Everything You Need to Know About Automated Bookkeeping
Automated bookkeeping is when bookkeeping is completed using computer software. Automated bookkeeping has the ability to mimic human data entry in finance software tools, using artificial intelligence and machine learning technologies. Tools such as Xero, use automated bookkeeping to complete basic data entry, for example, organising data feeds from other tools like your bank or your expense system.
Many businesses are not using automated bookkeeping to its full capability. Using these technologies can minimise errors in your bookkeeping, save time, and ensure your accounts are consistently up to date.
The Benefits of Automated Bookkeeping
Reduce the Time Spent on Manual Tasks
Manual data entry can be extremely time consuming. Automated bookkeeping allows your finance team to focus on the tasks that require expertise, eliminating the time they spend on manual data entry. This allows for more time spent on tasks such as data analysis, process improvements and building financial projections.
Automated Bookkeeping Provides Real-Time Data
Automated bookkeeping updates your records as soon as the data is available. This will provide you with real-time insights, providing a better picture of your business’ finances.
Automated Bookkeeping Reduces Errors
Use of automated bookkeeping is less prone to error, compared to humans. This means you are less likely to have duplicate or missing records.
Streamlining Tasks with Automated Bookkeeping
Automated bookkeeping allows you to streamline many tasks, saving you time. We have outlined the tasks automated bookkeeping allows.
Transferring Bank and Credit Card Data
Automated bookkeeping can pull transaction data from your bank account and credit card accounts and instantly record it in your accounting software. This ensures that the transaction details match across your finance systems, and the cash balance and cash flow data you use for analysis and reporting are up to date. This automation requires input from both the accounting software and your banking platform, so you must check if your accounting software offers an integration with your bank and credit card provider.
Machine Learning allows you to automatically sort transactions into the relevant categories in your accounting software. This is helpful for low value but frequent transactions that regularly repeat. Manually categorising these transactions is time consuming, however, machine learning can quickly and accurately categorise these transactions.
Manage Accounts Payable Invoices
When suppliers send invoice emails, it can be time consuming to find the relevant entry in the accounting software, get approval and file the invoice for audit purposes. Automated bookkeeping allows you to set up an automated accounts payable system, detecting which email attachments are invoices and review the information. The system will use the details to match the invoice to the relevant expense, apply the correct category code and send it to appropriate contact for approval.
If you use corporate credit cards or reimburse employees for expenses, automated bookkeeping can eliminate the need for tracking of paper receipts. Employees can scan or upload images of receipts, and the system will handle the rest. Automated bookkeeping has the ability to extract important information from receipts and add the data to your accounting software. Many automated bookkeeping software’s have mobile apps, which makes uploading receipts easier.
Automating your processes with a payroll tool reduces the risk of human error. Many accounting software platforms feature built-in payroll automation. Payroll automation features will track employees’ hours, calculate their pay, calculate payroll tax and generate pay checks.
Gallagher Keane Automated Bookkeeping
Gallagher Keane maintain their entire practise using cloud accounting software. This allows our clients to access their finance information online to make informed business decisions. Use of cloud accounting streamlines many tasks, saving you time, which allows you to focus on your business priorities. If you are interested in finding out more about Gallagher Keane’s online accounting services, why not book a no-obligation call with us.