Automation increases productivity and significantly decreases the business running cost which is visible to almost everyone now. However, it’s coupled with stories about the misconception that automation is taking jobs away. However, according to studies, only about 5% of human-dependent tasks can be completely automated.
“Far more common will be the automation of constituent activities for a given role” according to McKinsey. In about 60 percent of occupations, a minimum of 33% of the activities that structure a selected job might be automated. The good news is that most workers are willing to adapt to automation and take advantage of it to make their work and life better.
Nowadays workers too look forward to spending less time on repetitive, tiresome tasks like Manual Data Entry and spend more time on better rewarding aspects of their work. Here’s how Data Input automation could do that and how Tax firms can adapt automation of repetitive tasks for better efficiency.
Scope of Data Input Automation :
Automation could be applied to the typical manual work which needs to be done repetitively.
Let’s look at the current situation of how data entry of financial transactions is being done across the length and breadth of industries.
1.Data Collection:
So far data always comes in two major formats.
a. Hard Copies
All the invoices, statements, or any other professional transactional documents are being sent to the other parties in hard copy printed format.
This is the most used format for professional communication. It adds lots of unnecessary cost and also it’s a waste of papers. And also turn around time is higher as all the documents are being sent via courier or so.
b. Soft Copies
Slowly and gradually people have started using soft copy to share the necessary documents via email and shared drives.
This is faster than the other option and also cheaper compared to traditional hard copy use.
However, all the companies still have different applications and formations of invoices, receipts, or statements depending on the tool they use.
2.Data Entry :
Once a firm/organization has the data (Invoices, Receipts, Statements, Bank statements) in hard copy or soft copy; all of it needs to be pushed into the computer accounting system for further processing.
As we saw above that all the companies that use different types of formation, data entry gets a bit harder as manpower needs to identify all the relevant information and enter it into their system which ultimately leads to more time-consuming and more chances of error.
Usually, big scale companies hire and use different resources to feed the data into the system. Small scale companies or firms might opt for outsourcing as they can not afford to have an in-house data entry system.
Once data is entered into the computer accounting system it’s used for further processing to analyze, generate reports, calculate taxes, make invoices and plan further strategies.
Let’s imagine a case where an accountant forgot to put one zero less in one particular entry and the report needed to be submitted to the government. It can lead to a huge financial loss or penalties might get imposed.
Even after having all the manpower, resources, and spending a lot of money, firms need to have one more layer to verify the pushed data.
Also Read: Your Guide to the 6 Must-Have Features in Automated Accounting Software
3.Second Layer Data Validation:
The data validation layer is a must as all the data pushed into the system needs to be rechecked to eliminate the chances of errors. This increases the running cost and turnaround time too.
That’s where Automation comes into play and eliminates all the factors which increase the burdens of resources, manpower, risk of errors & slow turnaround time.
4 Tips Every CA/ Tax firms must follow to get more clients
1. Reduce Repetitive, Manual Data Entry Tasks
Nearly 70 percent of workers surveyed indicated that they could save at least 6 to 7 hours a day – if the Manual Data Entry aspect of their routine work were automated.
If basic tasks like Data Entry can be replaced with Automation tools like Suvit.
So what would workers do in that saved time? So the worker’s time could be more valuable to the Firms and thus they can be deployed or utilized in more important work where they can contribute to productivity and get rewarded.
“If employees don’t have to complete numerous mindless tasks, they’re liberal to specialize in creative efforts and may come up with ideas”. Employees can contribute to their Firms, and feel they could be adding more value through creative ideas and innovations in firms or simply they can help to increase the clientele.
2. More personal time
Employees could leave early, take a longer lunch break. They can focus more on their personal life too if they could save time with Automation. This might not look good if we look from the Firm’s perspective. Employees taking time for themselves can also be a good thing for the firms if we look at it from a different perspective.
Taking time to relax and create a rich life outside of work might help individuals avoid burnout and stay motivated in their jobs. It can also create a positive and creative environment among employees which will ultimately lead to greater productivity and satisfaction.
3. Are you competitive enough?
So how do you keep yourself ahead in competition with other firms? While getting a client is a tough task, retaining them could be even tougher! Data Input Automation plays a vital role when it comes to serving clients. Acquiring clients can still be considered easy compared to making a long-term professional relationship.
As Automation could provide 100% error-free data, faster than ever before firms can finish the assigned tasks faster and with more accuracy.
Primary benefits are improved productivity and reduced human error automation can help the firm to be more competitive and deliver satisfactory results which will ultimately help firms for a stronger customer base and client retention.
Also Read: AI and Cloud-Based Tools Recognized by ICAI—A Chartered Accountant’s Guide to Efficiency
4. The Potential Of Automation
The potential of Automation is endless. And it’s up to the users to decide how much they can take benefits out of it. However, opting for automation could never be a wrong decision if we look at things with a new perspective and adapt the technology.
We feel employees deployed into tedious tasks like Data Entry are willing to give some of their tasks to Data Input Automation to focus and spend more time on better value carrying tasks and stay engaged in contribution towards the Firms’ growth and individual growth. Automation could make employees more productive.
Thanks to automation tools like Suvit, firms could keep up with the fast demanding pace and grow faster.
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