Several financial processes are among the repetitive and manual tasks that can eat into your company’s budget. These tasks include expense management, tracking accounts receivable and payable, invoicing, bookkeeping, payroll, and tax reports.
How Manual Tasks Are Costing Your Business
You can lose money by sticking with Excel spreadsheets or, worse, paper-based and handwritten systems. These methods can lead to:
· Human errors in data entry
Manual data entry isn’t only time-consuming but also prone to mistakes, as keyed-in data is thought to be only 96% accurate.
· High labor cost
According to the 1–10–100 Rule, verifying data at the point of entry costs Eur1 while correcting them in batch form costs Eur10. The cost rises to Eur100 for inaction.
· Low productivity
Respondents to a 2019 study said that workers spend 35% of their time doing repetitive tasks. The weekly global average of 4 hours and 38 minutes spent on duplicate tasks can lower morale and creativity.
Benefits You Can Reap from Finance Automation
A recent PwC report showed that automation, coupled with behavior change, can reduce 30% to 40% of the time currently spent on finance processes. Here’s how that can happen:
1. Better data analysis for decision-making
Your finance and accounting teams can devote more time to study data for strategic business planning, so you can please your customers better and beat your rivals.
2. Greater visibility and less chance of fraud
Businesses lose five percent of revenue annually due to fraud. Fintech tools offer greater visibility on cash flow and can flag any unusual patterns for scrutiny.
3. Improved compliance
Accounting software can put you in good standing for audit, as they can accurately calculate your tax obligations for transactions in each state or country.
Streamline Your Business Finances with Somom
Whether you need a digital accounting assistant or support for your existing finance team, Somom can help. Contact us today to know more about our monthly package, schedule a demo, or go for our one-month bookkeeping trial.
