The #1 Playbook for Accounting Efficiency
Get this step-by-step guide to determine how to implement accounting automation when the growth of your business depends on it
When was the last time you truly trusted your financial data?
For many business leaders, that confidence is a pipe dream they’ve never been able to achieve. Now, at the end of another chaotic month-end close, you lack the insights you need to make critical decisions. By the time you gather and analyze the necessary data, it’s already outdated. With your team drowning in spreadsheets and manual processing, you face the risk of turnover and struggle to gain the real-time visibility needed for decisive action. Will you have to hire more staff just to keep up?
Certainly the rise of automated accounting is not lost on you, but you also don’t know where to begin (nor do you have the time to look).
Maybe you’ll get to it next week.
Then Monday rolls around...
You're swamped with urgent matters: a customer issue, a new product line, and a packed calendar. If you're like most business leaders, founders and CXOs, time is your most valuable currency; you're already working nearly 10 hours a day and booked for an average of 37 meetings per week.
That plan to clean up your financial data or look into a new accounting technology? It will have to wait.
While research shows 62% of executives believe accurate, real-time financial data is a "must-have" for the survival of their business, we see business leaders struggling to make it a priority. They feel that it’s not always feasible to pause the daily go-go-go (and risk downtime while in growth mode) to search for a new accounting system.
The concerns we typically hear about embracing new technology revolve around three main areas
Time Constraints
"We're too busy to stop and implement a new system right now. There's simply too much on our plate."
Risk Aversion
"What if the implementation disrupts our operations and causes us to miss our growth targets? Is our existing system really that bad?"
Financial Barriers
"In this uncertain market climate, can we justify the investment in new systems?"
These blockers keep your organization tethered to manual accounting processes for years beyond what you should. Limited hours in the day make system changes daunting, while the temptation to limp along with what you have (it’s comfortable, it’s what you know!) keeps you from ripping off the Band-Aid.
Moreover, in an unpredictable market, fears of overspending on technology that might not deliver immediate value take hold. ROI becomes a moving target, so you prioritize short-term needs over long-term improvements. This combination of factors causes you to keep pouring more resources into maintaining the status quo, even when change is desperately needed.
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However, when you take a step back to consider the time wasted across your team on manual accounting—not to mention the lack of visibility into your business as a result—it highlights the backward mentality of resisting change and continuing on the same path for the sake of “keeping the wheels turning.”
Here we’ll take a closer look at just how much of your team's valuable time is likely consumed by these inefficient processes and what that means for the future of your business. We'll explore the consequences of sticking with a solution you’ve outgrown, including a lack of visibility into profit trends, key business health indicators and cash flow direction. Moreover, we'll address how automation solves for this and enables you to regain your focus on strategic initiatives that drive business growth.
Recognize the real time you’re losing
Manual accounting processes consume more of your business's time and resources than you probably realize.
A recent study revealed that 72% of finance teams spend up to 520 hours per year on AP-related tasks alone that could be automated. That's equivalent to 13 full work weeks lost to manual data entry, invoice processing, and payment reconciliation.
But this is just the tip of the iceberg. When we look at the broader picture of manual accounting processes, the time drain becomes even more apparent:
- Accounts Receivable (AR) tasks: Teams spend between 4 and upward of 13 hours a week on AR tasks that could be automated. When you combine that with the 10 people-hours per week the majority of finance teams spend on AP tasks, that can add up to as many as 92 hours per month.
- Manual data entry: 60% of teams still manually key invoices into their ERP/accounting software.
- Invoice processing: 52% of finance teams still spend more than 10 hours a week processing invoices and administering supplier payments.
- Bank reconciliation: 56% of finance teams currently reconcile bank statements manually.
- Error correction and audit trails: 41% of finance teams spend time fixing errors manually, while 42% dedicate time to gathering documentation to create audit trails.
- Data transfer and categorization: 36% of companies use spreadsheets and CSV files to transfer data manually, 32% perform manual categorizations for expenses, and 30% code transactions to the general ledger manually, according to one survey.
All told, 38% of finance teams report spending more than 25% of their total time on manual tasks, with this figure rising to 44% for large finance teams.
By automating these processes, you can reclaim lost time, allowing your finance team to focus on activities that drive growth and improve decision-making. Automation won't replace your staff; instead, it will make their roles more valuable to the business, turning them into strategic partners in growth.
Blind spots in your books
Manual accounting processes are actively hindering your business in three key ways:
1. You lack critical visibility into cash flow
Cash flow is the lifeblood of your organization: you need cash in the bank to keep the lights on, pay your bills on time, and make strategic decisions. PwC's survey of CEOs emphasizes how the absence of accurate, real-time financial data impairs decision-making, reduces agility, increases risk and hinders long-term planning. Yet, a lack of reliable and visible cash flow data continues to be a rising concern among CEOs, financial leaders, and executives. One survey found 49% of executives worry about the reliability of their cash flow information and 98% believe they could have better cash flow visibility. Manual accounting processes, such as those that require your team to stitch together data from different places in order to glean insights, make this difficult (if not impossible) to achieve.
2. You're stuck in reactive mode
PwC's CEO Survey shows that 36% of a CEO's time is spent in reactive mode. In today's competitive environment, business leaders need to spend more time on offense—strategizing about future opportunities and navigating market challenges. However, when your finance team is bogged down with manual tasks like entering bills, sorting invoices, and mailing checks, they can't contribute meaningfully to your company's future direction.
As a result, you will perpetually lack the real-time, accurate financials you need to guide the business forward.
3. You miss opportunities for growth
When you lead a business, growth is top of mind. What new markets should we enter? What product should we launch next? Who should we acquire? A recent Gartner survey reveals that 62% of CEOs selected growth as their top business priority for 2024, the highest level since 2014. Yet, according to BlackLine, 37% of CFOs admitted they do not completely trust their own financial data. That number is higher among 50% of senior finance and accounting professionals, who indicate they don't fully trust the numbers they're working with (even though they are closer to them!).
As a result, you're essentially navigating your growth strategy blindfolded. How can you make informed decisions about expansion, investments, or new product launches when you can't trust what the underlying financial information is telling you?
Save time and see clearly with accounting automation
Accounting automation is your solution to the issues highlighted here. It reduces errors, frees up your finance team’s time, and provides a path to deliver key financial insights in a timely manner. A shift from reactive to proactive financial management then allows you to:
- Improve accuracy and decision-making: With up-to-date financial information, you can spot trends and address issues promptly, rather than work off outdated or incomplete financial reports.
- Scale operations efficiently: As transaction volumes increase, automated systems can handle the growth without proportional increases in staff, particularly important given that less than 1% of accounting and finance firms today can find enough staff.
- Enhance financial visibility: 90% of small to midsize businesses believe automation is key to improving financial operations and business efficiency, enabling a forward-looking approach to finance.
- Increase competitiveness: With 89% of executives planning to invest more in automation and payment technologies, adopting these systems keeps your business at the forefront of industry trends.
When you look at the full scope of accounting automation, AP and AR processes are two areas that demand a large portion of your staff’s time. Here are some of the benefits you can expect to see from automating each of these core accounting responsibilities.
Reducing time spent on AP by 80%
Accounts Payable (AP) automation streamlines the entire process of managing and paying vendor invoices. Key benefits include:
- Increased productivity: Automation can boost invoice processing from 5 to 30 invoices per hour, saving 70%-80% of time typically spent on AP activities.
- Cost savings and potential profit: Virtual cards—which provide a one-time use credit card number generated for a specific vendor payment—eliminate transaction fees and may offer cash-back rebates.
- Enhanced security: With 44% of global finance teams aware of AP fraud victims in recent years, virtual cards significantly reduce fraud risk.
- Improved cash flow management: Real-time visibility into outgoing payments allows for better timing of disbursements and the opportunity to take advantage of early pay discounts.
56% of finance teams are still reconciling bank statements manually.
Get paid early with AR automation
Automating Accounts Receivable (AR) processes improves your cash flow, team productivity, and customer relationships. With AR automation, you can expect to see:
- Faster payments: With 89% of executives reporting customers paying on time or early after implementing AR automation, you can significantly reduce late payments.
- Improved productivity: AR automation can reduce time spent on cash collection by 80%, freeing up your team from the 18 hours per week typically spent on collections alone.
- Enhanced customer experience: 67% of executives report increased customer satisfaction with AR automation, leading to better customer retention (56%).
- Streamlined reconciliation: With 56% of finance teams still reconciling bank statements manually, automation can significantly reduce this time-consuming task.
- Real-time visibility: Automated payment tracking offers a complete view of all payments and fees, enabling more accurate cash flow projections.
When is the right time—to make time?
Automating more of your accounting processes—which often requires pulling the trigger on a new accounting system—can be daunting. Here are some questions to explore to help you determine if you’re ready (or more likely, overdue) to make a change:
Are manual processes consuming too much of your finance team's time every week?
Are you hiring more accountants without seeing increased strategic output?
Do you struggle with real-time visibility into your cash flow?
Is your current system unable to scale with your business growth?
Do you struggle maintaining audit trails and dread “audit season”?
Are you experiencing frequent errors in data entry or financial reports?
Do you need better integration between your accounting and CRM systems?
Are you looking to improve your financial decision-making with more timely and accurate data?
Do you need more robust security and fraud prevention measures?
Are you seeking ways to improve customer and vendor relationships through better financial management?
Do you require multi-currency or multi-entity capabilities?
Are you interested in automating tasks like revenue recognition, recurring billing, or bank reconciliations?
Your results:
Your roadmap to find the right solution
Many business leaders recognize the need for automation but struggle to take the first step, often feeling overwhelmed by the options or unsure of where to begin. For instance, 71% of businesses who haven't automated their AR system are stalled because they lack understanding of the available technology.
When searching for the right automated accounting solution, consider the following:
Assess your specific needs and pain points
- What areas are you spending the most time on?
- What struggles are your team facing on a daily/weekly/monthly basis?
Understand your Total Cost of Ownership
- What investments will you need to make across your business?
- What additional expense will you incur beyond the cost of the software?
- What is your expected return on investment in time and dollars to fully implement?
Evaluate the scalability and flexibility of potential solutions
- How easy is it to tailor processes to your needs?
- Can the interface be tailored to your business?
- Does the solution have features needed for growing businesses (ie multi-currency, multi-entity, etc.)?
- What customizations are offered without development work?
- How easily can I make changes as my business grows?
Consider integration capabilities with your existing systems
- Does it integrate with your CRM?
- Can it replace and/or eliminate the excess applications being used today?
- What other systems do I need to share data with?
Look for real-time reporting and analytics features
- Will my data live in the same house, enabling real-time reporting?
- Are the reports configurable to your needs?
- Does it offer analytics that help you understand your most profitable areas?
Ensure the solution offers strong security measures
- Can I establish unique permissions for my team?
- Is my data and my customer's data secure?
- What data-backup options are offered?
Evaluate the vendor's support and training offerings
- Can you easily contact a customer support representative when needed?
- Is there online training/support available?
As you search for the right fit, consider Accounting Seed to be your trusted resource in helping you. Our cloud-based solution is built on to Salesforce, ensuring your sales data and financial data truly live in the same house and eliminating silos of missing or inaccurate information. Accounting Seed offers complete automation of your AP and AR processes, while providing real-time financial reporting and analysis capabilities, all within the familiar Salesforce ecosystem.
In the words of Marina Peterson, CFO at Downtown Streets Team and current Accounting Seed user:
“What used to take two days using Excel takes two hours in Accounting Seed for bank reconciliations. Now my team can focus on staying on top of our expenses—ensuring that we are spending our contracts correctly, that we are spending in the right budget lines and are able to make budget revisions. It’s made them partners.”
We understand there are several accounting solutions available, and making a change requires commitment and a clear vision of your business processes. Using this playbook as a guide can help you understand the key foundational aspects you should consider when making a selection.
Our team partners with you to overcome those initial hurdles and help you achieve greater efficiency and financial data you can rely on. Reach out today to book a demo—or for help with any of your accounting needs!
Interested in taking the next step?
At Accounting Seed, we have expertise in helping companies automate their AR and AP processes and will assist you every step of the way! Book a demo today.