November 7, 2018

The bookkeeping is dead: How to deal with evolution business accounting to focus only on your core business!

The digital revolution and new technologies have shown how many benefits can lead to automate corporate administrative processes. Significant reduction of costs, greater energy to be used in other activities, possibility to monitor the profitability of its business. But how to deal with the evolution of company accounting and keep the focus on your core business?

The administration of a company inevitably goes from keeping the accounts. Very often, however, with the single term accounting, we tend to confuse all the activities related to the administrative management of a company.

The evolution of the accounting landscape of recent years, due to the digitization of most of the activities and an increasingly necessary interconnection of companies in the world, makes it necessary to distinguish between “data entry” activities and registration of financial transactions and analysis and interpretation of financial data.

If we take a cue from the Anglo-Saxon world, we note that the English people, even has more terminologies to indicate, the different specializations of the sector clearly marking these differences, in fact:

  • The term Bookkeeping indicates the branch of accounting that deals with the recording of financial transactions;
  • The term Accounting indicates the branch of accounting responsible for the interpretation, classification, analysis, reporting and summary of financial data.

Understanding this distinction is fundamental for entrepreneurs: the processes related to data entry and registration of business transactions are linked to the classic concept of “bookkeeping” and even if they are part of the management of the accounting machine, are highly time-consuming processes.

Bookkeeping is dead: the evolution of the accounting sector

The data are clear: in the management of company accounting, most of the time is wasted in manual and repetitive activities. The University of Oxford classifies the keeping of accounting among the most easily automated jobs (with a probability of computerization of 96%) and McKinsey expects that 86% of the activities related to accounting in the future will be automated.

Suffice it to say that on average 204.2 h per year is the time spent by companies and accountants in the management of accounting and bureaucracy (of which only 190 h per year are dedicated to managing payments business).

As a result, activities such as entering data related to payments, balancing and managing payments of invoices, salaries and expenses represent an unnecessary cost for the company which today can be significantly reduced by applying relevant technologies such as OCR (Optical Recognition of characters) and A.I. (Artificial intelligence).

In fact, an OCR system (from the English optical character recognition), is a program that automatically recognizes the amounts present on images or documents in pdf. This information is then converted into text that can be modified or searched in a simple way.

In many office applications, such as invoice processing, it saves time and reduces costs in converting paper documents into electronic documents.

Consequently, through an OCR, the whole part related to the data entry, that is to the classical accountancy, can be automated with a considerable advantage in terms of time and costs for the companies. Their use is above all useful for reconciliation of financial transactions with payment receipts.

Often the technology behind OCR is the first link in the chain of many accounting management software, ie software that automates management processes within companies.

There are hundreds of accounting management software that, thanks to the OCR, are able to acquire data and manage various sectors of the administration, such as specific registers or the various sub-funds of a company balance sheet.

  • Those currently on the market are divided into two macro categories:
  • Those specialized only in reading the data;

Those specialized only in the preparation of accounting documents.

In both cases, as long as they save time (and consequently money) to entrepreneurs, their use still does not significantly impact on business management.

So how to deal with the evolution of company accounting, to obtain the best benefit in terms of saving time and money?

There are some very rare exceptions given by partnerships between multiple software that put their specialization at the service of the other’s clients, but they are not optimized to manage payments for example and they still need to interface with external platforms like banks, to close the whole supply chain and have control over the entire administrative area of the company.

Xriba: Automated Accounting

Having the ability to outsource the entire administrative sector is one of the most important steps that a company can take to achieve advanced management. If, on the one hand, the management of the administrative aspect is of great importance, it is also true that a dynamic company needs to concentrate as much energy as possible on its core business.

The advantages are many and all very important: significant cost reduction, more energy to be used in other activities, ability to monitor the profitability of their business. All these elements constitute the decisive mix to manage a company in a truly effective way, as they allow to impose themselves in a highly competitive market in which innovation in managerial terms is a real driving force.

Xriba is the Artificial Intelligence that does these things for you, without you having an office dedicated to this because with Xriba, your entire administrative office is outsourced and always at your disposal!

XribaBooks is an accounting documents management software that is part of the Xriba software suite and which, thanks to the Artificial Intelligence, will allow to automate and record all the information directly in the company accounting software without having to have an administrative office that processes all the data.

The software records the information in the correct budget entries and at the same time uses the protocol to store them in the Blockchain.

Xribabooks through 3 different levels of Artificial Intelligence will allow you to:

  • Upload accounting documents and send any accounting document by taking a photo from your smartphone, forwarding an email with the attached PDF or uploading the file to a specific folder on your computer or on our web application. Our OCR system will extrapolate the data and record it in your accounting;
  • Process the extrapolated data correctly, which will be catalogued and associated with other information already entered in the database and subsequently verified by a team of people, in order to favour the correct insertion and in order to feed the self-learning process of the AI. reducing the percentage of error. The information will then be recorded in the accounting software, and within the blockchain;
  • Link information to each other to analyze the respective KPIs and to stay informed about possible future developments of company flows through predictive analysis. The data will be viewable and available through a web dashboard always available to the entrepreneur.

Moreover, thanks to the integration with XribaPay, the first mobile payment app built around the needs of modern companies, through optical reading and Artificial Intelligence, you can directly pay invoices, F24, payroll and generic payments, simply taking a picture from your smartphone or uploading the PDF document.

XribaPay used together with XribaBooks offers the possibility to associate all payments to accounting records in real time without having to register bank account data.

The solutions listed above create a virtuous ecosystem able to revolutionize the company life giving the opportunity to entrepreneurs to free themselves from excessive costs and tasks due to the fulfilment of administrative aspects that in fact do not serve the growth of the company.

If you also want to start saving your time and have a suite of cutting-edge tools that allow you to evolve your business, immediately request an invitation to be one of the first to use the tools of the XRIBA non-ecosystem as soon as these will be released on the market.

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