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Manual journal entry processes come with significant costs that are both seen and unseen for finance and accounting teams. These tasks are notoriously time-consuming and rely on outdated tools like Excel to post journal entries across multiple systems. This opens the door to manual data entry errors, discrepancies in financial records and inefficiencies that compound as transaction volumes grow. The lack of integration between accounting software and documentation sources forces teams to hunt down supporting documents, reconcile and validate data manually, without reliable internal controls. Every step introduces the risk of errors that ripple into downstream financial reporting, compliance issues and ultimately, delayed decision-making.

Beyond lost time, the opportunity cost is steep. Manual tasks absorb resources that could be focused on higher-value financial operations such as cash flow forecasting, optimizing the close process or strengthening internal controls. Finance teams are left addressing bottlenecks instead of driving strategic insights. When journal entries aren’t automated, organizations struggle with slower cycle times, limited scalability and increased audit risk. The true cost isn’t just in labor, but it’s also in missed opportunities, operational drag and the inability to support a faster close. For finance leaders aiming to modernize accounting processes, eliminating manual intervention is not just a nice-to-have — it’s a strategic imperative.

Why your “automated” journal entry process is still manual

A journal entry is the foundational record in accounting that documents the financial impact of business transactions. It typically includes debits and corresponding credits that update an organization’s ledger(s). Each entry plays a critical function in maintaining accurate financial records and supports the preparation of key financial statements like the balance sheet and income statement. Journal entries also require supporting documents to validate the transaction’s purpose, amount and timing in functions like accounts receivable, expense accruals and intercompany reclassifications. They are essential to sound bookkeeping and internal controls that support transparency and audit readiness.

In traditional accounting processes, journal entries are manually created, reviewed and posted, which introduces the manual effort, risk of errors, bottlenecks and inconsistencies in financial reporting. This manual intervention makes it harder for finance teams to ensure accuracy, especially during high-volume periods like the close process. As businesses grow, the complexity of managing journal entries in disparate accounting software or spreadsheets becomes increasingly unsustainable. Modern solutions like Finance Automation by Redwood help accounting teams shift away from manual, reactive and time-consuming routines to more controlled, scalable and efficient journal entry management. When journal entries are automated, finance leaders gain confidence in data integrity and more time for higher-value analysis.

What is journal entry?

An effective journal entry captures the essence of financial activity with clarity and precision. Its core components — accurate debits and credits, alignment with the chart of accounts and traceable supporting documents — help ensure financial integrity and auditability. A well-structured journal entry supports internal controls by documenting the “who, what and why” of each transaction. It also ties into key accounting software systems to reflect real-time activity across financial operations. Especially for adjusting and recurring entries like accruals, allocations and amortizations, consistency and control are critical features that safeguard the accuracy of financial statements and compliance reporting.

When supported by automation or modern tools like Finance Automation by Redwood, journal entries become even more powerful. Finance Automation can enforce validations, reduce discrepancies and flag missing data before posting. It optimizes the journal entry process by eliminating manual data entry and integrating workflows across systems. This not only reduces the risk of errors but also enhances transparency for accounting teams and approvers. With automation, journal entries become a source of control and efficiency, rather than a bottleneck, within the close process. Finance and accounting teams gain the ability to scale entries, enforce review protocols and accelerate approvals, all while maintaining the integrity of their financial reporting.

Letting go of the ledger: How automation gives accountants more power

Journal entry automation delivers transformative benefits for finance and accounting teams looking to streamline their close process and elevate their impact. By reducing manual intervention and eliminating time-consuming manual tasks, automation solutions like Finance Automation by Redwood enable faster, more accurate financial reporting. Teams no longer need to rely on Excel or repetitive data entry to post journal entries because automation handles the workflow, validation and audit trails with precision. This shift not only decreases the risk of errors and discrepancies in financial records, but it also eliminates rework, strengthens internal controls and compliance across financial statements.

Beyond efficiency, automation frees up finance and accounting professionals to focus on higher-value activities such as analyzing variances, optimizing cash flow or improving forecasting accuracy. It resolves bottlenecks that typically slow down month-end close and enables a faster close and better visibility into financial operations. Journal entry automation software can also integrate directly with existing accounting software, which reduces silos and standardizes entries across entities, departments and global regions. For organizations committed to improving accounting processes and modernizing finance, journal entry automation isn’t just a feature. It’s also a strategic lever for speed, accuracy and scalability.

Manual to magic: Agile automation for closing journal entries, account reconciliations and more