The Data Automaion Company helps bookkeepers automate their data entry work to allow them to finish their work in less time. The Data Automation Company uses artificial intelligence software to allow bookkeepers to scan their clients’ paperflow and the software will extract the line items from each invoice.
Once verified by the bookeeper, the data is pushed into their accounting software quickly and accurately, saving them up to 20 keystrokes per invoice.
Using the Value Pricing Model, bookkeepers can continue to charge their clients for the work that is being done even though they are able to complete it in a fraction of the time.
So, bookkeepers are now able to take on more clients, which means more money for them and their companies.
In this video, you’ll learn about a high level overview of how the Data Automation software works. This software has been developed to help bookkeepers and accountants and business owners who want to get their data into their accounting system in a more efficient way.
3 Components to how the Data Automation Software collects data:
1. Quickbooks Database – includes Quickbooks Desktop USA, Canada, UK and Australia.
2. Source Documents – includes all receipts, supplier invoices, PO’s, bank statements, etc.
3. Digital bank and credit card feed
The Data Automation Software pull data from all these components up to its cloud system. This thus allows bookkeepers and accounts payable people to focus on individual line items in each of the data sources.
In this video, we’re going to discuss how to set up your new Data Automation software account. This software is automatically going to send you a link and a username and password to log in to your account.
1. Click on the link and enter your username and password. Click Login.
2. Choose a file handling type. In this example, we chose Dropbox account as the handling type.
3. Enter your personal information: first name, last name and phone number.
4. Select the time interval that you’d like the software to automatically pull your information from your file handling type into the Data Automation software.
5. Select the file handling type. In this example, we’re going to select Dropbox.
6. It’s going to ask you for your APP Key and your APP Secret. To get this information, go to www.dropbox.com/developers/apps.
7. Click on the Create App button.
8. Click Dropbox API app.
9. Click on Files and datastorers.
10. Click No.
11. Click all file types.
12. Enter the name of your app.
13. Tick the box to agree to the Terms and Agreements.
14. Click create App.
15. You will then be redirected to a page where you’ll find the APP Key and the APP Secret. Copy these information and paste into your Data Automation account.
16. Select the language you’d like the software to be in.
17. Click Update.
18. Click Allow.
19. You now have successfully set up your new Data Automation Account using Dropbox.
20. Go to the Password Tab to change the password that the software has sent you.
21. Click Update when done.
John, what is this new data automation platform that you guys created and why should bookkeepers care about it?
A couple of years ago, I was talking to an accountant who does national speaking tours across Canada. And there is an interest from bookkeepers and accountants around data automation.
Cloud computing had come out so you have Xero, Quickbooks Online, and Sage One. And they have a lot of these cool functions that allow bookkeepers to do their jobs much more quickly than in a traditional desktop application. And so, you have digital bankfeeds, auto-categorization of transactions based on vendor.
But none of these features are available to the desktop version. So what we wanted to do is create a product that brought all of the best components of cloud computing and all the advantages and brought it down to the desktop.
And so, the Data Automation platform is the result of that. It’s about a year and a half worth of work. It’s fairly sophisticated and we give all the advantages to the bookkeepers and accountants that want to use the desktop version of the accounting platform but have the advantages of cloud computing.
So, we have receipts and data extraction from receipts, data extraction from bank and credit card pdfs. And the database does not even need to be at the bookkeeper or accountant’s location. We all do it through a web interface and we can do all the coding in our cloud SAAS platform and then you simply hit the synchronization button to pull all those transactions in the bookkeeper’s database.
It allows bookkeepers to be much more efficient when they’re doing bookkeeping for clients that are using the desktop application.
What can a business owner do to leverage technology to help reduce bookkeeping costs?
We’ve been working on solving that problem for the last year and a half. And we’ve developed this Data Automation platform that business owners and their staff can use to drive down the actual bookkeeping costs.
For example, you’re a construction worker and you’re going to have to take pictures of invoices that your staff members pick up. You can email it to us and we can extract the data and allow your bookkeeper to code those transaction much faster than waiting for the people to come back in the office daily or weekly.
Our platform works with Quickbooks Desktop Pro, Premiere and Enterprise and it allows your staff to co-transact much faster and also to memorize transactions. So if you’re getting gas receipts, they can be automatically coded to gas expenses.
So the idea is that, hopefully your bookkeepers can spend 50% last time doing data entry work and leveraging the time left over to write more value numbers to you as a business owner.
Do you have an example that you can give me on how you reduce the bookkeeping costs for business owners?
There’s one particular client that we’re dealing with. They had two retail stores and a construction company. And the way they did their payroll is they simply entered all the data on a whiteboard and then they enter it to an excele spreadsheet and then they entered it into their accounting system.
And so what we’ve put in place is a web-based app that the staff can have in their phones and they simply entered the hours each day and there’s a management interface with the management’s approval of those hours and it automatically connects to the system and the staff gets paid.
We then pull down the electronic file from the server and then import it to Quickbooks. So, that saved a lot of time a month that were spent around payroll.
You sent out an email about an opportunity for stay at home parents about six months ago and we have not heard anything since then. What’s happening?
We are a little bit optimistic on being ready to launch this service. In the last five months, we’ve been piloting this service or this concept to a couple stay at home parents just to iron out all the wrinkles. Now, we’re finally at a point where we can actually go ahead and we actually have a platform around data automation and we have staff in place, we have a program in place and we have mentors.
Now we have proved that the concept works and we’re ready to start talking to people who are interested in earning a part time income. We’ve proven our model out and now we’re ready to allow other people to implement that model wherever they might be.
Welcome to the quick tool we’ve built to help bookkeepers calculate what sort of cost savings they can expect by leveraging cloud based technology by leveraging offshore staff, in this instance Canadians and Americans living in Mexico. It could be Europeans living in Africa or Australians living in Southeast Asia. Basically, we call it expat shoring, so it’s people of your same nationality and culture and your same time zone but simply living in a different geography.
The way this tool works is you simply enter in your hourly rate. In this instance I’m going to put in $20 per hour, the number of cumulative hours that your staff would spend working for you. In this instance I’m going to say we have two full time bookkeepers. We’re going to say there’s going to be 320 hours per month, because they’re both working 40 hours per week. The other thing we advocate is when you have cloud based computing, you don’t necessarily need an office. This isn’t for everyone, but I’m going to put some rent costs in here just because that’s the way we run our company, and it is actually possible, but it’s not for everyone. We’re going to put in some IT support costs of $250 a month. When you migrate to a cloud based system, you can access all your applications from a browser, there’s simply less need for IT support than if you have a traditional client server network. If you want more information about that, you can always chat with us in the lower right hand section in our screen, and we can talk to you about some of the advantages and some of the processes involved.
There’s a cost associated with how we facilitate this, and we digitize all the paper that comes in for bookkeepers. It runs about ten cents per piece of paper, but we firmly believe in digitizing all the data. There’s a value to the client in that this data that is digitized, your invoices and receipts can be used for the IRS and the CRA, the different government organizations for auditing, but it also is a great way to be able to facilitate extracting data out of the PDF for remote workers and also for software. This will simply calculate, once I enter that number, roughly what your monthly savings will be. This savings about $3500 a month, $3600 a month, if you leverage our staff, because the hourly rate of our staff to you is about $11.54 an hour. These are all trained staff that simply don’t reside in your country but are of the same nationality, language, same timezone as well.
If you decide to add in some data automation, then you can increase that monthly savings to about $5400 a month. What data automation means is extracting data out of pdfs and pushing it into your accounting system. There’s some tools we’re developing to do that, and it can auto assign GL codes to specific vendor invoices based on the historical transactions. If a particular invoice was coded a certain way, our system can actually take a look at how it was coded and apply that same GL. This whole little tool is supposed to pique your curiosity, and we actually have a set process, like a how-to, like steps 1-5, here’s all the things you do to leverage all the latest technologies to grow your bookkeeping business without getting swamped under with work. We’ve built all this.
Our Value Pricing Tool is a tool we built to allow bookkeepers to better understand their costs when doing bookkeeping for clients. What we do is we look at the last two years of transactional history for a client in the database. All the accounts receivable transactions, all the accounts payable transactions, the number or items per AR and AP invoice, and we also take a look at the credit card and bank accounts to look at the volume of transactions. We map that out in a graph over twenty-four months, so you can the number of transactions, the volume of transactions, are they seasonal. What it’s designed to do is simply allowed you to estimate a cost per transaction, so that you can make sure that you’re going to be pricing your services. Especially if you on XP or a value-based prices, you can actually make sure that you’re making a good margin on the services that you’re offering to your clients. It’s a tool for them to be able to understand their costs a little bit better. It’s not going to give them all the information, because some clients are harder to deal with than others. Those are subjective and harder to measure. It’s supposed to be another tool that they can use to make sure that’s it going to be a good margin of a particular client. The thing that’s unique about it is it actually works QuickBooks Desktop, ProPremier, and Enterprise, as well as QuickBooks online and XERO. We’ve integrated product with all these platforms. The other thing I want to mention too is we understand that bookkeepers, or the one’s I’ve talked to, are extremely busy. We’ll actually go set up this tool for them, because we actually have onsite, or we actually have technical staff to help them to do that. We take that pain away, and we’ll actually go and help them get all set up so they can leverage that tool.
John, what can a bookkeeper do if their client doesn’t want to provide them with the passwords and usernames for their online banking account?
The nice thing about Quickbooks Online, Xero and Sage One, is that there’s an interface to allow the business owner to put in their banking credentials, their username and password and for those platforms to download those transactions into the platform and coding.
If you’re running the desktop version, and the client doesn’t want to give you that capability, well then you lose that ability to do coding on a weekly or monthly basis.
We built into our platform the ability to hold down those banking and credit card transactions without you having the username and password. You simply send off an email to the business owner with a link, they log in with their credentials. It’s the same one that Quickbooks online uses and we pull all those transactions down on a daily basis.
They are there in our user interface via code whenever you have the time, so everyday they are pulled out. So that’s the advantage of our platform, you get some of the advantages of Quickbooks online but for your Quickbooks Desktop application.