We are now living in an era of digital convergence. Advancements in technology and the Internet has made everyone connected and mobile. Automation, AI and the IoT are also making it easier for businesses to streamline operations and increase productivity.
In the Philippines, businesses have started to adapt digital tools and increase their automation efforts. While the uptake might be slow compared to other Asian countries, businesses have been rapidly increasing their digital transformation. Particularly, to automate the accounting and bookkeeping processes.
Why automate the accounting and bookkeeping process?
Accounting and bookkeeping have always been a traditional process. In fact, accountants and bookkeepers have been following the same systems and controls for many years.
However, as the demand for efficient and faster processing of accounting and bookkeeping tasks increase, so did the need to automate those tasks. Moreover, businesses are looking at more opportunities to become agile and ensure business continuity during a crisis.
The Philippines is famous for being one of the most natural hazard-prone countries in the world. It is located along the typhoon belt in the Pacific and is hit by 20 typhoons—5 of which are destructive, every year on average.
The Philippines also sits in the Ring of Fire, where volcanic activity and earthquakes are more frequent. On average, the country experiences 20 earthquakes per day, though most are not felt. The Philippines is also more prone to tsunamis, storm surges, and flooding.
Recently, like the rest of the world, the Philippines went into total lockdown due to the COVID-19 pandemic. It crippled the global economy as businesses all over the world were forced to temporary cease operations or shift to remote work.
Businesses with digital transformation strategies already in place easily transitioned to remote operations. However, those that neglected upgrading their technology found it more difficult to develop new operational strategies.
The accounting and bookkeeping process is critical in ensuring business continuity during unexpected crises. Leveraging innovative technologies to automate accounting and bookkeeping can help businesses in the Philippines adapt and thrive.
Cloud-based accounting solutions can automate all accounting and bookkeeping processes. From invoicing, payment collection, payroll, and even budget forecasting. Hence, all finance-related tasks can be performed with just a few clicks using an application.
What are the benefits of using cloud-based accounting solutions?
Businesses that have already adapted a cloud-based accounting solution have been enjoying its many benefits, such as:
- Increased efficiency
Depending on the type of application, all finance activities can be fully automated—from payroll to tax compliance.
What normally takes days or weeks can now be completed in just a few minutes. Hence, finance teams can have more time to focus on value-added activities such as analysis, strategy, and client interactions.
- Reduced costs
Since all finance activities can be performed using a single application, businesses can reduce labor-extensive finance tasks. A single staff or a small finance team can handle all the accounting and bookkeeping process.
Moreover, businesses can save on administrative costs for office supplies and physical storage since all company documents stored in the cloud.
- Boost scalability
Cloud-based accounting solutions can be easily scaled to meet the needs of a business, whether small- or large sized. Features can be added or reduced depending on the functions and dependencies the business requires.
- Reduced errors
Errors in accounting records and tax requirements can lead to non-compliance and legal penalties. This can significantly cost a lot of money. Not to mention the time and stress to file for amendments.
Automating accounting and bookkeeping processes ensures accurate computations of all transactions. Cloud-based accounting solutions can also process huge workloads in just a few minutes. Thus, businesses can meet their tax obligations on time and with no discrepancy.
- Increased data security
Cloud-based accounting solutions offer a safe and secure data storage and retrieval process. Strict security protocols and data encryption enable users to access information in real-time without the risk of losing data. Moreover, stored information will remain safe and accessible even during natural calamities and disasters.
Which accounting and bookkeeping tasks can be automated?
Cloud-based accounting solutions are not new in the Philippines. However, some businesses are still unaware of the accounting and bookkeeping processes they can automate.
Cloud-based accounting solutions offer a wide range of features to automate finance-related tasks, such as:
An end-to-end payroll solution can automatically compute actual worked hours, night differentials, and overtime and holiday pay. It can also be configured to compute salary differences, contributions, and deductions.
- Bank reconciliations
Cloud-based accounting applications can be connected to the company’s bank for better monitoring of cash flow and automating bank reconciliations. This ensures the accurate matching of accounting records to the bank account, as well as the daily monitoring of transactions.
- Expense claims
Monitoring employee expenses and approving reimbursement claims can now be done in-real time. On-the-go employees can use a mobile app to capture receipts and submit expenses. Disbursement for approved claims can also be sent directly to the employee’s payroll account or a payment channel for faster reimbursement.
Easily generate accounting reports and detailed analytics of the company finances. The reports can also be customized to include the right information and KPIs for better budget planning.
Automatically calculate sales tax on all completed transactions and generate the tax report for accurate filing of taxes. In the Philippines, there are several tax types and periods to comply with, and it takes 171 hours on average to file taxes each year. Automating tax calculation can significantly help streamline the compliance process and reduce filing delays.
How can Hurey help?
Indeed, the emergence of cloud technology has completely revolutionized the accounting and bookkeeping industry. Cloud-based accounting solutions enable businesses to streamline all accounting and bookkeeping processes.
Hence, the need for manual work and spreadsheets has been eliminated completely. Moreover, repetitive time-consuming and process-driven tasks were also effectively reduced.
However, businesses in the Philippines have yet to realize the value they can add to their services by choosing to automate accounting and bookkeeping. What’s more, some businesses have not even started automating their HR and Payroll.
Hurey is the most scalable HR and Payroll application in the Philippines. It was born in the cloud and offers several features to automate all HR and Payroll tasks. Hurey is also the only HR and Payroll app in the Philippines that offers seamless integration with XERO.
XERO is the most reliable cloud-based accounting software in the world. It offers various features and tools to optimise accounting and bookkeeping tasks. From pay runs to expenses, and even end-of-year tax returns.
The Hurey and XERO integration enables you to streamline and simplify the business process—from HR tasks to tax compliance. Thus, giving you increased cost savings and two powerful tools to help your business become globally competitive.
Book your FREE DEMO now and start enjoying the Hurey and XERO integration.
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