Accounting Automation: Why Automation Benefits The Workforce

Accountant Computing on a Calculator While Taking Down NotesRecently, though there has been some pushback regarding software automation due to fears of losing jobs. However, automation has actually opened up new opportunities by eliminating repetitive, time-consuming work. It is a cost-effective solution that saves thousands of dollars each year.

ScaleFactor, Inc., an accounting software developer in Austin, Texas, states that automated accounting can save as much as $37,000 a year compared to hiring a full-time bookkeeper. Indeed, the finance sector is one of the areas where automation has the greatest impact.

A Capacity Boost

Automation undoubtedly frees up valuable time and work, eliminating some of the most tedious aspects of a job. Bankers, for example, have been switching to automated processes, increasing their capacity by as much as 30%.

Despite fears of downsizing their workforce, these bankers actually manage to maintain them, allowing their staff to focus on higher-value work instead. Instead of spending hours doing the bookkeeping, they work on completing research, brainstorming, and improving client relationships.

Automation Has Proven to be Beneficial

Along with the improved capacity of banks, automation has proven to be beneficial in the past too. One example is the typists of the 1950s to 1970s. Offices would have large rooms dedicated only to typing and making copies, employing primarily women who were good with a typewriter. Eventually, automation, in the form of copy machines, fax machines and eventually the computer, eliminated the need for these large typing pools.

While some people argued that it took jobs away from the women, the truth is that the female labor force increased during this same time period. By the 1970s, female workers increased from 20 million to 75 million.

While the rise of feminism and a greater push for workplace equality was one factor in these increased number of working women, automation has a hand in this. Women can now focus on higher quality work, giving them a more diverse set of skills to use in the workplace.

Automation is therefore a useful tool in increasing a workforce’s capacity. Though it eliminates some old jobs, it opens up new opportunities.