Table of contents7 sections
The same data copied over and over
An invoice is issued in one system, then exported to a file, sent to the accountants and entered again into another program. Information about the payment sits somewhere else again, most often in online banking.
As a result, the same data is copied, checked and corrected many times over.
Duplicated data takes time, increases the risk of errors and leaves the business owner unsure whether the information in the system is up to date.
Where does data duplication come from?
The problem most often appears when a company uses several unconnected tools:
- an invoicing program
- an accounting system
- online banking
- an email inbox
- Excel spreadsheets
- a project management system
Each of these systems holds part of the information, but none of them shows the full picture.
An employee issues an invoice, the accountants book it again, and the business owner checks manually in the bank whether the client has paid. If data is not synchronised automatically, every change requires another update.
What problems does manual re-keying of data cause?
Duplicated information is not just extra administrative work.
It can also lead to:
- wrong amounts or payment due dates
- the same document being entered twice
- no up-to-date invoice status
- a payment reminder sent to a client who has already paid
- a cost being assigned incorrectly
- delays in passing documents to the accountants
- differences between financial reports
The biggest problem, however, is the lack of an up-to-date picture of the company’s situation. Accounting data may be correct, but available only after the month is closed. Meanwhile, decisions about payments, projects and spending have to be made on an ongoing basis.
How to reduce data duplication
The foundation is connecting the systems in which financial data is created and processed.
One source of invoice data
An invoice should be entered only once and then passed automatically to the other tools. This applies to both sales and cost invoices.
This way the accountants, the person responsible for payments and the business owner all work with the same information.
Automatic synchronisation of statuses
A change in an invoice’s status should be visible in all related areas.
If the client has paid, the system should automatically mark the document as paid. There is then no need to check the bank account by hand and update several spreadsheets.
Linking documents with bank transactions
Automatic matching of transfers with invoices reduces the number of manual operations and lowers the risk of mistakes.
This matters especially when the client:
- did not give the invoice number
- paid from a different account
- paid several documents with one transfer
- settled only part of the receivable
Automatic assignment of data
Cost invoices should be assigned automatically to the right category, project, business partner or cost owner.
This way the same data does not have to be sorted out again when reports are prepared.
How Administy solves the problem of data duplication
Administy brings together data from invoicing programs, bank accounts and the company’s other financial areas.
The system pulls in information about:
- sales invoices
- cost invoices
- business partners
- payment due dates
- document statuses
- bank transactions
This means data does not have to be exported manually to a spreadsheet or re-keyed into further reports.
Administy automatically recognises payments and links them to the right invoices. If a match is not clear-cut, the system can present suggested links for verification.
This helps reduce situations in which:
- an invoice is still marked as unpaid even though the transfer has arrived
- the same payment is settled twice
- the accountants receive outdated data
- the business owner works from a different report than the people responsible for finance
What does the company gain?
Connecting invoicing, payments and accounting data above all gives time back.
The company also gains:
- fewer manual operations
- a lower risk of errors
- up-to-date statuses of receivables and payables
- a faster document workflow
- better control over costs
- more reliable reports and cash flow forecasts
The accountants remain responsible for correct tax settlements. Automation, however, means they receive organised, current data instead of yet more files and documents sent through different channels.
Summary
Data duplication arises when invoicing, accounting and banking operate as separate areas.
The solution is not another spreadsheet, but automatic exchange of information between systems.
Administy organises data on invoices and payments and updates their statuses in one place. This lets the company cut manual re-keying, reduce errors and get a current picture of its financial situation faster.
The same data entered twice is two chances for an error. Every copy-paste risks an invoice in one system not matching the other.
