In accounting, strict legal requirements mean that work must be carried out extremely precisely. Nevertheless, many companies still use traditional manual processes. This is not only risky, but also highly inefficient.
According to one KPMG AG study from 2024, which Springer Professional impressively summarizes, continues to use almost 40 percent of companies in Germany, Austria and Switzerland continue to use classic paper formats for at least part of their financial administration. Only 17 percent of companies automate accounting.
So, if you are also struggling to keep on top of receipts and regularly miss deadlines while juggling your Excel spreadsheets, it is high time you implemented a fully digitised and automated accounting system. Not only do clever AI tools save time and money, they can also often bring unexpected strategic advantages!
What is accounting automation?
Automated accounting is an evolution of digital accounting. Essentially, it involves outsourcing as many business transactions as possible to software. While simple programs have long helped tax authorities carry out standard tasks, modern systems can now organise and execute entire process chains independently. You can register, process and archive financial data automatically, from electronic document entry to dynamic payment allocation and follow-up.
In expert circles, this development is referred to as “Accounting 4.0”. It summarizes the integration of AI, cloud technologies, and intelligent workflows into traditional accounting processes. The software in question regularly performs recurring tasks independently and only signals the need for intervention when ambiguities or errors occur. So accounting automation doesn't replace humans, but relieves him (for now).
That works excellently indeed, because many typical accounting processes follow fixed patterns that allow you to confidently evaluate technologies. Common areas of application include:
• Invoice approval and verification: The system automatically records, analyses and forwards incoming invoices to the correct locations.
• Document entry and assignment: Digital documents are systematically categorized and posted to the correct accounts.
• Booking suggestions for incoming and outgoing invoices: AI accounting automation recognizes patterns, is constantly learning and can therefore reliably provide booking suggestions.
• Payment reconciliation: Open items can be automatically compared with incoming payments.
The automation of accounting processes is not yet fully completed, but development is progressing rapidly. AI automation plays an important role here. Solutions equipped with artificial intelligence become smarter with every data set evaluated — and thus pave the way to a increasingly self-managed financial accounting.
AI automation in accounting for even more options
Artificial intelligence is making accounting processes increasingly dynamic by moving away from rigid 'if-then' rules. AI-supported systems can recognize patterns, understand relationships and prepare decisions independently. This is how the once simple booking software becomes an assistant with the ability to learn, which makes your accounting more accurate, faster and more flexible than ever before.
The best Automation tools 2025 can not only take on routine tasks such as booking or reconciling payments, but also actively help to identify financial risks or analyze trends. Based on historical data and real-time information, reliable forecasts can be derived — for example regarding payment defaults or liquidity bottlenecks.
Recurring business transactions can be booked and evaluated fully automatically. These concerns include subscription invoices, rent payments or recurring supplier documents. Systems with automated invoice processing recognize the process, create the document, send it and monitor incoming payments. If this does not arrive on time, the tool automatically starts the reminder process — a process that used to require a lot of time and attention.
Modern solutions are also able to reconcile invoices with master data, bank details or previous documents completely independently, and in doing so there are discrepancies, such as number twisters in the IBAN or incorrect amounts. You or your team no longer have to check each document individually; you will only receive a notification when there is actually a discrepancy.
Even in the area of document classification, Artificial intelligence brings enormous benefits. Whether it's an invoice, a credit note or a reminder — the software automatically recognizes the document type, provides it with the appropriate metadata and archives it in a legally secure manner. After the payment run, the document is assigned to the correct business transaction without further action.
And then there would be the automated compliance check. Companies are required to comply with internal and external or legal guidelines, for example when working with new suppliers or for tax matters. AI systems can independently carry out and document appropriate tests, keeping you legally on the safe side.
Why automate accounting?
Accounting is the backbone of every company because it creates transparency about income, expenditure and financial obligations. At the same time it is unfortunately very time-consuming and also susceptible to human errors. Digital accounting significantly reduces costs by taking on routine work and ensuring a central overview of all financial data.
Of course, automated processes save one thing in particular: Time. When you automate payments, bookings or reminders, you free up several hours a week (depending on the size of the company). Rather than spending time sorting documents manually, you can create daily evaluations and analyses with ease. This leads to better planning and a more reliable basis for decision-making.
In addition, you can go through more error-resistant processes and standardized processes that minimize rework and corrections. Paper consumption is also reduced as printouts, folders and physical storage become superfluous. This saves material costs and protects the environment at the same time.
One often overlooked advantage is improved employee satisfaction. Anyone who has to enter hundreds of documents a day will quickly become demotivated. Accounting automation removes much of the monotony from accounting. Employees can then focus on more demanding tasks, such as financial analysis (which is also supported by AI) and specific strategic planning steps.
In addition, the shortage of skilled workers was effectively counteracted through accounting automation. In recent years, the number of available accountants with top qualifications has fallen significantly. At the same time, the requirements for accuracy and speed are constantly increasing. With automated systems, you can balance this imbalance. Not to forget: Do you also increase your attractiveness as an employer? Modern tools enable a modern way of working and significantly reduce the workload. You can combat the shortage of skilled workers in two ways!
Legally, the pressure to digitise is also growing. Following the gradual introduction of e-billing requirements in Germany, companies will be required to process relevant documents electronically by January 2025. Analogue processes will no longer meet these requirements in the long term. With modern, highly scalable cloud accounting processes, you can confidently respond to these requirements and any future digitisation developments.
Finally, the aspect of competitiveness not be underestimated. Customers, clients and business partners today expect digital processes and fast response times. Automated bookkeeping signals professionalism, innovative strength and also makes the financial administration particularly reliable to the outside world — three factors that decisively determine trust and long-term business relationships. Those who act now are gaining an advantage over those who are still hesitating.
In this context, we would like to mention once again that not all companies today have switched to digitized and automated processes in accounting. For this reason alone, there are great opportunities for you to stand out with your company.
What should I look for when choosing automation software for accounting?
Appropriate software is always at the heart of accounting automation. Before you decide, you should carefully consider which areas you want to digitize. Small businesses usually benefit primarily from simple all-in-one solutions; on the other hand, modular systems that can be adapted more individually are often the best for larger companies. AI features, automated workflows, and cloud infrastructure are recommended in any case — this is the only way to utilize the full potential of automating accounting processes.
• Automated accounting — central function for more efficient work: Good accounting software creates, sends and archives invoices independently. It recognizes incoming claims and processes them correctly via specific interfaces. At best, the entire process — from document entry to archiving — is fast, precise and always comprehensible.
• Compliance with legal requirements — crucial for correct bookings: Since tax regulations change regularly, your system should always be up to date. A solution that is connected to a data center automatically ensures legally compliant processes. It ensures that all bookings comply with applicable standards and that you can create audit-proof transactions at any time.
• Bank connection — full transparency about your finances: By directly linking the accounting system to your bank accounts, incoming payments can easily be automatically assigned to the correct invoices. The system displays open items daily and triggers amounts due in a prompt manner. The automatic reconciliation of account statements not only saves time, but also prevents double bookings.
• Preparation of operating statistics — basis for well-founded decisions: Your software should be able to visualize all relevant key figures such as sales, costs, and profit in real time. This gives you access to current financial data at any time and can manage investments in a more targeted manner.
• Sales tax — an annoying task with a lot of potential for automation: Programs with automated sales tax calculation significantly simplify monthly or quarterly advance registration with the tax office. All transactions are recorded completely automatically and the data can be transmitted directly via an interface.
• Involvement of a tax advisor — seamless collaboration through digital interfaces: Your tax advisor can either have access to your accounting automation system or flexibly query all relevant data. This eliminates the time-consuming manual forwarding of documents. But it is even more important that both sides always work with identical, up-to-date information.
Conclusion
The question is no longer whether, but when, you should automate your accounting processes. Those who start early benefit in two ways: Firstly, internal processes become more efficient and transparent, with fewer errors. Secondly, this change will give you a clear competitive advantage over the many companies that still rely on manual processes.
In this regard, it is important to bear in mind that automated financial management can greatly benefit the customer experience and relationships with business partners. When invoices are created and paid clearly and comprehensively on time, it looks professional and strengthens the trust of your stakeholder.
FAQ
Is it safe to automate accounting using AI?
Of course, this depends primarily on the software used. Ensure that your system has been developed specifically for the German market and meets applicable data protection standards. Modern, legally compliant solutions comply with GDPR requirements, store information in an encrypted format, and use European data centres with ISO 27001 certification.
Which accounting processes can I automate?
Invoice approval, document entry, payment reconciliation, reminder flows and advance sales tax returns can all be handled digitally. AI-supported accounting can automate more complex tasks, such as auditing invoices or classifying documents. With the right data, artificial intelligence can effectively and securely manage entire workflows.
Thanks to AI automation in accounting, do I no longer need accountants?
It doesn't work completely without skilled workers. Although systems for automating accounting already perform many routine tasks, they still need to be regularly monitored, audited and, if necessary, adapted to new legal requirements. People remain indispensable when it comes to special cases, individual tax assessments or the interpretation of complex financial data. They are still the last resort. Automation therefore does not replace expertise — it complements it. Incidentally, it is also the case with the Customer service automation and with the marketing automation.
Geschrieben von:
Jens ist Mitgründer von bakedwith, einer Boutique-Beratung für smarte Automatisierung und KI. Er unterstützt mittelständische Unternehmen und Konzerne dabei, Prozesse zu optimieren, manuelle Arbeit zu reduzieren und durch effiziente Workflows Wachstum zu erzielen. Zuvor war Jens Growth Lead bei OMR und begleitete als Freelancer zahlreiche Unternehmen bei der Optimierung ihrer CRM- und Automationssysteme. Seine Leidenschaft gilt der Verbindung von Wachstum und Effizienz – damit Teams sich auf das Wesentliche konzentrieren können.
