Is robotic accounting automation the ‘beast of burden’ for bookkeeping?

Bookkeeping is the elementary in financial accounting where every accountant starts their career. Firms maintaining healthy accounting habits unilaterally give the credit to a streamlined and accurate bookkeeping routine. Accurate bookkeeping is imperative for making better business decisions yet bookkeepers remain the unsung heroes.

Bookkeeping work is often deferred to the last minute, say, during month or year end closing. Some of the issues that is encountered in this process are

• work is prone to errors
• takes time to trace errors
• abundance of unproductive work
• routine mundane jobs
• add unnecessary stress to the accountants.

However, in order for a business to run effectively financial reports need to be accurate and timely. Inorder for this to happen, effective and impactful bookkeeping is the need of the hour.

With the pandemic bringing the routine activities to a standstill, yet economies are able to sustain due to the adaptability with Robotic automation being one such technology. An article on the Nasdaq website indicates 82% of small businesses would embrace digital technology by the end of 2020.

Also Read: How feasible is it for accounting firms to use bookkeeping automation?

Every useful problem brings an attainable solution, accounting automation robots are the saviour where menial, stressful and repetitive tasks are automated.

Let us discuss in detail how robotic automation takes up the challenge of acting as a ‘beast of burden’ for bookkeepers through its robo bots.

1. Automatic streamlining of bookkeeping processes:
   The record keeping process is meticulously handled through automation. Since, all the accounts are interlinked, the business expenses and incomes are easily tracked. Automated bookkeeping helps accountants to have additional time at their disposal for other useful purposes. This is helpful for both their personnel and firms’ growth. With routine tasks entrusted to Robotic accounting automation bots, now those critical tasks that take time is well attended.
   
   Firms have limited resources and they need their time to be utilized for financial planning and reporting for their clients. Automation reduces the burden of time and accuracy constraint and gets the team to function in more productive tasks.
2. Automatic categorization of transactions:
   Robotic accounting automation bots, through programing can help solve low value, repetitive and high quantity transactions. Once the rule is set, bots automatically understand the nature and classification of the transactions. It categorizes them in the appropriate ‘chart of accounts’. In case, if the nature of the transaction has no precedent, it refers to the historical instances. If there are examples available, it automatically classifies them, otherwise, it redflags and sends them to the accountant to classify them. The time consuming manual categorizing is now done instantaneously and keeping the data upto date.
3. Automatic transfer of bank/credit card transactions:
   One of the key functions of bookkeeping is to know the liquidity position of the firm. Through automated bookkeeping, bots are in the position to access bank statements and record the transactions for use. Bots can prevent any discrepancy during bank reconciliation.
4. Automatically securing your data:
   While, manual storage of highly sensitive information leads to security compromise. This brings a huge lapse in maintaining the reputation and goodwill to conduct business in a highly competitive environment.
   
   With automation and information access to limited personnel with limited features, data remains uncompromised.
5. Automatically solidifies your client relationship:
   An updated and error free bookkeeping and accounting system consolidates your relationship with your clients. With the accounts including day to day transactions, accounts payable and receivable are updated and accurately maintained, then you as an accountant are in a better position to inform your clients. They know how much they owe and make timely payments. They also know how much to receive and send remainders. With such transparency and accuracy you would likely gain a satisfied lifelong customer.
6. Automatically resolves compliances issues:
   Manual bookkeeping is always error prone, errors in accounts makes tax filing a tedious and risky affair. There is a possibility of delay in tax filing leading to hefty fines and compliance issues. Through automation, you can get perfect and accurate and tax ready accounts.

Also Read: Bookkeeping Automation – Guide for the future

Accounting automation can bring significant changes to elevate your accounting practice. Contact us to find out how we can help your accounting automation requirements.