Reports are the basis of many vital decisions in a business. Reports give the decision-maker insights into different facets of the business so that they can make decisions based on the actual data. To be effective reports need to be insightful, accurate, and real-time. Manually prepared reports take a lot of time and effort. This time lag means that the reports do not reflect the actual real-time scenario. Manually prepared reports are also prone to human error. Using accounting software to instantly generate your reports in real-time is a huge benefit for quick decision-making.
What is report automation?
Report automation is the generation of reports through software solutions. Intelligently designed business management software such as TallyPrime analyzes data and extracts reports that are insightful and useful. The data that is used to generate the reports and the reporting modules are integrated into one software. There is no need for data extraction, data entry, or data transfer. The process is seamless. Since the reports are generated when required with a few mouse clicks, the data used for the report is real-time. Unlike manual reports that are prone to human error, automated reports are accurate.
Automation of reports allows one to create many different reports in a fraction of the time that a manual report would take. One can look at reports that give an overview and then drill down to reports that give a minute or detailed analysis. This flexibility and variety of reports make it easier for management at different levels of the company to gain different perspectives. They can make good decisions based on actual numbers and trends. The top-level management would find a trial balance or a profit and loss report useful. An accountant would appreciate report automation for auditing or taxation purposes. Inventory reports help spot trends and bottlenecks in inventory management and purchase.
Stock item-wise profitability analysis in TallyPrime
Automated reports extract the current data to instantly compile even the most complex report. When you manually prepare a report you first have to manually record all the relevant information. This is then computed and analyzed. Some people may be using spreadsheets to create reports. While this may be a bigger time-saver than manual computation, it is still not ideal. When you want to update the report you still have to manually extract and feed the updated information into the spreadsheet. This is a wasteful process with repetitive unnecessary data entry.
Ratio analysis in TallyPrime
Report automation also allows you to share reports quickly and digitally. So, not only do you have real-time reports but can also share them with other team members who are working remotely. This improves the efficiency and productivity of teams across locations. Manually generated reports can also be shared but the time lag in the preparation of the report means that it lacks the advantage of being real-time across locations.
Benefits of automating reports
Automation of many processes in a company adds great benefits. But, we do not often consider the many benefits of automating reports. In a business climate where every company is striving to obtain and retain a competitive edge, report automation can make a huge positive difference. It improves business management and decision-making.
Saves your time and money
When you manually generate your reports the entire process is very time-consuming compared to automated reporting. You may invest a lot of time into generating a report only to find that something has changed and that the data has to be updated. This may mean starting from scratch and redoing the reports. Manual data entry leaves plenty of room for human errors to creep in.
There is a lot of time and people hours that are wasted when you manually prepare reports. This is also the case when you use spreadsheet programs to generate reports and graphs. Spreadsheets still need you to manually import or feed the data. This data may have to be extracted from a manual system or from another software that does not have integrated reporting and analytics.
When you use business management software, it just takes a few clicks to generate reports. You can instantly generate any number of reports and refresh them when there is some change. This does not waste any human resources or time, both of which cost the company money. Making quick decisions based on instantly generated reports may also be able to make the company more agile and efficient. Quicker responses to the market give the company an advantage over competitors.
Trial balance from TallyPrime
Productivity and teamwork
Team members can spend the time that was wasted in report preparation on other more important tasks. This immediately improves the productivity of your human resources. Unlike manual reports, automated reports are easily shared or viewed across locations and screens. So, you can be sure that all the relevant people are involved in analyzing the exact same data and working cohesively. Report automation and digital sharing help teams collaborate better with far less time and energy spent on creating the reports.
The ability to generate and share reports also improves the productivity and decision-making ability of the entire company management. It helps the business react quickly to situations. Quicker informed decision-making at all levels makes the company more robust and agile.
Cash flow analysis report in TallyPrime
Better decisions
Many business trends, opportunities, and bottlenecks would go unnoticed without properly studying business data. A business that fails to grab an opportunity may lose out to the competitor who does. Business decisions are best made after studying the relevant KPIs and data. Business reports that analyze data and present it in a meaningful and easy-to-understand manner enable informed decisions.
Good data analysis and reporting bring clarity and deeper insights. Clearly understanding the process and money flow metrics and constantly evolving should be a major goal of a business. Timely and accurate reporting enables quicker and better decision-making in a company.
Sales vs Purchase analysis in TallyPrime
Transparency
When you have access to automated reporting you do not have to rely on any person or department to give you reports. You will be able to study and analyze information whenever you need it. Report automation enables transparency across all levels of the company. Decisions become data-driven rather than opinion-driven.
Transparency and clear and easy-to-understand reports make the company more attractive to investors and lenders. A well-designed business management software with automated reporting should aid transparency in the business even if the company structure is complex. TallyPrime is well suited for automated reporting in smaller businesses and larger corporations.
Key takeaways
Report automation offers different benefits to different types of companies. But, one common benefit that will be appreciated by all is the time and effort savings. Manual preparation of reports can be replaced by automated reporting so that human resources can use their time and energy elsewhere. Choose an automated reporting software that does not require you to re-enter data. Manual data entry defeats the whole purpose of automation. A fully integrated business management software such as TallyPrime allows you to manage all the facets of financial accounting, payroll, and inventory in one place with extensive analytical reports. You can generate reports that help you analyze and streamline money flow and operations. You can also generate important financial reports that are required by auditors and government authorities quickly and accurately. Report automation makes life easier for the people manually preparing the reports and adds clarity to decision-making for all management levels.
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