For online bookkeeping firms who collaborate with their clients using cloud based apps, there are many ways to store and manage financial documents.
In this article, let’s thoroughly examine 2 popular options in the accounting app ecosystem: LedgerDocs and Dext, formerly known as Receipt Bank.
While both platforms were designed with features specifically for financial data management, they have many similar features, yet there are distinct differences that also set the two apart.
LedgerDocs:
As a growing contender in the market, LedgerDocs prides itself on 2 things:
- User-friendly interface that makes it easy to learn and onboard clients
- Specific features designed by bookkeepers, tailored to meet the needs of bookkeepers, accountants, the platform emphasizes simplicity and collaboration, making it easy for users to navigate and manage their financial documents. LedgerDocs has recently added some key features that make us even stronger when compared to Dext for automated data entry. Our entire process for data extraction using optical character recognition technology (OCR) has received a facelift, making it faster, stronger and more accurate then it has ever been.
LedgerDocs extracts key items from receipts including date, vendor, customer, taxes, totals, and more. We have also improved support for GST, PST, HST, and QST — perfect for our Canadian users.
Need to see every detail? Or just the big picture? Switch between multi-line item views or a single consolidated line item with ease.
Another new enhancement to LedgerDocs is our Customer and Supplier Rules. You must know what it is like to spend hours categorizing documents from the same suppliers or customers. With our new update, you can set up a rule for each customer or supplier and watch as your documents are automatically classified and fields are pre-populated, ready to be posted into QuickBooks Online with a single click. The combination of thoughtful features and the ease of use is where LedgerDocs truly shines, allowing accountants and bookkeepers to transition their clients without a steep learning curve.
Dext:
On the other hand, Dext, with its large workforce and longer presence in the market globally, has had the opportunity to develop a comprehensive suite of features. Their platform caters to a wide range of businesses, from startups to large enterprises. While they still offer a broader array of automation functionalities, it’s worth noting that some of these features might be not aligned with what certain bookkeepers and accountants require, especially if their volume of client documents per month doesn’t justify the added cost when compared to LedgerDocs. Yet, Dext is well-known in the industry and can be a solid option.
Bank Statement Fetching
LedgerDocs offers automatic bank statement fetching, as well as transaction feeds from the majority of major Canadian financial institutions, and over 10,000 financial institutions in the United States. Dext offers bank statement fetching in Australia and bank transaction feeds for Canadian & USA financial institutions. Fetching bank data is a feature that saves time and ensures that financial records are always precise and current.
Accuracy and User-Friendly Interface:
Dext is known amongst bookkeepers for its focus on accuracy in data extraction, but as we described in more detail above, LedgerDocs has recently had a massive update! It is now faster and more accurate than many Advanced OCR platforms on the market.
Additionally, LedgerDocs has a more user-focused experience with an intuitive interface designed so that even non-technical users can navigate the software effortlessly. With emphasis on collaboration features such as note mentions, notifications, and document request reminders, using LedgerDocs allows you to stay on track and collaborate with your client and team right at the document level.
The LedgerDocs dashboard also lets you see all of your clients in one view rather than having to toggle back and forth. Dext has its own set of unique features and a modern design which may have a steeper learning curve with fewer collaboration-oriented features. Ultimately, user-interface and design is very much a personal preference.
Coming Soon: LedgerDocs will be releasing an updated, more modernized look and design, while still keeping the same workflows and formatting that makes us unique and the easiest online document management software to use.
Automated Categorization for Swift Reconciliation:
Both LedgerDocs and Dext offer automated data extraction using OCR technology, allowing the automation of the formerly tedious manual data entry process. This automation reduces the errors that come with human-powered data entry. Dext and LedgerDocs also both offer features that automate the categorization of expenses. Dext and LedgerDocs offer setting up rules for transactions’ categorization.
LedgerDocs machine learning algorithms, which learn from your own history of how you post similar transactions, offer an efficient process for significantly reducing the need for manual categorization and adjustments. This helps not only minimize errors by giving you full control over verifying transactions before they are posted, but also ensures that there will be no need to go back and fix entries after the fact. The result? A faster reconciliation process for the bookkeeper and less valuable time spent on correcting categorization errors and manual input.
Although LedgerDocs’ recent updates have allowed the two platforms to be head to head for OCR performance, It’s also worth acknowledging that there are areas where LedgerDocs is still catching up. Dext’s extensive experience in the industry has allowed them to refine certain functionalities that we are actively working on improving. We appreciate the innovation and expertise Dext brings to the table, and it motivates us to enhance our offerings continually. We pride ourselves in listening to our user’s feedback to constantly release features they suggest as part of our roadmap to build the most complete document management system for bookkeepers and accountants.
Scalability and Tailored Growth:
The pricing plans for LedgerDocs are designed to be attainable to everyone, from individuals managing their financial documents to large bookkeeping firms managing multiple companies’ finances. The flexible plans can grow as your client base grows, making it a versatile solution that can expand alongside your business development.
LedgerDocs Pricing Plans based on features you need
We also have cost-efficient plans tailored for those interested solely in the Bank Statement Fetching features or the document collaboration and management features, so you only pay for what you need. While Dext also provides scalability, the combination of LedgerDocs pricing and features presents a more enticing option for businesses aiming for sustainable growth.
Dext vs LedgerDocs – a side by side comparison
|  | |
QuickBooks Online Integration | Yes | Yes |
QuickBooks Online Transaction Types | Receipts, invoices, and other financial documents | Bills, Invoices, Expenses, Credit Memos and Supplier credit* (coming soon) |
Supplier Rules | Yes | Yes |
Bank Fetching | Transactions only in US | Automated Transactions + Statements where available in both Canada and US |
Duplicate Document Detection | Yes | Yes |
Split Taxes | Yes | Yes |
Batch Edit | Yes | No |
Request Documents | Request Paperwork for bank transactions | Yes |
Simple & Transparent Pricing | No | Yes |
Create PDFs from images, Split and merge PDFs | Merge Tool | Yes |
Elevate your bookkeeping processes and save time and money using LedgerDocs, the cloud-based document management software designed to make bookkeeping easy and efficient. If you want to learn more about how our software can help your business, book a demo, and our team of experts will show you how!
Ready to make the switch from Dext?
Enjoy a $150 credit when you make the switch from Dext to LedgersOnline this fall. To redeem this offer, simply sign up for a LedgerDocs plan and enter the promo code “BYEDEXT” during the signup process. Enjoy the benefits of LedgerDocs and streamline your bookkeeping processes!
Offer Terms and Conditions:
- Get a $150 credit applied over a period of three months when signing up for a LedgerDocs.
- This offer is valid for new LedgerDocs users with no active account in the last 3 months.
- The offer is applicable for the Company 7 plan and higher for Complete plans only.
