Accounting automation tools have become an integral part of businesses of all sizes. They not only help automate repetitive tasks for teams but also help manage financial data effectively while maintaining overall security. Automated accounting software should include more than just solutions to make accounting easy. They should allow business leaders to integrate every function possible on the platform.
This is a major reason why accounting firms and CPAs look for software packages that help integrate business intelligence tools to manage all aspects of the business. When choosing an accounting automation platform, firm owners should keep track of the money they are spending and the revenue that the platform helps generate.
Since there are a multitude of options available in the market, choosing the right one that fulfils all aspects of the business is not easy. For the longest time, the accounting industry has remained heavily reliant on manual paperwork and desktop-based software. It is time to steer away from the traditional methods and look beyond.
In this article, Finsmart Accounting – the leading accounting outsourcing services provider in India – will share everything about choosing the right accounting software and automation platform. Let’s start!
Choosing Accounting Software: Questions to Ask
Before you pick the right kind of software, here are some questions you need to ask yourself:
Is the accounting software cloud-based?
Besides allowing accountants to access data anytime, anywhere, cloud-based software offers low-maintenance costs, automated backup facilities, and a multi-layer authentication system to avoid data theft. They can also be easily integrated with other software.
Is the accounting software cost-effective?
For small accounting firms, there are, anyway, a lot of costs involved. The fact that most of such businesses are on a tight budget, makes it a compulsion to seek solutions that are pocket-friendly, yet meet all business needs.
What is the usability of the bookkeeping software?
To get an answer to this question, certain factors need to be considered, such as:
- The number of users who need access to the accounting automation software
- If the team needs mobile access to the software
- The capabilities and functions that the software should be able to perform
Collaborative approaches for MNCs entering the Indian market
Is the accounting software scalable?
Small accounting firms are constantly growing and hence, they need accounting automation software that can help them scale with ease. The accounting software you choose should be able to accommodate the changing business needs.
How to choose an accounting automation platform for your firm?
Choosing the right kind of bookkeeping software depends solely on the capability you are looking for, which means you have to determine the functions you want them to perform. It will also depend upon the business complexity you are looking for them to solve. Here are a few things you might be looking for and the best software that can solve your needs:
Accounting functions
They make for the backbone of an accounting firm. If you are looking just for software that helps manage financial transactions, bookkeeping, and generating reports, you need software to perform these basic functions. Such software helps streamline and automate accounting processes, reducing manual labor and human errors. They also enable functions like expense tracking, invoicing and billing, bank reconciliation, financial reporting, and cloud access.
Some of the top software that help cater to these functions include:
Quickbooks Online: This software stands out as the top choice for small accounting firms. It has a user-friendly interface with features that offer comprehensive accounting solutions. With cloud-based access and collaboration features among the team members, it makes for an ideal choice for remote work.
Xero: Another accounting automation solution with cutting-edge features, Xero is known for its intuitive design and collaboration capabilities. It helps streamline work features like payroll, bank reconciliation, and inventory management. Xero allows the integration of software that lets the user customize the platform based on specific business needs.
Wave Accounting: It is a cost-effective solution for small accounting firms. It is known for its easy invoicing, expense tracking, and basic accounting functions. Its simplicity and affordability make it an amazing choice for small firms with basic accounting needs.
Learn about the cost of outsourcing accounting services in India!
Document Management
Accounting firms deal with a lot of data and documents that need careful storage, tracking, and management. One of the common challenges that small CPA firms face is access to documents across different levels. Having software that is equipped with document management helps reduce paper dependency, encourages better collaboration, and secures the storage of sensitive data. Automation tools that provide document management have features like version control, secure access control, collaboration, audit trails, and integration capabilities. Some of the top applications in this section include:
Hubdoc: It is designed to help ease document collection and management. It gets financial documents from different sources automatically and uses its smart data extraction capabilities to help relieve the team of manual data entry and reduce time spent. Hubdoc helps integrate accounting software platforms to create a streamlined workflow.
Receipt Bank: If you are looking for an application to simplify efficient receipt and expense management, this might be what you are looking for. Receipt Bank, also known as Dext, helps accountants capture, store, and categorize receipts easily. Receipt Bank also uses OCR to extract data and eliminate the need for manual input. This can be integrated with major accounting software, making the process seamless.
Doc.It Suite: It is a comprehensive solution for document management. Its unique features include document storage, workflow management, and securing client Portals. It has collaboration tools that enable communication between team members and clients, streamlining the document approval process and enabling compliance.
Workflow Automation
It involves technology that helps automate and streamline repetitive tasks and processes within an accounting firm. Since smaller firms lack the resources needed to complete multiple jobs, workflow automation can come in handy to help enhance efficiency, reduce manual error, ensure a smooth flow of tasks, and keep clients satisfied. These accounting automation tools help in task management, customize workflow as per the needs of the clients, act as a tool for communication, and give the necessary reminders. If workflow automation is something you need, here are the top applications that can help.
Karbon: This application is designed to help streamline workflow and communication within small CPA firms. It helps centralize task management, and client communication and enables project tracking – all in one place. It also allows the user to automate client reminders and customize workflows, enhancing overall efficiency.
Airtable: It is a versatile project management and collaboration tool that allows customization of several business processes. Small accounting firms can use this tool to create automated workflows for client onboarding, approval of documents, tracking of deadlines, and creating a flexible workflow solution.
Trello: It has a user-friendly interface that makes it a top choice for workflow management. Trello’s boards can be used by small accounting firms to help customize workflows like task assignment, project tracking, and client communication. Trello can be adapted easily to suit the specific needs of accounting professionals.
Choosing the right accounting automation platform: Summing up
Choosing the right accounting software for the business can be overwhelming. Given the amount of research and trial and error needed before making a final choice can be truly daunting. Before you do anything, it is important to assess what it is that you expect your automation tool to do! And when you have the answer to this question, making a choice becomes easy. You can use the above tips to find what is right for you.
If you want to make accounting easy overall, you might want to consider outsourcing with Finsmart Accounting. Have questions? Write to us at connect@finsmartaccounting.com.
Also, don’t forget to check out:
Accounts receivable outsourcing services
Outsourced payroll service providers
India entry consulting services
Outsourced financial controller services
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
