Businesses have been plagued by a labor shortage and record inflation, as well as rising interest rates and continuous supply chain problems, prompting many to prepare for a slowing economy.

As they prepare, business executives are focusing on cost savings and margin development, and while accounting automation may not appear to be a top priority, it should be included in these plans. According to Bain & Company research, organizations that cut expenses and boosted efficiency during previous downturns outperformed those that didn't.

Accounting Automation Has Four Advantages

Automating manual accounting operations has numerous advantages, including increased productivity, improved resource use, fewer overhead, and more. These outcomes are extensive and beneficial to firms in a variety of ways, including:

Increased efficiency: Manual procedures are inherently inefficient, taking longer to complete and consuming more resources than automated processes. Entering vendor bills, preparing invoices, and processing client payments are all time-consuming tasks, especially when dealing with hundreds of them.

Processes that are dull and excessively repetitive are great candidates for automation. Instead of manually inputting transactions, they can be generated automatically from scanned documents or on a predefined schedule in the case of recurrent transactions. These advances in efficiency free up time, allowing team members to focus on higher-value activities such as evaluating data and giving strategic insights that improve corporate performance and uncover cost-cutting and time-saving opportunities.



1. Lower labour costs: Filling entry-level roles has grown challenging as fewer students graduate with accounting degrees. As a result, the pool of qualified job applicants has shrunk, and an exodus of older workers has worsened the problem, resulting in a severe labor shortage and high pay inflation. With large companies paying larger compensation, churn has become an issue. Attracting and retaining qualified accounting employees is a serious challenge for medium and developing firms.

Accounting automation is beneficial in several ways. Because automation promotes efficiency, fewer workers are required in the department, hence losing a single employee has a less impact on productivity than in organizations without automation. Automation can also help with staff retention by reducing workloads, reducing stress, and freeing up time for less monotonous duties. Should the company develop despite the economic downturn, accounting departments that are adequately automated may be able to delay recruiting new employees, lowering labor costs.

2. Better data quality: It's no secret that accounting errors are frequently caused by human data entry. A small error, such as transposing a number or adding an extra zero, can cause account balances to be off and financial statements to be inaccurate. Using spreadsheets to manage depreciation, distribute expenses, and do other routine accounting operations raises the chance of making mistakes.

Avoiding errors has become more critical as the use of data for decision-making and planning has grown. Finance is frequently viewed as the company's primary data keeper, in charge of guaranteeing the accuracy and completeness of not only financial records but also operational and statistical data. By eliminating the need for spreadsheets and human entry, automation enhances data quality.


3. Risk reduction: Companies with weak financial controls are more likely to be exploited than those with strong controls. One of the most typical ways businesses are attacked is through invoice fraud, which includes overcharging, sending duplicate invoices, and invoicing for items or services that were not given.

By automatically comparing invoice data to purchase orders and receiving papers to ensure pricing, unit quantity, and totals match, accounts payable automation reduces the risk of fraud. This three-way matching can help streamline accounts payable operations by automatically scheduling approved invoices for payment and reporting anomalies for AP employees to investigate.

Accounting Automation with Netsuite Experts

CFOs must assist their teams in achieving more without increasing personnel. This is made more difficult by manual data entry and spreadsheet-based methods. NetSuite addresses these issues with a comprehensive accounting solution that automates time-consuming manual operations, increasing efficiency and improving data quality.

NetSuite's accounting automation includes the following features:

General Ledger

• Amortization, depreciation, and allocation
• Receipt of revenue For each deliverable
• Keep a journal

Payable Accounts

• Purchase restrictions
• Drafting of legislation.
• Charges that repeat.
  

Accounts receivable

• Creating invoices
• Billing for subscriptions
• Payment schedules
• Collectibles Payment reminders
• Transaction handling
• Consolidation of invoice

Close management

• Reconciliation of accounts
• Transaction synchronisation
• Transactions between companies
• Financial reorganization

All these features sound amazing but you won’t be able to enjoy these without having a certified Netsuite consultant for implementation. With our deep knowledge and Netsuite Implementation expertise, Folio3 can help you get the most out of Netsuite and give you edge services across all industries.