Accounting automation can help you manage operating expenses

The growth of affordable online tax services has impacted the accounting industry. It's forced many firms to be more competitive with their pricing, sometimes at the expense of revenue.

To compete with online giants, accountants need to take a slightly different approach, focusing on providing valuable and personalized experiences to customers. One of the best ways to do that is to embrace accounting automation tools that help streamline processes.

The benefits of accounting automation

When most people hear the word automation, they worry about machines replacing people. However, for most accounting firms, the rise in automation is a good thing for employees. Accounting automation tools help make repeatable tasks more efficient, leaving more time for accountants to focus on the work that matters: helping their clients and developing their skills.

Beyond freeing up accountants' time to do more meaningful work, automation can also help remove some of the tedious nature of data entry and cut down on manual mistakes. This can have a positive impact on employee and client satisfaction. Plus, your company is likely to see cost savings and increased productivity.

What to look for with automation software

Accounting software has come a long way over the last few years, so firms need to understand some of the benefits to look out for and the costs associated with automating accounting.

Here are a few things to consider:

• Software integration: Look for a system that will seamlessly integrate with your current tools. Today, many automated accounting tools will connect with payroll and HR programs to create one unified system.
• Industry regulations: If your firm primarily focuses on a particular industry, look for software that has the specific rules and regulations in that industry already built into the system.
• Cloud-based: A cloud-based tool can help your team work from anywhere and easily access data without having to rummage through paperwork. Plus, cloud-based tools are easy to update.
• Support: Make sure to consider the support that the software offers. You want real-time access to help, so the system doesn't slow down your team.
• Client-friendly: Usability is paramount—for both your employees and your customers. Many options will have a client portal where clients can update and upload information and documents for the accountant.

Your firm might have particular needs that you'll need to include in the decision-making process.

Consider the cost

Pricing can vary widely and will depend on the size of your firm and the types of services you provide.

Most systems offer either a monthly or yearly subscription service or require a licensing fee up front. Then, the cost often depends on how many users have access. For mid-range and premium software solutions, that could range from a few hundred to a few thousand dollars per user, per month, depending on your needs.

How your firm can use AI and automation software

There are several types of software that can help your accounting firm become more productive and efficient. Use these tools to:

• Automate data entry, report generation, reconciliation and other routine processes and tasks
• Extract information from financial documents
• Respond to client inquiries
• Retrieve and process large volumes of financial data
• Enhance your audit quality and efficiency
• Streamline tax compliance and calculations
• Use analytics to forecast outcomes and model scenarios in real-time in order to improve accuracy and support collaboration
• Identify anomalies, patterns of fraudulent activities and potential risks to help detect and mitigate fraud

Work with your financial team

Any business involves more people than those in the office. It also includes the professionals that help you keep your organization running—including your financial team.

Purchasing any large software system is a big decision, so it never hurts to chat with your business banker. They can go over the bigger financial picture with you and help find the appropriate financing for the investments that will save money and streamline your operations over the long term.