In a world where we are faced with more data than ever attributable to rapid digital growth, automation emerges as a transformative force across various industries — and accounting is no exception. The integration of artificial intelligence (AI) and automation in accounting holds immense promise, offering numerous applications ranging from operational efficiency to strategic financial management.
Automation in accounting serves as a powerful query tool and an interface for users to access and analyze data as needed. However, for automation to be effective, data must be properly tagged and structured from the outset. This means that human intervention is required to ensure that the system understands what each data point represents. Once this foundational work is complete, finance teams will see the power of automation: enhanced financial reporting, greater insights, and less manual work.
Enhancing Financial Reporting
One of the primary benefits of automation in accounting is the ability to streamline financial reporting. Many companies have unique accounting policies and nuanced financial environments that off-the-shelf systems cannot handle. Customized automation solutions can help address these challenges including managing complex revenue recognition environments and integrations with existing ERP systems.
WilliamsMarston has helped clients in a variety of industries—software, subscription-based services, construction, and healthcare, among others—implement automated solutions. These solutions not only manage complex financial scenarios but provide management with insights that were previously unattainable.
Breaking Down Data Silos
A common issue in many organizations is the disconnect between operational and financial data. Finance and accounting departments often lack visibility into the rich operational data available within a company and IT departments may not fully understand the data needs. Automation bridges these gaps by integrating data from disparate sources, creating new data points and enabling granular reporting that aligns with management’s needs.
For instance, automating key performance indicator (KPI) reporting involves mapping operational data to financial transactions, thus creating detailed reports that were once thought impossible. This integration not only improves reporting accuracy but also provides actionable insights that drive strategic decision-making. Connecting disparate data can reveal correlations and trends that were previously hidden, enabling more informed business decisions.
Reducing the Burden on Finance Teams
Automation can also alleviate the pressure on finance and accounting teams. In many organizations, a small team is tasked with the workload that once required ten or more people. By automating routine tasks such as reconciliations and journal entries, the risk of human error is reduced, and employees can focus on reviewing automated outputs rather than performing tedious manual calculations. Finance teams experience enhanced productivity from automating processes, with the additional benefit of improved job satisfaction as team members engage in more meaningful work.
Preparing for Potential Deals and Transactions
Automation proves invaluable in the context of mergers, acquisitions, divestitures, and initial public offerings (IPOs). For smaller organizations, achieving the level of granular reporting that buyers demand can be challenging. Automated solutions facilitate the detailed financial analysis required for sell-side readiness. Additionally, when divesting a business, automation helps carve out financial statements and track the economics of the business being sold, even if the accounting system was not originally set up for this purpose. The enhanced efficiency and accuracy that automation provides not only prepares companies for a transaction, but also positions them well for the financial reporting required post-transaction.
Implementing Automation in Accounting
The potential applications of automation in accounting are virtually limitless. The success of any automation initiative, however, depends heavily on the quality of the underlying data and processes. While tools such as Alteryx and Tableau offer powerful data transformation and visualization capabilities, their effectiveness is contingent on the quality and structure of the data they process. By investing in the right technology and ensuring a solid data foundation, companies can unlock significant efficiencies, enhance reporting capabilities, and drive strategic growth.
WilliamsMarston professionals can partner with you to understand your business’ unique challenges and offer tailored automation solutions. Learn how WilliamsMarston supported a mid-market, private equity-backed software company transform their manual revenue recognition process to an automated system, while navigating a potential IPO here . Whether it’s breaking down data silos or enhancing operational efficiency, WilliamsMarston is here to see your automation through.