What accounting functions can be automated?
For starters, businesses can look at the effects of automating certain accounting processes, and not in their entirety. By doing this, they will be able to consider the benefits of having the whole accounting system automated. It may be that some will find it inconceivable since several steps in the accounting cycle require heavy human intervention (judgment and analysis). This especially applies to those businesses that have wholly manual accounting since the beginning of their operations.
OCR and AI Technology instead of manual data input
“Intelligent” data validation and verification is a very important step up from manual data input. Optical Character Reader/Recognition (OCR) technology allows users to upload digital copies of physical source documents to their accounting systems. Then, the Artificial Intelligence (AI) Technology incorporated in the system will pick the appropriate data and automatically inputs those data.
Managers, accountants, and company staff can upload expense receipts, vendor bills, or invoices as pictures from a camera or scanned PDF copies and the system will automatically extract the information required to be filled in.
Online Invoice Processing
Manual invoicing involves the manual processing of transactions. It can involve receiving an invoice from vendors to payment clearing by the finance department, and all processes in between that are more or less manual as well. This is time-consuming as it requires more manual effort. Moreover, each step of manual invoice processing may be subject to human errors.
On the other hand, automating invoice processes will eliminate human errors because everything will take place online. Among the accounting functions that can be more organized with automation include keeping track of your vendor bills and their subsequent payment, as well as your sales invoice and tracking your accounts receivables.
Online approval process
Employee leaves, expense requests, and allocation expenses, along with invoices are documents that usually require approval from management. Automation of this process will provide for faster transactions. Paper trail mishandling will be minimized if all source documents are uploaded as PDFs or images in the system.
Adaptability to domestic government requirements
Some companies prefer accounting systems that apply to one country’s accepted accounting standards but not in some. In China, it is important to have an accounting system that is fully compliant with Chinese regulations. Considering the tax variation in China’s tax and accounting system, it is important to have accounting software that can localize tax rates and can easily incorporate them into Chinese accounting software, much like Kwikdroid.