Accounting software offers a critical advantage for accountants and finance professionals. It significantly simplifies and streamlines financial management tasks and provides comprehensive solutions that automate time-consuming processes.
One of the key benefits of accounting software is its ability to organize financial data systematically. This eliminates the need for manual record-keeping, enabling professionals to access and analyze financial information effortlessly. Such software often comes with features for handling accounts payable and receivable, general ledger, payroll, and other core accounting operations, ensuring all financial data is consolidated in one place.
Another significant advantage is the automation of routine tasks. Functions like invoicing, tax calculation, and payroll can be automated, freeing up valuable time for accountants to focus on more complex financial analysis and strategic planning.
In this article, we share a handful of the best accounting automation tools to aid in the productivity and efficiency of financial professionals, including:
TextExpander
TextExpander can play a significant role in streamlining processes in financial and accounting jobs. It works by enabling users to create custom keyboard shortcuts for commonly used text or scripts, saving time and improving accuracy.
A key advantage for financial professionals is the ability to set up shortcuts for complex financial terminologies, formulas, and standard notes. For instance, lengthy phrases like “Accounts Receivable Turnover Ratio” or “Statement of Financial Position” can be abbreviated into a few keystrokes.
TextExpander can also create template responses. Accountants often have to respond to repetitive inquiries from clients or other departments. With TextExpander, standard responses can be created and reused, saving substantial time and ensuring consistency in communication.
The tool’s ability to create custom forms can also assist in data collection. Accountants can create fill-in-the-blank forms for collecting standard data to ensure there is nothing that is missing any significant detail.
In financial auditing and regulatory compliance tasks, accuracy is paramount. The risk of typographical errors can be mitigated with TextExpander, as commonly used phrases, numbers, and equations are pre-entered and associated with specific shortcuts.
Moreover, TextExpander supports date and time math snippets. This can be beneficial for setting deadlines, calculating durations, or dating financial documents and reports accurately.
TextExpander reduces repetitive typing and enables standardized communication so that financial professionals can be the best, most productive version of themselves at work.
- Platforms supported: Chrome, macOS, Windows, Android, and iOS
- Price: $3.33 monthly to $10.83 monthly
Quickbooks
QuickBooks is a very popular name in accounting services and software, but what some do not know is how extensive the automated features of the app are. One of its most noteworthy automation features is the direct bank feed connection, which allows transactions to flow seamlessly into the software daily.
Complementing this is QuickBooks’ smart reconciliation tool. With this feature, the software proactively suggests matches between recorded transactions and bank statements. This intelligent matching speeds up the reconciliation process, assuring users that their financials align with bank records without the rigorous manual cross-checking traditionally required.
For businesses with recurring billing models, QuickBooks offers an automated invoicing system. Users can configure invoices to be generated and dispatched at regular intervals, ensuring that billing happens punctually without any prompts.
Lastly, the software’s capacity to integrate with numerous third-party applications extends its automation capabilities even further. From payroll processing to advanced e-commerce solutions, these integrations ensure that data flows between platforms without manual intervention, solidifying QuickBooks as a linchpin in the automated accounting realm.
- Platforms supported: Web, macOS, Windows, Android, and iOS
- Price: $15 monthly to $100 monthly (with additional fees for payroll features)
Botkeeper
Botkeeper is a player in the automated bookkeeping market, offering a blend of artificial intelligence and machine learning applied to traditional accounting tasks. At the heart of Botkeeper’s automation features is its capability to handle large amounts of financial data with speed and precision.
For example, its automated data entry function categorizes and processes transactions, thereby eradicating the manual tasks commonly associated with bookkeeping. This is further facilitated by the software’s ability to integrate with various bank accounts, credit card companies, and financial platforms, pulling data continuously and ensuring real-time accuracy.
Another salient feature is its automated document-fetching capability. Botkeeper can retrieve financial documents, such as bank statements or bills, from various sources without any human intervention. This not only saves time but also ensures all essential documents are accounted for.
Last but not least, the reconciliation process is made smoother with its automated reconciliation feature. It intelligently matches transactions, highlighting any discrepancies, and ensuring that the books are always balanced.
- Platforms supported: Web
- Price: $55 monthly to $165 monthly
Xero
Xero offers a suite of features aimed at helping businesses manage their finances more effectively.
One of its standout features is the automatic bank feed, which permits users to synchronize their bank transactions with Xero daily. This eliminates the tediousness of manual data input and ensures that the financial records are always up-to-date.
Xero also possesses an intelligent reconciliation process. Instead of manually matching transactions, Xero proposes intuitive matches between bank transactions and invoices or bills. If the match is accurate, a simple confirmation is all that’s needed, saving valuable time.
Transaction rules offer another layer of automation. Users can establish criteria for categorizing frequent transactions. When a transaction meeting these criteria appears, Xero will automatically categorize it, further minimizing manual interaction and boosting accuracy.
Xero also shines in its ability to handle multiple currencies automatically, making it a preferred choice for businesses dealing in international transactions. Exchange rates are updated hourly, and gains and losses from currency exchange are calculated automatically.
Beyond its inherent features, Xero’s ecosystem, comprising hundreds of third-party app integrations, amplifies its automation capabilities. Whether it’s expense management, inventory tracking, or advanced reporting, these integrations allow businesses to tailor their automation journey according to specific needs.
- Platforms supported: Web, Android, and iOS
- Price: $6.50 monthly to $35 monthly
Wave
Wave, a comprehensive financial platform designed especially for small businesses and freelancers, blends user-friendly interfaces with potent automation features, simplifying financial management.
A fundamental feature is the automatic import of bank and credit card transactions, which streamlines bookkeeping by reducing manual entry. Once connected, Wave ensures all your financial transactions are consolidated in one place, eliminating the possibility of missing out on any expenses or income.
Invoice reminders are another automation boon. If a client forgets or delays payment, Wave can automatically send gentle reminders, ensuring that business owners receive timely payments without the awkwardness of chasing them down.
On the reporting front, Wave generates financial statements and reports automatically based on your financial data. This automation ensures that businesses always have access to up-to-date insights like profit and loss statements, balance sheets, and more.
Unique Feature: Receipt Scanning and Processing. While many platforms offer receipt scanning, Wave brings a unique touch. Wave’s free mobile app, Wave Receipts, allows users to snap a photo of their receipts. The software then automatically reads and imports the details directly into the accounting records.
- Platforms supported: Web, Android, and iOS
- Price: Free to $40 monthly
Expensify
Expensify is one of the leading expense management platforms and has become indispensable for businesses and individuals seeking to streamline their expense reporting and approval processes. Central to Expensify’s appeal are its powerful automation features.
A standout feature is “SmartScan.” Users can simply take a photo of a receipt, and SmartScan will automatically extract the relevant details—such as vendor, date, and amount—and create an expense entry.
Expensify also excels in automating the entire expense approval workflow. Rules can be set up for certain expense thresholds or categories that automatically approve, flag, or deny an expense report, ensuring policy compliance without human intervention for every single report.
For frequent travelers, the platform automates currency conversion. When a receipt in a foreign currency is scanned, Expensify can automatically convert the amount to the home currency based on real-time exchange rates.
Integration with credit cards and bank accounts further enhances automation. Transactions are imported directly into Expensify, ensuring that all expenses are accounted for and reconciled.
Furthermore, its seamless integrations with popular accounting software mean that approved expenses can be automatically synced, reducing the manual work involved in updating financial records.
- Platforms supported: Web, macOS, Windows, Android, and iOS
- Price: Free up to $4.99 monthly
SAP S/4HANA
SAP S/4HANA is an enterprise resource planning (ERP) solution that can greatly aid in financial and accounting jobs. Its advanced capabilities differentiate it from many other accounting software solutions.
A defining feature of SAP S/4HANA is its powerful real-time analytics. Financial professionals can generate real-time financial reports and forecasts from live data. This significantly enhances decision-making processes and offers insights into the organization’s financial health.
SAP S/4HANA also offers a centralized journal with a single source of truth. This eliminates data redundancy and inconsistencies, ensuring that all financial and management accounting data is stored in a unified manner.
Its ability to handle multiple currencies, exchange rates, and global tax management rules make SAP S/4HANA a standout choice for multinational corporations dealing with complex, international transactions.
Another unique feature is the software’s predictive accounting functionality. SAP S/4HANA can use real-time data to predict future cash flows and financial outcomes, aiding in proactive financial planning and risk management.
What truly sets SAP S/4HANA apart is its integration with other SAP modules and its capability to handle large-scale, complex business operations. It leverages the power of HANA, SAP’s in-memory database, to process high volumes of data in real-time, offering large businesses and enterprises a powerful tool for effective financial management.
- Platforms supported: Web, Android, and iOS
- Price: Varies with team size
