Accounting technology / Glossary / Real-time accounting

What is real-time accounting?

Definition

Real-time accounting is keeping the books up to date continuously, as transactions happen, rather than catching up in a batch at month end. Bank, card, payment, payroll and sales data flow into the ledger automatically, are categorised and reconciled as they arrive, and figures such as cash, revenue and margin can be read at any point in the month.

Also calledreal-time bookkeepinglive bookscontinuous accounting

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Books updated: As transactions happen
Depends on: Live data connections
Still periodic: Accruals and adjustments

How real-time accounting works

It depends on direct data connections: bank feeds, card and payment platforms, e-commerce and billing systems, and payroll. Each transaction is posted when it arrives, with categorisation and matching done by rules and machine learning, and sub-ledgers such as inventory or deferred revenue updated at the same time. The month-end close then becomes a review of accruals, estimates and judgements rather than data entry. Real-time does not mean every figure is final: accruals, depreciation, revenue recognition adjustments and reconciliations of exceptions still happen on a schedule. The approach suits businesses with high volumes of small transactions, such as online retailers and software companies. Finaloop runs real-time books for e-commerce brands, Quanta for software companies, and Neno for European small businesses.

Common questions

Is real-time accounting the same as continuous close?+

They are related. Real-time accounting keeps transactions posted and reconciled daily; continuous close spreads the other close tasks, such as accruals and reviews, across the month as well.

Does real-time accounting remove the month-end close?+

No. Estimates, accruals and period-end adjustments still need to be made and reviewed, but there is far less data entry and reconciliation left for the end of the month.

Which businesses benefit most from real-time accounting?+

Those with many transactions and fast-changing cash or inventory, such as e-commerce brands and software companies, where decisions rely on current margin and cash figures.