Dext has been a game-changer for small business owners. In the past, entrepreneurs had to manually type out every line of data from bills and purchasing invoices to input that information into their accounting system. Dext automates the whole process.

While modern software is becoming increasingly smart, the reliability and quality of the data will always be dependent on the accuracy of the information you upload.

By sticking to certain rules, you’ll avoid common mistakes and ensure your financial data is reliable. Here are some Dext best practices.

 

Be vigilant about the data you upload to Dext, as it will be reflected in Xero.

 

Dext seamlessly integrates with Xero, where business owners can see a clear overview of:

  • Their sales numbers
  • How much money they’re making
  • A breakdown of different categories of expense

While Xero integration takes significant leg-work out of transferring the data, it also means any inaccuracies uploaded to Dext will show up in Xero.

 

Follow a systemised process when inputting data.

 

The beauty of Dext is its simplicity. We see very few software-related inaccuracies, meaning a lot of the mistakes are down to user error.

Dext gives three options to submit information:

  • Taking a picture of the invoice and uploading it
  • Scanning the invoice and uploading it
  • Emailing the information

After you’ve submitted the information via one of these methods, follow a four-step process to ensure reliable, accurate data:

1.Make sure you’re only uploading VAT invoices.

We often see users uploading credit card dockets, delivery notes or order confirmations to Dext; it’s a common mistake. The correct document to upload is the VAT invoice which provides the necessary evidence of VAT.

In essence, forget everything else which isn’t important.

2.Categorise correctly

Once your VAT invoice is in Dext, make sure it’s been categorised correctly, i.e. fuel is categorised as ‘motor expenses’ and not ‘advertising’.

Set up supplier rules to ensure automatic categorisation. For example, if you receive invoices from Tyrrell Accountants, establish a rule which automatically categorises these as ‘accountancy fees’.

As well as saving time, these automatic rules help with consistency and give a far more reliable picture of expenses.

3.Check the value is accurate

After categorising the invoice, make sure the value is as it should be and the VAT has been extracted correctly.

4.Make sure there are no duplications

This is another common issue we see. If a co-founder, director or anyone else in your business has access to Dext, more than one person might upload the VAT invoice.

Communicate with your team to make sure only one individual is responsible for uploading the document.

 

Submit information in a timely fashion.

 

Uploading VAT invoices as they come through guarantees your records stay up-to-date and accurate, helping you to make the most of your data.

Take a ‘little-and-often’ approach to uploading the invoices and you’ll save yourself a lot of unnecessary hassle down the line!

 

The best software makes your life easier. We’re here to help you find it.

 

Dext, Xero and other accounting software have the power to significantly relieve the burden of accounting.

At Tyrrell Accountants, we use our decades of experience to advise our clients on software that adapts to their business, not the other way around. Whether you’re a sole trader or an established family company, get in touch for tailored advice on the best systems for you.