Businesses often personify the proverbial Jack of all trades when they try to manage all their accounting, invoicing and taxation operations in-house. But why not concentrate on core business processes and avoid being the master of none? If not in-house, businesses tend to avail the services of an external Chartered Accountant.
Imagine this scenario—It is the end of the quarter. You are trying to find all your business receipts and invoices to share with your CA or accountant, and probably miss out on a few of them. This could result in inaccurate accounting statements for your business or your TDS and GST liability calculation could go wrong. There’s a high probability that you can relate to all of this.
The Solution?
Get an AI Accounting Software and get rid of all manual accounting work done at your end. AI-powered accounting software not only removes the hassle associated with traditional accounting and bookkeeping but also ensures greater accuracy, efficiency, and cost-effectiveness and also helps you save precious time. Moreover, you don’t get just plain record-keeping in an AI accounting tool.
You also get access to reports crucial to your business, a live, personalised dashboard that reflects your business’s financial health, easy and quick invoice creation, and tons of other features. In short, investing in the right AI accounting software could be the best decision for your business.
With Artificial Intelligence’s rise in popularity, most small, medium and large enterprises have already introduced the technology across their business departments and operations. The rest are considering and evaluating its prospective benefits and outcomes before taking the leap. Research predicts that the global accounting software market will be worth $11.8 billion in the next 8 years, expanding at an annual rate of 8.6. So, if you intend to stay competitive, doing your AI accounting and taxation is your way to go.
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What is AI in Accounting
AI in accounting revolutionises financial management by employing cutting-edge technologies like machine learning, natural language processing, and data analytics to streamline and optimise all tasks and processes in traditional accounting. This innovative approach enables businesses to automate tasks such as data entry, categorisation, and reconciliation with unprecedented accuracy and efficiency.
Febi.ai is a prominent provider of AI-driven solutions that exemplifies this transformation. Their AI accounting software empowers businesses to enhance productivity and accuracy in financial management without the need for manual intervention. By leveraging predictive analytics and intelligent document management features, Febi.ai equips businesses with actionable insights, facilitating informed decision-making and strategic planning.
Beyond automation, AI in accounting offers businesses the opportunity to unlock new levels of efficiency, accuracy, and agility in their financial operations. Using AI, you can easily identify any anomalies and frauds and compliance dues pending so you can quickly act on them and mitigate challenges and risks. In short, through the integration of AI technology, businesses can navigate complex financial requisites with ease and confidence, positioning themselves for sustained growth and success.
Basic Features to Look for in AI Accounting Software
When searching for accounting software, keep an eye out for the following essential features:
- Automated Data Entry: This is one of the most basic yet essential features of AI Accounting software. Think of it this way: You should be able to drop your documents in the software, and it does the heavy lifting for you. No more manual inputs. The software automatically captures and categorises financial data from predefined sources, cutting down on time and efforts otherwise invested in manual bookkeeping.
- File Structuring for Audit Trails: Keep things organised for audits. Your accounting software should structure files neatly and make it easy for you to ensure compliance and find and share documents at the time of an audit. Keeping your business audit-ready at all times is one of the crucial features of Febi.ai.
- Financial Dashboard: A personalised dashboard for your business that reflects your finances and Business Health, Fund Management, and Finance Reports, including Expenses, Revenue, Purchases, Payables and Receivables, COGS, and Cashflow. Having access to all your end-to-end business insights lets you make informed decisions confidently and seize growth opportunities.
- Compliance Calendar: If you are a business stakeholder, you would understand the sweat and blood it takes to manage all compliances. Calculating the right amount for each compliance is an extensive task altogether. Febi offers a compliance calendar on your personalised dashboard using which you can track all your paid, due and missed compliances and their respective amounts for the month.
- Smart Invoice Processing and Management: Keep your cash flow in check with features like automated invoice generation, tracking, and reminders for overdue payments. Get rid of cash flow worries as automated invoice generation, tracking, and reminders for overdue payments keep you on top of your finances effortlessly. With customisable templates and autofill features, creating invoices is easy as a cake walk, especially for recurring transactions. Plus, sending professional invoices not only ensures timely payments but also leaves a lasting impression of your brand’s professionalism and reliability.
- Income and Expense Tracking: Stay on top of your expenses by categorising transactions, digitising receipts, and generating detailed expense reports. Moreover, Febi.ai’s does the job for you as it automatically categorise transactions as expenses and income using its artificial intelligence capabilities. This means that even people who don’t understand the basics of debit and credit can still use Febi.
Advanced Features in AI Accounting Software
For those looking to take their financial management to the next level, consider Febi.ai’s software with these advanced features:
- Virtual CFO and Consultancy Services: Leverage high-level expertise and guidance tailored to your business’s financial needs, enabling informed decision-making and strategic planning. Whether it’s financial analysis, budgeting, or forecasting, having access to experienced professionals can significantly enhance your company’s financial management capabilities.
- Call Support: Live call support from a designated account manager, who’s an expert in accounting and taxation is a major highlight. This is an essential feature, especially for companies with no in-house accounting team or entrepreneurs and sole proprietors with limited accounting and financial knowledge.
- Smart Document Management: Streamline your document management processes with features like IDP (Intelligent Document Processing) technology, which can extract relevant information from documents automatically. Febi.ai, too, utilises IDP to automatically read and convert unstructured data.
- TDS and GST Returns: An all-in-one accounting tool should offer TDS and GST capabilities to simplify, automate and make them error-free.
- Integration with third-party Apps: Maximise the functionality of Febi.ai’s software by seamlessly integrating it with other business tools such as CRM systems and payroll software.
- Fixed Asset Register: Maintain a comprehensive, consistent and accurate record of all your fixed assets. These assets could be related to specific operations, digital, IT assets or fixed/physical assets. Your Fixed Asset Register should include Procurement date, status, current value, depreciation, price, location and other important details.
- Reporting and Analytics: Gain valuable insights into your business’s financial health with customizable reports and interactive dashboards provided by Febi.ai’s software.
- Inventory Management: Get automated accounting for all your inventory in business. Stakeholders involved in the purchase and sale of goods can utilise the inventory management feature to streamline their inventories, control stock levels, create reports and more.
- Wealth Management: Access real-time insight into the current value of all your existing investments. This helps you assess your current financial position and make informed decisions
- Predictive Analytics: Harness the power of machine learning algorithms to forecast future trends, identify potential risks, and optimise your financial strategies.
Benefits of AI Accounting Software
Below are some leading benefits of implementing AI accounting software in a business.
- Increase Efficiency: Save time and streamline operations with AI automation for tasks like data entry, invoice processing, and reconciliation, enhancing productivity and resource allocation efficiency.
- Error Reduction: Increased accuracy and reliability in financial reporting and compliance adherence through AI algorithms, minimising the risk of costly mistakes and regulatory fines.
- Informed Decision-Making: Leverage real-time insights and predictive analytics provided by AI-powered systems to make data-driven decisions, anticipate market trends, and capitalise on opportunities for business growth.
- Cost Saving: Reduce overhead costs and mitigate financial risks associated with manual processes by implementing AI accounting solutions, optimising spending, and improving overall cost management.
- Enhance Security: Ensure the protection of sensitive financial data with advanced security features such as encryption and access controls, safeguarding against cyber threats and unauthorised access.
- Streamline Collaboration: Foster seamless communication and collaboration among team members with collaborative tools integrated into AI accounting platforms, enhancing workflow efficiency and project management capabilities.
- Compliance Assurance: Stay compliant with industry regulations and standards effortlessly with AI-driven compliance monitoring and reporting functionalities, minimising the risk of non-compliance penalties and audits.
- Customer Satisfaction: Deliver exceptional customer experiences with faster processing times and transparent financial transactions enabled by AI automation, fostering customer/client trust and loyalty.
- Scalability: Scale your operations seamlessly as your business grows with flexible AI accounting tools capable of handling increasing data volumes and adapting to evolving business needs.
- Gain Competitive Advantage: Leverage AI technology to optimise financial processes, drive innovation, and deliver superior value to customers, attracting more leads and boosting brand visibility.
Key Considerations for Choosing the Right AI Accounting Software
When selecting accounting software, consider the following factors:
1. Features and Capabilities: Ensure the software covers all essential accounting tasks and offers advanced functionalities.
- Automates the process involved in efficient data entry and processing.
- End-to-end invoice management for billing and tracking payments.
- Accurately track expenses and maintain budget control.
- Robust financial reporting tools for clear insights into financial health.
- Predictive analytics to anticipate future trends and patterns.
- Detect anomalies and quickly identify and address irregularities in financial data before they have costly implications on your business.
2. Scalability and Flexibility: Choose an accounting software that can adapt to your business’s changing needs and growth.
- Scalable pricing plans that accommodate business expansion.
- Flexibility to add users and features as your operations evolve.
- Capacity to handle increasing data volumes without compromising performance.
- Options for upgrading or downgrading plans based on business requirements.
3. Integration and Compatibility: Every business stakeholder is keen to adapt software provided it offers integration capabilities with all existing software in the company.
- Select an AI accounting software that seamlessly integrates with your banks for seamless flow and management of information within the system. For instance, Febi.ai offers bank integration capabilities, enabling you to integrate your existing bank account, check statements and make payments in a few clicks- all from your personalised Febi dashboard.
- Smooth data transfer and synchronisation between different platforms.
- Compatibility with various file formats for easy data import and export.
4. Security and Compliance: Data is highly sensitive, especially in instances when your finance and banking information is involved. Prioritise the protection of sensitive financial data and adherence to regulatory standards.
- Strong data encryption protocols to safeguard confidentiality.
- RBAC (Role Based Access Controls) to manage user permissions and restrict unauthorised access.
- Compliance with industry regulations like GDPR or HIPAA to ensure data privacy.
- Regular security updates and patches to address potential vulnerabilities.
5. User-Friendliness and Support: Choose software that is intuitive, easy to use, and supported by helpful resources.
- User-friendly interface with clear navigation and intuitive design
- Availability of comprehensive software demos and tutorials to help use Febi’s to the best of its capabilities
- Responsive customer support for assistance and troubleshooting via a live chatbot and call feature and email support
- Customisable features to tailor the software to unique user preferences and demands
- Accessibility across devices, including mobile compatibility for on-the-go usage
Pricing Structure
When selecting an AI accounting tool, fixing on the right pricing is an important decision. Discuss with your business stakeholders and team and decide a budget range to allocate for your AI Accounting Software. Most accounting and compliance tools offer a monthly or quarterly pricing model, divided into 3 to 4 plans. You can choose from a basic to an advanced plan depending on your business requirements. Generally, basic plans are suitable for solopreneurs and new startups, while medium to large enterprises require an extensive list of features, available in professional/premium software plans.
Febi offers two payment models–monthly and yearly–and four subscription plans (Basic, Professional, Premium and Enterprise) to cater to the needs of all businesses. Each plan is divided based on the company’s turnover and offers an extensive list of tools for accounting, invoicing, payments, taxation, reporting, analytics, and more. If none of the plans accommodate your requirements, we provide customised plans to fit your business needs. Read more on Febi’s pricing and subscription here.
In addition to pricing, consider the scalability of the accounting software. Ensure that it can accommodate your business’s growth without requiring a significant investment in additional tools or upgrades. By carefully evaluating these factors, you can make an informed decision that aligns with your business objectives and budgetary constraints.
Type of Deployment: On-Premise, Cloud or Hybrid
When it comes to deploying accounting software, businesses have three primary options: On-premise, cloud-based, or hybrid solutions. Among these choices, cloud-based deployment emerges as the superior option for modern businesses.
On-Premise Deployment: On-premise software operates from in-house servers and computers, offering full control but requiring substantial upfront investment in hardware and IT infrastructure. It often leads to higher long-term costs and limited accessibility, as data can only be accessed within the company’s network.
Cloud-Based Deployment: Cloud-based accounting software operates on remote servers hosted by the provider, offering enhanced accessibility, scalability, and security. With data accessible from any internet-enabled device, anytime, anywhere, cloud solutions provide flexibility and convenience. They also come with regular updates, maintenance, and built-in security measures, eliminating the need for internal IT support.
Hybrid Deployment: Hybrid solutions combine aspects of both on-premise and cloud-based deployments, allowing businesses to store sensitive data on-premise while leveraging the scalability and accessibility of the cloud for other functions. While offering flexibility, hybrid models may not provide the same level of convenience and cost-effectiveness as fully cloud-based solutions.
Cloud-based deployment stands out as the leading choice of most businesses due to its flexibility, accessibility, scalability, and security benefits. A report suggested that companies using 100% cloud-based accounting saw a 15% year-over-year growth in revenue. By opting for a cloud-based accounting solution, businesses can streamline operations, reduce costs, and adapt more easily to changing business needs.
Additional Considerations
Apart from the above considerations, you must keep in mind and invest in accounting and compliance solutions that offer a well-rounded demo of the tool. This not only helps you make an informed choice when deciding to opt (or skip) getting the software but also goes a long way in helping train you and/or employees who’d be using the tool. You should also ask for client reviews and contacts of existing clients of the solution to access candid feedback and reviews.
Lastly, it’s best to opt for accounting software with a monthly payment subscription and payment model rather than ones that only take yearly payments. This way you can actually try the software’s features for a month, without giving a long-term commitment.
Important Questions to Ask the Vendor>
- Can you customise the accounting solution to add the features that I need for my business?
- Will I require any additional tool for taxation, reporting or invoicing or is it all-inclusive?
- Is there any cap on the maximum number of users who can access one account?
- Can you integrate with a payroll or a CRM solution?
- Will I get a refund on my subscription charges if I choose to cancel?
Next Steps
Getting accounting software is a significant investment, and choosing from a list of vendors can be overwhelming. We hope that this buyer’s guide can help you make this decision easier and cover all your queries and confusions. Following the above information should help you close down on the accounting software requirement. If you are still in a fix, we’d like you to connect with our accounting and compliance experts in the website chatbot. If you are interested in exploring Febi, please connect with our experts via the chatbot or schedule a demo from the website’s homepage.
