How to Leverage Accounting Automation? – Small Business Guide

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How to Leverage Accounting Automation? Small
Business Guide

• https//www.imprezz.in/ Imprezz

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Coming up with small business ideas and making
it requires you to take actions. Theres a lot of
thoughts that go into taking that call of making
it happen. The success of your business is
inversely proportional to the number of sales you
crack every day. It involves a lot more than just
trading goods for money. Emerging technologies
have been remarkably helping businesses succeed,
and it is high time to understand how to leverage
accounting automation. As a business owner, you
need to puzzle out product merchandising, stock
control, market research, advertising and
marketing, customer service, negotiation and
more. It doesnt end there. You need to
understand small business accounting cash flow,
taxes, payroll, tally,  ledgers, purchase orders,
and other accounting tasks need to be tracked
carefully. You dont want to let an entry slip
away through the cracks. In simpler words, the
key to run a successful business is to keep
detailed records, and that is where accounting
automation software can help. This article is a
part of our comprehensive small business guides 
heres how you can leverage accounting process
automation in 2021.
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What Is Accounting Automation?

• Manual processes consumes most of an accountants
  workday. Accounting automation can complete the
  significant financial tasks automatically, or
  instantly. The concept of automation for small
  business in accounting is not entirely new there
  have been different forms of computerised
  accounting systems since the late 1800s (source
  https//www.accountingnotes.net).
• Until recently, accounting automation tools were
  unable to work without human intervention.
  Accountants mostly operated them, and the manual
  operations still took a tremendous amount of
  time. Modern accounting automation has
  successfully removed these hassles by eliminating
  the least effective financial tasks. They provide
  more time for accountants to work on analysis,
  accounting strategies and other crucial business
  operations.
• Automated software systems are advanced in
  crunching numbers and tracking each real-time
  transaction of a business. They have erased the
  need to build complex ledger files and countless
  rows and columns of data entry. Computerised
  software has built-in formulae that help create
  and send reports with the click of a button. AI
  in the field of finance strives to streamline the
  overall business operation by automating
  accounting processes.

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Impact of Automation on Accounting

• Several business organisations have been
  continuously seeking efficient results through
  fair use of accounting automation tools and
  services. According to one of the recent surveys,
  the accounting automation statistics suggest that
  a more significant number of transactions are
  being processed and reported automatically by AI
  machines (source https//www.researchgate.net/).
  Modern AI software work alongside humans to make
  financial operations more effective and
  productive.
• Several CFOs are concerned about the impact of
  automation on customers. Recent reports estimate
  that more than 50 of the back-end functions can
  be potentially automated except roles related to
  knowledge-base management and shared
  services (source www.ibanet.org). That is
  professionals, including the data scientists,
  cognitive tech geeks who can convert insights
  into meaningful communication.
• Several big businesses and CFOs are now focused
  on utilising this opportunity by identifying
  individuals who are passionate to learn and
  expand their skill sets in the process of
  becoming the real business-minded partners.
  Todays business world needs the next generation
  leaders capable of driving changes that can
  reshape how accounting operations are done.

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What Is Accounting Automation Software?

• The practical results of implementing accounting
  automation are beyond learning accounting or
  cloud accounting. Automated accounting is more
  potent than the traditional computerised system.
  Employing an automated system rids accountants
  from performing manual data entries or 3-way data
  matching.
• Business automation tools automate a significant
  part of small business accounts payable
  processes. It automates everything from recording
  each transaction to GST returns filing
  procedures. Accounting automation software might
  require humans to intervene only when there are
  certain exceptions or need a higher level of
  thinking.

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What Are the Benefits of Using Automated
Accounting Software?

• Automation in finance resolves the manual
  accounting hazards through smart software
  solutions that can instantly take care of the
  problem. If you are a small business
  wondering how accounting automation can benefit
  your enterprise, heres a curated list that
  answers all your questions.

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Strategic Management of Cash Flow

• Mismanaging cash flow is one of the primary
  reasons why businesses go bankrupt. Cash flow
  crisis mostly arises due to inadequate accounting
  protocols that are unhealthy to a company. These
  protocols limit an enterprise from scaling and
  expanding their business. On the other hand,
  automation focuses on strategically managing cash
  flow that immediately provides a clear picture
  of business funds.
• Automation allows business owners to quickly
  estimate their profits where is the business
  spending the most, when can the company expect
  income. They no longer have to create manual
  reports to know their financial position. It
  provides visibility that contributes to making
  critical decisions when necessary.

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Saving Time Through Automation

• Automation is generally known to save time and
  manual efforts across various industries.
  Likewise, in accounting, automation allows
  accountants to conveniently work on ledger
  entries, client information and other financial
  details. They no longer need to spend countless
  hours trying to interpret data or matching them.
• Automated accounting systems auto-updates each
  record and relates the existing data in no time.
  Further, the systems also generate structured
  financial reports and install accurate timestamps
  on the related data. Soon, automated accounting
  software might replace the need for manual data
  configuration as well.

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Advanced Cloud Access

• Businesses using cloud programs can never settle
  for anything less. It is much easier to work when
  data access and document sharing is just one
  click away. Accountants and business owners can
  immediately process transactions and analyse each
  document anytime, anywhere. Cloud systems like
  Imprezz makes it easier to work as a team with
  shared data access.
• Cloud accounting software is comparatively much
  secure to manage accounts payable it is
  purpose-built for professionals with round the
  clock data access. They strive to provide the
  highest safety and enterprise-grade data security
  standards to keep the business operations
  streamlined.

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Flexible Features System Functionality

• Supreme quality accounting software provides
  features that are adaptable enough to sync with
  various business requirements. Implementing an
  accounting system that can adapt to the
  everchanging business environment is crucial for
  enterprises to succeed amid challenging
  competitors.
• An integrated software system like Imprezz allows
  standard formatting and provides customisable
  templates to formulate different business
  ledgers. These are some of the vibrant features
  and functionalities that make accounting software
  highly flexible for a wide range of businesses
  and industries.

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Cloud Storage Data Organization

• Automated accounting platforms are capable of
  elevating businesses beyond their current
  capabilities. Data organisation becomes easier
  with accurate data entry, processing and storage.
  Business operations become significantly
  convenient when you know where to locate specific
  information precisely.
• Automated accounting software guarantees
  streamlined data. It automatically saves the
  details by immediately identifying the
  information entered in the database. Advanced
  computerised systems like Imprezz offers secure
  cloud accounting that helps perform automatic,
  regular back-ups to prevent businesses from
  losing crucial data.

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Enhances Data Security

• On the dark side, the internet of things has made
  it difficult for businesses to survive. Although
  there are various advancements in todays
  technology, the chances of being harmed by
  cyberattacks are equivalently high. Accounting
  automation is built with encryption technology
  that offers advanced security features to ensure
  maximum business data protection.
• Alongside protecting businesses from being
  hacked, automated platforms enable business
  owners to control the shared data access,
  allowing them to share what is necessary. The
  feature helps maintain the confidentiality of
  ledger information by preventing the unauthorised
  employee from accessing the information.

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Quick Data Recovery

• Physical storage of paper files can be a daunting
  task data storage can slowly turn into countless
  records. The thought of retrieving or reviewing
  physically stored data can haunt accountants.
  They have to search for each document, sometimes
  piled in different rooms to match them and
  interpret the data.
• Accounting automation is a boon to accountants
  it is effortless to find records online. Instant
  location of files, entries and records has never
  been this easy before. Automated systems are
  programmed to make ledgers and document reporting
  easier to categorise and store safely.

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Comprehensive Data Analysis

• Besides offering data security and organisation,
  modern accounting platforms also supports quick
  presentation and distribution of financial data.
  Analysed files can be accessed by any individual
  working in the enterprise making reconciliation
  of audits and records much more manageable.
• Furthermore, analysing trends becomes easier with
  accurate means to check variances and
  predictability feature offered by the software.
  It enables accountants to make data-driven, smart
  business decisions by providing access to readily
  available reports.

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Tax Compliance Deductions

• The advent of the GST regime in India has made
  returns filing mandatory for registered
  businesses. The recent tax relaxations have led
  to confusion. Business owners are struggling with
  sales tax deductions during the tax seasons.
  Running errands with tracking receipts and
  expenses might lead to mistakes that can have
  severe consequences.
• The rise of automation in bookkeeping has
  eliminated the hassles of GST returns filing.
  Accounting platforms are now capable of updating
  records immediately as the transaction is
  processed. Accountants need not enter information
  as real-time accounting systems auto-update
  transaction data. They need to have an eye on
  these details to make sure if the information is
  accurate.
• Automated GST accounting software like Imprezz
  are capable of figuring the deductibles. It
  allows the business owners to understand and
  estimate the tax preparation time immediately
  after processing the transaction.

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Professional Development Expert Learning

• Any job role requiring manual, repetitive work
  can be replaced with the right tools and
  automation. In finance, accountants can easily
  replace their traditional, regular-basis work
  through automated accounting systems. It enables
  accountants to be more productive as they are
  free to focus on personal development and other
  efficient tasks.
• Despite all the advancements, accounting
  platforms do require human intervention.
  Accountants must ensure that these applications
  are working accordingly from time-to-time.
  Automation has been a turning point in the career
  of every accountant. It helps enrich their
  employment experience, improve their value within
  an organisation, and share their knowledge.
• Implementing an ideal accounting platform can
  eliminate the most tedious and frustrating
  accounting tasks. It must allow business owners
  to better focus on other crucial business
  operations, such as managing the bank accounts,
  developing business and accounting strategies,
  and better communication with the employees.

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How to Select Best Accounting Automation Software?
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• Automated accounting systems arent just for
  accounting. Business owners must know how to
  leverage accounting automation by integrating
  various business functions under a single
  platform. Instead, they should look up for
  software programs offering integrated business
  intelligence tools that help manage other aspects
  of the business.
• For instance, Imprezz integrated system allows
  businesses to leverage invoicing and quotation
  maker feature as a marketing tool. The software
  also integrates various essential tools
  like tally, purchase order management, import
  functions under a single platform.
• Heres a curated list of what to look for when
  you decide to purchase accounting software.

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1.   Does the software work well for your
business requirements? Before taking the call on
buying software, make sure if the accounting
system is designed to make ends meet for your
business. You can refer to online forums and
detailed specifications to understand the
functionalities of the software. 2.   Does the
software offer multiple access levels? As
discussed earlier, it is best to implement
different data access levels for owners,
managers, employees and other authorities. You
dont want all your employees having easy access
to your accounts data. 3.   Is the software
capable of recording transactions and managing
the payroll system? Although any accounting
platform is capable of recording transaction, not
many systems offer payroll management. Most
software offer payroll as an upgraded feature.
Please check for the features before you purchase
the software.
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4.   Does the software offer inventory
tracking? Only some software features include
inventory tracking others dont. You do not want
to link other tracking apps to your main
accounting software. It will just multiply the
amount of money you will have to spend on
automating your accounting processes. Do thorough
research about the software features, but what is
useful for your business. Do not pay for
unnecessary features. 5.   Is it a cloud-based
software? We have already discussed the detailed
benefits of cloud system in the article above. If
the software is cloud-based, it will provide
remote access. You will have the freedom to work
from anywhere. It also offers lower support
costs, automatic back-up facility and hassle-free
integration for payment and other applications.
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6.   Is the software extensible and
scalable? Small businesses have a greater scope
of expanding with time. Thus, it is crucial
to implement a scalable remote business
accounting system, a software that can grow as
the business does. Scalable software feature
enables businesses to add new users as they
expand. Wherein, the extensible feature allows
users to purchase new add-on applications. Regard
less of which accounting software you choose to
purchase ensure you always keep your essential
files archived. Do not share the access for your
data concerning sales records, bank information,
loan statements and tax data. These crucial
documents play a vital role in formulating tax
returns and business audits.
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Quick Tips for Successful Small Business
Accounting

• Using your accounting software to accomplish your
  regular business operations will help you get the
  best results. Heres a list of quick tips, make
  this your daily accounting small business
  checklist, so you dont miss out on anything.

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• Record Each Transaction
• Check Reconcile
• Review the Difference b/w Incoming Outgoing
  Cashflow
• Collect Required Tax Data
• Cross-Check the Defined Ledgers
• Keep Your Ledger Entries Updated
• Get an Outside Perspective from Your Financial
  Advisor
• Create Regular Reports
• Keep a Trail of Paper Records (Receipts
  Invoices)
• Do Not Intermix Your Personal Accounts Business
  Accounts
• Stay GST Compliant File Returns On-Time
• Watch Your Business Cash Flow

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Combination of Automated Accounting Smart
Spending Software

• By now, the reasons why your business finances
  require automation must be pretty clear.
  Accounting software saves time, avoids manual
  errors, and keeps business documents at your
  fingertips. Theres no excuse for not
  implementing accounting software.
• Alongside enjoying the benefits of implementing
  accounting software, have you considered
  leveraging automation to track your expenditures?
  While giving your finance team a customised
  control over your finances, you can also deal
  with your expenses in the same manner.
• Combining accounting and expense tracking
  features makes your business operations more
  efficient, accurate and help confidently deal
  with your accounts at the end of every quarter.
  But the question remains how to combine both
  functions? If you do not know where to start,
  consider implementing Imprezz accounting
  software, a complete package of business
  intelligence toolsleverage automation in every
  way possible. The software offers features that
  can help beyond your accounting needs.

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Will Automated Accounting Software Replace CPAs?
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Automation replacing accountants in the near
future is a mere myth. As we advance, businesses
are still going to require accountants to ensure
cost efficiency and effectiveness. Although
automation simplifies a large role of
accountants, it cannot entirely act like an
accountant. Instead, it is the modernisation of
the traditional practices of accounting which
allows accountants to make exceptional
advancements in their profession. Automation in
accounting has increased the scope for
accountants. It has eliminated their need to
spend enormous time doing the tedious yet
essential accounting tasks enabling them to
limit their errors and provide accurate results.
Accountants can now work on their vital roles as
financial officers. They can further become
finance consultants who create strategies,
budgets and advice the CEOs to help increase
their organisation overall profits.
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The emergence of advanced technology does not
mean businesses can do away with employing
humans. They still need bookkeepers who can
understand the fundamentals of accounting,
analysing and explaining how finance works for an
enterprise. Businesses do require individuals who
are capable of doing more than just interpreting
financial data. Accounting software has
transformed CPAs into custodians of financial
information. Most people believe that AI
(Artificial Intelligence) and machine learning
will take over employees roles. However, it is
far from the truth. In accounting, businesses
will always require an expert to keep an eye over
software functionalities. All-in-all, AI has
increased CPAs efficiency by enabling them to
deal with numbers much faster and in more
accurate ways. The process of strategic decision
making is now easier than ever for CPAs.
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Business Automation Guide Cut Short!

• Having known the basics of accounting automation,
  heres a list of new strategies working great for
  businesses in 2021.
• Automate transaction accounting tasks
  (bookkeeping, payroll, purchase order, etc.)
• Automate your business cash flow, tax
  calculation, planning and tax research.
• Automate accounts and records under GST.
• Leverage AI right away and save yourself loads of
  time.
• Auto-verify data to keep up with the quality.
• Become an automated and fully outsourced
  accounting professional for your clients
  (forecasting, financial modelling, business
  planning and more).
• Pick financial service providers who offer most
  accounting automation features and capabilities.

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Conclusion

• Technology has enabled business owners to manage
  their enterprise more efficiently. As a result of
  automation, the business now has an easy means to
  perform improved data analysis and reporting.
  Ideal accounting platforms enables business
  owners to see the overall business performance.
  If your company still adheres to manual
  accounting processes, you are running last in the
  race.
• Automation enables you to keep your fingertips on
  the pulse of your business, helping you to meet
  the everchanging demands in the marketplace. We
  hope this guide to accounting automation 2021
  was helpful for your business. Now we leave it
  all over to you.
• Do you want to install strategic accounting
  software for your business? Implement Imprezz,
  pioneer of business intelligence software for
  small businesses in India. The company has been
  helping MSMEs in India succeed despite the
  everchanging business environment. The platform
  has been helping several small businesses sustain
  despite the economic crisis caused due to
  COVID-19.
• We offer a 14 days free trial software program.
  Login to automate your transactional works and
  financial advisory right away!

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