At Peak Strategies, we frequently discuss how technology and Artificial Intelligence (AI) are transforming the pharmacy landscape and into the accounting world. While AI is often associated with data collection and efficiency improvements, today I want to shed some light on how these technologies can specifically enhance bookkeeping processes.
Over the past few years, AI and automation have become integral to various industries, and bookkeeping is no exception. AI can simulate human thought processes, recognise data patterns, suggest actions, and even generate new content. As accountants and bookkeepers, staying updated on technological advancements allows us to increase efficiency, reduce errors, and streamline time-consuming tasks.
How Technology is Enhancing Bookkeeping Efficiency
Many bookkeeping tasks can be repetitive and labour-intensive but AI and automation can help streamline these processes. In my many years at Peak, here are a few ways I’ve seen where technology is making a difference:
1. Using Accounting Software
Most pharmacy owners already use accounting software for bookkeeping but some still rely on spreadsheets or manual ledgers. Embracing accounting software significantly improves efficiency by simplifying income and expense tracking, bank reconciliation, and payroll management.
If you're already using an accounting software, make sure you're leveraging all its features. For example, activating bank feeds for business and credit card accounts allows transactions to flow directly from your bank into your software, eliminating manual entry, saving time and reducing human error. Additionally, accounting softwares enhances record-keeping by securely storing all transactions, making audits and financial reporting much easier.
2. Automating Invoice Processing
Processing invoices can take anywhere from a few hours to several days, depending on the size of your pharmacy. Sorting, renaming, and entering invoice data into your system can be so tedious and time-consuming. AI-powered programs can now extract key details such as supplier names, invoice dates, GST amounts and balances to automatically integrate them into your accounting software.
These platforms also learn your transaction coding habits to help suggest account allocations and preventing duplicate supplier entries. As your invoices are automatically linked to your creditors management system, it makes it easier to reference past transactions and eliminates the hassle of searching for old invoices.
3. Streamlining Employee Onboarding
Bringing new employees into your team also requires collecting personal details before payroll processing. This can be time-consuming, especially if missing information is only noticed at payroll processing time.
Some accounting softwares now allow you to send digital invitations for new employees to complete their details online. Once submitted, you will receive a notification for review. Employees can only enter personal information, while employment details (rates, classification, etc.) must be added by the employer. This feature reduces the administrative workload, minimises errors, and ensures payroll is processed smoothly. It’s also important to note that you should always check your QCPP record-keeping requirements to maintain compliance.
4. Implementing Rostering Software
Effective rostering ensures the right staff are scheduled at the right time which helps pharmacies to manage payroll expenses efficiently. While some pharmacies still use spreadsheets or paper-based rostering, rostering software offers several benefits:
Increased Efficiency: Once the roster is finalised, employees receive their schedules via mobile notifications. Employees can also request leave through the system, making it easier to plan future rosters. Some rostering softwares can integrate with accounting systems by automatically transferring timesheets for payroll processing.
Budget Management: Many platforms estimate wage expenses based on finalised rosters, allowing pharmacy owners to compare costs against budgeted payroll expenses.
Staff Accountability: Employees clock in and out via the software, ensuring accurate attendance records.
Improved Record-Keeping: Rostering software securely retains timesheets for five years, simplifying audit compliance and historical payroll reviews.
The Future of AI in Bookkeeping
These are just a few examples of how technology is enhancing bookkeeping efficiency and improving financial data quality. As AI and automation continue to evolve, new tools will emerge to further optimise pharmacy operations. It’s important to remember that technology is here to support and not replace human expertise. By working smarter, we can allocate more time to value-added tasks such as patient consultations, staff training, and business strategies.
If you’d like more information about any of the software mentioned above, feel free to contact us at admin@peakstrategies.com.au or call us at 08 9315 3117.
