Key takeaways
- Automation in accounting and finance reduces errors and improves efficiency.
- But many legacy accounting and finance systems remain in place.
- Companies that embrace new technology in accounting and finance can help their clients and boost their bottom line.
We get it. Change can be scary or hard. Sometimes it’s a bit of both. But it’s also inevitable.
Take finance and accounting jobs. Today, artificial intelligence (AI) is transforming them by taking over repetitive tasks, reducing errors, boosting efficiency, and allowing accountants to focus on higher-value work and professional development. It may even help companies reduce turnover, which can be costly.
Yet many legacy accounting and finance systems remain in place. And they’re huge obstacles, which still require mundane manual tasks and time-consuming manual processes. Is your organization looking for a technology tune-up for its accounting and finance needs?
Don’t let these six common challenges stand in the way of your company’s progress.
- Limited adoption of accounting automation
- Hesitance to embrace the cloud
- Redundancies in systems and accounting software
- Lack of real-time accounting and financial data
- Inadequate internal accounting controls
- Resistance to change
- Frequently asked questions
1. Limited adoption of accounting automation
Is your company still tethered to legacy accounting systems with limited automation? If so, it’s time to explore some modern, automated accounting options. Automation can be a valuable tool as your company navigates the complexity of today’s business world. Automated systems use real-time data analysis to boost efficiency and significantly reduce human errors.
Companies and accounting teams that have invested in automation and accounting software are well-positioned to overcome challenges and seize opportunities.
2. Hesitance to embrace the cloud
For accounting and finance teams, moving to the cloud is key. It’s a flexible, modern platform that can handle all your demands and makes it harder to accidentally break compliance rules. From an IT standpoint, it also slashes maintenance costs compared to the old-school, on-premises systems.
Another benefit of the cloud: It takes a heavy load off your team. No more manual checking and testing to prove everything is compliant. Instead, the system works automatically and gives you solid evidence to back it up. It’s a smarter, easier way to stay on top of things.
3. Redundancies in systems and accounting software
Take a fresh look at your accounting processes, and make sure that they’re built for today’s fast-changing, data-fueled times. Consider a single accounting transaction. How many people handle it? How long does it take? And how does it need fixing? Now add in all the overlapping systems your company has kept from past mergers or quick fixes. Are similar transactions running through completely different tools in different parts of your business? That kind of patchwork arrangement doesn’t just slow things down, it increases IT costs and makes it harder to get clear, actionable data.
4. Lack of real-time accounting and financial data
Monthly reconciliations and yearly audits aren’t going to disappear anytime soon, but many companies are shifting to real-time data for accounting processes. Doing so helps them understand their business performance, jump on opportunities, and avoid unnecessary risks. Depending on your accounting system, you may be able to dive into performance by location, department, project, service, or customer. With the right key indicators, real-time data helps you benchmark and better understand your business’ cash flow, assets, revenue, expenses, and more. This financial information provides critical insights into a company’s operations and financial health.
Other benefits of real-time accounting and finance data include the ability to quickly detect fraud and errors, improve business predictions and forecasts, and set smart goals for the future.
5. Inadequate internal accounting controls
Internal accounting controls are policies and processes that companies establish to protect their assets and lessen risk. Strong internal controls help make sure an organization has accurate and reliable financial statements and minimize the likelihood of fraud, security breaches, and human error. A simple way to strengthen your controls: Switch from a legacy accounting system to an automated solution.
6. Resistance to change
Your accounting and finance department may be run by people clinging to the past. Whether we like it or not, the nature of our jobs will always change. Automation will eliminate manual, repetitive, and mundane tasks. This is progress. Accounting automation frees talented workers to do what humans do best: Make connections, identify opportunities, and use data in creative ways that lead to more strategic financial decisions. Although it may take some encouragement and empowerment to convince people that change can be good, it’s worth the investment.
A trusted technology partner
If you’re worried that adopting new technology will detract from your demanding day-to-day accounting needs, there’s a simple solution: Find a trusted technology partner. Accounting and finance technology experts can help you identify the accounting solution that fits your needs.
Not quite sure where to start? Contact us today.
Frequently asked questions
Q: Why is accounting automation important for modern businesses?
A: Accounting automation reduces errors, improves efficiency, and allows teams to focus on more strategic tasks. It also supports real-time data processing, enabling faster, smarter decision-making in today’s dynamic business environment.
Q: How can real-time financial data benefit a company?
A: Real-time data provides immediate insights into financial performance, helping businesses respond quickly to opportunities and risks. It also supports more accurate forecasting, fraud detection, and decisions.
Q: What are the benefits of cloud-based accounting systems?
A: Cloud-based systems reduce IT maintenance costs and embeds controls that enhance data security and simplify compliance. They also provide real-time reporting and automation, making financial processes faster and more reliable.
