Accounting Automation is an approach to maintain up to date financial records using automated accounting software. It not just automatically updates the records but saves lots of time when posting debits and credits. It organises data in such a way that when in future a user searches for any information, everything is in front of his eye with just a click.
Along with simplified manual entry of data into the database, automation also links bookkeeping system to credit cards and bank accounts. The payments are remitted to vendors and automatically applied to the appropriate vendor account and invoice number within the accounting records. At the same time, customers may remit an online payment via links that the system includes with any electronic invoices distributed to those clients. By using the link to submit payment, the software automatically receives the payment, posts it to the correct customer account and invoice number, then routes the payment to the bank account specified by the end user.
By automating manual processes, accountants have ample time to plan effective strategies for the growth of their firm. To make most out of it, let’s have a look at how you can automate accounting in a simplified way:
Switch to paperless technology
Going paperless saves you from the stress of viewing towers of paper stacked wall to wall. Noting down everything on paper stressful because it’s unmanageable and difficult to find what you are looking for. You can use apps like Evernote to de-clutter your desk and manage valuable notes which are readily available when required. Anything that is worth keeping should be maintained with such apps so that they can be searched for when needed. Receipts, business cards, credit cards, utility bills and any other important document can be maintained with such apps.
Once the process of organizing all your documents is complete, next comes outsourcing. Accounting software and online bookkeeping services, like Xero and MYOB, are Holy Grail of accounting. These services automatically sync your bank accounts to download every transaction. They also keep your balance sheets up to date and provide you monthly income statements as well. Apart from this, you can also outsource your work to a payroll service. XERO and MYOB provide you payroll service too.
Payroll service runs automatically without even logging in once it is set-up. The only thing to be kept in mind is that your checking account should always have money. For that, you can set-up auto-transfer with your bank account where money is transferred to your payroll account automatically before each payroll is processed. If you’re using an app like Evernote, you can connect it to your accounting software so that you can download your statements as soon as they are available to complete your reconciliation of your accounts. For all your taxes to be taken care of, you can get in touch with a professional accounting body like CPA. All you need to do is share your payroll details with them and they take care of your taxes when the time comes with all necessary information in their hand.
Automating your accounting can save you ample of time for other important tasks. Apart from saving time, it makes takes off your workload so that you can have a coffee while most of your work is being done automatically and you can have a look at your financial statements and account balances.