Some of the biggest challenges we see facing modern accounting firms are:
- Inefficient systematisation and standardisation of processes.
- Imperfect working papers and reporting.
- Inability to offer proactive and timely advice to clients.
Sound familiar? Then cloud accounting automation is the solution.
It revolutionises financial management for accountants by replacing outdated methods with a system that streamlines financial operations and offers precision, speed and accessibility.
What is Cloud Accounting Automation?
Cloud accounting automation is the integration of cloud technology with automated accounting processes. It’s a leap towards more efficient, accurate and accessible financial management for accounting firms of all sizes.
Instead of relying on manual data entry, calculations and report generation, accounting automation software does the heavy lifting for you. With all your financial data in the cloud, any accountant from your firm can access everything they need anytime and anywhere.
Using the cloud also means anyone working on a file sees the latest data, with no reliance on version control or team members remembering to share changes. This in turn, not only boosts your firm’s operational efficiency, it makes real-time financial data insights easy so you can offer clients advice based on up-to-date information.
The Benefits of Cloud Automation Accounting Software
Adopting cloud automation accounting software comes with a range of benefits that will also reshape how your firm handles financial processing.
Real-Time Data Analysis
Connecting your financial data to the cloud gives you the ultimate superpower: real-time financial data analysis.
With a single source of truth, you’ll never waste time working on out-of-date reports or have to hunt for missing information again.
Having immediate and standardised access to real-time insights means you can interrogate data at a client or portfolio level and use your findings to drive advisory conversations and strategic decisions.
You can spot trends, track key events (like benchmarks, risk factors and compliance requirements) and create automated and digital advisory reports for all your clients at the click of a button.
Improved Accuracy and Efficiency
Automating routine updates and accounting tasks can significantly reduce the time and effort spent on manual data entry and calculations.
It streamlines your workflow, minimises human error, and provides more accurate financial reporting.
Let’s take your working papers as an example.
A tool like Silverfin helps you use best practice templates and standardise how your firm works. Set up workflows for different client types and processes, and the tool will guide users through the working papers preparation process – expanding what junior accountants can handle and reducing the need for a manager’s oversight significantly.
Each template will automatically pre-populate with your live bookkeeping data, reducing the risk of human error and leading to more accurate financial reporting.
With a consistent approach to preparing client accounts (and using a data hub), the majority of multiple tasks can be automated, freeing up your accountant’s time and increasing efficiency.
Ease of Scalability and Remote Accessibility
One of the major advantages of cloud accounting automation is its scalability.
With instant document access, a real-time data hub, and a standarised way of working, your firm can quickly grow without the risk of “outgrowing” your tech stack.
You can take it further and use AI tools like Silverfin Assistant to analyse client files and flag anomalies – while also training new team members on what to look for and when.
Additionally, cloud-based systems offer remote accessibility. No matter where you, your team, or your clients are in the world, everyone can instantly access the necessary financial information.
Everything is in one place, streamlining collaboration and getting rid of time wasters like endless email trails, missing attachments and switching in and out of client files and applications.
Transparency and Data Loss Prevention
Cloud accounting software provides a transparent digital footprint for all financial transactions, which is crucial for audit trails.
Every financial move is recorded and traceable, maintaining the integrity of your reporting and making it easy to stay compliant with regulations.
Unlike traditional systems requiring manual backups, cloud accounting software will automatically store your clients’ information in secure, off-site servers.
So, by hosting your data in the cloud, you also gain a robust data loss prevention solution.
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What to Look for in a Cloud-Based Accounting Platform
Choosing the right cloud-based accounting platform is crucial for your firm’s success. It must meet your business where it is now and support its future growth and operational efficiency.
Centralised Data Hub
A centralised data hub is essential for consolidating financial data, enabling real-time reporting, and facilitating collaboration. Look for a platform that allows easy access to financial documents, streamlined file management, and collaborative features vital for timely and informed decision-making.
Robust Security
The platform must have robust security measures to protect sensitive financial data. Look for features like data encryption, secure login processes, and regular security audits. Ensure the platform meets the highest security standards to safeguard against data breaches and cyber threats.
Integration Capabilities
A good cloud accounting system should seamlessly integrate with other tools in your tech stack and your client’s workflow. Integrations mean you can skip wasting time on manual importing or jumping between applications and go straight to consolidating data.
Customisation and Scalability
The platform should be customisable to fit your specific business needs and scalable to grow with your business. The ability to tailor options like workflow standardisation enables you to align the software with your business processes. Scalability ensures that the platform grows with your business, adapting to changing needs without requiring a complete system overhaul.
Compliance
Opt for a cloud accounting platform that is up-to-date and updated with the latest regulatory requirements because, ideally automation can handle compliance-related tasks efficiently as well. This not only helps in maintaining legal compliance but also delivers yet more efficiency benefits and instils confidence in your financial reporting.
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AI Capabilities
AI capabilities in cloud accounting platforms can revolutionise data analysis. These features automate and continuously monitor client data for anomalies, insights, and opportunities, enhancing client interactions and offering proactive financial advice.
How BKL Saved 12.5 Hours Per File Using Cloud Accounting Automation
BKL, a North London accounting firm, sought to leverage technology to transform their accounts process and tackle challenges like data entry duplication and standardisation across client files.
Since implementing Silverfin, a set of accounts that previously took around 25 hours to complete now takes only 12.5 hours.
The platform enhanced data flow and allowed for real-time access to client data, speeding up the preparation of management accounts.
“Previously, preparing a set of management accounts was a manual process that could take up to two weeks. With Silverfin, I can access the data instantly. The process is now significantly shorter, allowing clients to receive their management accounts by the 3rd or 4th of the month, rather than waiting until the 14th or 15th.” explains Holly Moore, manager at BKL.
BKL’s vision is to transition from legacy software to a fully cloud-based environment, and Silverfin plays a pivotal role in this journey.
“We operate a hybrid office, with most employees working from home a few days a week. Additionally, we have colleagues in India and South Africa who can access the files just as if they were in the office,” says Holly.
Additionally, Silverfin helped facilitate remote access for the BKL international team and hybrid office.
Navigating the New Era of Accounting with Cloud Technology
Cloud accounting automation is more than just a technological advancement; it’s a strategic asset reshaping how firms manage their financial data.
By fusing real-time data, enhanced accuracy, and AI capabilities, your business can stay competitive, scale, and offer clients a personalised financial experience other firms can’t replicate.
Ready to connect and standardise your data, workflows and best practices?
Book your free Silverfin demo today.
