Is your accounting team overwhelmed with manual tasks? A useful metric to evaluate, benchmark, and manage this is the percentage of automated, recurring journal line items compared to those entered manually.
The percentage of automated monthly journal entries is a key metric for accounting leaders aiming to streamline workflows, especially in high-transaction environments. Automation increases efficiency, reduces human error, and mitigates risks in financial statements. While it improves productivity, supervisory review remains necessary to ensure proper functioning.
By automating manual tasks, accounting teams can manage growing transaction volumes without increasing headcount, thereby optimizing revenue per full-time equivalent (FTE) employee. Consequently, accounting leaders should prioritize automating journal entries while maintaining human oversight for review and approval.
One effective way to enhance automation is by optimizing your ERP system to automate journal line items. Corporate accounting leaders seeking to strengthen automation have several options, including modern ERP systems that automate journal line items, such as spreading annual payments over twelve months. Basic accounting software can also integrate with online banking for added automation.
To maximize efficiency, organizations should fully utilize their ERP systems by standardizing transaction types, automating recurring transactions, and handling complex ones manually. While implementing automation requires an investment of time and resources, the resulting streamlined workflows and better financial statement quality make it worthwhile.
Learn more and explore the average percentage of automated journal line items.