Why bookkeeping automation is better for your growing business

By automating bookkeeping and accounting processes, businesses can save time and money, and reduce the risk of manual errors that can be costly

Technology has levelled the playing field, empowering growing businesses to automate tasks and improve productivity. In fact, a recent survey found that 40% of accountants think there will be increased use of automation and technology in the next 15 years, meaning its potential is being increasingly recognised.

Plus, it’s a reliable way to ensure that a business’s bookkeeping is consistently accurate and organised, making it easier for both you and the accountant. This means no more searching through emails or shoeboxes for lost receipts and invoices.

As an SMB, why is it a good idea to use automation to optimise and grow your business?

Gain a competitive edge in business

While traditional accounting has served its purpose over the years, it can be challenging to manage the vast amount of data and documents involved as businesses evolve. Using manual accounting systems can be inefficient and prone to errors and inaccuracies.

By leveraging automation, businesses can effectively manage their finances and establish a strong financial base for the future, gaining a competitive edge.

Utilising accounting software for small businesses offers a significant benefit in the form of optimising data to maximise profits.

These tools can efficiently identify inefficiencies and areas of waste within your business, leading to increased productivity.

Moreover, by automating bookkeeping tasks, businesses can reduce the need for hiring additional staff, which can result in significant cost savings. While the software provides the necessary tools to manage business accounts and make informed financial decisions easily.

Save time by removing hefty admin

By automating the more time-consuming tasks, software solutions can significantly simplify your day-to-day operations and allows employees to focus on more strategic tasks that require human skills and judgement.

In fact, not only is automation the key to better finances, but it can save up to 25,000 hours per year on administrative tasks – resulting in more time for your business to grow and expand.

Automation can save up to 25,000 hours per year on administrative tasks

Additionally, there are supplementary tools available that can enhance the software’s functionality, such as built-in reports that save significant time each week or automatic bank feeds that simplify the reconciliation process.

During tax season, exporting reports from the software makes the process effortless. Accounting software can also help small business owners ensure they’re taking advantage of all potential deductions.

Stay organised, stay compliant, and improve communication

Using finance automation for small businesses can help keep you prepared for taxes, save time, and give you peace of mind.

Plus, automating tax management can significantly reduce the time and stress associated with tax season. For example, it reduces the chances of human error. With the government stringent in finding egregious errors in tax filings.

Automation can help reduce the risk of errors by ensuring the information you put in is accurate and complete.

Likewise, you’re much more likely to be compliant with tax laws. When you automate your finances, you can quickly verify that you’re following all tax requirements, avoiding penalties and interest charges that can be levied for missing deadlines. Automation also helps you stay in compliance and safe from cyberattacks and other breaches.

There’s also the added bonus of improved communication with the accountant, since automation ensures businesses have real-time access to up-to-date finances. Having real-time visibility into your financial status allows business owners and managers to make informed decisions based on current financial data.

Better bookkeeping means better business

The bottom line is simple. Bookkeeping automation can provide businesses with greater accuracy, efficiency, and cost savings, allowing them to make better decisions and operate more effectively in today’s fast-paced business environment.

If you’re looking to grow your business, accounting automation is a must in today’s competitive landscape.

This piece was written and provided by Sabby Gill, CEO, Dext.