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Automation of Accounting Processes and the Impact on Companies
Automation of accounting processes
The automation of accounting processes, understood as the execution and implementation by a computer program of those tasks that were initially carried out by a person, but which, with the advancement of new technologies, said process has been programmed so that they can be performed by a machine, is a process that began several decades ago.
Although these processes were initially undertaken by large companies, today almost all of them, whether small or large, have some of this process built into their systems, whether it be an Excel spreadsheet, a program to account for certain predesigned entries, or through the posting of entries as the operations are carried out in the different sales centers.
Goal and advantages of the automation
The automation of accounting processes main goals is the time and resources optimization. For example, to check that the "Debit" and "Credit" of each of the entries add up to 0 by the double-entry accounting system, before it was necessary to occupy many hours of staff and without the system being agile. On the other hand, using the simpler current systems, this verification is carried out automatically, quickly and without the personnel expense.
In addition, this not only avoids errors, saves staff costs and generates agility when incorporating accounting information into the systems, being able to analyze it better in a timely manner. In addition, it must be taken into account that these processes achieve a substantial improvement in the records traceability, being able to analyze each of the entries, their history and counterparts much better.
In companies that have multiple offices or stores, for example, it may also involve posting entries as actual transactions take place. The selling in a physical or online store can be registered without having to be manually accounted for by an accountant in the central offices.
The company improves with the automation, but it needs qualified staff
However, it must be taken into account that these processes only make the registration process more efficient, but there always has to be some type of human control over those processes and registrations.
Through a controller, for example, variances and behavior of ledger accounts can be reviewed to perform analytical balances. Random type journal reviews can also be performed. In addition, once these records have been automated, it is essential that the computer process behind these records be reviewed with some frequency and exhaustiveness, in order to avoid errors that could be fatal for companies.
In this way, the manual, repetitive processes without the need for analysis would be left to the computer system used, and the intellectual analysis process would be carried out by people, who are still essential, despite the fact that an automation process has been carried out. significant.
In addition, it should be taken into account that some matters require a further analysis, as tax matters.
Although there are simpler issues, such as the application of the Movable Goods and Services Transfer Tax (ITBMS) known globally as value added taxes (VAT), there are much more complex issues, which will require analysis of the regulations and the real situation of the company by expert personnel in the field.
Therefore, it is advisable to carry out an investment in the automation of accounting processes, which will report efficiencies in time, resources and money, as well as greater traceability and analysis capacity, as long as the need to have people in charge, who can review automatic processes, analyze accounting information and deal with specific issues such as taxes, is taken into account.
