Digital Bookkeeping – take photos of your expenses and go paperless
Thanks to the internet and a bit of competition, you can now process expenses pretty painlessly with a smartphone and an inexpensive app. Here at Alpha-Financials, we use a product called Receiptbank and think it’s a great digital bookkeeping software. However, others such as Shoeboxed and Expensify seem to offer equivalent functionality at a similar price.
The Simple Cost benefit analysis
Digital bookkeeping tools such as Receiptbank currently costs £10 per month, for unlimited users and an average of 50 transactions processed per month over a 3 month rolling period. Charges then increase for each block of 50 further transactions per month. Within a guaranteed 24 hours (but it’s usually only about 6), each transaction will be processed and can be automatically posted into your accounting system. If you’re using a cloud system such as Xero, then the picture will also be stored online as part of that transaction.
For all small businesses, the reduced hassle, improved accuracy and lower bookkeeping hours compensated many times over for the small monthly payment for digital bookkeeping. An absolute no-brainer!
Further benefits include the use of a variety of ways of getting invoices and expenses into the system. You and/or your suppliers email in to Receiptbank, save images in dropbox or click and drag them into the program. If all else fails you can even post them in however, you could do with updating your inefficient processes.
Very rarely the App can freeze – particularly if you’re not keeping the app up to date. If you have a problem, solving it usually involves email exchanges (which are fast) rather than talking to a person. So far we’ve found these to be minor irritants which wouldn’t change our recommendation to use such software
A final thought
Do consider going one step further than just digital bookkeeping. SMEs can fully automate their accounting and produce month-end accounts almost instantly . Linking digital bookkeeping with digital accounting and going fully cloud based is the way forward. Only about 30% of all SME are on the bandwagon though. Achieve this by combining Receiptbank, Xero and various other inexpensive pieces of software. This puts the accounting processes of most big companies and their multi-million pound systems to shame. In addition, it frees up your resources to focus on doing the more interesting and valuable stuff. Your attention should go to analysing performance and finding ways to increase profits and cashflow. This is an area where Alpha-Financials is of the greatest value added to your SME: increasing profits.
Or read more on digital tax and digital accounting.