Financial intelligence

5 Different ways you can use automated bookkeeping in your company

In several ways, automated bookkeeping has been leveraged to accelerate preparing financial books, and many organizations appear to be open to its use. The accuracy and efficiency assured by this resource have been top-notch, making it highly relevant in the scheme of things. The richness of data acquired from it may even help business owners boost their financial intelligence skills. You have been seeing and hearing about the immense benefits of this timely resource but have yet to grasp how it can specifically work for you. If that’s the case, you can read on to discover the areas of business that this resource will aid.

Automating reconciliation of bank account statements

The reconciliation of bank account statements can be expedited by integrating software into your company’s framework. This activity requires a great degree of keenness when performed manually. This can be completed in a matter of minutes with automation. The software will act to match the company’s books with data from the statements of accounts from your bank.

Automating the management of expenses

The automation of expenses will eliminate the need to check through different paper receipts as you attempt to reconcile your accounts. This is particularly concerning organizations that utilize credit cards for their expenses or need to reimburse workers for specific costs. The automation resources will precisely match the credit cards’ data [obtained from the company’s financial system] to the data on paper receipts – which must have been snapshotted and uploaded beforehand. Ultimately, the resource sends the expenses that need to be reimbursed to the appropriate contact before approval and has the data sent for bookkeeping.

Automating accounts payable and accounts receivable

The management of accounts payable and accounts receivable can also be automated. For accounts payable, the software will gather the bills provided in a database and then match the received deliverable with the data on the bills. The invoices are then automatically approved, and payments are released to suppliers. On the other hand, in automating the accounts receivable management, the software will aim to match the precise invoicing to sales records, send for approvals, and then serve a notification for payments to the clients.

Automating the management of payroll

Managing employees’ payroll can be very tasking, especially for large companies, leading to personnel spending hours sorting out variables such as the hours that employees put in and payroll tax. This process can be completed as the software calculates an employee’s pay and releases paychecks while saving the data for completed transactions to the accounting system for record-keeping.

Automating tax compliance

This is a critical aspect of accounting for any company and can be very tedious. But the whole process is relatively straightforward with automation in place. The software will specifically update taxes in compliance with what is attainable in a state or city and generate tax returns.