What is Automated Accounting?
Automated accounting is an approach to keep accounting records up to date with the help of accounting software. Business software of this type is often configured to allow easy cross-posting of accounts receivable and payable, eliminating the need to enter multiple journal entries to maintain accounting records in accordance with generally accepted accounting principles. Many of the most popular automated accounting systems can be adapted to suit the needs of the company purchasing the software, allowing you to create custom reports and use the standard report formats included in the software package.
The automated accounting process can save you a lot of time when posting credits and debits. Instead of having to make entries to different books, as is common with more traditional methods, most accounting software packages are structured to allow manual entry of the transaction into a field on a page. From there, the software automatically matches the transaction with all other relevant records within the software package. Once the transaction is entered, the data will be included in any generated reports that are structured to cover the date of that entry.
In addition to simplifying the process of manually entering data into an automated accounting system, many accounting software packages can be linked to credit cards and bank accounts. Using the software's integrated interface, payments can be routed to suppliers and automatically applied to the supplier's account and invoice number within the accounting records. At the same time, customers can submit an online payment through links that the system includes with any electronic invoice distributed to these customers. Using the link to submit the payment, the software automatically receives it, publishes it to the correct customer account and invoice number, and forwards the payment to the bank account specified by the end user.
Today, automated accounting is considered a core component of most ERP or enterprise resource planning strategies. Secure features and time savings can greatly increase the efficiency of the accounting team. In addition, the accounting software includes features that make generating and distributing electronic invoices to customers an extremely efficient tool. Using these features makes it possible to receive payments in a short time, either because the customer can approve the payment and send a check in less time, or because it uses the option to send an electronic payment. In either case, the company benefits from an increase in its accounts receivable receipts in a short period of time, giving the company access to more cash to manage the day to day operations.