A business is only as strong as its accounting system. Having nearly 1.4 million accountants in the US shows what an essential role they play in every business and organization. However, they come at a cost.
Luckily, with the rise of new technology, businesses can keep track of their books more efficiently than ever. Let's talk about automated bookkeeping services and determine whether or not they are right for your business.
How Does Automated Bookkeeping Work?
If you're looking to automate your bookkeeping, then it's important to know just how it works. Bookkeeping services have been around for centuries, but they've never been as easy or as accessible as they are today.
Moreover, this is especially true considering the rise of artificial intelligence in the workplace. Businesses are now able to track all of their expenses in one convenient location on a smartphone app, website, or another type of software.
Conversely, these programs work by tracking your expenses and revenue, processing them into the appropriate category, and analyzing them over time. From there, you will have easy access to all of your relevant financial information.
Having this level of tracking is great when it comes to tax time, when you're looking for more funding through loans or investments, or to help you make sound financial decisions.
However, different services offer different features. Some offer mileage tracking through an app on your smartphone so you can deduct business miles at tax time, some let you upload pictures of receipts, and some link directly to your company credit and bank accounts.
No matter what features your business will need, it's important to find a program that offers them. Although, any system is better than none. Let's talk about that.
5 Reasons Your Business Needs Automated Bookkeeping
Now that we're well into the digital age, businesses need to utilize technology to its fullest extent if they want to keep up. Luckily, technology is only getting better at helping businesses thrive. Here are just a few examples of how!
1. Remaining Up-To-Date
As a business owner or a self-employed person, have you ever had to play catchup on your books? At the end of it, were you left wondering whether or not you missed something?
Well, when your revenue and expenses are entirely automated, you'll never have to worry about leaving anything out again. Not only that, but every time that you check your books, you can rest assured that everything is accurate and up to the minute.
Having updated books throughout the year offers peace of mind and a clear record of all of your deductions and revenue, which helps make financial planning a lot more simple.
2. Save Time & Money
If you've looked into hiring a bookkeeper or an accountant, you know they're expensive. At the least, you should expect to pay around $20 to $25 an hour, and up to $50 or $60 at the most. For most small businesses, that just isn't feasible.
Instead, you can choose a subscription service that will only charge you a small fee every month (or year) or software that will only require upfront expenses. Over the long term, you can't beat the potential savings.
Also, the reason we tend to put off updating our books is simply that it takes too much time. As a business owner, you already have a lot on your plate. Allowing AI to keep your books in order is a great start for freeing up your schedule.
3. Reduce Errors
Human intervention is great for a lot of things, but let's face it; humans are prone to errors. When you have the right AI tracking your finances, the risk of errors is far less, ensuring that you're always making informed decisions and that you're prepared for tax time.
Errors lead to audits and audits take valuable time away from business operations. Even if you have a professional bookkeeper or accountant, offering them software that allows for more efficiency will only reduce errors and save you money.
4. Valuable Insights
Of course, one of the main reasons you would want to choose a human over a machine is the insights, right? Well, fear not.
With advancements in AI technology, you would be surprised by the types of insight that automated bookkeeping services can offer. Through sophisticated data analysis, the software will offer plenty of valuable insight into where your money is going and where you can save.
With these insights, cash flow management becomes a lot more simple. It's important to remember that 90% of startups fail, mostly due to poor financial management. If you're not using a cash flow management system now, it could save your business.
5. Makes Tax Filing Easy
Automation allows for painless tax filing with the assurance that you haven't left anything out, and all of your data will remain secure in one place. Humans can't run through your books at the same speed and with the same precision.
Your AI will offer you insights into relevant tax deductions and automatically upload your expenses and revenue when you file. Not only that, but you'll be able to track these metrics throughout the year to anticipate and prepare for an appropriate tax bill.
Automate Your Books Today!
Now that you know some of the key benefits of automated bookkeeping, there's no time like the present to get started. The sooner you do, the sooner you can take all of the financial trackings off your plate.
Stay up to date with our latest accounting news and schedule a demo to see what our sophisticated AI can do for you!