How to improve accounting processes?
Accounting is one of the main tasks of business management. Accounting using the double entry or double entry method, dates back to the invention of Luca Pacioli at the end of the 15th century, in which he determined that a transaction has two implications or two accounting entries, one in debit, and the other in credit. Due to the great importance and relevance of accounting management, there is a large set of rules and laws that impose the criteria to keep accounting correctly. Not only is it established how, but, in addition, the laws also impose accounting verification methods, such as, for example, the obligation to audit the accounts and financial statements from a reasonable size of the company. In short, correctly managing a company implies a series of good practices and accounting processes that ensure the integrity and veracity of the accounts. In this article, we will therefore proceed to discuss some ways in which your company can improve accounting processes to comply with all regulations.
What are accounting processes?
Accounting processes refer to the entire set of tasks, processes and protocols that a company has internally to carry out accounting correctly. These accounting processes can be written, they can be broken down, more detailed, implemented throughout the company or not. If not, it is possible that the company is real chaos in the financial area, which can lead to serious accounting problems. Let’s take an extreme example. Let’s imagine a case in which there are practically no accounting processes and, therefore. It is the same person who receives an invoice, who records it, who approves it, even in an even more extreme case, that same person is the one who audits the company’s accounting. As is obvious, this system would not make much sense within a company. It would be a single person with all the power, and there would be no distinction of tasks. This could carry too much risk for a company, because numerous accounting irregularities could be carried out.
On the opposite side, we can give the example of a company in which the accounting processes are very well documented, and the respective standards are implemented in the company and are respected by the employees. In such a company, the ideal ecosystem would be represented as follows. The company would receive invoices automatically. There would be a person dedicated to accounts payable, whose mission is to review the invoices received. Once a first review is done, these would be passed to the next level, so that the invoices were approved and, if so, passed to accounting for correct accounting.
How to improve accounting processes with digitization
Digitization has played an important role in the evolution of accounting processes. In the past, accounting was kept on paper, in physical accounting notebooks. Today it is impossible for us to think how accounting on paper would work. Digitization makes a company’s accounting systems, protocols, methods and processes better, with fewer errors and more traceable. Consequently, the accounting of the company will be carried out in a better and more efficient way. Today more and more companies have an accounting or ERP system, let’s say a minimum. But these systems are still a bit outdated, and usually lack certain features linked to digitization that improve accounting processes. Digitization can help make the following processes more efficient:
– Invoice Receipt
– Extraction of information from them
– Accounting approval of invoices
– Accounting record
– Reconciliation and traceability of movements, inputs and outputs
– Implementation of processes and procedures
Snab as a tool to improve accounting processes
Thanks to technological evolution, Snab is able to automate and digitize all the accounting processes described above. It will improve the efficiency of your employees, their happiness, by eliminating a large set of manual and redundant tasks, human errors derived from manual tasks will be eliminated, the centralization and visibility of the company’s movements will be improved, and traceability will be gained. At all times you can track who has received an invoice, who has posted it, who has edited it, who has approved it, who has paid it, etc. If we go into more detail, we explain how Snab can help you separate accounting processes.
– Reception of invoices:
Snab, thanks to its pioneering technology, allows you to receive invoices directly on the platform, avoiding all kinds of paper documents. It is a fully digital reception.
– Extraction of digital information:
Snab takes advantage of technology to automatically scan invoices and extract information digitally. Forget about manually entering the data of an invoice in an Excel.
– Digital approval management:
Snab allows you to establish digital approval flows and therefore approve invoices in one click, without leaving the platform.
– Role management:
At Snab we have several predetermined roles. Each employee will be assigned a unique role that will limit their ability to act and their visibility. Fundamental to respect and guarantee adequate accounting processes.
– Management of suppliers and clients:
From Snab you can carry out onboarding of your clients and suppliers. Digitally.
– Management of collections and payments with automatic reconciliation:
From Snab you can make payments in a pioneering way. You no longer need to leave the platform to insert manual transfers at the bank, or export outdated XML files.
Snab as a treasury management tool that allows improving accounting processes
Snab is a pioneer cloud treasury platform in Europe that supports finance and treasury teams in any and all functions and tasks related to treasury and accounting management, and helps companies to substantially improve all their accounting processes, through digitization, improved traceability, and the separation of roles. Snab serves as a banking aggregation platform, allowing companies to access all their bank accounts in different banks and in different countries from a single place and with absolute independence, so that the financial team can access their situation in a few clicks of box. Snab also serves as a billing tool, that is, it automates the entire invoice receipt, scanning, and automatic recording process, and also serves as a payment and collection management tool, providing full control and visibility to the functions of accounts payable and receivable. The platform has pioneering technology in Europe that allows you to pay and collect invoices in one click, from Snab, without having to leave the platform.