Having good accounting software is like having an in-house financial advisor and accountant all rolled into one.
From managing cash flow to paying bills and setting budgets, accounting software helps businesses streamline their accounting practices and provides a digital solution to expense management methods.
Accounting systems also automatically collect information about other key aspects of your business, such as sales, purchases, taxes and payments.
Keep reading to discover more about what digital accounting solutions are available.
Automatic Billing Systems
Automatic billing systems is another digital accounting solution helping companies accurately and efficiently pay their bills.
Automatic billing software allows businesses to customise an approval workflow to pay bills automatically. Businesses can customise this approval workflow using certain triggers such as the supplier, budget, the invoice amount and financial health of the company.
Expense Management Software
From travel expenses and staff purchases to all the necessary costs a business incurs in order for it to operate, there are a number of financial transactions and expenses that occur within a business.
And, keeping track of all these expenses can be a tedious process.
The expense management process involves:
- Documenting all financial transactions made by the business or an employee
- Processing and recording all invoices and receipts
- Submitting reimbursement claims and approving claims
- Processing reimbursement payments for employees once approved
- Processing payments
Throughout the expense management process, hours are often spent on administrative duties, manual data entry, submitting tax forms and chasing employees for missing receipts.
Expense management software replaces traditional paper-based methods and makes the process easier by automating much of it. According to a 2019 Travel and Expense Management Trends Report, 43% of businesses are yet to automate their expense management process and still use paper-based and manual methods, which are more time consuming and prone to human error and mistakes.
Virtual Corporate Cards
Virtual corporate cards provide companies with a digital solution to employee and business expenses.
Unlike a traditional physical card, which lives in your wallet, a virtual corporate card is a digital card that is stored on your phone. This gives businesses greater control when it comes to setting budgets, protecting employees from misusing funds and setting spending rules to restrict transaction amounts.
Virtual corporate cards can also be instantly issued, paused or cancelled, which means there is no need to card share or go to the bank to resolve any card issues.
Bookkeeping is the tedious task of documenting and recording all of a company’s financial information and transactions including outgoing or incoming payments, sales revenue, business expenses, purchases and invoices.
Traditional bookkeeping processes involve manually recording all this information and documenting the data into ledgers before producing financial statements and reports. Bookkeeping software is the digital solution and replaces many of these lengthy and repetitive tasks.
E-invoicing is another digital accounting solution that allows companies to streamline their finances and accounting practices.
E-invoicing, which is the digital alternative to traditional paper invoices, involves the automatic analysis and recording of invoices.
Benefits of Digital Accounting Solutions
Accounting software provides companies with automatic solutions to many accounting and bookkeeping tasks.
Accounting software can provide businesses with many benefits including a streamlined recording process, automatic bill payments, expensemanaheùent and preparing financial reports.