As companies grow, their operations naturally become more complex. They begin to manage more money, handle more employees and customers, and oversee a greater number of important and less important business decisions. In particular, the amount and complexity of the accounting work a business must handle will increase as the business itself expands.
Any business that wants to grow will soon find that the manual, paper-based accounting procedures it may have used at the beginning of its existence no longer meet its needs. Such procedures are often slow, error-prone and costly to maintain. At this point, it is logical to invest in a computerized accounting system (CAS) that allows the company to automate the majority of its basic accounting processes.
Automation technologies help companies speed up their accounting processes, reduce operating costs, and create a single, unified source of information for all accounting data. The best part is that any business, no matter how small and independent, can now easily access off-the-shelf accounting software without having to pay expensive premiums for the customized programs that large companies use.
If you're still unsure about whether you should modernize your company's accounting processes, just read on. We present five of the most important benefits of implementing computerized accounting technology.
Increased operational efficiency and productivity
Computerized accounting solutions can perform important data reconciliations and calculations in a fraction of the time and with greater accuracy than even the most highly trained and disciplined employees can. The software is also able to automatically create necessary documents such as invoices, balance sheets and financial reports in a matter of minutes, whereas it would take employees hours or even days to create these documents manually.
By taking advantage of automation and letting the software handle most, if not all, of the basic accounting procedures, you free up your staff for more complex tasks. You can train your staff in new skills, such as how to use the software and make the most of its many features. Plus, your staff can apply their skills to more sophisticated and value-added tasks, such as gaining new and actionable business insights from your financial data set.
More accessible data
With traditional paper-based systems, it's difficult to store, retrieve, move, and analyze critical accounting data. If your employees are spending long minutes or even hours searching through endless stacks of documents for one or two key pieces of information, your company's overall productivity will suffer in the long run. With a BIR Computerized Accounting System, you can find all the data and files you need with just a few clicks.
Plus, multiple users can access digital files at the same time, making collaboration and communication between departments easier. With a CAS, users can view all the files they need without being bound by time or location constraints. All they need is a compatible device to access the software and the necessary administrative permissions.
Correctness guaranteed
Errors in your financial statements and reports can cost your business dearly when it comes to tax penalties. No matter how disciplined and skilled your staff is, manual accounting processes are inherently highly susceptible to human error. You can also expect the risk of error to increase as the volume of work your employees have to handle increases.
It's always safer to rely on software to do your calculations and reconciliations for you, as these CAS application are designed to deliver completely accurate results every time. Many versions of accounting software also make it easier to detect data entry errors by displaying duplicate entries, typos and the like for immediate correction.
Highly scalable operation
The best accounting software is capable of growing with your business, no matter how much your business expands over its lifetime. You won't have to worry about hiring more employees, allocating a larger budget, or creating more space to store paper files as you prepare for further expansion. The software is capable of handling larger volumes of accounting data without sacrificing speed or accuracy, and can store that data securely and accessibly at all times.
Higher security than traditional systems
Data breaches and other security threats can cause significant financial and reputational damage to a business. The latest accounting technology allows you to minimize these risks by preventing malicious actors from accessing and stealing your data. Encryption, password protection, and advanced access rights management features are just a few of the important security features you can expect from your CAS. Most accounting programs also allow you to track changes made to your files to ensure the highest level of transparency and accountability for all users.
No matter how large or small your business is, implementing a centralized accounting system can help make operations more productive, secure and cost-effective. When you can trust your day-to-day processes to reliable technology, you and your employees gain the freedom to focus on the important tasks, such as maximizing your profitability and pursuing your business goals.
