It's the word on everyone’s lips. Automation. Throughout history, this computer-driven process has been a major contributor to productivity in almost every aspect of our lives. McKinsey Global Institute predicts that automation could raise productivity growth globally by 0.8 to 1.4 per cent every year.
The notion that automation will replace the majority of jobs on earth is fruitless. The U.S. Bureau of Labor Statistics (BLS) forecasts nearly 7% growth for the accounting industry between 2016 and 2026, which is equal to the average growth rate across all industries.
Automation is the future of accounting. The past meant a reliance on historical data, audit and compliance. Now, advances in technology are guiding accountants and bookkeepers towards new roles, where they are no longer number crunchers but powerful, data-driven advisors.
So how will automation continue to guide the growth of accounting and bookkeeping?
No more paper-pushing
Data entry is a time consumer for any accounting or bookkeeping professional, and while the small business sector is embracing technology wholeheartedly, a significant number are still dealing in paper. 18% of small to midsize businesses in the US don’t use any accounting software.
For the rest, technology like OCR (Optical Character Recognition) and auto-reconciliation are quickly removing paper from the client and accountant/bookkeeper relationship. No more shoeboxes or paper mountains.
By automating manual entry, documents like receipts, expense reports, credit card statements, and bank transactions can be turned into real-time data and imported into General Ledgers such as Intuit Quickbooks instantly.
More meaningful data
According to an ACCA report, 70% of investors said companies reporting in real-time are better positioned to attract investment.
Modern clients are savvy and expectations for what their accountant or bookkeeper can bring to the table have changed drastically. If they are working with big data then their accountant or bookkeeper should be agile enough to analyze it.
But, big data is big. Automated processes consolidate and organize the white noise so that the more meaningful information can take center stage. Meaningful data is actionable and contains the patterns, variances and forecasts pulled from real-time data that help accountants and bookkeepers be better at their jobs and deliver accurate financial advice.
To learn more about bookkeeping automation in QBO, make sure to check out Receipt Bank's webinar with Insightful Accountant, presented by Damien Greathead on February 4, 2020 at 2:00 p.m. Eastern Time. Register here.