What Is Accounting Automation & Why Is it Useful?

Undoubtedly, accounting is essential for any business, but let’s face the truth: it can be too time-consuming and prone to human errors. Fortunately, accounting automation is here to help businesses. In recent years, cloud-based modern ERP systems like Kentro have made accounting automation more accessible and useful for businesses of all sizes. Today, we’ll explore what accounting automation is and why it is useful for a growing business like yours. 

What Is Accounting Automation?

Before talking about anything else, let’s zero in on accounting automation. Basically, it is the process of using technology to streamline accounting tasks, such as bookkeeping, invoicing, and financial reporting. With accounting automation, businesses can reduce the amount of time and effort required to manage their finances while minimizing costly human errors.

You can use a single-function accounting automation app. But it’s more beneficial to utilize Cloud-based modern ERP systems. They often offer a range of accounting automation features, including automated invoicing, bank reconciliations, and financial reporting. These systems leverage cutting-edge technology, such as machine learning and artificial intelligence, to automate accounting tasks and improve accuracy. Plus, with systems like Kentro, you can seamlessly integrate accounting automation into your full commerce operations—even if you’re selling in multiple sales channels and online marketplaces. 

Why Is Accounting Automation Useful?

Accounting automation offers a range of benefits for businesses, including:

  • Increased Efficiency

Accounting automation can significantly increase operational efficiency by reducing the time and effort required to manage finances. For example, you can eliminate the need for manual data entry and payment delays when you have automated invoicing.

  • Improved Accuracy

With automated accounting, you can ensure financial data is entered consistently and accurately across all your systems. That can reduce the risk of errors and discrepancies, such as duplicate invoices or incorrect coding. 

  • Cost Savings

You save costs in more ways than one. For one, you can avoid late payments with automated invoicing. Your software can automatically send reminders to help ensure customers pay on time. Also, you can save on workforce costs since you no longer need to hire more in-house employees to do the time-consuming tasks in your business accounting. 

  • Better Financial Insights

Most modern ERP systems offer real-time financial reporting. For instance, Kentro can provide up-to-date insights into your finances, including consolidated cross-channel financial reports to help you validate and confirm all figures before closing the books. That is especially beneficial if you run brick-and-mortar shops while maintaining online shops. 

  • Scalability

Do you own a growing startup? You’ll be pleased to know that accounting automation systems often allow businesses to add or remove features or users to adapt to their changing needs. You no longer have to invest in additional software just to add or reduce the number of users. Simply put, you can stay agile in the face of changing market conditions.

  • Time Savings

Let’s not forget about the time savings. With automated accounting, businesses can save time and reduce the burden on their finance team. Your in-house team can focus on more strategic activities, such as analyzing financial data and identifying growth opportunities.

  • Enhanced Security

Cloud-based modern ERP systems typically offer enhanced security features, such as encryption and two-factor authentication. This can help protect businesses from data breaches and other security threats. You no longer need to add security software or invest in tools to ensure your financial data is protected from cybercriminals & unauthorized access.

  • Integration with Other Systems

Does your business use other automated systems? You can easily integrate accounting automation with other systems like inventory management or payroll software. This can help your business streamline back-end operations and improve day-to-day efficiency.

Reap the Power of Accounting Automation with Kentro

Getting more orders? Opening more shops online? You probably notice that managing books has become more tedious and challenging—but it doesn’t have to be that way. As you’ve learned the benefits of accounting automation, it’s time to try your hand at Kentro.

Kentro is a modern ERP system with an accounting automation feature that frees your team from tedious financial report generation and manual data entry of sales orders and invoices. Book a demo today to learn more.

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