The #1 Broken Process of Bookkeeping: Resolving Uncategorized Transactions
Estimated Reading Time: 3 minutes
As accountants and bookkeeping professionals, you can probably easily list out numerous broken processes in your business or industry—like an inefficient financial close process, delayed payables and receivables, or tax fraud.
While there are other issues in the bookkeeping industry, the #1 broken process is actually resolving uncategorized transactions.
Maybe you find yourself groaning in frustration every once in a while when resolving uncategorized transactions but don’t understand why it’s the biggest broken process bookkeepers face.
So, let’s walk through an example.
Why the #1 broken process in bookkeeping is broken
Say you open QuickBooks Online, QuickBooks Desktop, or Xero and are looking through recent transactions automatically and/or manually reconciled from the bank feed into the general ledger in your accounting software. You notice 78 uncategorized transactions. So, you open up a spreadsheet, copy and paste each of the 78 transactions over—one-by-one—and draft an email to send to your client alongside the spreadsheet.
However, the work isn’t over yet. Like most accountants and bookkeepers can attest, you'll find yourself staring at your computer screen or phone screen, twiddling your thumbs and waiting for a response. But even when you finally receive a response a few days to a week or more later, you find that your client only entered information into 20 of the cells.
So, you draft and send another email, asking them to fill in the rest of the information. Once again, you find your time dragging by, waiting for a complete response from your client. Even if you have other clients or projects to work on, you might be suffering from the same dilemma. Maybe they send all of the information, but maybe they don’t, and the cycle repeats all over again. But once you finally obtain all of the information you need after chasing down your clients—during which weeks could have passed, and you could be frighteningly behind schedule with month-end-close—you still have to manually enter the information (again, one-by-one) back into your accounting software and then, finally, close the books.
And this is not to mention the possibility of making accidental mistakes or changes that you have to go back and fix.
This traditional route of reconciling uncategorized transactions is clearly a broken one, wasting your time, energy, and money (though this is not to say that spreadsheets themselves are broken and not useful).
Uncat: the solution to the #1 broken bookkeeping process
To fix this broken process, there needs to be a solution that provides simple automation of basic bookkeeping processes and fast, simple, and easy communication.
Luckily, there is a solution that fits these parameters.
Uncat is an app built for accountants and bookkeepers to help you eliminate this all-consuming, broken process from your practice. Here’s how it works:
By syncing uncategorized transactions from QuickBooks Online, QuickBooks Desktop, or Zero, your clients are automatically notified when there are transactions that require their attention. Your client, through a one-click access Magic Link, will go to their Uncat dashboard and enter descriptions to describe the transactions, upload receipts, and fill out any other information you might need from them. Then, Uncat notifies you—the accountant or bookkeeper—when your clients update their transactions and provides you with a Magic Link to your own dashboard so you can quickly and easily review the uncategorized transactions, edit fields (such as class, vendor, customer, billable, location, tax), and categorize the transactions in your Uncat dashboard. Uncat syncs your selections into your accounting software so you can reconcile the uncategorized transactions, close the books faster, and prioritize your energy and time on tasks worthy of your dedicated focus.
Through Uncat, communication and visibility between you, your team, and your clients are fixed from the previous broken process, simplifying bookkeeping reconciliation to help everyone be more productive.
We understand the frustrating friction caused by the current process of reconciliation of uncategorized transactions—all of the back-and-forth efforts to communicate, share information, and categorize transactions—so Uncat is an easy to use and easily affordable software—just $9 per month per client—that alleviates all of the previous friction and keeps all parties satisfied. Uncat even saves an average of 12 hours and $238 per month on bookkeeping compared to the current #1 broken process.
So get rid of those spreadsheets filled to the brim with uncategorized transactions and let Uncat fix the #1 broken process of bookkeeping!
Want to see how Uncat effortlessly fixes the #1 broken bookkeeping process? Book a demo, watch our tutorial videos, or start your free 14-day trial today!