Bookkeeping is an important but time-consuming task that businesses must do to keep their financial records up-to-date. Having up-to-date financial statements can help business owners make the right financial decisions. However, with advancements in technology, businesses how have options to automate their bookkeeping process, which can save time and money.
Bookkeeping automation involves connecting the business’s bank and credit card accounts to the accounting software used for bookkeeping The software is then provided with specific key words to identify transactions for certain accounts, such as certain vendors or purchase activity. The program will then automatically allocate any repeat transactions with those keywords to those accounts in the ledger.
At the end of each month, business owners can review the allocation to ensure that there are no errors or reallocations that need to be made for these transactions. Bookkeeping automation can help businesses streamline their financial process and reduce the time and effort required for bookkeeping tasks.
Currently the automation for accounting may be provided through the following services:
- Cloud Accounting
Cloud-based accounting applications, such as Quickbooks online, have revolutionized the way a business books are maintained. Quickbooks Online usually stores information on the cloud so it is accessible from anywhere as long as the user has access to the internet. Algorithm used to allocate the expenses between accounts is great and is constantly improving.
- Expense Management
Services like Receipt-bank provide small business owners the ability to save valuable time by extracting information from images of hard-copy receipts in an accurate and efficient manner. Once a picture is uploaded to the app, information is extracted from the receipt and entered in to the system.
Payroll is another process that is being automated these days through few service providers. Services providers provide accurate calculations of employee’s salary and related remittances that have to be made on the employee’s behalf to the employer. These remittance payments can be automated by these service providers that allows the business-owners to be worry-free and allows the business owners to have more time to focus on their business. If you have any questions regarding automating your bookkeeping, please don’t hesitate to contact us. Shajani LLP Chartered Professional Accountants and Advisors have a team of Calgary Accountants, Edmonton Accountants and Red Deer Accountants ready to assist you in your personal and corporate tax filings and tax planning str
This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. ©2023 Shajani CPA.
Shajani CPA is a CPA Calgary, Edmonton and Red Deer firm and provides Accountant, Bookkeeping, Tax Advice and Tax Planning services.