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Learning to use software to automate manual tasks can lead to better insights and free up time to spend on clients or revenue-driven tasks.
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How technology helps avoid the dread of compliance work
16 February 2024
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10 minute read
If you’re a business owner dreading the task of manually inputting data from the receipts piling up on your desk, it can be all too easy to put off updating your books.
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But leaving your bookkeeping admin to the last minute can rob you of insights key to safeguarding the success of your business – not to mention pile on stress. If a business owner lacks a long-term vision of how to stay on top of their finances, their fortunes could unravel quickly.
Having a real-time view of income and expenses, with the ability to assess how they change over time, can help formulate a robust and successful business strategy. In an uncertain economic climate, this can make all the difference to making the most of your finances, optimising resources and protecting your bottom line.
We all know about AI, but what can you do with it?
Everyone is talking about AI, but business owners, accountants and bookkeepers can be unsure of what to do with it or how to use it.
AI is a core feature of accounting software platforms – and has been for some time. Using AI, these platforms can automate data entry, saving time and resources.
Specifically, the software can work its way through those stashes of receipts using tools such as optical recognition technology, scanning, uploading and categorising the data while checking it in real-time for accuracy.
This data is then processed and stored on a central platform. On the platform, you can add rules for different categories, meaning your travel or office supplies expenses automatically end up in the correct location.
With its ability to auto-fetch data from a range of sources such as bank accounts, statements and invoices, AI can create a central data hub that provides a live overview of your business accounts.
This also means AI can automate the data entry process and then analyse the data for trends and performance insights for your business and clients. You can then spot or predict any financial obstacles before the end of the month.
Understanding a changing legislative scene
It can be hard to keep up with regulatory changes. However, bookkeeping won’t count for much if the data it holds fails to comply with the latest rules.
While you can always educate yourself through resources such as webinars, accounting software can ease the confusion when set to update with legislative changes.
Newfound free time
Accounting and bookkeeping professionals have been recording financial data and important information manually for many years. Most will have these manual tasks down to a fine art, but AI can slash the time it takes to process these same mundane activities.
What’s more, AI-powered insights can give you a unique overview of your business, identifying trends to flag to clients and pressure points before they make themselves known. This signals to clients that you are forward-thinking in your advisory role and allows you to direct your time elsewhere if needed.
With your newfound time, you can dedicate yourself to more in-person interactions with clients. You can spend time on ambitious plans like growing your business, driving revenue, or taking a well-earned break.
The longevity of technology
Technology is set up for longevity, so after the initial cost and onboarding process you’ll be able to reap its benefits quickly and only need to update it occasionally down the line.
By eliminating manual data entry, you can be proactive in staying on top of trends and spending habits and rest easy knowing your business is fully compliant.
Sabby Gill is the CEO of accounting software company Dext.
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