Do you still use Excel for your accounting? Does it take you far too long to find your way around and work through everything? Or are you working with software that you are not really satisfied with?

It doesn’t have to be like that. We have prepared a simple guide for you, which will help you choose the right accounting software for your SME.

The difference between digital vs. automated vs. fully automated accounting – what the software providers really mean

Software providers refer to their product in one way or another, but for you – as a user – what is meant by this is often not clearly described.

To make it easier for you to find your way around, here is a simple explanation:

Digital accounting is accounting that is not kept in paper form. The term on its own says nothing about whether the accounting software is installed in the cloud or locally, as a program on your laptop. Neither does digital accounting promise any form of automation, i.e. it is up to you to enter all the receipts manually in the program and take care of the postings, reconciliations and so on.

Automated accounting, on the other hand, relieves you of certain tasks. For example, you no longer have to enter documents such as invoices entirely by hand,  and the software makes specific posting suggestions. However, the effective posting of the receipts and the reconciliation of the bank vouchers is still up to the software user, i.e. you. Automation does save you some time and you benefit from a number of simplified processes. Many providers now offer such solutions via the cloud.

Fully automated accounting is where things get really exciting, because this type of accounting software takes over most of the repetitive, time-consuming work for you. Not only are receipts recorded in the system, but they are also posted automatically and, most importantly, correctly. Reconciliations also take place automatically, with no action on your part.

In case of discrepancies, the system reports back to you and you only have to check the transaction in question. The only tasks that remain for you are to pay invoices with a few clicks and write your own invoices. And here, too, innovative providers have made your work easier. You can also use this new generation of accounting solutions via the cloud, regardless of location and time.

At Accounto, we believe that, in the modern world, all standard accounting processes should be automated. Simply digitalizing existing paper-driven processes without simplifying them is just not enough as far as we are concerned. Thanks to machine learning, intelligent accounting solutions perform time-consuming routine tasks fully automatically. SMEs should be able to focus entirely on their core business and spend as little time as possible on accounting.

If you are interested, we recommend that you ask the provider to demonstrate the extent of automation to you directly – ideally in a personal meeting, during which the provider can address your individual needs. You are welcome to book a free consultation with us here.

Overview of the benefits of fully automated accounting

  • Fully automated extraction of documents and all downstream workflows in invoicing and payment transactions
  • Accounting updated on a daily basis thus providing all the figures you need for making quick business decisions
  • Saves time and resources (printing material, shipping costs, etc.)
  • Improved cash flow due to simpler and faster invoicing of goods and services
  • Digitized personnel accounting (payroll, master data maintenance and automated payroll reporting)
  • Legally correct annual financial statements and corporate taxes
  • Digital archiving of receipts

Still not sure if a cloud solution is right for you? Click here to check out even more benefits.

Once you have had the opportunity to get an idea of the different types of accounting software, the process continues through three phases: preparation, evaluation, and decision-making.