Automation sounds like the buzzword of the day, but it is actually a part of a long-term strategy that can free up an accountant’s time in many ways. Most accountants enjoy the challenging puzzle of managing nonprofit finances and helping to shape the strategy of any organization doing work that matters. Yet somehow, there always seems to be more work than hours in a day. With the right automation, you can get more done in less time. It frees up accountants to use their skills in other meaningful ways.
Save Time Through Automation of Manual Tasks
Many daily, weekly, and monthly tasks handled by accountants are repetitive tasks. Things like entering payment information, approving expenses, and reconciling bank statements take time. While these tasks are necessary for the organization’s overall financial well-being, they aren’t particularly challenging tasks.
If you’re using spreadsheets to maintain the organization’s accounts, you know that there are many steps to logging each entry. And with each step, there’s the chance of making a data entry or formula error. Catching mistakes and fixing them gets harder the further you are from where the mistake originated, and it can take hours to untangle a mess made by a single formula error.
Using a nonprofit accounting system and its built-in automations significantly reduces the risk of data entry errors. Although you can make a mistake entering the initial number, if it’s corrected in the entry, the correction flows through the system, so fixing a simple mistake takes a minute instead of hours.
The entire accounting process becomes faster with automation. For example, invoice amounts are automatically posted to the general ledger through software automation, eliminating manual tasks. Multiply this by the number of manual tasks performed through automation in accounting software, and you’ll quickly see how automation saves time.
Better Audit Trails
Another area in which automation improves the entire accounting workflow is in audit trails. Thanks to routine automation, the entire audit trail now happens seamlessly within nonprofit accounting software. Who entered what information and when, and who approved which invoice—each piece of information is now entered into the software and appears in the audit trail. This makes the entire information chain crystal clear and easy to understand for auditors.
Accurate, Real-Time Reports
Generating reports from spreadsheets requires time and skill. First, the information must be pulled from the spreadsheet, sometimes from various worksheets and files. Then, it must be formatted and checked again. Lastly, if charts or graphs are needed, these must be created manually too, with time spent formatting, adjusting labels, and so on.
With nonprofit accounting systems, reports are automatically created at the tap of a button. It’s easy to generate balance sheets, profit and loss statements, and graphs and charts. Often, the reports that come with a nonprofit accounting system are adequate for an organization’s needs, but if they do need reports that aren’t included in the system, additional ones can be added through customizations or integrations with business intelligence software.
Compare the time it takes to generate reports from spreadsheets with the automations inherent in nonprofit accounting systems, and it becomes clear why most accountants prefer using automation.
AI and Automation
One area worth exploring for nonprofits is the use of AI in accounting automation. It’s been a gamechanger for many teams, improving productivity and efficiency. A study from the Stanford School of Business found that accounts that use AI finalize monthly statements 7.5 days faster than those using traditional methods. The same cohort also spent 8.5% less time on routine back-office processing.
Nonprofit Accounting Software – Automation and Efficiency
If you’re looking to improve automation and efficiency, nonprofit accounting systems are worth exploring. Many come with AI enhancements and excellent out-of-the-box reporting functions. They can save you plenty of time on routine tasks and make it easier for auditors to analyze your finances. The right software, whether it is a nonprofit accounting, donor management, or other platform, can significantly improve accounting productivity.
Welter Consulting
Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.
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