3. GL Coding
The General Ledger (GL) is the backbone of any organization’s accounting system used to compile two key financial statements: Balance Sheets and Income Statements. The GL contains user-defined account codes and the listing of the account names, called the chart of accounts (or COA). The process of properly classifying a transaction is referred to as GL Coding and as a manual process requires a lot of time to get right.
Software takes the guesswork out of this process meaning no more manual coding errors or running around the office to get the right personnel involved to code new invoices. Basic software solutions provide a field where GL Codes can be manually entered or selected from a drop down list. While more advanced solutions can automatically populate GL Codes based on vendor, invoice category, or by customized means. They can also use a static GL Code, or require the GL code be completed on approval, and then auto populate amounts against the GL Codes.
Keeping it Simple
The hardest part of going paperless for any company is picking the right software. But it doesn’t have to be. Ultimately, you’re looking to accomplish a few things specific to your accounts payable needs:
Automate Data Entry
Streamline Approval Processes
Automate Office Workflows
Centralize and Package Related Documents
Integrate with Existing Accounting Software
Enforce Company and SOX Compliance
Cut Costs and Eliminate Delays
When it comes to picking Document Capture or Scanning Software, it’s best to focus on the purpose of this software to better weed through all the different solutions available on the market today.
There are a number of bells and whistles you’ll be exposed to, but as long as these two requirements are met, you’ll be getting what’s right for your team and for your company:
Automatic Document Type Recognition
Automatic Data Extraction
Document Management Software can be a great addition for your entire company. However, if you’re focused on just your AP department’s needs, you’ll be looking for features like: