Depreciation
Within the accounting system, certain accounts are designated as asset accounts. This allows the software to recognize investments and automatically spread the associated costs over their useful life through depreciation.
The depreciation process is handled automatically, saving considerable time and eliminating the need for complex spreadsheets and manual depreciation schedules.
Accruals and Deferrals
Some expenses and income relate to multiple accounting periods. To provide an accurate financial picture, these amounts should be allocated to the correct periods.
Traditionally, this would require various journal entries to allocate costs and revenue appropriately. Our approach is simpler: when processing invoices, we indicate the period over which the costs or income should be distributed. This ensures the allocation is made correctly from the start.
Other Adjustments
No matter how much automation is implemented, there will always be certain accounting entries that require manual attention. Examples include provisions, reserves, and other period-end adjustments.
Although these entries cannot always be automated, recurring transactions can be saved as recurring journal entries. This makes it easy to copy them to the appropriate period, reducing manual work and improving efficiency.
