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How Can Automation Help Your Business?

How Can Automation Help Your Business?
Businesses of all sizes are constantly striving for efficiency while reducing unnecessary costs. As a business owner, you may also be looking for a solution that can address most of your operational concerns and increase the business’ output. Automation is something that can help you in this case.
 
Automation can handle a major portion of the mundane tasks like data entry and customer support that are part of  business’ operations. As a result, it has become an essential component of every organisation over the years. If you are unfamiliar with business automation or its benefits, here is what you must know about them.
 

What is business automation?


Automation in business refers to the deployment of technology to improve efficiency. It allows you to carry out various repetitive and, sometimes, non-repetitive processes with little or no human interaction.  
 
The primary role of automation is to replace or support workers with machines to perform routine tasks, allowing them to focus on providing more personalised and better services to customers. It also helps them prioritize other creative and value-adding processes in the business.
 

How does automation in business work?

 
Automation in business is a sequence or series of steps performed in a predefined order to accomplish a specific goal. The process begins with defining the business objectives and then preparing a strategy necessary to achieve them. 
 
Once you are aware of the steps, you can integrate them into automation software and set rules for the execution of each step. The automation process will then complete the task in the order specified.
 
Also Read: Have you tried these 11 ways to improve cash flow in your business
 

Types of business automation

 
There are several types of business automation based on the functions being targeted. However, the four most common ones are listed below.
 

  1. Marketing Automation

    As a business owner, you should be aware that several marketing practices are repetitive. Automation can help augment your business’ marketing efforts without the need to hire many people. Moreover, marketing automation in business will help you obtain more quality leads, which can be passed on to your sales department to convert into potential customers.
     
    You can implement this automation across various marketing mediums, including social media marketing, email marketing, and advertising campaigns.
     

  2. Accounting Automation

    Accounting and bookkeeping automation can save your business both time and money. Using this process, you can easily manage daily or weekly tasks such as data backup, maintaining the account receivable and payable details, daily billings, and so on.
     
    You can also implement this process in the execution of complex tasks such as general ledger management or book closure. The accounting automation software can perform a series of transactional jobs with no room for error.
     
    Let's take the example of account payables (AP) to comprehend this better. Accounting automation will automatically collect all AP-related data, match it with previous records, and route approvals electronically. All of this occurs with little or no human interaction.
     

  3. HR Automation

    The Human Resource Management System (HRMS) is the most common example of automation in business processes. This tool can assist you with everything related to workforce management, whether you want to screen an employee or officially onboard someone. HRMS is capable of handling and shortlisting resumes, managing existing or past employees’ data, payroll management, and a few other HR-related core tasks.
     
    Other crucial tasks that HRMS manage include the following:
     
    • Performance appraisal processes for employees
    • Training requirements of new employees when they move to a new job role. 
    • Employees' tax form collection and filing.
    • Identifying employees who are eligible for additional benefits such as ESOP.
    • Preparation of confidential agreements, work contracts, etc. 
     

  4. Process Automation

    Process automation outperforms basic automation of tasks and is integrated into multiple applications throughout the business to improve the overall efficiency. Business process automation (BPA) collects data from multiple sources and generates reports that are useful for analysis by the employees. In contrast, its subset robotic process automation (RPA) enables you to automate routine tasks.
     
    You can use BPA for executing the following tasks:
     
    • File transfers
    • Order entry
    • Batch processing
    • Automated emails
    • Generation and distribution of business reports
     
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Advantages of Automation in Business 


The primary reason for automation to be used in your business is the elimination of bottlenecks that require significant effort and result in potential revenue loss. Here are the top seven benefits of automation explained in detail. 
 

  1. Time savings

    When you implement automation, you liberate your employees from rule-based and repetitive tasks. It helps you in reallocating your employees to roles which require creativity, critical and analytical thinking, and complex problem-solving skills. Thus, automation would result in effective time management for your business while allowing your employees to work smarter.
     

  2. Increased revenue

    You will notice that various tasks in your company are performed regularly and are required for the smooth operation of your business. However, these may not be adding any value to growing the business. If you assign your employees to such tasks rather than focusing on your customers, you run the risk of losing revenue.
     
    Automation delegates the routine tasks to machines while allowing workers to focus on things that add value to your clients.
     
Also Read: Financial Management Tips to Help You Improve Business Growth
 

  1. Higher productivity

    Humans are not capable of executing multiple tasks at once with equal efficiency, unlike machines. Let's take an example from HR automation. 
     
    Assume your company has a single HR representative who is solely responsible for new employee recruitment and management of a few hundred employees. You might expect her to prepare a performance report for all employees during the appraisal process, hire new employees, and prepare various employee-related documents. Without any support or automation to help, it will take her months to complete these tasks.
     
    However, automation can help HR personnel complete all these tasks with a few clicks, resulting in increased productivity.
     

  2. Improved efficiency

    Automation enables you to complete a variety of complex tasks with minimal resources. This reduces operational costs while significantly increasing the revenue and efficiency for the business.
     

  3. Minimise errors

    Manual tasks are prone to errors, especially when it comes to the accounts department. While recording account receivables and payables, your accountant may overlook some numbers. They may also inadvertently overestimate the figure when preparing financial statements. However, if you use accounting automation in your business, these errors are rare.
     

  4. Improved compliance

    Business automation assists you in adhering to various regulatory compliance. For example, you can meet security and data protection requirements by implementing role-based access control and encryption processes. Automation also makes it easier to maintain the legal records for your business.
     

  5. Better customer experience

    You cannot succeed in a business if you fail to offer good services to your customer. Automation of business processes like marketing and accounting provides you with a variety of data-driven insights. You can use them to provide personalised services to meet the needs of different customers.
     
    Chatbots are another great example of automation. These bots can answer common customer questions, and if the issue is complex, the bots forward it to the human customer support team so that it can be resolved as soon as possible.
     

To conclude
 

There are many benefits of automation of processes in business. It frees your employees from repetitive tasks, allowing them to focus on higher-value processes of the business. Businesses of all sizes should start introducing automation in their various functions to increase their efficiency, productivity, and revenue. This will also ensure a higher quality of service for their customers.
 


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Did You Know

Disbursement

The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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