The finances of a small business can be something of a challenge, as its owner must deal with an unfathomable number of receipts, invoices, expense reports, not to mention the taxes that need to be filed. However, advances in financial technology have automated many of the processes involved. A good number of modern bookkeeping workflows utilize both Dext and QBO, which stands for QuickBooks Online. When used together, they optimize the organization and automation of finances to reduce manual work and complexity.
What is Dext?
Dext, which used to be Receipt Bank, is a tool designed to allow businesses to collect receipts, invoices, and bills. It is an all in one tool that allows for the collection and processing of these documents. The platform minimizes the need for a lot of manual entry as it applies OCR (Optical Character Recognition) technology to fetch data from uploaded documents.
Dext is optimized for contractors, consulting firms or field service providers who have to deal with a high avalanche of expense receipts for their work. With Dext, documents and contact information are digitized and organized which greatly reduces paperwork and saves a lot of time.
What is QBO?
QBO is short for QuickBooks Online, and is developed by Intuit. This application is a cloud based accounting that is predominant in use for accounting software to small and medium business enterprises.
Dext and QBO Integration
While Dext and QBO as standalone solutions provide some value, integrating them gives a complete solution which eliminates, simplifies, and automates much of the financial documentation work.
-
Data Collection and Processing in Dext
In Dext, financial documents such as receipts and bills are uploaded for processing. The system extracts critical information including the vendor name, date, amount, and tax, and sorts them according to rules or learning mechanisms based on previous inputs.
-
Syncing with QBO
The processed data can now be sent for review. In Dext, processed data can be sent directly to QBO. Dext automatically assigns each transaction to the appropriate account (i.e., meals, travels, office supplies), thus ensuring proper recording of expenses in QBO.
-
Accurate And Up To Date Financial Records
Due to QBO being online, changes and updates are done instantaneously. With Dext, once an expense is submitted, forwarded, and processed in QBO, it becomes part of current accounting records. Thus your books will always be up to date and require no manual data entry for many transactions.
-
Automated And Direct Tax Compliance And Preparation
With systematically flowing transactions along with organized, categorized, and appropriately documented expenses into QBO, preparing taxes becomes significantly less severe. All records and documents that can be claimed as deductibles are available with a proper trail.
-
Simplified Tax Preparation and Compliance
With organized, categorized, and properly documented expenses flowing directly into QBO, preparing for taxes becomes far less stressful. You have clear records and a paper trail for all deductible expenses.
