While accounting has always taken a large amount of time, skill, and resources to get right, today’s customers expect Accountants and CPA Firms to not only maintain their error-free standards but also do so at reasonable prices. This has added to the workload whilst cutting resources.

That is why CAS has become one of the fastest growing services niches.

This infographic will help you gain a better understanding of CAS to help you decide if it is right for you.

The infographic will cover:

• What is CAS?
• What are the Benefits of CAS?
• How to get started with CAS?

Please Fill the Form to Download the Infographic

The post Client Accounting Services (CAS): The Future of CPA Firms is Now appeared first on Sentient Solutions.

Automation of accounting process gained immense traction in the last year, and CPA firms are rapidly implementing them. Audits, financial reports, payable accounts, etc., can now be automated, freeing up time focused on strategy and financial advising. 

As we are seeing, things will not be completely going back to how they were before the pandemic. The advent of cloud computing has revolutionized work life all through the pandemic. Technology has made it possible to work even without being in the workspace. Similarly, there is a tremendous advancement in the automation of rote, labor-intensive tasks.

Multiple companies have started to include the usage of automation technology, such as Autobots, artificial intelligence (AI), and machine learning (ML). In fact, even the big four accounting firms have implemented automation in their accounting processes.

Digital transformation is changing the future of accounting and finance automation, jobs available, and responsibilities. Automation of accounting process is here to stay.

Digital Transformation

Emerging technologies allow accounting processes to be automated, streamlined, and more efficient. Therefore, it is necessary to be up-to-date with the current technology, irrespective of employees’ role in the accounting department. 

Cloud accounting

Cloud computing has changed data transfer and the future of automation of accounting processes. With the facility to work with data in multiple capacities, cloud-based accounting has revolutionized how companies function. 

The pandemic saw a massive rise in responsibility and increased working from home for CPA firms. Cloud accounting software makes it possible for all the information to be accessible at any place while having all the latest data.

The continuous updating of information provides unprecedented visibility over the process and the results. With the information available any time, anywhere, differential access makes it possible for accurate analysis and valuable insights to be made on the go.

Robotic Process Automation 

Accounting involves many mundane and repetitive tasks that CPA firms can easily automate through Robotic Process Automation (RPA). Considered similar to Macros in excel, RPA can be used across multiple accounting systems, unlike macros that are only linked to excel. RPA can increase the efficiency of the accounting team by reducing the processing time, minimizing data entry errors, cost reduction, etc.

Financial departments of companies tend to use multiple software as all tasks cannot be accomplished using a single software. This is highly time-consuming and labor-intensive, requiring enormous data duplication. CPA firms can create software robots to follow specific rules or action sequences. RPA can be utilized in such cases, where data can be transferred across software following the assigned set of rules. This not only frees time but ensures data accuracy and cost-efficiency. 

Click here to read more on how RPA is transforming accounting.

Blockchain technology

CPA firms have begun implementing blockchain technology. Instead of maintaining separate registers, companies can create a joint account to enter their transactions.  This joint account is used to keep track of transactions’ receipts, creating an interlocking system for account records. Every entry made and moved is sealed cryptographically – making it tamper-proof.  This can be considered to be notarized but electronically. 

This form of accounting makes it easier for auditors to verify a large portion of the financial data. This frees up a lot of the auditors’ time that can be spent in other areas.

The integrity of these electronic files can be maintained by blockchain technology through their individual digital fingerprints. This digital fingerprint is then written into the blockchain along with a timestamp every time a transaction is made. These documents can be stored as any other data files without any issue as the integrity of these files is already sealed. 

The Road Ahead 

At Sentient Solutions, we see the transformation of accounting from laborious financial management to a nuanced understanding of current trends and economic growth. In the current landscape, automation of the accounting process reduces the time consumed by tasks such as payroll, taxes, filing, and maintaining the ledger. 

We are here to help accountants and CPA firms scale up and lower their operating costs through Robotic process automation in accounting, AI, and scalable services. It is important to understand accountants cannot be replaced by the current technology. However, with the help of technology, it is possible to reach new heights, introduce novel ideas, and be future-ready.

For instance, cloud-based accounting has drastically reduced the manual workload of accountants. The automation of the accounting process is seamless as real-time data is available 24*7. This allows CPA firms to focus on high-impact, mission-critical tasks, including financial analysis. 

There are also multiple programs providing interfacing of data, i.e., data from various systems can be shared. This provides the accountants an abundance of data allowing for the insights to be more meaningful. This will prompt accountants to become proficient in building strategies and taking on an advisory role.

The post Digital Transformation for CPA Firms in 2022 and Beyond appeared first on Sentient Solutions.

That is why we have come up with these unique use cases to highlight the importance of accounting automation.

Use Cases in Accounting Automation

1. Data Entry and Reconciliation

Errors in accounting can be a very costly affair. It can not only result in millions of dollars in fines but can also damage the reputation of the organization. In addition, it can lead other departments of the organization into poor decisions, hampering liquidity and requiring resource-demanding correction work.

However, by deploying accounting automation, data entry and financial reconciliation can be performed by bots with the click of a button, as per the compliance, business, and audit requirements, with minimal human interference. If an error was still made, the algorithm of the bot can learn from it and prevent its recurrence. In other words, the bot’s efficacy will only improve with time.

2. Expenses and Reimbursements

Expense filing has always been a tedious process. It required an expense report to either be handwritten or printed out on an excel spreadsheet with stapled receipts that had to be handed over to the Accounting team. The Accounting team, in turn, had to manually enter the expense details into their system to initiate reimbursements.

However, with the automation of accounting, there is no need to fill out and submit receipts at all. This is because the accounting software can now be integrated with the payment platform to capture and store all transactional data and release accurate funds within a matter of minutes.

3. Payroll Processing

Ensuring that all employees get paid their respective compensation on time requires a large amount of manpower and time. Getting it wrong can impact employee morale and may even lead to cash flow and legal issues.

Accounting automation enables organizations to manage every process within payroll management on autopilot. This includes automatic and error-free tax processing and filing.

4. Contractual Fulfilment

Organizations have to ensure that their suppliers are adhering to the agreed-upon terms at all times. Miscommunications can lead to massive legal complications that tie down critical operations and inventory for months.

However, by deploying accounting automation, bots can leverage Natural Language Processing to automatically extract information such as discounts, rebates, deadlines, and penalty clauses, etc. from the contract, reports, and government mandates to identify gaps and discrepancies.

5. Accounts Payables Processing

Ensuring that the right amount is paid to the right account and invoices is critical to a full-proof Accounts Payables system. Mistakes here can not only lead to cash flow issues but also hamper relations with the suppliers. However, when managing hundreds of accounts and invoices from multiple countries and tax jurisdictions, with different processing schedules, languages, and in multiple formats such as cash, electronic, and cheque, errors in Accounts Payables are too common. 

Bots that leverage accounting automation can identify the invoices, sort them as per the organization’s accounting policies, cross-check it with the existing contracts, route them for approval, release payment, and reconcile it with minimal human interference. Additionally, the bot can also assess the invoices for anomalies such as double payments, unauthorized purchases, and fraud.

The Future

Accounting automation enables greater productivity, enhanced efficiency, and accuracy. In the future, under the current pace of digital evolution. We anticipate a complete overhaul of the accounting world with CPAs focusing on high-impact tasks, such as financial advisory and estate planning, while automation takes over simple, repeatable work.

In fact,  according to Rob Clymo, a renowned tech journalist, 81% of accountants believe they can save up to 2 hours a day (or 10 hours per week) by automating simple tasks. This would translate to savings amounting to hundreds of thousands of dollars annually.

Sentient Solutions

Automation in accounting is here to simplify and streamline the process, getting rid of the labor-intensive and time-consuming aspects of the job. This leaves enormous scope for an accountant’s expertise and skill in developing business strategy, offering financial planning, and more. Growing professionally today requires being aware of and proficient in various accounting automation tools.

At Sentient Solutions, we help accountants and CPA firms improve scale and reduce operating costs with process automation, AI, and scalable services. 

Reach out to us today!

The post 5 Key Use Cases in Accounting Automation appeared first on Sentient Solutions.

While accounting has always taken a large amount of time, skill, and resources to get right, today’s customers expect Accountants and CPA Firms to not only maintain their error-free standards but also do so at reasonable prices. This has added to the workload whilst cutting resources.

That is why 90% of accountants believe in the potential of Accounting Automation to increase their speed and productivity and save time.

This infographic will help you gain a better understanding of the Automation of Accounting Process to help you decide if it is right for you.

The infographic will cover:

• What is Accounting Automation?
• What are the Benefits of Accounting Automation?
• What are the Barriers to Accounting Automation?

Please Fill the Form to Download the Infographic

The post Accounting Automation: The Path to Streamlined Processes and Greater Outcomes appeared first on Sentient Solutions.

However, with advancements in technology, today most of the labor-intensive manual elements can now be automated – 75% to be more precise. Automating allows accounting systems to crunch numbers, identify discrepancies, and track transactions in real-time – with minimal human intervention. 

Let us dive deep into the benefits of Automation of Accounting and Audit processes:

The benefits of Automating the Accounting and Auditing Processes

1. Reduced Time

One of the most tangible benefits of automating the accounting process is the time saved. This holds especially true during financial closing – wherein the system reconciles the numbers without human intervention. 

According to Gartner, Robotic Process Automation (RPA) in accounting, in particular, can save finance departments 25,000 hours of avoidable work annually. As a result, what normally took several weeks can now be done in a matter of minutes. This allows CPAs to focus on mission-critical tasks and strategy instead of rote work.

2. Data accuracy

When working with large corporations and struggling with massive quantities of data, human error is all too common and unavoidable. Automation of accounting process makes it possible to create thousands of error-free ledger entries with minimal human intervention, eliminating the chances of data duplication and errors.

3. Secure file storage

Government regulations necessitate having to store paper records for anywhere between 7-10 years. However, governments worldwide are embracing the idea of digital copies of documents instead of hard copy paper files.

This means the software upon receiving a document, say an invoice, can now process it instantly by entering the data and automatically storing the proof of purchase in the appropriate folder and in the required format.

This makes every document accessible no matter the physical distance from the firm. This eliminates having to rifle through filing cabinets.

4. Simplified data retrieval

Prior to servers and spreadsheets, there were rooms full of hard copies of files. Information retrieval required physically searching for the file. 

But with Cloud-based accounting, employees can access accounting software, processes, and files 24*7. For instance, when the employees are traveling or at a client’s office and need to check a document or process a payment, the cloud is here to save the day. This eliminates the need to be physically present to access the pertinent file as everything required is waiting online.

This allows auditing at different locations to go smoothly as all the pertinent data is accessible with a few clicks.

5. Real-time integration

Staying relevant in the landscape of industrial revolution 4.0 requires digitization. No two ways about it. The more company processes can be digitized the better these solutions can be deployed. 

For instance, integrating a company’s payroll tool with the accounting platform allows the latter to receive information from a spend management software. This eliminates having to copy information, offering up-to-date, consistent, accurate data across multiple platforms. 

Additionally, automating the auditing process allows for data to be processed and interpreted in real-time and compared against past transactions minimizing chances of error.

With automation enabling accounting systems to be cloud-based, all finance processes are also turning cloud-based. This allows them to interact and provide the best interpretation of data.

6. Professional development

Automation of accounting process must be viewed as an opportunity for growth. Automation will not accomplish everything and the process requires competent, skilled accountants to drive the software and interpret the results. 

85% of accountants believe that to gain a competitive edge in the market, they need to keep up with the pace of technology adoption.

Despite high levels of automation and AI, no machine will come close to recreating the value and judgment of a skilled accountant. Automation of accounting process will provide avenues for skilled accountants to share their judgment, enriching the employment experience.

Moving Forward

When deployed masterfully, accounting automation will eliminate all the labor-intensive and frustrating parts of the job. This leaves plenty of room for an accountant’s value-based addition such as management accounting, strategy, and excellent communication.

Growing professionally today requires being aware of and proficient in various accounting automation tools.

At Sentient Solutions, we help accountants and CPA firms improve scale and reduce operating costs with process automation, AI, and scalable services. 

Reach out to us today!

The post The Importance of Automation in your Accounting and Audit Processes appeared first on Sentient Solutions.