Accounting automation means that software takes over much of your daily administration. Think of invoice processing, scanning receipts, linking bank transactions and automatically preparing reports. The result is faster, more accurate and much more predictable administration, with real-time insight into your numbers. For SMEs and scale ups, accounting automation is the key to a future-proof financial organization.
In this guide you will read:
- what exactly accounting automation is
- How to create a powerful combination with Exact Online and Power BI
- Which parts you automate first
- 7 practical tips to avoid mistakes and get processes tight
- a clear roadmap for getting started in your business
- answers to frequently asked questions about accounting automation
What is accounting automation?
In accounting automation, recurring administrative tasks are performed by software. Repetitive tasks such as entering data, booking invoices, linking payments and calculating VAT are done automatically. The software reads documents, links transactions and puts everything directly in the right place in your accounting system.
At Oakhill, we use Exact Online as our accounting foundation. Exact Online offers bank links, digital invoice processing, VAT functions and integrations with other systems. On top of that, we implement a
In short, you go from loose folders, Excel and manual checks to a digital workflow with tight processes, automatic checks and real-time financial information. That’s what accounting automation means in practice.
Key automations in accounting
These are the building blocks found in virtually every modern computerized accounting system.
1. Automatic bank linkage
With a bank link, bank statements are automatically read daily. Payments are directly linked to outstanding invoices or the correct general ledger accounts. Manual retyping is no longer necessary and your bank mutations are synchronized with your administration. In Exact Online, this is available by default and is a crucial step in bookkeeping automation.
2. Processing invoices and receipts with OCR.
Invoices and receipts are delivered or scanned digitally. OCR technology automatically recognizes important data such as date, amount, VAT, supplier and invoice number. The software creates booking proposals that you only need to check and approve. In this way, the basis of accounting is processed quickly and error-free.
3. Automated data entry
Purchase and sales invoices, subscriptions, periodic entries and declarations are automatically read and posted. By setting up fixed rules and templates, you avoid doing the same actions manually over and over again. This is an important part of bookkeeping automation, because it immediately saves a lot of time.
4. Real-time reports and dashboards
Because all data is processed automatically and continuously, you can run up-to-date reports at any time. Think of profit and loss, cash flow, margins per product or customer and open items. If you link accounting to Power BI, you have dashboards that refresh automatically and provide direct insight into your financial performance.
5. Automated VAT return
VAT is automatically calculated based on booked invoices and bank transactions. The declaration can be prepared with a few clicks and, in many cases, submitted digitally immediately. This reduces the risk of errors and saves time at the end of the month or quarter.
Want someone to professionally handle the set-up and control of your computerized records? Then check out our Bookkeeping service.
Benefits of computerized accounting
- Time savings: manual booking, retyping and directory searches are greatly reduced.
- Fewer errors: software works consistently and avoids typos and duplication.
- Real-time insight: your numbers are always up to date, enabling better decisions.
- Better cash flow: faster invoicing, tighter accounts receivable management and better visibility into outstanding items.
- Audit-proof administration: digital archiving and clear workflows make audits easier.
- Scalability: as you grow, you don’t have to put in proportionately more administrative hours.
For companies that need monthly analyses, budgets and steering information in addition to automation, Controlling as a Service is a logical next step.
Automate accounting with Exact Online and Power BI
Exact Online is the heart of automated administration. You have one central place for accounting, VAT, sales, purchasing and often also projects or inventory. With bank links, digital invoice processing and standard workflows, you lay a strong foundation for bookkeeping automation.
Power BI acts as a smart data layer on top of Exact Online. Power BI automatically extracts data from Exact Online, combines it with other sources and presents the information in clear dashboards. You can immediately see which customers are profitable, which costs are rising and how your cash flow is developing. For many organizations, this is an important argument for extending accounting automation to data-driven management.
Want to combine automation with strategic financial direction and forecasting? Then check out CFO as a Service . With this you not only get dashboards, but also experienced financial leadership that thinks with you.
7 practical tips to automate your accounting smartly
Automation is more than just choosing software. The quality of your processes and data determines how well automation works. With these seven tips, you’ll lay a strong foundation for automating your accounting.
Tip 1: Have one clear way of submitting invoices
Have suppliers submit invoices digitally and in the same way whenever possible, such as via email to a dedicated billing address or via e-invoicing. The less variation in delivery, the better OCR and automated workflows can do their job.
Tip 2: Keep invoice data and master data clean
Automatic booking only works if the basics are right. Make sure supplier data, VAT numbers, IBAN, general ledger links and cost centers are correct. Periodically run through your accounts payable file and correct incomplete or duplicate data.
Tip 3: Standardize your booking logic
Define how certain types of invoices should be booked. Think of cost centers, projects, distribution over periods and VAT codes. By laying down this logic in rules and templates, you avoid discussions in the finance department and get tight, comparable reports.
Tip 4: Establish a clear approval process
Determine who should approve which invoices, the amounts above which additional approval is required, and how exceptions are handled. Use a digital workflow system in which invoices automatically pass the appropriate approvers and in which it is clearly visible where an invoice is in the process.
Tip 5: Digitize and structure your archive
Store invoices, receipts and contracts digitally and link them to entries in your records. Work with a clear folder structure or document management in your accounting software or invoice processor. That way you can find documents within seconds and be well prepared for audits.
Tip 6: Link bank, cash register, webshop and CRM
Combine accounting software with links to bank, POS system, web shop, claims app and CRM. The less you have to transfer manually between systems, the lower the chance of error and the higher the speed of processing.
Tip 7: Start small, measure results and scale up
For example, start automating purchase invoices and bank processing. Measure how much time you save and how many fewer corrections are needed. Then expand step by step to expense reports, sales invoices, reporting and budgeting.
Roadmap: this is how to implement automated accounting
Step 1: Map out your current processes
Note how invoices come in, who does what, where delays occur and where errors are common. This forms the basis for your automation plan.
Step 2: Choose the right accounting software and tools
Select a package that fits well with your organization and industry and offers links to banking, invoice processing, declarations and reporting tools. For Dutch entrepreneurs, Exact Online is a widely used solution.
Step 3: Set up links and workflows
Activate bank links, set up OCR and invoice processing, and define approval flows. Test with a limited set of invoices and transactions so you can resolve issues quickly.
Step 4: Train your team
Explain what the new way of working looks like, which steps are dropped and what is added, such as controls and exception handling. The better the team understands why you are automating, the faster the acceptance.
Step 5: Add a Power BI shell
Link Microsoft Power BI to your accounting system so that reports and dashboards are automatically refreshed. Define together what steering information you need and how best to visualize it.
Step 6: Monitor, optimize and expand
Regularly review turnaround times, error rates and the amount of manual work remaining. Adjust rules and workflows as needed and add new automations once the basics are stable.
FAQ: frequently asked questions about accounting automation
What is computerized accounting?
Automated accounting means that you use software to perform administrative tasks that would otherwise be done manually. Examples include processing invoices, linking bank transactions, calculating VAT and generating reports.
What is automation of administration?
Automation of administration is the same as automated accounting. It means digitizing administration and bookkeeping, standardizing them and letting software do as many repetitive tasks as possible instead of manual work.
How do you automate accounting?
You automate by first mapping your processes, then choosing the right software and linking it to your bank, invoice processing and other systems. Then you set up rules, templates and workflows, test the system with a small data set and roll it out step by step within your organization.
Which software is best for accounting?
It depends on your business. For SMEs and scale ups, software is ideal that offers bank reconciliation, OCR, invoice processing, expense claims, links to POS systems or ERP and reporting capabilities. In the Netherlands, Exact Online is a common choice.
What is automation in accounting?
Automation in accounting is the same as automated accounting. You replace manual administrative tasks with software that automates booking, linking transactions, processing invoices and generating reports.
What accounting processes can I automate?
You can automate purchase invoices, sales invoices, declarations, bank processing, VAT returns, reminders, periodic entries and reports, among other things. The more processes are standardized, the further you can go with automation.
What is an automatic bank link?
An automatic bank reconciliation ensures that bank transactions are read directly into your accounting package on a daily basis. The software links payments to open items or general ledger accounts making bank reconciliation much faster.
How does OCR work for invoices and receipts?
OCR recognizes text and numbers on digital documents and scanned images. The software reads date, invoice number, supplier, amounts and VAT, for example, and converts this data into structured data that can be booked directly.
What are the benefits of computerized accounting?
Key benefits include less manual work, lower error rate, up-to-date management information, better cash flow, easier compliance with laws and regulations, and records that are scalable as your business grows.
Is accounting automation secure and AVG proof?
When using modern cloud software, data is stored encrypted, backed up regularly and protected with access rights. Choose providers that clearly state how they comply with AVG and other relevant legislation, such as the information on the Tax Office website .
Is accounting automation also interesting for small businesses and self-employed people?
Yes, especially for smaller organizations, bookkeeping automation can pay big dividends. With relatively few invoices, you can still save a lot of time and avoid errors, while the cost of the software is often limited.
Can I link my accounting software to other systems?
In most modern packages, you can link with banks, POS systems, web shops, claims tools, CRM and reporting software. This ensures that data is exchanged automatically and you don’t have double entries.
How does automation help with VAT returns?
Because all purchase and sales invoices with VAT are automatically posted, the system can largely compile the VAT return for you. All you have to do is check and submit, which saves a lot of time and reduces errors.
How do I start automating my accounting?
Start by mapping out your processes and then choose an accounting package that is a good fit for your business. Set up bank reconciliation and invoice processing first, test the new way of working, and then expand step by step. Where necessary, engage a specialist to guide the process.