The Importance of Automation for Accounting and Bookkeeping Firms in the Philippines
Since the pandemic, digital convergence has influenced the various functions of many businesses, compelling companies to streamline their operations and boost their productivity and efficiency. This is true even in accounting and bookkeeping firms, particularly in the Philippines.
Although there are digital tools existing today, process automation in the Philippine accounting industry is still slow to take hold, compared to other Asian countries.
To adapt to the rapid digital transformation, the Bureau of Internal Revenue (BIR) made the e-Invoicing System (EIS) mandatory by July 2022.
The new invoicing policy can indeed create a good head start for an effective Philippine tax and administrative system.
But is the accounting sector in the country ready for this change?
The Traditional System of Accounting and Bookkeeping in the Philippines
In the Philippines, accounting and bookkeeping has always been a traditional process. And up to this day, many Filipino accountants are still worried that automation and artificial intelligence will replace their work.
Quite the opposite, automation will reinvent jobs instead of wiping them out. It will serve as an aid for accountants to replace routine and non-creative tasks that are repetitive and consume unnecessary time and effort.
Frequent Struggles of Accountants and Bookkeepers
Collecting supporting documents
from client
Accountants need supporting documents to move forward and complete their pending tasks. However, obtaining these records and data from clients can be sometimes frustrating.
Invoices, purchase orders, and credit memos are just some of the supporting documents used in the audit process that tend to be incomplete or lost.
Repetitive administrative tasks
Since the nature of accounting relates to gathering data, repetitive administrative tasks, such as the manual encoding of receipts and invoices, are unavoidable. Accountants therefore also need to allot time for these clerical tasks, taking away time that they can otherwise use for advisory and strategic jobs.
Updating workflow
Designating work and responsibility to team members and notifying them is another form of a recurring task for accountants. Updating the workflow statuses can be burdensome, especially during busy periods.
Reminding clients
For some clients, business operations takes precedence over things like tax deadlines, often leading to penalties. It is therefore an accountant’s job to remind clients of their obligations in this area.
How Process Automation Helps Accounting and Bookkeeping Firms
There are many reasons why accounting and bookkeeping firms should embrace digital transformation. Especially in the Philippines, where transactions are more traditional, automation will help amplify productivity.
Here are some reasons why accountants and bookkeepers should consider process
• Streamlines low-level processes and repetitive tasks
With automation, accounting and bookkeeping operations will replace repetitive, mindless tasks. An example of this is data collection. Automating this process by capturing invoices and other data in real time will optimize the accounting functions. It will also reduce errors caused by manual input of data.
• Improves relationships with clients
As automation streamlines the collecting, organizing, and storing of data, accountants and bookkeepers can build more productive relationships with clients.
• Efficient management of remote teams
Since many businesses are now using digital tools and working remotely, communicating with team members needs to be done differently. Monitoring their progress and tracking their statuses can be challenging.
However, automating workflow makes it easier to coordinate everyone’s efforts in a timely and efficient manner.
• Reduces operational and administrative costs
Replacing recurring and non-creative tasks means less labor required. Having a single application that can perform several finance and administrative tasks means having a smaller team that can be easier to manage.
Moreover, since most transactions can become paperless, office supplies and other administrative costs can be reduced.
• Boosts data security
Typically, AI-based tools and cloud-based software offer secure and safe data storage. Since it has no human intervention in extracting data, it eliminates data security risks. Data encryption and strict security protocols enable users to access information real-time.
