The precise delivery of accounting services is undergoing a digital transformation. Modern-day technologies like artificial intelligence, machine learning (ML), and robotic process automation (RPA) are reinventing how accountants work.
These advanced technologies automate repetitive and mundane tasks, freeing finance staff to focus on more value-added initiatives.
Companies effectively automating their full-cycle accounting processes are and will further gain a competitive edge. They can process faster accounting and finance reports, access deeper business insights, and enhance customer services. However, mastering accounting automation takes careful planning and execution.
How To Master the Complete Accounting Journey Through Automation
Let us explore the comprehensive accounting journey by using automation.
1. Conduct In-Depth Process Analysis
The first critical step in automating accounting is conducting a detailed evaluation of existing processes. This allows you to identify manual, repetitive steps that are ripe for automation. It also reveals bottlenecks that are causing delays.
Analyze processes across:
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- General ledger – Journal entries, reconciliations, closing
- Accounts payable – Invoice processing, payments
- Accounts receivable – Billing, cash application, collections
- Expense reporting – Policy compliance, approvals
- Payroll – Time tracking, tax calculations
- Financial reporting – Statement preparation, analysis
2. Start with rules-based, repetitive tasks that are prone to human errors
Tasks with clearly defined rules and little judgment needed are the best automation candidates. High volume activities with high error rates also present opportunities. Conduct workshops or interviews to map out all key processes end-to-end. Identify the systems, data inputs, decision points, and outputs involved at each stage. Look for areas that require a lot of manual work to execute.
Dig into the pain points staff face when performing manual processes. Look for steps with high error rates that require rework and cause delays. Analyze how much time staff spends on mundane tasks like copying data between systems versus value-added work.
Document the current processes using flowcharts. Quantify the amount of manual effort required at each step. Calculate process cycle times and costs. This baseline will help you demonstrate improvements from automation later.
Prioritize automating tasks that have clearly defined rules and little judgment required. High volume activities with high error rates also present strong automation opportunities.
With a detailed understanding of current processes, you can shape an automation roadmap. Define which technologies can help, and sequence priorities based on impact and effort. This detailed process analysis and documentation is essential to guide your automation journey.
3. Adopt RPA for Quick Wins
Robotic process automation (RPA) can provide quick wins in automating routine accounting work. RPA mimics human actions through software bots that interface with applications like ERPs. It requires no software or systems changes.
RPA is well-suited for repetitive, high-volume tasks like:
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- Copying/pasting data between systems
- Reading and processing emails
- Moving files and folders
- Extracting data from documents
- Filling forms
- Updating records
By implementing RPA in AP invoice processing, one company achieved 90% straight through processing. RPA cut invoice handling time from 4 minutes to under 30 seconds per invoice.
4. Layer AI And ML For Complex Processes
While RPA handles structured tasks, advanced technologies can automate complex processes requiring judgment. Artificial intelligence (AI) and machine learning provide broader capabilities:
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- Natural language processing – Understand emails, documents
- Intelligent character recognition (ICR) – Scan invoices with accuracy
- Smart workflows – Route documents for review
- Anomaly detection – Uncover exceptions, fraud
- Forecasting – Predict future revenues, expenses
- Conversational AI – Chatbots to answer queries
With machine learning, accounting automation systems continuously improve by analyzing data and identifying insights. This reduces the requirement for constant human interference.
5. Continuously Optimize Accounting Processes
To achieve a “full cycle” approach to accounting automation, processes must be continuously monitored and enhanced. Assign staff to oversee automated systems and identify areas for improvement.
Conduct ongoing process analysis to find new ways to optimize efficiency and quality. Adjust automated systems to account for new technologies or changes to accounting standards.
Provide regular staff training on automated systems. Ensure employees know how to leverage technologies so they can focus on higher value initiatives.
6. Upskill the Finance Team
Automating transactional activities frees up staff to provide strategic counsel. But accounting professionals must develop new skillsets to operate at a more analytical level.
With technologies handling routine tasks, accountants can shift focus to:
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- Data analysis – Identify insights to guide better business decisions
- Advisory services – Consult with cross-functional partners on growth, costs, risks
- Process improvements – Streamline workflows beyond accounting
- Automation strategy – Evaluate new technologies, drive adoption
Proper change management and training helps staff adapt to new roles. Provide development programs on technical skills and soft skills like strategic thinking and leadership.
Key Benefits of Full Cycle Accounting Automation
Adopting an end-to-end approach to automating accounting unlocks many benefits:
Speedy Work
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- Faster transaction processing
- Accelerated reporting cycles
Superior Quality
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- Reduced errors from manual work
- Consistent output
- Improved compliance with accounting standards
Deeper Insights
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- Advanced analytics for strategic decisions
- Real-time visibility into financials
Enhanced Services
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- Increased bandwidth for customer support
- Quicker response to queries
Business Growth
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- Scalability to handle business expansion.
- Flexibility to adapt to new business needs.
Cost Savings
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- Reduced manual labor requirements.
- Optimized operations
Key Takeaways
Automating full-cycle accounting is critical for finance functions to keep pace with business growth and evolving regulations. New technologies like RPA, AI and machine learning enable end-to-end process transformation. Companies with a strategic approach to automation can operate with new speed, quality, and insights.
However, achieving accounting automation mastery requires careful planning, execution, and continuous improvement from skilled finance professionals. With the right strategy, firms can chart a path toward the future of accounting.