How Can Businesses Automate Their Finances?
When a business elects to automate their finances it utilizes software to automate key finance related tasks. This will free up employees time to focus on other responsibilities, as it will reduce the manpower needed to carryout tasks such as generating financial statements and accounts reconciliation. Shifting from manual processes to automated ones can enhance the performance of the core functions of a finance department, and ultimately have a positive affect on a company’s bottom line. There are several areas within a financial department that a business should consider automating.
Automate Bill Payments
Automating bill payments can be done through banks, creditors, and/ or credit card companies. This seemingly insignificant switch can produce significant benefits. Automating bill payments can allow clients the ability to set up one-time and recurring payments so business receive payments faster, which in turn can improve cash flow. It can also ensure company bill payments are never missed. Syncing bill payment data with automated applications such as Quickbooks, has been reported by the Wall Street Journal to reduce the bill payment time by half.
Creating and authorizing manual spreadsheets can be incredibly time consuming. It can also result in inaccurate records, as duplicate data entries are a commonly known error of the manual process. There are electronic applications that are able to memorize a company’s unique expense management policies, identify which expenses require a manager’s review and request automatic approval. What was once a lengthy process can become nearly instantaneous when automated.
Automated invoicing can eliminate mistakes and free up a significant amount of employee time to be spent on other tasks. The manual invoice management method exposes a business to a plethora of potential human errors. Late payments, misplaced invoices, as well as an inability to instantaneously view accurate and up to date records could be resolved by implementing an automated invoice management solution. There are a variety of invoice management software options available. Many offer services to assist any type of business with the initial stages of the migration process (from manual invoice management to automated invoice management). The software works by converting data that is pulled from a scanned invoice into a text-searchable document that is subsequently logged into and stored in the digital accounting system.
Sales Tax Reporting
Businesses that inaccurately report sales tax can be subject to substantial penalties. There are a number of different options when it comes to automating tools for sales tax reporting. The best sales tax reporting automation software will depend on the business. It may behoove a business to consult a professional to assist in distinguishing the best option.
Should We Do It?
Making and carrying out the decision to automate a business’ finances can be broken into several steps, as is not necessary to automate all areas at once. In fact, depending on the situation, taking the process one step at a time can help assure the overseeing employees are fully adept at effectively utilizing the new automated processes. Hiring a consultant and/ or financial professional during the various migration processes can help provide peace of mind and ensure each automation process is carried out correctly. A financial professional can also assist a business in effectively prioritizing the order for which the various automation processes should take place.
For Further Information
There is no need for anyone to struggle through completing their taxes accurately, nor should anyone feel without guidance when it comes to effectively managing their finances. While the undertaking to identify and connect with an accountant that is a good fit and aligns with one’s needs may seem overwhelming, doing so will be worth it in the long run. Many people may feel they can sufficiency manage their finances and tax responsibilities on their own, but hiring the right accountant can help to assure maximum proficiency and will ultimately result in significant financial gain during one’s lifetime. With decades of experience and the full range of accounting services Krowne Certified Public Accountants provide, we are equipped with the expertise for which you may be in need. As a full-service public accounting firm, we at Krowne Certified Public Accountants, are able to offer unparalleled financial guidance and professional services specifically tailored to each of our client’s nuanced needs. Please feel free to reach out to us at Krowne Certified Public Accountants by filling out the form on our contact us page or via phone at 818-831-6075 to discuss your situation and find out how we can help you grow. We look forward to hearing from you.