5 Best Accounting Automation Tools in 2024

As companies seek to forge their paths toward financial progress, integrating automation solutions into various business processes has been identified as the best way forward. 

Within these business functions, accounting processes present great potential to benefit from automation. Progress in this area has been steady, with over 40% of companies bringing automation to their various financial processes, which has helped save at least 500 hours of work in the past year.

Accounting automation has the capacity to elevate organizational performance in several ways, making it important to understand its intricacies and the methods for its efficient implementation.

This guide will help you understand how accounting automation software actually works, the top tools that can be used, and the elements to consider when choosing these accounting automation tools.

What Are the Challenges of Manual Accounting?

Traditionally, firms have maintained the practice of manual accounting as a means of financial management. However, this leads to certain challenges that hinder the efficiency of the accounting process. Some of the significant challenges of manual accounting are:

• Occurrence of Human Error

During the accounting process, small mistakes can be made in terms of data entry or during calculations. These errors lead to more significant inconsistencies in financial reports that disrupt several other analytical processes. As a result of these inaccuracies, data becomes less reliable and can lead to compliance issues in the future.

• Excessive Time Consumption

Manual accounting can become a significant time sink for the firm. The tasks involved, such as data entry and report generation, can be labor-intensive and lead to the diversion of resources that could be better used for financial analysis and planning.

• Lack of Real-Time Insights

Manual data collection makes immediate insight into every process stage impossible. A delay in seeing the collected data also slows down business decisions and severely challenges an enterprise’s agility to deal with changing financial circumstances.

• Issues With Scalability

Firms always want to grow and adapt to market demands. Manual accounting can conflict with this approach, as increased financial volumes put more pressure on accounting teams. This may lead to an increase in inaccuracies and errors, hindering the company’s growth processes.

• Limited Reporting Capabilities

Given the limitations of team capabilities through manual accounting, it is difficult for firms to obtain detailed, comprehensive financial reports. The lack of such insights limits the ability to make informed decisions that can make the company competitive in the market.

• Inefficient Workflows

Due to the need for manual data transfers during various stages of the accounting process, manual accounting leads to the creation of fragmented, inefficient workflows. These manual data transfers, once again, increase the odds of errors and delays.

• Security Risks

As data is housed in individual systems during manual accounting, it becomes vulnerable to theft, loss, and unauthorized access. Such breaches of sensitive information, combined with the fragility of physical data records, can be disastrous for the firm's financial health.

What Is Automated Accounting Software? How Is It Helping Us?

Enterprises must refrain from relying on manual accounting to collate and process their financial data. It is here that the integration of automation software can be helpful.

Automated accounting can be defined as the use of advanced software and technology to streamline and automate traditional accounting tasks and processes. Instead of manually entering and managing financial data, computerized systems handle functions like bookkeeping, financial reporting, invoicing, payroll, and tax filing with minimal human intervention. Automating these processes streamlines workflows, minimizes human errors, and allows businesses to focus on other strategic activities. 

Advantages of Accounting Automation Software

• Time Savings

One major advantage of automating accounting processes is reducing the time spent on repetitive, labor-intensive tasks. It also gives accounting teams more time to focus on higher-level strategic activities that contribute to the company’s financial progress.

Recent studies conclude that integrating automation technology into accounting processes can reduce time spent by as much as 70%.

• Enhanced Productivity

Another advantage is the automation of routine tasks, which allows teams to focus on other activities, such as analyzing financial data, developing business strategies, and making decisions. These changes help improve productivity within the firm and add to workforce morale.

• Improved Accuracy

Automation software ensures that the errors and discrepancies caused by manual accounting are eliminated. By replacing the human element of accounting processes, companies can obtain precise and more accurate financial reports that support better business decisions. 

• Provision of Real-Time Insights

Accounting automation software improves accuracy and transparency in the entire accounting process. This transparency translates to regular, real-time access to crucial financial data, empowering decision making and keeping the enterprise agile.

• Better Data Storage Security

Automation software offers advanced security features like data encryption and end-to-end access control. These features ensure that sensitive data is kept away from data thieves while also providing robust backup and recovery options for every eventuality. Thus, companies can be assured of the safety of their data at all times.

• Comprehensive Analytical Capabilities

Along with data collection and organization processes, accounting automation software also offer built-in analytics tools. These tools can provide more profound and incisive insights than possible with manual accounting, empowering companies to stay ahead of market trends and monitor their financial performance at all times.

Below are some of the processes that can benefit from accounting automation:

• Data entry
• Invoice processing
• Recurrent billing
• Expense management
• Report generation
• Payroll processing
• Inventory management
• Tax and compliance

Top 5 Accounting Automation Tools

Given the advantages detailed above, enterprises today can benefit from integrating accounting automation tools into their financial processes. Here are five such tools that companies can use to streamline their account automation journey:

1. Savant

Savant provides a cloud-native, low-code automation solution that is capable of cutting through data collation delays effectively. The solution uses a mix of point-and-click connectors to over 200 data sources and scheduled data collection algorithms to create a centralized repository of up-to-date accounting information. Gen-AI integration is also a major advantage for clients when creating analytic workflows.

Key features:

• AI-powered automation: Comprehensive automation of complex data processes and workflows
• Custom workflows: Tailored workflows based on industry for optimal integration and insights
• Real-time collaboration: Aids cross-functional teams to have access to live data through shareable apps

Pricing:

Savant’s Starter plan begins at $50 per month, with the option of upgrading to the Pro plan at $800 per month. Savant also provides custom pricing based on client needs at the team and enterprise level.

Pros:

• Rapid scalability
• High performance
• Adaptable software with access to over 200 data sources

Cons:

• Depth of features can be overwhelming for new users to understand

Key use case:

Best for businesses of all sizes looking to upgrade their financial processes with industry-best accounting automation software.

2. QuickBooks

QuickBooks is an accounting automation solution that helps with tasks such as bookkeeping, invoicing, expense tracking, and data import from various sources. 

Key features

• Comprehensive data tracking: Tracks income, business expenses and taxes
• Financial data organization: Automatically imports and categorizes your bank transactions
• Centralized dashboard: Displays spending, revenue, and financial health in one place

Pricing:

Plans range between $19 to $76 per month

Pros:

• Well-designed functionalities
• Dedicated support for set up and maintenance

Cons:

• Not scalable for larger firms
• Limited financial capabilities

Key Use Case:

Primarily designed for non-financial professionals running small businesses.

3. Xero

Xero, a cloud-based accounting software, stands out with its automatic data capture feature that simplifies bill and receipt management. It also offers a comprehensive suite of solutions for accounting, inventory management, project tracking, and sales tax calculations. 

Key features

• Automated data capture: Parses multiple sources for relevant data using Hubdoc
• Smooth expense management: Provides comprehensive insight to manage expenses
• Tracking oversight: Deep project management capabilities shown

Pricing:

Plans range between $29 to $62 per month

Pros:

• User-friendly interface
• Real-time data feeds from financial institutions

Cons:

• Limited features
• Performance issues with large data loads

Key Use Case:

Best for bookkeepers, accountants, and non-financial staff.

4. FreshBooks

FreshBooks leverages its cloud-based tools to build solutions that work well with service-oriented companies. The software is built around invoicing tools that are both powerful and intuitive while also having a user-friendly interface to simplify accounting tasks.

Key features

• Intuitive analytics: Delivers insight-driven reports and dashboards
• Task simplification: Aids in time tracking and expense management
• Task automation: Provides automated recurring billing and invoice tracking 

Pricing:

Plans range between $19 to $60 per month

Pros:

• Account and report customization
• Automated data mining from financial documents

Cons:

• Inability to integrate into the existing bookkeeping system
• Lack of cloud storage

Key Use Case:

Best for service-based businesses.

5. Zoho Books

Zoho Books is an advanced accounting software with built-in intuitive interfaces and multiple functionalities for handling financial and accounting data. Its range of applications helps streamline workflows across business functions. The solution helps streamline workflows for all types of businesses through its invoicing capabilities, smooth banking integration, and sales tracking and management.

Key features

• Advanced business capabilities: Enables seamless billing and expense management
• Workflow optimization: Delivers accurate inventory management and banking integration
• Task automation: Aids in order and bill organization with consistent financial tracking 

Pricing:

In addition to a free plan, subscription plans range between $12 to $36 per month.

Pros:

• Extensive business analytics features
• Industry-proven streamlining capabilities

Cons:

• Limited integrations
• Low user limits 
• Costly

Key Use Case:

Best for small and mid-market businesses and accountants.

How To Choose the Best Accounting Automation Solution

Before enterprises choose an automation solution, they must consider certain factors to evaluate their options. Doing so will ensure optimal technology integration and empower their financial processes. 

Some of the factors to consider are:

• Accounting Features

The solution must offer core functionalities essential to the accounting process. These include invoicing automation, efficient expense tracking, accurate time tracking, and incisive financial reporting.

• Cloud Accessibility

The widespread use of remote work makes cloud connectivity a crucial element of accounting automation solutions. Cloud-native solutions like Savant ensure that the company’s financial data is universally available and secure at all times.

• Integration Capabilities

The solution must seamlessly integrate with other business tools, such as CRM and payroll, to eliminate the potential for data entry errors and operational disruptions.

• Scalability

The solution must be capable of growing and adapting to the enterprise’s needs over time, especially with increases in data loads. Doing so without compromising accounting performance is a good sign of a durable accounting automation solution.

• User-Friendliness

A user-friendly interface is a highly sought-after feature in accounting automation solutions. Such a platform makes it easier for teams to adapt to a new system and boosts user satisfaction.

The Way Forward With Accounting Automation

The evolution of the financial industry has made it imperative for companies to intertwine automation and accounting processes. From better performance overviews to future business strategies, account automation solutions provide firms with the tools to compete across business sectors as they strive for sustainable growth and success. 

Solutions like Savant offer various customizable, low-code automation tools to support them in this journey toward effective accounting automation. Contact us today to learn more about Savant’s automation solutions and streamline your accounting processes.

‍Discover more about the Savant platform here.