As in many areas of business, there is more automation in accounting. This automation increases efficiency within a business but as in all cases of increased automation there is a human factor as well. Any business needs to find the balance between efficiency and the human factor when moving forward.
There are two factors that cause increased automation in accounting. They are computer software that makes accounting easier along with tools that allow automatic and remote entry into that accounting software. These two factors provide for ways that accounting data can be entered in the field, along with automatic processing of that information. This results in an increase in the efficiency of processing financial data while reducing the opportunity for errors.
Benefits
The benefits of automatic accounting include increasing efficiency, reduction in costly introduction of errors. It is inherently more efficient for accounting data to be entered by an agent in the field rather than waiting for him to turn in a written report. This can also include digitally recording credit and debit cards so that the number does not have to be keyed in by a human being, this prevents costly human error.
Disadvantages
The main disadvantage is that automation can remove the human element from accounting. There is a risk of over-reliance on the automatic system. This danger comes from a reduction in human oversight, but that can be avoided by maintaining a degree of human oversight. You can also have the problem of a skilled accountant losing their job to automation, however, the solution here is to keep such personnel on to oversee the automatic system if possible.
Is it Good?
In general increased automation does improve efficiency, unfortunately, it often does so at the cost of skilled individuals who may not be able to find work. If they can be trained to oversee the automation then this is not a problem but if they cannot then it is not good. If your company can pension them off even if a little early then this is not much of a problem. However, for a company that does not have the resources to take care of such employees, it is not good to simply let them go.
In general, increased automation can be considered a form of progress. However, the human element has to be considered in when to implement it.