3 Must-Have Tools for Easy Bookkeeping Automation

By June 5, 2019News
3-must-have-tools-for-bookeeping-automation

Spend Less Time on Your Books & More Time in The Cloud

How much time does your small business spend on organizing your bookkeeping? A few hours a month? A few hours a week? No matter how long it takes you, that’s time taken away from your business. Whether you have an in-house bookkeeper or you manage it yourself, this process becomes a major ongoing headache.

The good news is this: your paperwork headache can be completely eliminated. Plus, it can be eliminated without spending time tied to your desk or money paid to a bookkeeper. You can do that with some simple automation.

What is Bookkeeping Automation?

Bookkeeping automation creates automatic online workflows for processes you normally do by hand. Instead of following your usual step-by-step process, the programs you’re using will do all the work for you.

When I start working with any small business, automating their bookkeeping is one of the first processes we look at. It saves time, it saves them from mistakes, and best of all, it’s very easy to implement.

The system I use for Schwan & Associates (and that many of my clients are currently using to ease their bookkeeping tasks) has three components:

  • Hubdoc
  • QBO (QuickBooks Online)
  • Plooto

These programs are all great on their own, but it’s when you get them working together that the magic really happens. All that’s required is a simple initial set up that links these three programs together. Once that’s done, you’ll be almost fully automated for e-transfers, payables, receivables, and general bookkeeping and records. It’s a self-sustaining cycle you can put up and leave alone to function behind-the-scenes in your business.

How Each Program Works:

Hubdoc is a receipt-capture tool. This is the “information collection” portion of the automated bookkeeping process. Think of it as Step One (in most cases) for your bookkeeping workflow.

Plooto is a simple and effective payment tool. It’s the glue that sticks everything together in this automation process. When you connect them, everything you do in Plooto is automatically reconciled in your QBO file.

QBO (QuickBooks Online) is your recording tool. This is your control centre where you can see everything that’s happening in your bookkeeping. When you don’t have automation tied into QuickBooks, it can be more time-consuming to manage your books. That’s why I always recommend integrating Hubdoc and Plooto into the process.

An Example of the Automation Process for Payables

  1. Make a purchase from a vendor
  2. Take a picture of the invoice using Hubdoc, which automatically uploads it to QBO.
  3. Taking the information from QBO, Plooto manages the payment. If it’s a vendor you’ve used before, your account details and their account details are already in the system. All you have to do is approve the transfer and the money goes directly from your account into theirs. A confirmation is sent to the vendor and everything is recorded in QBO.

(if it’s a vendor you haven’t used before, Plooto emails them to securely collect their banking details for all future transactions and payments).

The Benefits of the Automation System

Here are just a few ways this simple bookkeeping system can save you time, money, and major headaches when it comes to managing your paperwork:

Sending E-Transfers & Automating Payables

If you don’t have a system in place to help you with e-transfers, you’re probably spending a lot of extra time sending and recording them. Usually, you can only send one e-transfer at a time. You have to set it each transfer individually. Then you need to record each payment you’ve made in QuickBooks Online.

It might not sound like a lot of work for one e-transfer, but if you have a good amount of transfers and payments, it can quickly add up. Plus, this is where payments and invoices get forgotten.

With the Hubdoc/Plooto/QBO integration, you don’t have to think about or manage any of your e-transfers. All your approved payments get sent directly from your account to the vendor’s accounts (and vice versa), and everything is automatically recorded in QBO.

Eliminating Paper Completely

If you can see through the paperwork to your desk, you’re one of the lucky ones. Maybe you have it tucked away somewhere out of sight, but it’s probably still there somewhere, haunting you from a distance. If it is, you’ll be happy to know the Hubdoc/Plooto/QBO integration can eliminate virtually every piece of paperwork you need for your bookkeeping. From bills and

payments, to expense records and invoices, all of it is saved 100% online (and in the cloud, for extra safe keeping). That’s bound to be a breath of fresh air for you and your desk.

Automating Receivables

If you’ve ever fielded questions from a client looking for the best way to pay you, know that with your new integration, you’ll never have to go back and forth about payment details again. Your invoice will go directly from QBO to Plooto. Then, Plooto will send the invoice to your client, along with a request for their banking info. Once they’ve entered it into the secure system, your invoice will be paid via direct debit. Their money will transfer directly from their account to yours. No major paper trail to follow. No waiting for someone to sit down once a month and get their invoices paid. You’ll get paid faster and with no paperwork.

Never Use Double-Entry in Your Bookkeeping Again

Manual entry is one of the top time-killers in a business. Every time you have to double up a task in your workflow, it’s time spent away from your clients and your business development.

If you’re interested in setting up simple bookkeeping automation, but you’re not sure where to start, get in touch with one of our qualified CPAs. We’ll be happy to guide you through the process and see where else you can benefit from automation in your business and financials.

Jeff Schwan

About Jeff Schwan

Jeff established Schwan & Associates CPA to bring unique “cloud-based” accounting services to small and medium-sized Edmonton businesses. Inspired by the quality time spent with his family, Jeff’s goal is to put more time back in the hands of the busy entrepreneurs who strengthen Edmonton’s business community. With 10+ years of experience in diverse management roles, Jeff has acquired a strong set of leadership and mentoring skills. He is, and always has been, an educator at heart. He knows the value of spreading knowledge, investing in people, and continually learning.

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