Automated Accounting System Defined
Automated accounting systems are information systems that allow the collection, storing and processing of financial data for the use of decision makers in businesses.
In simpler terms, automated accounting systems exist to automate the processes that normally take up a lot of time and are often repetitive.
Automated accounting is driven by Artificial Intelligence (AI) which allows processing of documents such as Source documentation which includes invoices, receipts and credit card slips; Bank Statements and Pay-slips.
Essentially, automated accounting system gets rid of labor-intensive tasks. It is also referred to as Smart Accounting or AI Accounting.
Whatever you call it, automated accounting system is an exciting idea and it is possible that by the end of 2020, all tasks related to payroll, audits, banking, and tax preparation will be fully automated. It would by then be easier than ever to produce financial documents like Trial Balance, Income Statements, and Profit and Loss Statements.
Want to know how this can help with your daily tasks?
Here is a scenario that is most likely familiar to you.
Imagine yourself trying to get hold of a client to query regarding a source document while having to skim through mountains of papers piled on your desk. You can avoid this scenario by shifting from a manual accounting system to an automated accounting system.
You will also have quick and better communication with your client as you will be able to leave note for your clients on specific documents. You will have use for less paper and all the hard work would have been cut by half.
The future of accounting is automated it is now mainly a question of you being onboard.
Accounting Today says that the cloud accounting space will be worth $11.8 billion by 2026 and It is a certainty that automated accounting will become a norm of the future.
Here are 5 benefits of adopting an automated accounting system:
- Accounting automation will give you a much deeper real-time insight into your clients’ books than ever before.
- It is now easier than ever to get clients from any country in the world.
- It will allow you to stand out from your competitors as you will be able to deliver a faster turnaround time for audits and bookkeeping services.
- There will be a cost-saving on office stationery and our desks will be less cluttered so we can concentrate on the work that matters.
- There is no longer a need to spend thousands of dollars to pay for offsite documentation to make sure is secure.