Pre accounting explanation

WHAT IS PRE-ACCOUNTING? 

Pre-accounting is a new concept, focused on getting your data ready for accounting. In other words, this is the often tedious work of searching through receipts or invoices, organizing them and typing all the data into a spreadsheet or software. And it starts as soon as a purchase is made.

If accounting is the language of business (thanks Warren Buffett), pre-accounting is the language of preparation.

Here’s what you need to know about pre-accounting to raise efficiency. By just giving it a little time and thought, you can save time and money, plus grow your business with better, more data-driven decisions.

Let’s say you buy lunch out for you and your business partner. Before you leave the table, you ask for a receipt and stuff it into your coat-pocket. Traditionally, that receipt’s journey may look something like this:

• It lives in your coat-pocket for a couple of days, until you rediscover it and leave it on your desk to sort out later.
• It then gets buried under a pile of more paperwork.
• Your accountant emails asking for this month’s expenses.
• You find it, crumpled and coffee-stained, and send to your accountant along with a shoebox of paperwork.
• The unloved, forgotten receipt is fetched out and read by your accountant.
• They code it, enter data into the general ledger, and keep it for years in a cupboard.

Sound familiar?

The accountants job is to enter data into the general ledger. Basically not more!

Since accountants work on a monthly cycle, they are not so in a rush to report this data before the bookkeeping months close.

Reports weekly

Reports of data is important to a founder or CEO of the business, and they can't wait until months end.

This is where Easy Invoice Manager shines!