The fast growing accounting firm Eratio.com just raised funding to accelerate their growth in the US. Eratio has had a tremendous success with their low cost accounting service. To achieve the necessary level of automation, and increase the accuracy in the accounts, they have chosen 24SevenOffice.Com as their accounting system for all US markets.
The accounting firm Eratio Inc. is a great example of a forward-thinking accounting firm. While most accounting firms operate with on-premise systems, Eratio Inc. dares to look for new technology. With focus on finding a system that provides AI (machine learning) automation, Eratio Inc. has researched, examined, and considered the best performing cloud-based accounting systems on the market. According to Eratio Inc., choosing 24SevenOffice was an easy decision as it outclassed the competition with its leading-edge AI powered accounting engine.
AI and Automation
AI and machine learning are methods and techniques that allow computer systems to perform tasks that usually require human intelligence. It is important to differentiate between a rule-based RPA system and an AI-based system, as an AI-based system has smart algorithms that allows it to adapt and learn over time. More accurately, a system based on machine learning can sense, comprehend, act, and learn, which is essential for a system to adapt and achieve automation of complicated processes.
24SevenOffice’s AI powered accounting engine includes tools that automate the accounts payable (AP) process. We know that some invoices from certain vendors are simple and easy to understand, while invoices from other vendors are more complex. Some invoices you receive frequently, some only per quarter or once a year. With an RPA based system, you might be able to automate some of the simple invoices, but the system will struggle the moment you introduce variances or complex invoices. This is because an RPA based system is told what to do beforehand, and not created to adapt. But unlike an RPA based system, the 24SevenOffice AI engine utilizes machine learning and will reach 99 percent automation of all types of invoices over time. How long it will take to reach this level of automation depends on the complexity of the invoices. The AI engine is not a plug-and-play tool that automates everything from the get-go. The AI needs training, it needs human input, and in some situations the training/learning will happen quickly, while in other situations it might take weeks or months.
Eratio Inc. understands that the earlier it deploys the AI, the sooner it will reach a high level of automation of its AP process, and with 24SevenOffice, Eratio Inc. has a goal of automating 95 percent of all AP within the next few years. According to Stian Rustad, CEO of 24SevenOffice US, the 24SevenOffice AI module automates approximately 50-70 percent of the AP process from the very moment you activate it.
Stian Rustad continues, “the AI needs to be trained to work the way you want it to work, and this takes time – machine learning takes time! Data must be interpreted, read and remembered, and it takes time to distribute the knowledge. The AI learns at a macro-level across all 24SevenOffice’s 40,000 customers, as well as at a micro-level where it captures the peculiarities of each individual client. There may be specific GL accounts used by your company that ignore or contradict global learning, so the learning that happens at a micro-level carries more weight.”
In addition to the automation advantage, Eratio Inc. chose 24SevenOffice because it allows the firm to deliver its advisory services more efficiently, and to build a stronger bond with their clients. Furthermore, the firm chose 24SevenOffice to help them establish a new software revenue stream.
Advisory Services, Ownership And A New Revenue Stream
Most accounting firms use accounting systems that force their clients to utilize other third-party systems. When a client has one system for CRM, one for billing and one for document storage, time is inevitably wasted between the systems. Furthermore, even if these systems are integrated, data is usually lost between the systems. For the accountants, this is data that potentially could have been used to deliver valuable insights. Having access to data allows accounting firms to consult and deliver advisory services, which will be paramount in the future for accounting firms.
24SevenOffice is a full fetch ERP system, and with 24SevenOffice as their primary accounting tool, Eratio Inc. owns the license to create unlimited client and users. This means that Eratio Inc. can upsell and deliver all the extra business features that its clients may need. Collecting supporting documents – invoices, expense reports, project expenses, invoice approval, payment approval etc. – is for many accountants hurdle number one for a productive workday. For Eratio Inc. this hurdle is now almost completely eliminated, as it brings all its clients into the same accounting/ERP system. All the data will be captures in one system, which will allow Eratio Inc. to eventually use it to help their clients make the right business decisions.
By upselling 24SevenOffice features – such as CRM, advanced project management, billing, file storage, etc. – Eratio Inc. gains an efficiency advantage, but also a stronger bond with its clients. The features that Eratio Inc. upsell will work as a glue, making the clients more depended on Eratio Inc. for guidance on how to use the features and how to establish efficient workflows. Ultimately, this situates the accounting firm in a position of trust and allows it to strengthen client relationships. Lastly, Eratio Inc. will also receive a software revenue stream as it upsells 24SvenOffice features to its clients. Read more about the how partners of 24SevenOffice can establish a software revenue stream here.
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