As businesses grow, it’s par for the course for their operations to become more complex. They begin to handle more money, manage more staff and clients, and oversee a greater number of both major and minor business decisions. In particular, the volume and complexity of the accounting work a company needs to handle is sure to rise as the business itself expands.
Any business seeking to grow will soon find that the manual, paper-based accounting procedures it might have utilized at the start of its life may no longer serve its needs well. Such processes are often slow, error-prone, and costly to maintain. It’s logical at this point to invest in a computerized accounting system (CAS) that will allow the company to automate the bulk of its basic accounting processes.
Automation technologies help companies speed up their accounting processes, cut operating costs, and provide a single, unified source of information for all accounting data. The best part is that any business, no matter how small and homegrown, can now easily access “off-the-shelf” accounting software without having to pay costly premiums for the customized programs that large companies use.
If you’re still unsure about modernizing your company’s accounting processes, simply read on. We’ll walk you through five of the major advantages of adopting computerized accounting technology.
Greater Operational Efficiency and Productivity
Computerized accounting solutions can perform important data reconciliations and calculations in a fraction of the time and with greater accuracy than even the most well-trained and disciplined of staff can. The software is also capable of automatically generating necessary documents such as invoices, balance sheets, and financial reports in a matter of minutes, when it would have taken hours or even days for staff members to prepare them manually.
When you take advantage of automation and allow the software to take care of most, if not all, your basic accounting procedures, you also free up staff to do more complex work. You will be able to train your staff in new skills, such as operating the software and making optimal use of its many features. You’ll also be able to have staff members apply their abilities toward more challenging and value-adding tasks, like generating new and actionable business insights from your store of financial data.
More Accessible Data
Traditional paper-based systems make it difficult to store, retrieve, move, and analyze important accounting data. If your staff members are spending long minutes or even hours sifting through endless piles of documents for one or two pieces of important information, your company’s overall productivity will suffer in the long run. Using a CAS, you can easily search up any data or files that you might need with just a few clicks.
Digital files are also much easier for multiple users to access at once, making collaboration and communication between departments easier. With a CAS, users can view whatever files they might require without being bound by time or location constraints. All they need is a compatible device to access the software and the requisite administrative permissions.
Errors in your financial statements and reports can cost your company dearly in terms of tax penalties. No matter how disciplined and competent your staff may be, manual accounting processes are highly vulnerable to human error by nature. You can also expect that risk of errors will also only grow as the volume of work your staff members have to do increases.
It’s always safer to depend on software to perform your calculations and reconciliations for you, as these applications are designed to return completely accurate results at all times. Many iterations of accounting software also make it easy to spot data inputting errors by flagging double entries, typographical errors, and the like for immediate correction.
Highly Scalable Operations
The best accounting software will be able to grow with your company, no matter how much your business expands during its lifetime. You won’t have to worry about hiring more staff, setting aside a larger budget, or making more space to store hard-copy files as you prepare for further expansion. The software will be able to process higher volumes of accounting data without sacrificing any of its speed or accuracy, and it will always be able to store this data securely and accessibly.
Tighter Security than Traditional Systems
Data breaches and other security threats can cause a company considerable financial and reputational harm. The latest accounting technology will allow you to minimize these risks by preventing your data from being accessed and stolen by bad actors. Encryption, password-protection, and advanced access permissions management features are just a few important security capabilities you can expect your CAS to have. Most accounting programs will also allow you to track the changes made to your files to ensure maximum transparency and accountability from all users.
No matter how big or small your business might be, embracing a centralized accounting system can help make its operations more productive, secure, and cost-effective. When you can safely entrust your day-to-day processes to reliable technology, you and your employees will gain the freedom to focus on the tasks that matter, such as maximizing your profitability and working toward your business goals.