Has the Fintech ‘Revolution’ reached the way Accounting is done?
There has been a lot of investment and hype around Fintech. We are seeing the rise of new models and technology. Some of these changes are more advanced and differ to in each country. Below is a list which I consider to the main sectors for which Fintech is impacting:
- Banking – Digital Banking
- Investment Management
- Company Formation
- The cloud (storage)
- Data (block chain)
- Property Management
I will be writing a series of blogs dealing with some of these and try to bring some insight in practical solutions being offered to see if they are improving or impacting business efficiency or in the way we manage our finances.
Today, I will look at the Accounting Industry and particularly the one of the main Admin headaches in processing the Invoices received by Companies from sole traders , to SME’s to large Companies.
This is still very much a paper industry. Invoices are either emailed, posted in the mail and these are in turn printed , manually posted into Accounting Systems. This blog will focus on some solutions and attempts to solve this . This blog will not deal with the payments side.
What is the Problem?
We all have a physical or virtual pile of documents, that is an unorganized mess. There are many tools for: Scanning, Filing, Storing, Syncing, turning paper into Digital
Documents, and you still end-up with
- manually organizing your Files in Folders,
- manually posting into Accounting Systems
- uploading the Documents to your Accounting Systems.
This scenario does even address the headaches relating to Approval and Payment.
What is the solution?
There are a number of companies offering Scanning of Invoices via an APP and the scraping of E-mails etc.. Some of these allow for the ‘automatic’ uploading into accounting programs such as Xero, QuickBooks & Bill.com. Examples of these are Receipt Bank, Hubdoc and Dokka.
In an ideal world, we should be looking a paperless solution, using Artificial Intelligence (AI) to post directly into the Accounting system with checks and balances on place in regard to authorisation and ease of auto payment.
One Company that is trying to address this is PaperLess Software who are a Sage Platinum Developer Partner that created a powerful Document Management Solution that uses automatic invoice recognition, data input and document matching together with electronic document flow and online document exchange and approval to improve the efficiency of accounting systems like Sage 50c, Sage 200c, Sage 200 Standard Online and Sage 200 Extra Online.
Some of the features :
- Automatic Invoice Recognition for Sage users so that you can spend a lot less time on data input and increase your data accuracy levels by reducing human errors.
- Post documents from PaperLess directly into your Sage accounting software and create automatic workflows to make processes faster, more accurate and easier to handle.
- Automatic matching and closing of Purchase Orders with discrepancy handling.
- Lookup of Documents directly from within Sage accounting lines
- Full Automation of Emailed Invoices with PaperLess Company Inbox ( Automate your Document Management Processes from the moment suppliers or clients send you invoices by email until they are posted into Sage)
- Solution of online approval of Invoices
This solution has some interesting features and is interesting that Sage who are one of the leading Accounting Solutions in the UK is taking this initiative .
I am interested in creating some discussion and feedback on this issue and other solutions available in the Market. Feedback and Comments are encouraged.