Is your accounting system holding your business back? Maybe you’re so busy running the business that sorting through scattered financials seems more of a headache than it’s worth. Or maybe you’ve tried making changes and were met with responses like, “If it isn’t broke, don’t fix it”, or “We’ve always done it this way.”
It’s easy to shove back-office problems and inefficiencies under the rug when you’re thick in the weeds of busy season. However, when businesses take time to optimize their back-office, they can save much needed time, money and future issues.
How do you know it’s time to upgrade your back-office accounting system? Pinion Accounting Services leader, Kent Simpson, lays out five indicators that you’ve outgrown your current accounting system:
- You notice an uptick in errors or discrepancies in your financial records.
- There is a lack of clarity on true production costs.
- Repetitive tasks consume several hours per week that could be spent on higher-value tasks.
- Delays in payments or invoices are not uncommon.
- One person is responsible for accounting tasks – if they retire or have an emergency, you would be left scrambling.
“Many businesses still operate with scattered financials and a lack of standardization,” says Kent. “It’s not uncommon to spend hours on recurring tasks or to feel like your back-office is just getting by – but it doesn’t have to be that way.”
Optimize Your Back-Office with Automated Accounting
Automated accounting is the use of software to help perform repetitive back-office tasks such as payroll, bookkeeping, data collection, and other processes. It can handle tasks that would typically take multiple roles and several hours– saving time, money and headaches down the road.
“Roughly 64% of small business owners use accounting software to streamline their processes.”
Some of the most common tasks to automate include:
- Accounts payable
- Bank reconciliation
- Bank transactions
- Budgeting and forecasting
- Customer invoicing
- Data entry
- Expense management
- Financial reporting
- Inventory management
- Invoice processing
- Payroll
- Tax compliance
7 Benefits to Automated Accounting
- Remote accessibility. For many business owners, the office isn’t where they’d prefer to spend their day. With remote software, you can approve transactions on the road, in the field or wherever you need to be.
- Increased efficiency. Automated systems can pull data from multiple sources such as receipts, invoices and bank statements, reducing the need for manual data entry. Automated bill pay means you don’t have to cut a physical check or contact a vendor.
- Cost reduction. Bringing on a full- or part- time employee can be a challenge and burden to a business. Depending on the location, the cost of an accountant is anywhere between $20–$100 per hour. Accounting software is a fraction of the cost and requires a fraction of the training.
- Real-time financial insights. Accounting software puts a powerful tool at your fingertips: insight-rich data. Real-time data shows where you are today – from KPIs to vendor invoices and market financials – allowing you to make game-changing decisions in the middle of the season.
- Enhanced data accuracy. Automation expedites tasks and improves accuracy by minimizing the likelihood of human error, alleviating disorganization and discrepancies that could damage your bottom line.
- Expense tracking. Accounting software simplifies expense tracking by digitizing receipts and invoices – which means no more hunting down lost receipts or invoices. It also categorizes expenses and syncs transactions from bank accounts, meaning everything gets accounted for and tracked in one place.
- Centralized data. Technology can bring it all together – payroll, accounting and even HR – in one place, making it easier to manage.
“Accounting automation not only optimizes your business, but it creates more time for what matters most to you,” Kent shares. “I remember well, a client who had been handling the farm business books and finances for over 30 years. But she reached a point where she wanted to step back from the business and spend more time with her grandchildren. Automation tools gave her the freedom and time back with her growing family.”
Is it time to consider automated accounting? Learn more about Pinion’s automating accounting platform and services.
