8 Benefits of Automation in Accounting & Bookkeeping Process
The era where the accountants used paper or excel for performing the accounting tasks of a company has become obsolete. The modern era of accounting & bookkeeping has successfully dodged all the cons of the traditional manual accounting and even small businesses ate now efficiently executing the accounting tasks with the help of automated software and cloud computing. By adopting automation, the threat of human error was eliminated and the digitalisation helped the businesses to save a lot of precious time and resources. However, the arrival of automated software such as Tally, Quickbooks and Zoho etc. have revolutionised the accounting tasks by ensuring that all the financial data are stored in a single place. Having efficient accounting software helps the companies maintaining the books of accounts which is mandatory in the UAE as per the Federal Law No 2 of 2015 on Commercial Companies, and the UAE VAT law.
The accounting and bookkeeping software gathers comprehensive data on the transactions and is easily retrievable at any given point of time. The transactions could be recorded only once and the further entries could be performed in a single click. In this way, the process of accounting becomes efficient as key accounting tasks are automated.
1. Automation Saves Time
An efficient accounting software system saves time by removing the traditional methods of manual calculations and record-keeping. The automated software is able to execute both front end and back end transactions at the same time. Tasks, like managing employee-hours and generating payrolls, have been automated, enabling the businesses to allocate time for other important business activities.
2. Continuous Financial Monitoring
Automation of accounting tasks has brought in a mechanism where it is easy to continuously monitor the financial record and get the in-depth report at any time the directors or other stakeholders wish to see. The continuous monitoring of financial records provides an opportunity to review and resolve issues before they balloon out of proportion. In the manual bookkeeping, the accounting tasks were typically done during the end of the financial year, mainly for tax assessment.
3. Management of Cash Flow
With the arrival of efficient accounting software, it has become easier to record and track receivables and payables. The businesses have found it a more convenient way to know the resent and future cash flow status. The software system also allows the companies to record invoice and bills which help them avoid late fees.
4. Minimize Errors
The probability of error was high in the bygone era of manual accounting and the introduction of automated software has succeeded in reducing such mistakes in the accounting process. The software is able to perform the calculations on its own thereby minimising human errors in the records.
Also Read: 9 Accounting Mistakes that Can Kill Your Business
5. Tracks Inventory
The automated software has become a blessing for the businesses that manage product inventory, especially the trading companies. It is important for such businesses to know what is in stock and what has become obsolete. Efficient accounting software tracks the inventory while the businesses process the product orders. With efficient software, it is now easier to know whether the business has run out of certain goods. Tracking inventory is no more a time-consuming process and great accuracy can be expected.
6. Actionable Reports
With efficient accounting software in place, the businesses have invaluable data at their disposal to generate various reports. The software keeps the management updated about the money-flow in the organisation. The software can provide data on which customers are able to generate more revenue for the business. As all the data about the financial transaction are readily available, the business owners can make strategic business decisions.
7. Centralisation of Accounting Tasks
Automated accounting software paves the way for efficient financial management by centralising the key accounting processes like inventory management, invoicing, and payroll. Having all the processes in a single place saves money and time as a separate system is not required to perform each task like invoicing the customers.
8. Secure Organisation of Data
Invoices recorded in the manual form could be easily lost or misplaced. In contrast, the automation helps the invoices to be arranged safely in a single location. The invoices are easily retrievable and can be reviewed or reprinted. Automation ensures the neat organisation of the key accounting data.
Accounting & Bookkeeping Services in Dubai, UAE
Accounting & Bookkeeping is the core task of most businesses in the UAE as maintaining the books of accounts are mandatory under the UAE Commercial Companies Law and VAT law. Several free zone authorities and Federal Tax Authorities have also mandated the requirement of marinating the books of accounts. The modern era of automation makes this process much easier as the threat of human errors associated with the manual bookkeeping has been eliminated to an extent. Apart from adopting automation, outsourcing the accounting & bookkeeping services to a tech-friendly accounting firm in Dubai, UAE eases the key accounting tasks for the businesses.
Jitendra Chartered Accountants (JCA) is a leading firm of Chartered Accountants in the UAE with commendable experience in assisting thousands of businesses with their accounting & bookkeeping requirements. Being a one-stop solution for all the services including accounting, auditing, and VAT, JCA is committed to bolstering the financial growth of the companies.