Accounting automation and AI represent a significant leap forward in the evolution of accounting technology, marking the transition from manual processes to a streamlined approach.
Automation allows accountants to improve accuracy and operational efficiency, transforming vital processes like the month-end close. And AI tools speed up tasks like lease abstraction and flux analysis, saving accountants hours of work.
To make the most of these innovations, however, you need accounting software that incorporates these features seamlessly, refining complex accounting workflows.
In this post, we’ll explore the basics of accounting automation and demonstrate how NetClose incorporates automation features to make your accounting operations more efficient and precise.
What is accounting automation?
Accounting automation refers to the use of technology and software to automate manual and repetitive accounting tasks and processes. It can include the use of algorithms and AI to minimize manual intervention, increase accuracy, and improve efficiency in financial management.
From automating data entry to generating financial reports, accounting automation can revolutionize the way accountants work.
How does accounting automation work?
Accounting automation relies on specialized software and technology to streamline processes. Automation tools often leverage AI and rules-based algorithms to automate tasks like data entry, bank reconciliation, invoice processing, and financial reporting.
There are two main types of automation:
- Rules-based automation: This type of automation relies on preset rules to accomplish tasks using specific parameters. For example, in your close accounting software, you can use rules-based transaction matching as part of your bank reconciliation process. This allows for auto-reconciliation for matching balances, so accountants only need to reconcile balances that don’t match.
- AI automation: This type of automation uses AI tools such as large language models (LLMs) to complete tasks like analyzing documents or writing communications in a human-like manner. For example, you can use generative AI in your close accounting software to write flux analysis explanations, speeding up the process.
How software can automate your accounting processes
Automation and AI features are key factors to consider when choosing an accounting software solution. To illustrate this, let’s focus on close accounting software — a solution every business can benefit from — and how automation can reduce the stress of the month-end close.
By leveraging accounting automation software, you can simplify a range of close tasks, including:
- Workflow streamlining: Automation software can streamline month-end close workflows with task templates you can apply to each period to automatically assign close tasks and deadlines to specific team members. And once a team member completes their task and moves it into review, the assigned reviewer gets an automated email notification.
- Transaction matching: Automation software can automatically match and reconcile transactions based on the rules you set, ensuring accurate and up-to-date financial records. This significantly reduces the time it takes to reconcile accounts at the end of the month.
- Amortization schedules: Close accounting software can automatically generate and modify amortization schedules. This means you don’t have to maintain multiple spreadsheets for amortizations and update them manually when they need modifications.
- AI-generated flux analysis explanations: Close accounting software can automatically run pre-saved flux scenarios to compare two different periods. Then, you can leverage AI to identify large transaction variances and draft an explanation for the variance.
Not all accounting software is made equal, so to enjoy these automation and AI features, you need to choose the right solution.
NetClose offers all these automation features and more. Let’s take a closer look.
Key automation features in NetClose
At Netgain, we designed NetClose for NetSuite to take the repetitive, manual tasks out of your financial close — like amortizations, reconciliations, and flux analysis — and give you time back for more strategic work.
NetClose offers various automation and AI features to streamline your workflows and help you reduce the time it takes to close, including:
Automated data entry
NetClose's automated data entry saves time by automatically extracting financial data from invoices and receipts. This eliminates the need for tedious data entry, reduces the risk of manual errors, and improves efficiency.
Amortization schedules
In NetClose, you can automate amortizations created from a NetSuite transaction or via CSV upload. NetClose will automatically generate the amortization schedule, and it can automatically modify the schedule if adjustments need to be made. Additionally, NetClose creates records for each amortization and related actions, creating a clear audit trail.
Flux analysis
Flux analysis (or variance analysis) can be time-consuming, which is why accounting teams sometimes skip it altogether. But it can provide valuable insights into your business.
NetClose flux analysis speeds up the process, allowing you to easily compare two periods to see what changed and why. This helps you identify errors and better understand fluctuations in your financials.
In NetClose, you can automatically generate flux analysis for various combinations of accounts, subsidiaries, and segments, and use AI to write explanations for large transactions, all without leaving NetSuite.
Automate close accounting processes with NetClose
Accounting automation is a game-changer for accountants and businesses alike. With automation software like NetClose, accountants can streamline their financial management processes, increase accuracy, and provide more strategic insight for the business.
With features like automated amortization schedules and AI flux analysis, NetClose saves time, reduces errors, and provides real-time data for informed decision-making.
Our suite of products also includes automation solutions for lease accounting, fixed asset management, and more — all working together to simplify your processes. Take the next step towards accounting automation by exploring our range of solutions and discovering how Netgain can transform your financial management.
For a personalized demo, reach out to our team and discover how you can simplify and automate your accounting processes.
