In an ever-changing world of cloud-based accounting, automation and bank feeds are becoming the necessary applications to fully maximise value and minimise administrative hours.
The primary advantage of cloud-based accounting packages is accessibility. However, through software that integrates with packages such as Xero, it has never been easier to manage the books.
This blog post is not to dissect the pro’s and con’s of each software, but to answer what exactly does an invoice management system allow you to do?
Processing incoming invoices (sometimes called bills) and expense receipts can be a meaty task. Especially if a business has multiple spending arms and staff on the road incurring costs. Invoice management software allows you to process an expense, be it an invoice or receipt, quickly and easily. This data is sent to a central cloud system which reads the information and ascertains the nature of the cost. For example, a bill could come in from a stationary supplier for office furniture. Over a relatively short space of time, the software works out who the supplier is, what is the nature of the cost and what (if any) the tax liability is.
Now here’s the magical part.
That data is then sent to Xero and is automatically accounted for and ready to be authorised for payment.
Where payment has already been made, Xero will often flag it to the related bank entry; assuming bank feeds are integrated.
(On that point, bank feeds integrated into Xero really do make all the difference. Make sure you have that box ticked.)
The process by which you send the data to be read is beautifully simple. For paper bills and receipts, you can download an app onto any smartphone and use it to take a quick snap of the document. Once you’ve taken a photo, you hit send. It’s that straightforward.
Even better, if the bill has been emailed and is a PDF attachment, you simply forward it to a personalised email address in order for it to be read and processed.
The next vital step involves putting your feet up and sipping on green tea (which, like invoice management, is really good for you). Once you’ve exhausted those enjoyable avenues, and if you’re feeling productive, you could crack on with other work whilst the cloud does the hard graft and sends your data to Xero ready for you to review.
If you’d like know more about saving time with the bookkeeping drop us a line