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Streamline your workflow with automation of accounting process. Learn practical steps, key features, and tips to make your accounting more efficient.
What is the most valuable asset in your finance department? It’s not the software or the spreadsheets; it’s your team’s expertise. Yet, how much of their day is spent on tasks that don’t require their strategic insight, like manually keying in data or matching payments to invoices? This is where the conversation about the automation of accounting process truly begins. It represents a fundamental shift in how finance teams operate, moving them from reactive data recorders to proactive strategic partners. By letting technology handle the predictable, rule-based work, you free up your team’s brainpower to analyze trends, forecast effectively, and provide the insights that guide smart business decisions. This article is your guide to making that transition happen.
Think about all the repetitive tasks that fill up your accounting team’s day: manual data entry, matching invoices to payments, and pulling numbers for reports. For years, these manual processes were just part of the job, but they’re also slow, tedious, and prone to human error. Accounting automation is simply the use of technology to handle these routine tasks for you. It’s about letting software, and sometimes artificial intelligence, take over the heavy lifting so your team can focus on what really matters—strategic financial planning and analysis.
Instead of spending hours typing numbers into a spreadsheet, an automated system can pull data from your sales platform, categorize it, and prepare it for reconciliation without anyone lifting a finger. This shift from manual bookkeeping to automated workflows is a game-changer for high-volume businesses. It frees up your most valuable resource—your team's time and brainpower—to solve bigger problems and find new opportunities for growth. You can find more insights on our blog about how modern finance teams are making this transition. It’s not about replacing accountants; it’s about giving them better tools to do their best work.
An accounting system becomes "automated" when it actively performs tasks without needing constant manual input. It’s the difference between using a simple calculator and having a system that runs the calculations for you on a schedule. True automation means the software can handle processes like data entry, transaction matching, and report generation on its own. For example, instead of manually checking if a customer’s payment matches an invoice, an automated system does it instantly. This proactive approach helps your team work more efficiently, reduces the chance of costly errors, and delivers real-time financial data. The goal is to create a workflow where technology handles the predictable, rule-based tasks, which is central to our mission at HubiFi.
One of the biggest myths about automation is that you have to scrap all your current software and start from scratch. That’s rarely the case. Modern automation solutions are designed to work with the tools you already use every day. They act as a smart layer that connects your CRM, ERP, payment processor, and accounting software into one cohesive system. This is done through seamless integrations that allow data to flow automatically between platforms. For instance, an automation tool can pull sales data from your CRM and push correctly formatted journal entries into your accounting software. When choosing a solution, look for one that fits your existing tech stack to ensure a smooth and effective transition.
Switching to an automated accounting system is one of the most impactful decisions you can make for your business. It’s about more than just speeding up a few tasks; it’s about fundamentally changing how your finance team operates and contributes to your company's growth. By handing over the repetitive, manual work to smart software, you free up your team to focus on what really matters: analyzing financial data, identifying trends, and providing the strategic insights that drive smart business decisions.
Think of it as giving your team a major upgrade. Instead of spending their days buried in spreadsheets and manually entering data, they can become forward-thinking financial partners. Automation introduces a level of precision and speed that manual processes simply can't match. This leads to cleaner books, faster financial closes, and a clearer picture of your company's health at any given moment. It’s a strategic move that pays off in saved time, reduced costs, and greater confidence in your financial data.
One of the most immediate benefits of automation is the time it gives back to your team. Repetitive tasks like data entry, invoice processing, and bank reconciliations can consume hours every week. Automation takes these duties off your team's plate, allowing them to work more efficiently and focus on higher-value activities. Instead of just recording what happened, they can analyze why it happened and help plan for the future. This shift from reactive data entry to proactive financial strategy is where your accounting team can truly shine. You can find more ways to improve your processes in the HubiFi Blog.
Let's be honest—humans make mistakes. A simple typo or a misplaced decimal can cause significant issues in your financial records. When set up correctly, automation drastically reduces the risk of human error that comes with manual data entry. By pulling information directly from your other systems, it ensures your financial data is consistent and reliable. This accuracy is crucial for everything from daily operations to long-term strategic planning. When you can trust your numbers, you can make faster, more confident decisions that guide your business forward. HubiFi ensures accuracy with seamless integrations that keep your data in sync.
When you save time on manual tasks, you also save money. Reducing the hours your team spends on routine work directly lowers your operational costs. But the savings don't stop there. Automation can also help you avoid costly mistakes, prevent late payment fees, and catch duplicate invoices before they're paid. By streamlining your financial operations, you create a more efficient system that directly impacts your bottom line. This allows you to run a leaner operation and reinvest those savings back into growing your business, ultimately increasing your profitability.
Staying compliant with financial regulations like ASC 606 and preparing for audits can be a major source of stress. Automated systems are designed to maintain a clear, consistent, and easily traceable audit trail for every transaction. This means that when it's time for an audit, you won't have to scramble to pull records together. The system can generate the necessary reports quickly, ensuring all your financial data adheres to legal standards. This not only makes audits smoother but also gives you peace of mind knowing your books are always organized, compliant, and ready for review.
If you’re picturing robots taking over your entire finance department, take a deep breath. Accounting automation isn’t about replacing your team; it’s about giving them better tools to do their most important work. You don’t have to automate everything at once. The best approach is to start with the most repetitive, time-consuming, and error-prone tasks. By targeting these areas first, you can get immediate wins that save time, reduce stress, and give you more accurate financial data.
Think about the daily, weekly, and monthly tasks that bog down your team. Are they spending hours chasing down invoices, manually entering expense reports, or wrestling with spreadsheets to close the books? These are the perfect candidates for automation. From sending invoices and paying bills to running payroll and recognizing revenue, there are powerful tools that can handle the heavy lifting. This allows your finance professionals to shift their focus from tedious data entry to strategic analysis, helping you make smarter decisions and grow the business. Let’s look at a few key areas where automation can make a huge impact.
Manually creating and tracking invoices is a recipe for delays and mistakes. You have to pull the right data, make sure the formatting is correct, send it out, and then follow up until it’s paid. It’s a slow process that can seriously impact your cash flow. Automating invoicing and accounts payable makes billing easier, reduces errors, and helps you get paid on time. Automated systems can generate and send invoices as soon as a sale is made, send polite payment reminders on a set schedule, and even process incoming vendor bills using character recognition. This frees up your team from chasing paperwork and gives them more time for valuable financial planning.
Payroll is one of those tasks you simply can’t get wrong, but its complexity makes manual processing risky. Calculating hours, withholding the correct taxes, and managing benefits can take hours, and a single mistake can lead to compliance issues and unhappy employees. Automated systems can run payroll, deduct taxes, and submit forms in minutes, replacing manual calculations. Similarly, you can automate expense reporting by allowing employees to snap photos of receipts with their phones, which are then automatically categorized and submitted for approval. This streamlines the entire process, ensuring everyone is paid correctly and on time without the administrative headache.
Closing the books each month often involves a frantic scramble to pull data from different systems and piece it all together. By the time you have a complete picture, the information is already a few weeks old. Automated systems can create reports quickly and ensure that all financial data complies with legal regulations, which is essential for audits. Instead of building reports from scratch, you get access to real-time dashboards that show you exactly where your business stands. Automation also makes bank reconciliation a breeze by automatically matching transactions, flagging discrepancies, and giving you a clear, up-to-date view of your cash position.
For high-volume businesses, especially those with subscriptions or complex contracts, revenue recognition is a major challenge. Manually tracking and allocating revenue according to standards like ASC 606 is incredibly complex and leaves too much room for error. Automation helps businesses keep up in a fast-moving world, making financial tasks smoother, more accurate, and more productive. An automated revenue recognition solution connects directly to your data sources, applies the correct accounting rules automatically, and creates a clear audit trail. This not only ensures you stay compliant but also provides accurate data for forecasting and strategic planning.
Once you decide to automate your accounting, the next step is finding the right tool for the job. With so many options available, it’s easy to get overwhelmed. The key is to focus on software that not only solves your immediate problems but also supports your long-term vision. Think of it as hiring a new team member—you want someone who is reliable, plays well with others, and can grow with the company.
When you start comparing platforms, don't just look at the price tag. The best software offers a combination of powerful features that work together to make your financial operations smoother, more accurate, and more secure. Look for tools that fit your specific business needs by reading reviews, trying out demos, and asking for recommendations from others in your industry. To help you cut through the noise, we’ve identified four essential features that should be on every company’s checklist. These are the non-negotiables that separate a good tool from a great one.
Your business already runs on a stack of essential tools, from your CRM to your ERP system. The last thing you need is an automation platform that operates in a silo. That’s why seamless system integration is critical. Your accounting automation software should act as a central hub, connecting to your existing applications to create a single source of truth for your financial data. This eliminates the need for manual data entry between systems, which is a major time-sink and a common source of errors. Look for a solution that offers a wide range of pre-built integrations so you can sync information effortlessly and maintain a complete, unified view of your business operations.
Human error is an unavoidable part of manual accounting. A simple typo or a misplaced decimal can have significant consequences. Modern automation software uses smart technology to serve as your first line of defense against these mistakes. AI-driven accuracy helps identify anomalies, duplicate transactions, and patterns that could indicate potential fraud. This isn't just about correcting errors after they happen; it's about proactively flagging issues before they impact your bottom line. By automatically cross-referencing data and enforcing business rules, these systems ensure your financial records are consistently clean, reliable, and trustworthy. This gives you and your stakeholders greater confidence in your numbers.
In business, timing is everything. Waiting weeks for a monthly financial report means you’re making critical decisions based on outdated information. Automation software transforms reporting from a slow, manual task into an on-demand resource. Automated systems can generate detailed financial statements, revenue summaries, and cash flow analyses in minutes, not days. This gives you a real-time pulse on your company’s financial health. More importantly, it ensures all your data is presented in a compliant format, which is a huge advantage when it’s time for an audit. With instant access to these insights, you can spot trends, address challenges, and seize opportunities with confidence.
As you hand over critical financial tasks to software, you need to be certain your data is protected. Top-tier automation platforms prioritize security with features like data encryption, two-factor authentication, and role-based access controls to keep sensitive information safe. At the same time, the software you choose today should be able to support you tomorrow. Scalability is crucial. A solution that works for a startup might buckle under the pressure of a high-volume business. Your chosen platform should be able to handle an increasing number of transactions and more complex workflows as your company expands. Make sure the software you invest in can handle your growth without requiring a costly and disruptive switch down the road.
Making the switch to an automated system might feel like a huge project, but breaking it down into manageable steps makes it much more approachable. A thoughtful plan is your best tool for a smooth transition that minimizes disruption and gets your team on board quickly. By following a clear path, you can confidently introduce new tools that will save time, reduce errors, and give you a clearer picture of your company’s finances. Here’s how to get started.
Before you can fix a problem, you need to understand it completely. Take a close look at your current accounting workflows. Map out how tasks get done from start to finish. Where do things slow down? What tasks are repetitive and time-consuming? Pinpoint where mistakes happen most often. This audit gives you a clear blueprint of what needs to change. By identifying these specific pain points, you’ll know exactly what to look for in an automation solution and can prioritize the features that will have the biggest impact on your team’s efficiency and accuracy.
With a clear understanding of your needs, you can start looking for the right tools. The goal is to find a solution that fits your business perfectly. Think about whether it can connect with your other systems, if it’s user-friendly, and if it can grow with your company. Read reviews, ask other business owners for recommendations, and most importantly, try out demos. Seeing the software in action is the best way to know if it will work for your team. A hands-on trial lets you see if the interface is intuitive and if it truly solves the problems you identified in your initial assessment.
A solid implementation plan is your roadmap to success. Start by creating a realistic timeline for the rollout, with clear milestones along the way. This isn't a "set it and forget it" process. You'll want to install the new software and test it thoroughly in a controlled environment before going live. This is the time to work out any kinks and ensure your data migrates correctly. Involve key team members in the testing phase to get their feedback. A careful, phased rollout prevents major disruptions and builds confidence in the new system before it’s fully deployed across the company.
New software is only effective if your team knows how to use it. Proper training is essential for a successful transition. Make sure everyone understands how the automated system works and how their roles will adapt. This isn’t just about showing them which buttons to click; it’s about explaining the "why" behind the change and how it will make their jobs easier. Offer hands-on training sessions, create easy-to-follow guides, and be available to answer questions. When your team feels supported and confident with the new tools, they’ll be more likely to embrace the change and help you get the most out of your investment.
Making the switch to an automated system is a big step, and it’s natural to hit a few bumps along the way. Most of the hurdles you’ll face aren’t about the technology itself, but about how you plan for it and introduce it to your team. From sorting out old data to getting everyone on board, a little preparation goes a long way. Let’s walk through the most common challenges and talk about clear, practical ways to solve them.
One of the biggest roadblocks to automation is fear rooted in simple myths. Many people worry that automation will replace their jobs or that they’ll lose control over financial processes. The reality is quite the opposite. Automation is a tool that handles repetitive, low-value tasks, which frees up your team to focus on higher-value finance strategies like analysis and planning. Instead of taking away control, it gives you more authority. You set the rules and decide exactly what gets automated, giving you a clearer, more accurate view of your finances than ever before.
Getting your historical data into a new system can feel like a monumental task. The key is to approach it methodically. Before you move anything, clean up your existing data by removing duplicates, correcting errors, and standardizing formats. When it comes to connecting your new software, look for a solution built for flexibility. The right platform should offer seamless integrations with the ERPs, CRMs, and payment gateways you already use. This not only makes the initial setup smoother but also ensures your data flows correctly between systems from day one, preventing information silos.
It’s human nature to be wary of new ways of working. If your team is hesitant, it’s often because they don’t have a clear picture of what’s changing and why. The best way to get everyone on board is through open communication and involvement. Explain the reasons for the switch, focusing on how it will make their jobs easier and more impactful. Ask for their input during the selection process and provide comprehensive training so they feel confident with the new tools. You can find more tips for managing business growth and change on our blog.
The fear of losing or corrupting data during a transition is completely valid. However, manual data entry is far more likely to cause errors than a well-managed automation platform. To ensure a smooth switch, choose a system with strong data validation and reconciliation features. Effective automation software picks up where your existing tools stop, adding a layer of verification to maintain accuracy. You can also run your new automated system in parallel with your old one for a short period to compare outputs and confirm everything is working perfectly before you fully commit.
Keeping up with accounting standards can feel like a full-time job, especially when you’re managing a high volume of transactions. Revenue recognition rules, in particular, have become more complex, and getting them wrong can lead to serious headaches during an audit. This is where automation becomes your best friend. Instead of relying on manual spreadsheets and guesswork, an automated system applies the rules consistently and accurately every single time. This not only keeps you prepared for audits but also gives you a trustworthy picture of your company's financial health, letting you focus on growth instead of compliance worries.
Standards like ASC 606 and ASC 944 changed how businesses recognize revenue from customer contracts. The core idea is to recognize revenue when you fulfill a "performance obligation"—or, in simpler terms, when you deliver the good or service you promised. For businesses with subscriptions, bundled services, or multi-part contracts, tracking these obligations manually is incredibly difficult and prone to error. Automated revenue recognition systems handle this by systematically tracking each obligation and recognizing revenue only as it's earned. This consistent application of rules is exactly what auditors look for and is essential for maintaining compliance. You can find more insights in the HubiFi blog on how to manage these complexities.
Compliance isn't just about following the rules; it's about proving you followed them. This requires accurate, up-to-date data. Automated accounting systems provide real-time tracking by pulling information directly from your other business tools, like your CRM and payment processor. This means your financial reports always reflect the current state of your business. When it’s time for an audit or a board meeting, you can generate precise reports instantly, without a last-minute scramble to reconcile numbers. This continuous visibility also helps you make smarter strategic decisions based on a clear understanding of your revenue streams. Having seamless integrations with HubiFi ensures all your data sources work together to give you that clear picture.
Choosing the right accounting automation software isn’t a one-size-fits-all decision. The best tool for a solo entrepreneur will look very different from what a high-volume ecommerce brand needs. Your search should start with a clear understanding of your business’s size, transaction volume, and specific pain points. Are you drowning in manual data entry from receipts? Struggling with complex revenue recognition rules? Or maybe you just need a solid, all-around platform to get your startup organized.
Think of it like this: you’re building a tech stack that should not only solve today’s problems but also support you as you grow. Some businesses thrive with a single, comprehensive platform, while others do best by combining a core accounting system with specialized, niche tools that handle specific tasks exceptionally well. The key is to find a solution—or a combination of solutions—that fits your workflow, budget, and long-term goals. It's less about finding one "magic bullet" and more about strategically assembling the right tools for the job. This approach ensures you're not paying for features you don't need while still getting the specific automation that will make the biggest impact on your efficiency and accuracy. Below, we’ll look at the top options for different types of businesses to help you find the perfect fit.
If you’re running a small or mid-sized business, you need software that’s powerful yet user-friendly. Look for platforms that offer a strong set of core features: automated reconciliation, workflow automation, smart document capture, and real-time reporting. Cloud-based software from trusted names like QuickBooks can transform your accounting practice by providing strong security—including password protection and encryption—while reducing the simple mistakes that come from manual data entry. While some advanced automation suites can be costly, many of the best platforms for SMBs offer tiered pricing, making it possible to start with the essentials and add more features as your business expands.
Once your business starts processing a high volume of transactions, the game changes. Standard off-the-shelf software often can’t keep up with the complexity of thousands of daily orders, multiple payment gateways, and sophisticated revenue streams. High-volume companies need powerful, specialized platforms designed to handle massive datasets and intricate compliance standards like ASC 606. These systems excel at consolidating data from different sources to provide a single source of truth. Solutions like HubiFi’s Automated Revenue Recognition are built specifically for this challenge, ensuring you can close your books quickly, pass audits confidently, and make strategic decisions based on accurate, real-time analytics.
Sometimes, your core accounting software handles 90% of the work, but you have a few specific tasks that are still a major time-sink. That’s where niche automation tools come in. These apps are designed to do one thing incredibly well and integrate with your existing systems. For example, apps like Dext and Hubdoc let you snap a photo of a receipt, and they automatically extract the key data and send it to your accounting software. Other tools can help you build out your advisory services by pulling financial data, visualizing key metrics, and helping you create strategic business plans for your clients.
Switching to an automated system is a big step, but the real win comes from seeing the impact it has on your business. How do you know if your investment is actually paying off? It’s all about tracking the right things. Measuring your success isn't just about patting yourself on the back; it’s about understanding what’s working, where you can improve, and how automation is truly transforming your financial operations. By setting clear benchmarks before you start, you can get a sharp picture of your progress and make sure you’re getting the most out of your new tools.
Start by looking at the clock. How long does it take your team to close the books each month? Or to generate a critical financial report? Automation can drastically cut this down, giving you faster access to the information you need for smart decision-making. Next, track your error rate. Since automated systems don't make typos or calculation mistakes, you should see a significant drop in manual errors, leading to more reliable data. Finally, look at what your team is doing with their newfound time. Are they shifting from tedious data entry to strategic analysis? That shift is a huge indicator of success. You can find more ideas for improving your financial operations on our Insights blog.
To understand your return on investment (ROI), you need to look beyond the software subscription fee. Consider the hidden costs of your current manual processes—inefficiencies can cost businesses an average of $118,000. Calculate your ROI by comparing the cost of automation against the money saved from fewer errors, reduced labor hours, and faster payment cycles. When setting timelines, be realistic but ambitious. For example, some companies find they can close their books up to 40% faster with the right system. To get a clear picture of what your specific ROI could look like, you can schedule a demo with our team to walk through your numbers and goals.
Making the switch to an automated system can feel like a huge step, but it’s really about giving your team the right tools to excel. Instead of spending hours on manual data entry and reconciliation, your financial experts can focus on what they do best: driving strategy and growth. Automation isn’t about replacing your accountants; it’s about empowering them. By handling the repetitive tasks, the right software gives your team more control and authority over your financial data, freeing them up for higher-value work.
Contrary to what you might think, getting started with automation is often more cost-effective than sticking with manual processes, especially when you factor in the long-term savings from improved accuracy and efficiency. For high-volume businesses, automating complex processes like revenue recognition is essential for staying compliant with standards like ASC 606. This is where a specialized solution makes all the difference, picking up where your standard accounting software leaves off and providing real-time analytics you can’t get anywhere else. You can find more articles like this on our blog.
At HubiFi, we specialize in creating automated systems that bring all your disparate data together. Our platform offers seamless integrations with the tools you already use, ensuring a smooth transition and a single source of truth for your financial reporting. If you’re ready to close your books faster, pass audits with confidence, and gain clear visibility into your revenue streams, we’re here to help.
See for yourself how automated revenue recognition can transform your financial operations. When you’re ready, you can schedule a demo with our team to walk through your specific needs. We believe in transparency, which is why you can also learn more about HubiFi’s approach to pricing and how we build custom solutions for businesses like yours.
Will automation replace my accounting team? Not at all. This is one of the biggest myths about automation, and it’s simply not true. The goal isn’t to replace people but to free them from repetitive, manual tasks like data entry and reconciliation. This allows your skilled finance professionals to focus on more strategic work, like analyzing financial trends, forecasting, and providing insights that help the business grow. Think of it as giving your team a major upgrade, not a replacement.
Do I have to automate everything at once? Absolutely not. In fact, a gradual approach is usually the most successful. The best way to start is by identifying your biggest time-wasters or the areas most prone to errors, like invoice processing or expense reporting. By automating one or two key processes first, you can get immediate wins and build momentum. This allows your team to adapt to the new workflows without feeling overwhelmed.
How do I know if my business is ready for accounting automation? You're likely ready if your team is spending more time on data entry than on analysis, or if closing the books each month feels like a frantic scramble. Other signs include struggling to get timely financial reports, frequently finding manual errors in your records, or feeling like your current processes can't keep up with your transaction volume. If these challenges sound familiar, it’s a good time to explore your options.
My business is still small. Is accounting automation really worth it? Yes, it can be incredibly valuable even for small businesses. Automation helps you establish efficient, scalable processes from the beginning, which saves you major headaches as you grow. It reduces the risk of costly errors, improves your cash flow by speeding up invoicing, and gives you a clear, real-time view of your finances. Many modern tools are cloud-based and offer flexible pricing, making them accessible even on a smaller budget.
What's the difference between my standard accounting software and a specialized automation tool? Your standard accounting software, like QuickBooks, is fantastic for core bookkeeping—it’s your general ledger. Specialized automation tools are designed to handle specific, complex tasks that your main software might not do well, or at all. For example, a tool like HubiFi focuses on automating revenue recognition for high-volume businesses, ensuring compliance with standards like ASC 606 by connecting all your data sources and applying the correct rules automatically. These tools work with your existing software to create a more powerful, seamless system.
Former Root, EVP of Finance/Data at multiple FinTech startups
Jason Kyle Berwanger: An accomplished two-time entrepreneur, polyglot in finance, data & tech with 15 years of expertise. Builder, practitioner, leader—pioneering multiple ERP implementations and data solutions. Catalyst behind a 6% gross margin improvement with a sub-90-day IPO at Root insurance, powered by his vision & platform. Having held virtually every role from accountant to finance systems to finance exec, he brings a rare and noteworthy perspective in rethinking the finance tooling landscape.
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