Document Management Blog

The Benefits of Automated GL Coding with DocuWare | DocTech

Written by Laura Bulmer | Tuesday Feb 20, 2024

DocuWare is a powerful and dedicated document management system that enables organisations to automate GL coding and benefit from reduced errors, faster processes and improved efficiency. 

DocuWare removes the lengthy and tedious work of manually assigning and cross-referencing codes and transactions.  Automated invoice processing gives employees more time to carry out more meaningful tasks and removes tedious administration.

 

Understanding GL Coding

GL Coding refers to the process of assigning General Ledger (GL) codes to transactions in the accounts payable process.

In accounting and finance, the General Ledger is a record of all financial transactions of a company. GL coding involves assigning specific codes to various transactions to categorise them properly for accounting and reporting purposes, and aids the correct approval of invoices.

We have many new and existing clients who request to automate or at least improve their GL Coding with DocuWare.

For example, when processing invoices in the accounts payable department, each line item on an invoice may need to be assigned a GL code.  This will correspond to a specific expense or cost category in the company's chart of accounts.  This coding helps ensure accurate financial reporting and analysis.

Reduce Manual Intervention

The goal of most accounts payable teams is to have as little manual intervention as possible from the moment an invoice hits the shared finance email inbox.

Automated GL coding with a document management system such as DocuWare will significantly streamline your accounts payable process, reduce errors, and enhance overall efficiency.  This is particularly the case when it comes to assigning approvals and getting invoice data seamlessly into your finance package. 

The Steps and Benefits of GL Coding

Before automating any process, especially ones that involves financial information and transactions, we recommend these following best practice steps to ensure you get the most out from your project.

Get Organised

To automate your GL coding with DocuWare, your team must ensure that your chart of accounts is well-defined and organised. This includes all the relevant account codes for suppliers, different expense categories, departments and projects.

With well organised foundations in place, you can hit the ground running with GL coding automation and get processes moving quicker.

Integrate DocuWare with you Accounting Software

Where possible, we recommend integrating DocuWare with your ERP and/or accounting software (e.g. QuickBooks, SAP, Sage or others). This integration helps in syncing document data with your financial system, minimising manual data entry.

Capture and Centralise Invoices

Use DocuWare to capture and centralise all incoming invoices and relevant documents in a digital format.  This eliminates paper-based processes and provides a centralised repository for easy access.

Implement Data Capture with Artificial Intelligence (AI) and Optical Character Recognition (OCR)

Leverage data capture technology and artificial intelligence with DocuWare to extract key data from invoices automatically. By using OCR, the tool can read and interpret data from scanned or digital documents, reducing manual data entry and errors.

Define Rules for GL Coding

Your team will need to set up rules and document workflows within DocuWare to automatically assign GL codes based on predefined criteria. For example, you can create rules to assign specific GL codes based on the vendor, invoice amount, expense type or any other preferred parameter.

Review and Approval Workflows

Implement a streamlined document approval workflow within DocuWare.  This ensures that invoices are automatically routed to the appropriate individuals based on business rules, for review and approval before they are processed for payment.

This speeds up the entire approval process as documents are not left on a desk or sat in an inbox waiting to reviewed. DocuWare sends out approval reminders to the appropriate person, and should there be no response after a set period, the system will contact the next approver in the workflow.  

Audit Trails and Compliance

We advise our clients to take advantage of DocuWare's features such as visual stamps for maintaining audit trails.  This is essential for compliance purposes and provides transparency into the GL coding process.

Process Improvement and Employee Training

We will help you to analyse the situation prior to using DocuWare for your finance processes to ensure we create something of real value.  We will also help to train your staff on how to use DocuWare effectively for GL coding processes.  We must ensure staff are confident with the system's features and understand what has been created, what will be automated and what an exception will look like.

Reporting Dashboards

A reporting dashboard from DocuWare enables you to obtain the latest analytical data from across your organisation.  It pulls together information from various platforms providing transparency and the ability to visually spot trends or bottlenecks. 

Organisations can quickly see where financial transactions are up to, alongside outstanding approvals or any other parameter of their choice.

Regular System Updates and Maintenance

We advise our clients to keep DocuWare and any integrated systems up-to-date.  We make our clients aware of DocuWare software updates and perform necessary maintenance to ensure optimal performance and document security.

By following these steps with an experienced provider of DocuWare, your team will harness the benefits of automated GL coding with DocuWare, leading to increased accuracy, efficiency, and overall improvement in your accounts payable processes.

To discuss enhancing your accounts payable process if you are sick of manual data entry and know your team could be more efficient, please get in touch with our experienced team and start reaping the benefits of automated GL coding.