Once, artificial intelligence was the stuff of science fiction. Today, though, AI and automation have become integral to our daily routines. Think about it: how many times this week have you used Siri or Alexa to set a timer, create a reminder, or answer a question?
The promise of AI and digital transformation is driving efficiency and growth. Businesses of all sizes are increasingly relying on technology-powered solutions and tools to do more with less—and do it better. Consider the applications for financial and accounting processes. From automating data entry and transaction categorization to generating real-time reports, technology is changing the way businesses approach their numbers. Embracing and implementing technology can enhance accuracy, unlock efficiency, and enable more strategic decision-making. Best of all, even small and medium-sized businesses can benefit from digital transformation.
Digital transformation is changing accounting
Through technologies like AI and automation, digital transformation is streamlining traditionally time-consuming accounting processes while improving accuracy by eliminating the potential for human error. This is helping accountants focus on higher-level strategic work. Consider these examples of areas of digital transformation in accounting:
- Robotic Process Automation (RPA). RPA is transforming repetitive, rule-based tasks in accounting, like recording revenue or entering data into separate systems. Software bots can be programmed to perform tasks like data entry, invoice processing, and reconciliation. What’s more, they can do these tasks faster and with greater accuracy than people can, reducing the risk of errors while pushing productivity.
- Predictive Analytics. AI-driven predictive analytics can ingest and analyze vast amounts of financial data to identify trends, anomalies, and risks much faster than people. These insights can help staff and leaders make better decisions on key matters like cash flow or tax planning, for example.
- Automation for Expense Management. Machine learning algorithms can automate and optimize expense management processes. Through analysis of historical data and patterns, these tools can identify unusual expenses while saving time and cost.
- Real-time Reporting. AI tools can create real-time, highly accurate financial reports and forecasts. These reports can provide valuable insights for business leaders, helping them make informed decisions and respond quickly when market conditions change.
Businesses looking to transform their accounting processes should start by identifying processes that could be automated. Look for time-consuming processes that require precision but not judgement. With the right software and expertise, these can be automated, freeing up time and resources to reinvest elsewhere in the business.
Optimize your accounting software
For many businesses, a good starting point is to ensure that they are getting the most out of their accounting software. Accounting software helps businesses automate bookkeeping tasks, track expenses, and easily generate financial reports. Many software packages also include additional options, and these are areas of opportunity for realizing additional value.
- Automate invoice processing and delivery. Many companies are using accounting software to create an invoice, which is then downloaded and sent via email to the customer. Accounting software can, instead, offer the option to streamline billing processes through a single workflow that includes invoice creation and delivery to the customer, right in the same program.
- Automate payment reminders. Issuing an invoice is one thing; ensuring payment is another. Automate payment reminders at pre-defined intervals based on your payment terms. This can help to facilitate collections and reduce days sales outstanding (DSO) to help your firm better manage cash flow.
- Make sure your accounting software is set up for your business. Even out-of-the-box software can benefit a business, but it’s better when it’s configured to your company. If necessary, seek out expertise to set up your accounting package to accommodate your business needs, like inventory management.
Ready to unlock the power of automation for your business? XPECT can help. XPECT professional services are designed to support the unique and specific needs of small and mid-size businesses. XPECT is focused on helping businesses optimize business strategy, enhance operational effectiveness, and successfully leverage accounting as a strategic tool, so that business leaders can focus on the strategic aspects of growing the business and achieving business goals. Learn more at www.xpectup.com.