How to Automate Accounting Processes with Quickbooks Online
Did you know small business owners spend an average of 4.8 hours every week managing their money? That is time you could use to focus on more pressing priorities or important business development activities. We’re going to walk you through how to automate your accounting processes with Quickbooks Online in order to boost efficiency and save you time!
Let’s begin by discussing what accounting automation is and how it can benefit your business. Accounting automation involves setting up a series of tasks called “workflows” and using technology to take care of those predefined steps. Robotic Process Automation (RPA) is a software category that is used to automate manual processes. QuickBooks is an accounting software that makes it easy to establish and run accounting workflows. When you automate common workflows, you spend less time on data entry, bookkeeping, and other manual processes. It can reduce human error and ensure consistent accounting practices, as well as increase operational efficiency and save time.
Automation relies on technology, and you'll need the right automation tools in place to automate your accounting processes. Dedicated automation platforms like Zapier, IFTTT, Kissflow, and Integrify can link your existing apps together and enable them to "talk" to each other. QuickBooks Online has built-in accounting automation features, which means you won't need separate automation software.
As you get started with accounting process automation, identify which accounting processes can be easily automated. Look for processes that you or an employee are performing on a repetitive and frequent basis, don't require a high level of human touch, and don't involve a lot of creativity or mental energy. Evaluate your technology and determine if you need additional automation tools.
Pick one process to start with and create a workflow to automate that process. Test your workflow to ensure it's working as expected and monitor your automated processes to ensure they're functioning properly. You can then make adjustments and improvements as necessary to optimize your automated workflows. Share your automated workflows with your team so they can also benefit from the time-saving and efficiency-boosting advantages of automation. Continuously evaluate your accounting processes and look for opportunities to automate additional workflows.
You can begin to utilize QuickBooks Online’s automation features by setting up an account and ensuring it is integrated with your bank accounts and other financial institutions. Import data from your previous accounting system or spreadsheet to QuickBooks Online to avoid manual data entry. Customize and categorize accounts based on your business needs and operations. Here are a variety of QuickBooks Online automation features you can utilize:
Rules: Automate recurring transactions and assign them to specific accounts or categories. Set up automatic bank feeds to download and categorize transactions daily, reducing the need for manual data entry. Enable automatic invoice creation and sending to clients, including reminders for overdue payments.
Projects: Track time, expenses, and revenue for specific clients or projects, reducing manual data entry and streamlining invoicing.
Built-in reports: Monitor the financial health of your business and track key performance metrics. Set up recurring payments to vendors for regularly scheduled expenses, such as rent or utility bills.
Online payment system: Accept credit card or bank transfers from clients, reducing manual payment processing.
Receipts: Take pictures of receipts and automatically categorize expenses, and match them to transactions.
Bank reconciliation: Automatically match transactions to bank statements, reducing errors and streamlining the reconciliation process.
Automated Sales Tax: Calculate and track sales tax automatically.
Budgets: Set and track budgets for expenses and revenue.
Classes: Categorize income and expenses by department or location, making it easier to track financial performance by segment.
Journal Entries: Record complex transactions or adjustments, such as depreciation or amortization.
Auto Apply Credits: Automatically apply available credits to customer invoices, reducing manual effort and improving cash flow.
Multi-Currency: Manage transactions in multiple currencies and automate currency conversions.
Banking: Process online payments and deposits, including eChecks and bank transfers.
Auto Payroll: Automate payroll processing and payments, including tax calculations and filings.