Accounting Entry Automation Cuts Waste W/ Huge R.O.I.!
September 25, 2020
BY WM. RANDY MCKINLEY - President | CEO "The Company Doctors"
Accounting automation doesn't just save you time, it can CUT COSTS for small and medium sized businesses.
Accounting automation software has been growing in importance in recent years. But it’s become especially critical in the wake of Covid-19.
Businesses are looking for ways to keep costs down. For many, it’s the difference between going under or keeping afloat.
While everyone is cutting costs anywhere they can, it might seem counterintuitive to focus on accounting automation software. But a mighty 64.4% of SMEs use accounting software & the shift towards automation to help cutting costs is likely to accelerate in post-Covid.
Processing a SINGLE invoice manually can cost a company anywhere from $14 to $20 in hard and soft costs, which is a lot of money for a company.
The industry average AP person can process 5 manual invoices per hour (12 minutes per invoice). This includes data entry, proofing the manual entry, correcting ‘fat-finger’ mistakes and processing the invoice.
Below is a summary of the Pain Points of Manual AP Processing. It is very clear how resources can get chewed up with these processes and how an accounting automation software could be beneficial.
Cuts Hard labor costs
Streamlining and pay cuts are an unfortunate consequence of Covid-19.
Automation reduces tasks, not necessarily jobs i.e. an employee who might be sifting through and filing receipts and invoices could be doing something else for the company.
Manual invoicing can take as many as 15 steps before it’s done.
AutoEntry Automated accounting software eliminates most of those steps.
S.M.E.s...(Subject Matter Experts)
The consolidation of information to the cloud with an easily usable and searchable software package reduces research and admin time
No more combing through endless files, Excel sheets or (worse!) filing cabinets.
You or your team can now give more attention to clients, work on new business prospects or analyzing the numbers in more
More in-depth accounts analysis
According to a US Bank study, 82% of businesses fail due to cashflow mismanagement.
Accounting automation does more than remove tasks: it can offer insights that could bring long-term savings.
The greatest benefit here is that accountants are no longer struggling to get to Trial Balance.
Now accountants can spend more time advising their clients.
The saved time also frees up an accountant to share their wisdom, insights and guide the client to a healthier balance sheet.
Accounts can now earn additional revenue because of the valuable advice they’re giving helps reduce client churn.
Having information consolidated in one place gives you the opportunity to identify trends.
Identify where too much money is being spent or where opportunities are left unexplored.
In today’s fast paced world, it can be hard to gain perspective and that applies to your business and its comings and goings.
A graph highlighting a bad trend you could have missed; or having more time to spotting a potential opportunity is huge.
Expenses can be tracked more quickly and accurately
Incidental expenses are a part of doing business, of course, but any accountant can tell you that they add up.
Clients’ receipts and invoices can be collated and automatically added to your software, automating a huge part of your job.
No need to fill the wallets with receipts and drawers with invoices, a business should be photographing and documenting these items. Business Team members are less likely to lose receipts and it reduces clutter.
Making something easier to do, naturally, means that people are more likely to do it.
Digitized accessible expenses gives a clear picture of expenses - including areas where you might want to cut back.
Digitization reduces the potential for human error.
AutoEntry Automation keeps a closer track on those pennies.
Automation is a remote working tool
For many businesses, remote working has become a reality, whether they were ready or not. In the US, 62% of staff worked remotely because of coronavirus (according to Gallup).
Accountants and their clients are communicating via video conferencing and phone calls, not in person.
This mass experiment of remote working was forced on us, but many companies are seeing the benefits of it - not having to pay rent and bills, higher productivity and in many cases, happier staff.
Automated accounting software is a massive help - maintaining documents in a shared cloud.
AutoEntry Automated accounting software allows easy digital sharing of invoices and receipts and more.
Automation, in accounting and beyond, aids remote workflow.
Managers outsource some of the time management to reminders on Google calendars.
Managers use add auto-reminders of deadlines to team members on Slack.
Companies also consolidate marketing analysis into one document with an app like Stackby.
Accounting automation, along with other AI tools, are making businesses more agile, smarter and more competitive.
Below is a summary of the Improvements From AP Automation from the most recent Level Research Survey
AutoEntry is making life easier and cheaper
AutoEntry is a Strategic Partner of "The Company Doctors" and helps small businesses and accountants across the world to automate their paperwork.
AutoEntry can reduce the hard labor cost of invoice processing by 78% – resulting in immediate cost savings and ROI for your company.
The Company Doctors uses AutoEntry because it can create efficiency that allows your AP clerk to process up to 30 invoices per hour or (2 minutes per invoice)
A winning scenerio for a company wanting an immediate R.O.I.!
Learn more by reading our AutoEntry Brochure
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