Using Receipt Bank for Payables Accounting
Mar 4, 2019
Using Receipt Bank for Payable Accounting
Suppose your company buys some goods from suppliers and in absence of cash-in-hand, does not pay instantly. Then the company will be the debtor to the supplier up to that amount of money. That money to be paid to the supplier in the future becomes account payable.
Account payable is simply the amount company owes when it buys anything on credit. As it is a credit, it appears on the liability side of the company’s balance sheet. It is a short-term loan that needs to be paid-off within a time-duration.
This short-term credit based accounting is termed as Payable Accounting.
What are Receipt Banks?
Payable Accounting is made easy and less mundane with the help of Receipt Banks.
What receipts banks do is, they automatically takes out account payable entries from your company’s bills and invoices and transfers it to your accounting software.
It is cost and time efficient as the task of manually entering payable bills and invoices are eliminated. It also helps in decreasing the headcounts in the firm. Everything is done virtually which makes it less prone to errors. This database can be accessed and printed anytime, anywhere, when required.
You must be wondering how this ‘Receipt Banks’ works?
Let me help you with that. Receipt Banks works on Optical Character Recognition or OCR Technology. Its like scanning a document, or more like post scanning work. It converts the document or image into re-writable or editable form. Receipt banks scans your bills or invoices and searches for account payables. It then interprets all the database collected and transfers the credits to your accounting softwares.
Why maintain Account Payable?
It is very essential for a firm, whether big or small, to maintain its credit purchases in the books of accounts very clearly and precisely. It will lead to correct financial status of your firm. It is also beneficial from the following aspects:-
- Government Audits: Showing account payable in your accounts will always show your correct financial status. It will lead to correct evaluation of audit and taxes by the government.
- Genuine Expense claims: Secondly, to minimize or avoid omitted or double payments made towards the credit payments.
- Indirect Tax Credit: Proper data makes it easier to claim for the indirect tax credits.
What features Receipt Bank provides?
1. It will eliminate the process for entering each and every entry manually to your software.
2. Importing to accounting softwares like Xero or Quickbooks from receipt banks are easy and error free.
3. Payments are automated i.e. all the due payments are automatically paid-off on their due-dates with the help of receipt banks.
4. Receipt banks also helps in converting bank transactions into CSV format.
5. Receipt banks has this feature of converting the amount of foreign currency into base currency.
This automated service of Receipt Banks makes it very easy to manage and pay-off you due payables. However, to integrate it with your accounting software, you must make a setup in the settings. We bring you few examples that can help you setup the integration with softwares.
Linking: To link receipt banks to your QuickBooks and Xero account, you must follow these given steps:
- Log in to Receipt banks. Then, click on account settings.
- Click on the integration tab.
- Click on the button ‘choose integration’. Select Quickbooks or Xero(whichever your accounting software is) accounts. Then go to authorization URL.
- Log in to accounts, select the organization you’d like to connect, then click allow access.