5 Accounting Automation Myths

Most businesses struggle with long cycle times and high-cost invoice processing, and in the case of SMEs, process efficiency can be critical to keeping up with growth. However, misconceptions about accounting automation processes often hold business leaders back. In this post, we will be delving into five of the most common misconceptions about adopting accounting automation software.

#1 Automation processes pose security risks

It’s a common myth that with increased automation, businesses will be more vulnerable to security risks. In reality, human error is still the most likely cause of a breach. While security is always a top priority for software companies, safety concerns increase with a manual processing system that relies either on a single person or a group.

A data breach can be as simple as an email sent to the wrong address, but other scenarios, such as accidentally erasing data, can also raise questions.

Thus, by integrating multiple levels of security and encryption protocols, today’s cloud-based technologies provide a solution to these issues.

#2 Automation will remove human labour

Although accounting automation can provide a solution to most data entry processes, businesses will still need employees in their finance departments to achieve optimal efficiency.

With the use of automation tools, employee focus can shift to higher-value tasks such as process monitoring and analysis of business performance, implying that technological advancements and human capital provide the best opportunity for organisations to grow.

#3 Automation is complicated and expensive

Nowadays, many service providers offer low-cost accounting solutions that organisations of all sizes can implement. In addition to this, a cloud-based accounting automation solution could also mean a decreased need for additional infrastructure.

Although terms like artificial intelligence (AI) or robotic process automation (RPA) can be intimidating at first, automation tools can eventually give you more control over your accounting and finance functions while also providing much-needed flexibility.

#4 Every aspect of the organisation needs to be automated

Businesses frequently think they must upgrade every aspect of their financing processes at once; however, the best approach is often selective, choosing solutions that best support your objectives.

Automating even a few steps in your processing cycle can significantly increase efficiency. Although companies can practically automate their processes in one way or another, it becomes crucial to consider costs and benefits when seeking to decide which initiatives are beneficial in the long run.

#5 Automation is for large enterprises only

Due to the sheer volume of data, large organizations can undoubtedly benefit from automated operations. However, SMEs tend to have limited human resources available. Therefore, it is more reasonable to task your finance teams with strategic assignments that require their unique skills rather than tying them down with routine data entry and processing.

Final Thoughts

Technology and human resources go hand in hand when seeking to achieve maximum efficiency in accounting processes. An external financial partner can help your organisation identify the elements of your financial processes that could benefit from automation, ultimately allowing businesses to achieve their full potential.