Being a true PROfessional means using the right tools

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When would a skilled craftsman decide to use a quality grinding machine instead of manual sanding with sandpaper? The answer is simple on one hand, understandable to every craftsman - and we accountants can add something more to it as well!

How does a craftsman think and how does an accountant?

Well, it depends - if he doesn't have many of such tasks, let's say up to 4 per month, and each takes him 5 minutes - well, that's not a big deal. Those 20 minutes per month don't cause him significant trouble.

But what if he gets a new job that he knows will take him at least 15 hours over the next 3 months if done by hand?

Any craftsman with vocational training can calculate: 15 hours, €70 per hour (which he could otherwise earn from other clients, more than €1,000 in total). With a good grinding machine, which costs him €500, he'll finish the job in 3 hours. The decision is simple - by making the purchase, he saves at least €400 on this particular job.

We accountants can even tell him more - the grinding machine is likely a fixed asset, and its cost is not a one-time purchase, but it gets amortized - from that perspective, he's even more in the plus; he might even be eligible for investment deductions, VAT deductions...

Well, we've delved too far into accounting thinking. Now, back to the essence - how do we make decisions in accounting in similar situations?

When you, as an accountant, encounter foreign bank statements, how do you approach them? Do you manually book them or find suitable tools?

The answer is similar to the consideration the craftsman made - but even more deceptive. Modern tools don't come with a high initial investment - the cost is ongoing and not that high.

It's more about calculating how much time MANUAL entry of 100 lines of foreign bank statements takes (with all transactions, descriptions, reconciliations, fees...). What about 500? What if there are more clients - and more and more over time? The value of an hour of accounting work may not always be €70/hour, but that doesn't mean

You aren't losing a significant part of your profit by doing manual work!

Processing such statements manually is:

  • Time-consuming,
  • Work with low added value,
  • Clients rarely pay you extra, even though it takes much more of your time,
  • Occupies your capacity (instead of having employees work on other matters),
  • More prone to errors...

How to immediately save 1,500 EUR per year in an accounting service?

Let's get back to the numbers! If a good tool saves you 2 hours per month for 2 clients using foreign statements (let's say each client has 200 such transactions per month).

Assuming an hour of work is worth at least €40 (that's at least what you can charge new clients).

We arrive at a value of 160 EUR. With a tool that costs 30 EUR, it's truly a simple equation of how to save more than 1,500 EUR per year!

 

Check if it's true that with a good tool, you can get things done up to 4 times faster. We offer a free 14-day trial.

The development of DigiAce is co-financed by the Republic of Slovenia and the European Union from the European Regional Development Fund.

The development of DigiAce is co-financed by the Republic of Slovenia and the European Union from the European Regional Development Fund, with a financial support of EUR 54,000 under the P2 2022 call.
The aim of DigiAce is to automate the import of statements and transactions when dealing with FinTech providers. This promotes the transition to digital and more efficient business operations and encourages the recruitment of high value-added staff.
Short description of the results of the operation:
The operation has developed, refined and commercialised a web application for the conversion of business data through FinTech providers and its direct import into accounting and ERP software. In addition, we have developed and integrated the Bankconnect module, which allows a significantly simplified direct retrieval of bank statements also from traditional banks. Within the project, we have prepared the basics for building an API interface for more modern integration with other applications. In addition, the project implemented a number of other solutions, such as integration with the CRM system, integration with the payment and subscription system (Stripe) and a multilingual website - including a back-end multilingual interface (application).