data

Batch accounting and Real-time accounting the Spire Way

For a long time now, real-time accounting versus batch-based accounting has been a subject of debate. In this blog, we explore the benefits of each. We will also explain how Spire offers batches in some places and real-time accounting in others.

Batches

Batch-based processing has several advantages. In classifying entries to ensure accuracy, having better internal controls allowing a review before posting, and  in preserving the audit trail’s integrity. Batch-based accounting also makes sense for organizations processing large numbers of transactions. In some ways, batches are more efficient and easier to perform. Batches make sense when accumulating employee time and processing payroll altogether. This process allows for time saved in payroll. In the AR, depositing one cheque (or payment) at a time can be rather cumbersome. Unless it’s one big cheque, we are not likely to see bookkeepers making one deposit at a time, but rather a batch of many deposits at once. For organizations with no immediate need for information, it is reasonable to delay data processing by using batch-based accounting.

Realtime

While in some cases, batch-based may allow for a more efficient and audit-tight way of processing accounting data, it also presents some disadvantages.  More and more businesses need the ability to take immediate action on items that are crucial to their business. For example, purchasing managers at the mercy of a batch-based system would find it counter-productive to wait until batches post to provide inventory reports. Knowing that the need for real-time data isn’t just for the finance people, these businesses end up spending more of their budget for add-ons to increase access to their data in real-time. In this scenario, real-time accounting is better suited.

Keeping track of every transaction as they happen gives department heads an instant view of their overall financial status. Thus enabling decision makers to make more accurate projections. Being able to filter and compare using real-time data means companies can keep a close eye on margins and identify areas that need improvement. We see this in adjusting product prices like landed costs (duties, shipping, etc.). This fucntionality ensures accuracy of margins and profits per item, empowering an organization and keeping them one step ahead of the competition.

Which process is right for your business?

Accessing and understanding the data that makes up your debits and credits is critical to growing a business. Data isn’t just a way to analyze numbers; it’s a helpful way to react to growth potential when the opportunity arises. It also potentially prevent risks that have yet to happen.  Mining meaningful data contributes to the company’s success, however when data isn’t processed the best way, it can be destructive. Especially when attempting to achieve your reporting requirements.

To summarize, with batch-based processes we analyze data over time:  weeks, months, quarters, or years; for some, that process works just fine and is preferred.  Real-time data is crucial for those needing to make fast decisions in fiannce and that extend beyond the accounting department.

The Spire Way

Spire offers batches in some places where it makes sense. In Sales Orders, you can choose to batch or live post when invoicing.  With batching, the invoices are held in a closed state until a supervisor reviews, makes any needed changes and then creates a batch.  Next, they would close the batch to post to AR and the GL.  With live posting, the invoices are posted to AR and the GL right away.  If changes are needed then a credit and rebill has to be done. Batch and Live processing in Spire are also available in Accounts Payables and Accounts Receivables and Payroll Timecards.

You can easily manage batch-based vs. live posting in Spire’s company settings. Learn more about Spire’s company and user settings by watching this webinar, where we also many other cool features.

Bottom line: Spire allows you to run your business the way you want – whether that be live posting or batch accounting, we can accommodate your process.

For more information on how Spire offers your choice of batch-based accounting or real-time accounting along with business intelligence reporting, click here. We’ll be happy to provide you with a free demo and help you further discover the power of Spire.

Ransomware: The ugly truth and how you can be better prepared.

After seeing several new threats this year already, some old ones are still lingering. Surprisingly, some businesses are still caught unprepared. The truth is that different types of malware are rearing their ugly heads with new ways of taking advantage. Ransomware is a severe threat. Recently, we heard about a business that had the misfortune of dealing with just this.

Ransomware is a form of malware that encrypts the victim’s files. A ransom demand is made. The criminals claim they will release your data once you’ve paid. When your information is encrypted, Spire (and other programs) won’t be able to read your data files—bringing business to a grinding halt. You won’t be able to access your data or enter in new data. This putting you at the mercy of the attacker. Ransoms vary from a few thousand dollars to several hundreds of thousands, if not more.

Ransomware can make its way into your system in several ways. The most common is through scam phishing emails. These emails look like you a communication from a known source; direction from your boss, a payment from a client, or email from a vendor. Often these look like short little “chat-type” emails with an attachment or a link, enticing you to click or open. For example: “Did you write this?” or “I have a special project for you.” These files will come in masquerading as a file from a sender you would trust, making it challenging to decern if it’s a trustworthy message. Once you downlaod them, they take over your computer and your server.

The best defense against ransomware is to be ready. While there are anti-virus programs that can catch malicious programs as they arrive, being diligent is best practice. Proper data management will save you from being a victim of ransomware.

Here are four tips:

  1. Keep up with patches for your operating systems and staying up-to-date to help ensure fewer vulnerabilities.
  2. Never install software or give admin privileges unless you know exactly what it is. Better yet, leave software installation to the experts.
  3. Talk to the experts! If you have an IT department or are outsourcing IT company, stay in touch regularly to ensure that they provide you consistent service.
  4. Last and MOST importantly! BACK UP YOUR DATA! If your data is backed up, the ransom attackers can ask you for billions, and it won’t matter. You should back up your data incrementally and automatically at pre-set times. Offsite back ups are a smart way of securing your data. This way should you be a victim, you can quickly recover. Having a direct connection for your backups to your network will not help. The likelyhood is that a connected backup will also suffer from this attack.

Atticipating this type of attack is the best defense. Taking the time to have a company-wide informative session on digital threats such as email phishing scams is well worth every minute. Just sending a memo might not be enough. Educate yourself and your staff on being diligent. Inform them of the best ways to handle a suspicious email.

Consider these suspicious email subjects or topics:

  • Be wary of emails that ask for login credentials
  • Emails that threaten to suspend an account or services without a response
  • Messages informing you of a virus (not coming from your in-house anti-virus)
  • Invitations to click to solve any of the above issues.

Click here to read about how Spire manages backs ups.

The truth is that even a privately hosted solution with the best anti-virus in the world and religious backup procedures can experience a ransomware attack. Being aware, being vigilant and having a recovery plan is the best thing you can do to ensure your business can survive such an event should it occur.

For more information on how Spire handles backups and data security in our hosting and cloud products contact us today.

Recent Blog Posts