Busting Myths: Automated Accounting

Accountants and automation are two best friends who have a love-hate relationship. Automation is the new-age prerequisite in every arena, whereas accounting is the fuel for any business. Where many organizations are making tremendous growth with automation encompassing more and more functions, the myths pertaining to automated practices have their own safe spot.

Let’s diffuse a few of them!

Myth 1: Adopting automation is complex and expensive.

While transitioning towards automation, this is the most common preconceived notion that misstates the offerings of artificial intelligence. Cloud tools and technologies turn discrete, complex activities into simple processes for accountants. With adequate staff training and knowledge centers provided by cloud companies, it’s easier to adapt and automate tedious processes. Emerging fintech organizations offer a wide range of services while seamlessly integrating with widely used software like QuickBooks Online and Xero.

It may sound complex and heavy on your pocket in the beginning, but the benefits later override the initial struggles. From a single interface, you can automate invoicing and billing systems accounts payable, and manage a practice. However, the length of automation and its cost efficiency will vary from one organization to the other.

Myth 2: Automation defeats the very purpose of having accountants.

The pace at which our lives are digitizing is alarming, and in such a scenario, accountants should be driven to adapt, learn new skills, and utilize technology for increased opportunities. Automated tools and software have simplified the redundant tasks for finance professionals and shifted them to higher-value tasks, thus amplifying their growth.

Automation makes processes tenfold easier, faster, and more efficient, but it can't sideline an accountant. Bookkeepers, CPAs, and the accountants' cohort are no longer a part of number-crunching games. Their responsibilities have shifted to advising, educated decision-making, and insightful reporting, something that automation cannot take over, at least not now.

"Technology by itself is powerful, but when combined with human capital, true opportunities emerge.''

Myth 3: Automation only benefits large businesses.

One of the most common fallacies is that automation is only suitable for large organizations. Allow me to dispel this urban legend.

There is room for everyone when it comes to automation. Large organizations can execute thousands of transactions, say payroll, and reap maximum efficiencies from AI integration, whereas small organizations leverage automation differently. It's essential to devise a comprehensive plan for the activities to be automated, their training, implementation, and cost, to derive the maximum potential of using cloud tools for small and mid-sized firms. Processes that need to be automated should be decided after careful thought and cost-benefit analysis.

Myth 4: Automation will take away control of your accounts.

Automation provides you with more authority and control over your accounts, not less. It enables you to track your work, and streamline the entire process, be it recording transactions or analytical reporting. It enhances the accessibility and flexibility of the data while empowering bookkeepers to shift gears to value-added services.

It’s up to the accountants to decide on the extent of automation that is required for their business. Activities that predominantly require human effort can be performed more efficiently.

Myth 5: Automation is the end of accountants.

Accountants and automation are like two train tracks running parallel to each other. To arrive at the desired business outcome, both are equally vital. With the help of AI-powered tools, accountants can now focus on more significant tasks, insightful reporting, and cultivating positive relationships with their clients, as opposed to juggling between reports and collecting and refining data. Automation has eliminated the need to perform redundant tasks.

Not everything needs to be automated. A systematic balance must be maintained for a perfect partnership between the two to churn benefits like no other. Striking the ideal balance will alter the course for accountants to follow.