All About Automating Your Bookkeeping
November 19, 2022
Keeping a track of all the finances and managing accounts can be extremely overwhelming, especially if you’re a small business owner. Bookkeeping eventually can become majorly time and energy consuming and since money matters need to be accurate to avoid legal problems, it’s best to ensure that and automate finances. Automating your finances can reduce the bookkeeping burden and make it more efficient.
What does it mean to Automate?
Accounting and bookkeeping can be automated by using an appropriate accounting app or software. It means that you will not need to make any calculations by yourself or keep any hard records, the app or software will do all these for you, give you your company’s current financial status, maintain records, maintain all necessary financial statements and will do so along with saving you tons of effort and time.
Features of an automated bookkeeping system:
Expense management and transaction classification
Many modern accounting software can be classified as automated bookkeeping programs and their operations are fairly simple to grasp. These softwares basically need data that they can apply formulas to and work with. You will need to put in numbers like your total sales, expenses, bank account details etc. for the software to generate relevant statements.
Properly sorting and recording your transactions helps you catch more deductions, which makes your life easier in case you get audited by the IRS, and generally makes looking through your financial records a much less painful experience. With an automated system, you need not worry about errors and that some audit pressure off your chest.
Automated bookkeeping software’s like Mint and Quickbooks Online are some of the first apps offering this kind of service. Some recent and newer tools like Expensify and Bench have become preferences among start-ups and small business owners looking for low-cost automated bookkeeping solutions.
Generate financial statements
Expense tracking is just one part of bookkeeping. Whichever automation software or bookkeeping service you choose should be able to generate financial statements for you, like balance sheets, income statements and cash flow statements.
Automated bookkeeping services are designed for full-scale bookkeeping and accounting.
Generate tax-ready financials
Accounting automation and bookkeeping software can radically cut down the amount of time you devote to getting your business taxes ready in general. They do this by:
- Automatically classifying and marking potential deductions for tax filing.
- Keeping all tax records in one place.
- Reducing the amount of time spent hunting down receipts, invoices and other important tax relevant records.
Benefits of Automating
Cuts Down Human Calculation Errors:
Recording, classifying, and reconciling transactions requires moving large amounts of data from one place to another. No matter how careful you are with this task, there is always the risk of making simple errors. This is where automated accounting solutions come in and shine.
Automating accounting adds an additional layer of security to the accounting process by reducing human error and providing more reliable financial information and security.
Provides Financial Insight:
Auto Accounting is not only dependable it’s also fast. Instead of waiting until the end of the month, automated solutions present you real-time insight into your financial health so you can make critical business decisions faster and more confidently.
It can provide insight on the following:
- Accounts payable/accounts receivable
- Bank reconciliation
- Billing and invoicing
- Cash management
- Expense tracking
- Fixed asset management
- Payroll management
- Revenue recognition
Saves Valuable Time:Automation is about allowing software do repetitive tasks and freeing them up to run your business and automation is no exception.
If you’ve been doing manual bookkeeping in the past, you probably spend some time each week or month doing bookkeeping.
Auto Accounting reduces the time you spend copying and pasting numbers into spreadsheets, helping you prepare financial statements, assess overall business health, and make strategic business decisions that impact long-term performance. You can spend more time on higher value tasks such as decision making. – term success.
This introduction to Auto Accounting is just the beginning of what is possible. As you begin to explore what else it can do, you can’t help but wonder how you would have run an accounting firm without Automated bookkeeping!
Post Tags :
Accounting, Automating bookkeeping, Bookkeeper, Bookkeping, Online CPA