professional development
• Reminders
• Reduction in workload

Automation in accounting assists in the evolution of accountants and not the extinction of their careers. Accountants must make use of the resources available in order to make accounting a simpler task.

Don’t you think it’s nice that you can take care of your business even if you are away? How would you like it to know how your business is doing well even when you are on a holiday? Well, real-time accounting gives you the power to access your financial data wherever you are.

Real-time accounting is the accessibility of your financial data anywhere, anytime. Today, at a time when you can access anything at the touch of your fingers, the significance of real-time data is higher than ever. Now,  let’s learn how real-time accounting can benefit your business.

1. Real-time profit and loss accounts

You are running a business to gain profit. If you don’t earn a profit after a certain amount of time, you run out of funds to grow your business further. Every business gauges its growth with a profit and loss statement, though calculating it only at a certain time can delay your accounting process. Knowing the real-time profit and loss status of your company can drastically improve your business in terms of decision-making, funding requirements, and more.

2. Taking Strategic decisions

What’s better than making planned and proactive decisions for your company. When you know how your business is performing in real-time, you are able to make strategic decisions that help your organization to be more proactive than reactive. It also increases the efficiency in the management of your business, thereby increasing profitability.

3. Meeting Compliances Immediately

For most companies, meeting compliances might be the least priority with everything else to manage on the go. But ignoring it can turn out to be a costly mistake, unfortunately. When you enable real-time accounting for your organization, you get your tax reports instantly and accurately. Filing the statutory tax returns accordingly allows you to stay out of unwanted fines or penalties

4. No Waiting Till Year-End 

With real-time accounting, all your accounting information is updated and available in hand. You do not have to get worried about missing bills at the end of the month or year. It also eliminates hours of sittings with your accountants and rather delivers your business finance status instantly.

5. Tracking Expenses Instantly 

You can take control of your business by tracking where your money is going and how much you are spending. As the saying goes, “the easiest way of becoming bankrupt is by not paying attention to your expenses”, you understand the importance of keeping track of your cash flow on a daily basis. It also enables you to stick to a budget rather than spending unnecessarily.

So, if your business is still running on traditional accounting methods, there are high chances that you will be missing out on these benefits. Switch your business to a smart real-time accounting system now and take your company to an all-time high.

Data analytics is the process of analyzing the raw data in order to draw conclusions to make informed decisions. A set of data gives valuable information about the subject. It quantitatively and qualitatively informs you about what happened, why it happened, what should you do, when should you take the step and where should you apply and more, 

In a business system, getting accurate forecasting is indispensable to run successfully. Data analytics reveal trends and patterns that are crucial for taking the next big decision in the business.  

You might have already heard about an upsurge in the demand of data scientists nowadays. Although, accountants were already performing as data scientists by analyzing, calculating and predicting the financial outcomes. 

Data analytics in Accounting 

With big data driving the business world, accounting domain has started embracing technologies that help them extract valuable information from data sets. This incorporation of data analytics in bookkeeping has increased the efficiency, agility and demand for the accounting platforms. 

To get a clearer picture of the big data, let’s know about the 4 types of data analytics. 

Descriptive analysis 

Descriptive analysis defines the “what is” element of the data. It describes the information and classifies it accordingly. Though descriptive analysis is often misunderstood for data analytics itself, it is an important factor to identify the underlying problems. 

Diagnostic analytics 

In diagnostic analytics, your data is diagnosed deeply. Unlike descriptive analysis which describes the problem in a simple manner, the diagnostic analysis takes an in-depth analysis of the data. This intensive analysis helps to understand the underlying reasons behind certain issues or problems.  

Predictive analytics 

Predictive analysis is the process of predicting future outcomes based on historical data, machine learning, etc. With the help of advanced technologies, organizations are now able to reliably foresee insights.  

Prescriptive analytics

Prescriptive analytics urges you to take action along with predicting the future. This makes prescriptive analytics most significant among the types of data analytics. Rather than just monitoring the data, this method prescribes actionable insights which makes it more efficient.  

Importance of Data Analytics in Accounting Today 

Accounting has been from the ages a way of analyzing the data to make better decisions. You might have already heard about an upsurge in the demand for data scientists nowadays. It is the result of the rapid increase in the volume of data, the importance of big data in business, and more. 

Change of consumer behaviors, buying methods, internet usage, digital shift, etc. Although accountants were already performing as data scientists by analyzing, calculating, and predicting the financial outcomes, the age has come where they have to seek more specialized way of doing so. 

Adopting the mentioned types of data analytics to analyze your accounting data can certainly change the way you gather insights from the data. With tougher business scenarios, it’s high time that businesses start using accounting platforms that embrace advanced technologies like blockchain, AI, IoT, machine learning to make better business decisions and to perform easier & efficient accounting.