With the technological advent in every field, business accounting has also taken a high leap with the help of accounting automation. There are many accounting software and ERP available in the market for businesses to choose from. Some of the best accounting software include Sage accounting, NetSuite, etc. Automation allows businesses to have real-time information about business finances and thus help make informed decisions. However, many businesses still hesitate to shift their accounting function from manual to an automated system. Let us understand the cost of delayed accounting automation for a business.  

The accelerated technological development has prompted businesses to choose a virtual CFO for accounting and also automate the entire function. Though the CFOs know the benefits of automation, there are also some costs of delaying financial automation that businesses must know, such as: 

Accounting automation has become a must-have tool in the current market, giving businesses a competitive edge. When a business delays financial automation, it loses on potential and opportunity to strategise and plan for future business activities. By removing the repetitive tasks, businesses gain a competitive advantage in the market and effectively plan for business scaling and growth.  

Enhanced risk to business financial data-  

On-time and accurate presentation of the business’s financial statements and reports is crucial to determine profits successfully. It is difficult to achieve the desired accuracy in records while using a manual process that is prone to errors. Since human resources manage the manual processes, they are more costly and risk losing or recording inaccurate financial data. 

Using accounting software like Sage accounting helps overcome these risks related to a business’s financial data.  

Businesses using manual accounting processes put their personnel at risk of total burnout due to the repetitive and time-consuming tasks hampering their work-life balance. The overwork causes many talented personnel to seek other options with a better workload and balance. The repetitive tasks can be easily removed from the workload of personnel by using automation, thus enabling personnel retention.  

Accounting has many repetitive but critical functions that are required to determine a business’s financial health. Activities like transaction matching, account reconciliation, and auditing are very time-consuming and require many personnel to be involved. It directly affects the business’s workflow efficiency. Instead of relying on having a huge finance team, it is best to opt for a virtual CFO for business financial management.  

Accounting automation makes a business’s financial management easier and faster and also reduces the risk of errors and inaccuracies in the records. It helps a business catch up with its accounting and bookkeeping and stays on top of the market competition.