Approval plays a crucial role in verifying and certifying the authenticity of any document/entry in accounting. When a document passes through hands then they have a few more error scans which lead to the least errors and add more weightage to the document.
But, isn’t the process lengthy?
Is the appropriateness of the book not suffering?
Are the customized reports accurate?
Accounting has its synonym named accuracy and when the same is getting compromised then how can an organization not suffer from the reports being inaccurate? The layered process might make a document/entry error free but it compromises the complete records as a whole if delayed.
Approval getting delayed is a basic issue that is being faced by each and every business organization on a daily basis be it a payment or receipt entry or issuing a purchase order or an invoice and it is not the fault of any specific individual. The process itself is way too stretched.
And when it comes to Park & Post feature, it might affect the accuracy of the reports, as the real-time reports will not show accurate data be it the stock, cash, or fund flow or any of the material data which eventually impacts the decision-making of a manager or the authorities.
What is the concept of Park & Post?
As the name suggests, it implies, keeping the entries parked separately till they get approved, and once approved the same shall reflect in the books of accounts. This means the unapproved entries will not have any impact on the Books. Though the feature serves as beneficial for many it has its own set of limitations.
To understand it better let’s take an example of an inward fund transfer. Here, the money has been received in the bank, but the same has not reflected in the books as it is yet not been approved.
What impact does it have on the day-to-day operations?
As we all know inflow funds play an important role in any organizations planning for outflows. If an inflow has taken place and the books are still stuck in their earlier balances, the manager will not know the exact status, and assume the shortfall in funds since he/she has planned the outflow based on the same. It is due to the park and post feature, the entry made is not showing up in the reports as they are still lying in the unapproved status.
But then what is the solution, if not park & post?
For RealBooks, the cloud accounting software, the approach of park and post is a big turndown and we are not disturbing you by serving the same. However, we do have the maker-checker concept in place, which can easily cater to the requirements. You might be into a range of questions after knowing this.
A. Will my books still be controlled?
B. What about the important and material entries?
C. What about external communication?
The answer is a big Yes!
Answer A: Yes your books will be controlled, even though the entries are showing up on your reports but they still can be filtered on the basis of approved and unapproved entries and you are completely in control and have knowledge of all the entries in that specific reports.
Answer B: Yes, all the material entries are safe and are completely controlled by the role-based access and approval process. Since not everything is accessible to all so it won’t set the entry process free to use on all basis.
Answer C: External communication is the most concerning part as it is the key to branding and building trust. RealBooks is protecting you by not letting Invoices, Purchase Orders, Money Receipts, Expense Vouchers, Cheque Prints, or any other externally communicative documents get printed from the software, till they are Approved. Thus, you are protected but in a user-friendly way.
This means not only the report accuracy is intact but the risk of unapproved transactions getting entered into is also eliminated.
Move towards the simpler and efficient options. Park and Post Forget the earlier accounting software of yours and switch to RealBooks, the cloud accounting software, and take your visionary organization towards a smarter and greener tomorrow.