How Financial Conversion Software Can Keep You Ahead of April 15th
While most people tend to think of the year as divided into four seasons, accounting professionals know that the year is really divided into two: tax season and pre-tax season. Although everyone in the industry is familiar with the rush of tax season, all too often they make the mistake of assuming that there isn’t a lot of “real” work that can be accomplished during pre-tax season. The “off” season is a great time, however, to get accounts in order and get prepared so that as soon as tax season starts, filing is fairly simple.
One of the most time consuming parts of getting ready to file is the problem of entering data from a variety of sources. In order to accurately know the financial details of a business, it is necessary to input every receipt, invoice, bill, and estimated expense into an accounting software program. Unfortunately, most of these documents arrive at a business in pdf format. While this makes it possible for everyone to open and read the file, most business accounting software programs are unable to do much more than store the file. Thus, it becomes someone’s job to manually open, read, and enter the data.
Save yourself the time and the pain
This process is not only time-consuming, but it has the potential to create transcription errors. As each invoice or receipt is manually typed into the computer, it is easy for numbers to be transposed or dropped. That can lead to big problems later on as extra money seems to appear in expense accounts and/or disappears from income charts. Finding the source of those errors can take dozens of man-hours as every document is manually checked and reports are re-run. In some cases, errors can compound for years; waiting for an audit to occur before they are finally found and corrected.
Automated financial conversion software can reduce or completely eliminate many of these problems. Instead of paying personnel to convert all of those documents by hand, this software is able to convert the files into something that can be read by many common accounting software programs. Once the file is converted, the data in it can be entered into the program automatically. There is no chance for human error to enter the system. Best of all, you and your company will save hundreds of hours of employee time.
By using the lull of pre-tax accounting season to install and utilize a financial conversion software program, a period that used to be down time can significantly reduce the workload during tax season. You and your employees can immediately start processing invoices, receipts, order forms, bills, and other documents in a matter of minutes. When it is time to file, you’ll have everything you need ready to go.