4 Accounting Tasks Businesses Should Automate Immediately

Accounting Tasks Businesses Should Automate Immediately

Accounting is one area where many businesses are still using outdated processes and practices. These processes rely on manual techniques such as using spreadsheets to keep up with what is going on with the company’s accounts. When businesses do this, they risk introducing human errors that can lead to complications and messes. To avoid this, businesses should automate their accounting processes. With this in mind, here are 4 accounting processes to consider automating.

Purchase Processes

Purchasing takes a lot of paperwork in the form of purchase orders, contracts, and everything else that is required to facilitate the process. Automation makes this process easier and faster while also ensuring no records are lost.

Additionally, such automation can save the business time and the costs associated with manually verifying everything.

Recurring Payments

There are lots of reasons why a business might want to implement recurring payments. For example, they may offer a product or service on credit so their customer pays a set amount each month, or they may offer a subscription service that needs to be paid monthly.

If a business is dealing with only a few customers or partners every month, reconciling these payments manually may be possible. However, things start becoming complicated once a business has more than a few customers and impossible if they have more than a hundred.

In these cases, automating these recurring payments can save the business a lot of time and money. Several solutions allow businesses to do this, but one of the most common ones is ACH payments. 

Once a business validates that the customer’s account is real, they can enable ACH payments where payments happen seamlessly and without intervention. The ACH solutions provided by companies like Yodlee are what make this possible. Yodlee provides solutions for faster and safer ACH payments. Their solutions eliminate manual processes while also ensuring your business is paid faster and saves on fees and transaction costs.

Payroll

If not automated, payroll is a highly manual and tedious process because the HR manager or operations manager has to deal with it every payment period. 

This might not be an issue for businesses that have a few employees, but things can spiral out of control quickly if a business has lots of employees or is actively hiring.

Automation reduces the burden on your managers, allowing payroll to be handled automatically while also ensuring the employer does not miss things like taxation, deductions, and overtime.

Accounts Payable

Many business owners and managers do not like dealing with accounts payable, but this department has great power over the rest of the business. 

Proper accounts payable procedures allow businesses to maintain relationships with vendors and suppliers, keep costs low by keeping their discounts, and have enough stock when they need it.

Automation helps businesses keep track of when they need to make orders, when vendors need to be paid, which vendors need to be paid, and how much they need to be paid, and track invoices.

Conclusion

With how many benefits automation affords businesses, there is no reason why businesses should not be automating important tasks such as accounting processes. There are further incentives to do so thanks to the numerous tools and technologies businesses can use to automate these processes.

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