As technology progresses, bookkeeping practices have also changed. The amount of physical paperwork has decreased as more bookkeeping processes shift to the online world. This technological shift is by no means complete as the evolution of automated bookkeeping is still in its infancy. In this post a few key elements of automated bookkeeping will be discussed to hopefully shed some light onto where the discipline of accounting is headed.
Automatic Receipt Capture
Automatic receipt capture has become a key component of today’s purchase monitoring systems. When an authorized user makes a purchase using an automated expense card a corresponding receipt is instantly captured. Since the expenditure is automatically recorded there is no need for an accountant to manually enter the transaction. This also allows real time monitoring of purchases and adds an extra layer of security into the expense management system.
Automated Purchase Order Processing
The use of corporate purchasing cards automates the creation and delivery of purchase orders which results in efficient and easily managed procurement of goods. Although automated purchasing order processing is typically used for routine, high volume, low cost purchases, the system can also be tailored to permit irregular, high cost or one-off expenditures. An automated purchase order system will ensure that all necessary parties are immediately informed of a purchase agreement. There is no delay between the time of a purchase order and the notification of the accounting department. Purchase orders are no longer lost in the shuffle, delayed because of delivery problems or forgotten on someone’s desk.
Automated Accounts Receivable And Payable
Many current accounting software programs allow for the easy setup of automatic invoicing and payment tracking systems. No longer does this process require envelope stuffing, reliance on the postal system or follow up by a dedicated staff member. A similar system can be implemented to automate the functions of the accounts payable department as well. Recurring payments are systematically processed while day to day expenses and irregular purchases can be linked to a business debit card. Invoice due dates are routinely flagged thereby reducing the occurrence of late payments. Automated accounts receivable and payable systems eliminate the need for manual paperwork processing and cuts down on human error.
For more information on how your business can automate its bookkeeping process, contact Emburse today to set up a demonstration.