How Automation of Accounting can Improve Your Auditing System
The preparation of accounting records is a challenging and complex task for small business owners as most of them do it manually.
In the absence of a cloud accounting system, it is even harder to get accounting records ready for audits. Inevitably, you’ll have many errors and misplaced information if you are not using automation.
What is Automation in Accounting?
An automated accounting setup transforms the record-keeping function of a business. You save time from menial and mundane tasks like repetitive manual data entry.
Automation techniques like OCR can turn static paper records into interactive recorded information quickly.
You can then streamline the accounting function to keep clean, efficient, and accurate data in real-time.
How Can Automation Streamline the Audit Process?
Automation of accounting records streamlines the finance function of a business. Let’s see how to leverage automation to audit-proof your record keeping.
Expense policies are important for all businesses for documenting the right type of expenses. These policies help your employees understand what is permissible and what’s not.
Tracking unapproved expenses can be a complex and tedious task when done manually.
Automating the expense policies will ensure you do not get an audit notice for unapproved expenses or non-compliance at any level.
Business Expense Categorizing and Mapping
Another key aspect of maintaining manual vs automated records is categorizing and mapping business expenses.
Growing businesses incur several types of expenses in hundreds of sub-categories. Maintaining a consistent approach to expense recording manually is almost impossible.
Automating the process will ensure the right expense categorization and mapping. It will also help you keep consistent and accurate expense logs.
Real-Time Expenditure Notifications
A key benefit of automating the record-keeping process is to get real-time notifications for expenses and other business transactions.
It means your Xero business analytics will be at your fingertips right when and where you need them.
Without automation, you’ll have to wait until the month-end review. Then, ratifying and correcting any mistakes will take additional time.
You can set notification alerts for expenses from certain categories or exceeding a set limit.
Get in touch with our team to take the guesswork out of the accounting process and make sure your accounting function is audit-ready at any moment.