If you’re a scaling business and still use manual practices, such as traditional accounting systems and manual accounting processes, you’re definitely not alone.
But when you’re dealing with outdated spreadsheets, delayed reporting, and disconnected systems, it’s hard to see the full financial picture of your business. Even worse, you could be wasting time and increasing errors.
The solution is simple: Accounting automation. It’s the first step towards a more integrated, efficient operation in which leaders can make timely, data-driven decisions.
This article explains everything you need to know about accounting automation, including why it matters and how to get the ball rolling in your business.
What Is Accounting Automation, Really?
You might have heard the term “accounting automation” before, but what does it really mean?
Accounting automation uses technology, including robotic process automation, artificial intelligence, and machine learning, to take over repetitive, rules-based financial tasks like invoice processing, AP/AR accounting workflows, reconciliations, and reporting. These improvements simplify financial transactions and reduce accounting errors, transforming tedious tasks into streamlined, automated processes.
Instead of you (or your team) spending hours copying and pasting numbers, digging for data, or generating documents, accounting automation handles these processes quickly and with minimal human involvement.
Accounting automation isn’t just about efficiency (although that’s part of it). For CEOs, founders, and CFOs, automation pulls you out of the weeds of the day-to-day and gives you back the time and space to focus on strategy.
Research shows that AI can save you several hours of work per week. You can then redeploy that time to focus on big-picture tasks.
Ultimately, automated accounting creates a connected financial engine that brings clarity, speed, and confidence to every decision you make.
Key Areas Where Accounting Automation Makes the Biggest Impact
Accounting automation can be a game-changer for your business. Studies show that automation helps workers boost productivity, increase collaboration, and make fewer errors.
Here’s where it can make the biggest impact in your organization.
Accounts Payable and Receivable Automation
One clear win with accounting automation is streamlining accounts payable (AP) and accounts receivable (AR). Automating these accounting processes means invoices go out faster, lightening the load for your accounts payable department and accounting teams, leading to faster cycle times.
For AP, automation can handle invoice capture, coding, and routing for approval. For AR, it ensures timely invoicing, sends reminders, and helps quickly identify overdue accounts.
Bank Reconciliations
Bank reconciliations are usually time-consuming, but they don’t have to be. With accounting automation, transactions from your bank accounts and bank statements are automatically matched against your general ledger, drastically reducing errors and helping you close books faster, all through an automated accounting system and automated accounting software.
Expense Management
Managing expenses drains time, often leading to lost receipts and delayed approvals. Accounting automation solves this by streamlining the entire expense management process, from submission to reimbursement, enhancing data management and data security at every step.
For example, employees can easily upload receipts, while the system categorizes expenses and routes them to the right managers for approval.
Real-Time Reporting
In fast-moving businesses, even slight reporting delays can be detrimental. Instead, real-time reporting (powered by accounting automation) gives you minute-by-minute insights into key financial metrics. Real-time financial reporting also supports data analytics and financial modeling for sharper decision-making.
For example, real-time dashboards update automatically, giving you instant insights into things like cash flow, customer account health, revenue trends, financial reports, and financial statements.
Tax Compliance and Document Prep
Preparing for tax season or financial audits can be challenging when documents and data are scattered across systems. Automation simplifies this by continuously collecting, organizing, and storing the necessary financial records.
From categorizing transactions to generating audit-ready reports, automation ensures your data is clean, consistent, and compliant throughout the year. This helps you avoid last-minute scrambles and surprises.
We get it if you’re facing some (or all) of these challenges in your business. Here at Nimbl, our team of accounting professionals helps scaling businesses just like yours leverage cloud accounting technology, and we know just how common these issues are.
But the good news? Accounting automation is accessible and easy to deploy in your organization, especially when you choose the right accounting service partner.
The Business Benefits of Accounting Automation (Beyond Time Savings)
Sure, you’ll save time with accounting automation, which is a big win. But the benefits go far deeper, especially for business leaders who are laser-focused on growth, strategy, and long-term success.
The business benefits of accounting automation include the following.
Faster Decision-Making
With real-time access to accurate financial insights, leadership can strike quickly and precisely. No more waiting for end-of-month reports or wasting time digging through spreadsheets.
Reduced Errors and Risk
Automation drastically cuts down on manual touchpoints. That means fewer mistakes, less rework, and a lower risk of costly compliance issues.
More Time for Strategic Finance
When you’re not buried in manual accounting tasks, you can focus on the strategic finance work that really matters. Think: Build relationships with investors, strategize your next expansion, or plan for different scenarios. Accounting automation results in tangible cost savings and frees up resources for business intelligence projects.
Supports Scalability
Sure, manual systems might work for a small or new business. But as your organization grows, manual systems will quickly crack.
Instead, automation lays the foundation for systems that grow with your business by standardizing processes, integrating systems, and driving operational efficiency across the accounting industry. This foundation benefits accounting firms, cross-functional finance departments, and finance teams managing evolving business operations.
Builds Trust With Investors, Partners, and Leadership Teams
Automation ensures your numbers are not only accurate but also transparent and credible. This is crucial for stakeholders, whether you’re raising capital, reporting to a board, or managing internal leaders.
How to Get Started With Accounting Automation (the Right Way)
We’ve got you covered if you’re considering deploying accounting automation in your business. At Nimbl, it’s what we do best.
But you must take steps to ensure a strategic, stable transition.
Here are the steps:
Step 1:
Audit your current financial and business processes to uncover inefficiencies rooted in traditional accounting: Begin by taking a fresh look at your financial processes. Where is your team spending the most effort? Where are there delays and errors? Look to identify bottlenecks, manual tasks, and areas where things break down.
Step 2:
Identify where automation will make the most significant impact first: Don’t try to automate everything at once. First, focus on the highest-friction, highest-value tasks, such as accounts payable, reporting, or reconciliations. These can be quick wins that bring immediate value.
Step 3:
Choose the right tools and integrations: Next, it’s time to choose your specific tools. Look for cloud-based systems, such as accounting and automated accounting software, that support automation technology and integrate with your existing accounting system and software solutions.
Step 4:
Connect your systems—not just your tasks: The tools you choose alone are only part of the solution. That’s why when you partner with Nimbl, we work with you to align automation with your broader business strategy. Isolated automation can create new problems; integrated systems are key to success.
Step 5:
Lean on leadership: A strategic partner can help you use automation to advance your business. For example, with Nimbl, you get back-office leadership and expertise that allow your companies to automate with purpose.
Why Nimbl Clients Don’t Go It Alone
Nimbl isn’t just another accounting firm; you’re not signing up for DIY automation. With us, you get leadership, strategy, and integrated support.
How exactly?
First, Nimbl helps identify where automation will have the biggest business impact. We remove the guesswork from the equation so that you can deploy automation quickly and strategically.
Also, Nimbl’s integrated back-office approach means automation works across the whole financial system, not just in silos. Think: Holistically connected financials, from bookkeeping to compliance.
We also specialize in ongoing optimization, not a “set it and forget it” approach. Our partners want ongoing support as they grow, and we’re here to ensure you can scale with confidence.
Get Nimbl, and Free Your Financial Team to Focus on What Matters
Your financial systems shouldn’t be holding you back from growth. Instead, you should be leveraging them as a growth engine.
By leveraging accounting automation software and accounting process automation, businesses can reduce repetitive tasks, enhance the role of accounting jobs, and transform the future.
If you’re ready to stop spending time on admin and take control of your finances, empowering your finance professionals, including accounting students interested in forensic accounting or financial technology, to sharpen data analysis skills and elevate the accounting profession, we’re here to help.
Let’s talk about building a smarter back office that scales with you.
