AI bookkeeping: from a document to a completed month

Start with a complete recurring case

Consider a German company using accrual accounting and entitled to deduct the input VAT in this example. A domestic cleaning supplier charges €1,800 net plus 19% VAT each month. September’s gross amount is €2,142.

The company provides the signed contract and September’s valid invoice. The service was delivered in September; the payment leaves the bank on 5 October. These assumptions matter: they establish the expense period, the invoice amount and the distinction between recording a cost and settling it.

The document agent identifies the invoice, supplier, service dates and amounts. The client agent connects the contract and checks the business context. The company only needs a question if a relevant fact is absent or contradictory.

Follow the journal through to the balance

The illustrative entries are:

September therefore contains the €1,800 expense and an unpaid supplier balance of €2,142. October’s payment reduces that balance to zero. It does not create another cleaning expense.

For domestic input VAT, possession of the required invoice and receipt of the service are relevant conditions; this example assumes both are satisfied in September. Payment timing is not a universal input-VAT rule. Advances and other special cases need separate treatment. See §15 UStG.

The bank agent uses payment references and the supplier evidence to investigate the October debit. Accounting processing then records the settlement and maintains the link to September’s invoice.

Make a change part of the example

In October the supplier invoices €1,850 net plus €351.50 VAT: €2,201.50 gross. That is €59.50 above the previous gross amount.

The contract amendment adds cleaning for a new room from 1 October. With that evidence, the increase is explained:

€50 additional monthly service + €9.50 VAT = €59.50 additional payment.

October’s entry contains €1,850 expense, €351.50 input VAT and a €2,201.50 supplier liability. The amendment supports the changed recurring amount. If no amendment or other valid explanation exists, the difference remains a question for the business; an old amount should not silently overwrite a new invoice.

A useful owner question is: “Did the cleaning agreement change from October? The invoice includes an additional €50 net.” Asking for an expense account would shift bookkeeping work back to the client.

Review the month as a whole

The accountant agent investigates journals, balances, control results and supporting workpapers. In this example, a useful review checks whether September’s payable existed at month end, whether October cleared it once, and whether the new monthly amount is supported.

Hans’s bookkeeping workflow can produce posted, reconciled monthly books and a controlled close. The firm retains the professional decisions and any separately mandated filings. An agent’s finding is evidence for review, not proof that a tax judgement has already been accepted.

The effect on firm capacity comes from the connected result: the reviewer can inspect one chain instead of separately finding the contract, comparing invoices, explaining the bank debit and rebuilding the balance.

Check the same chain in a demonstration

Ask to follow a representative case through five records:

1. The original document and extracted facts.
2. The linked contract or business explanation.
3. The debit and credit entry, including period and VAT.
4. The payment allocation and remaining supplier balance.
5. The month-end finding and what changed after it was resolved.

Current intake includes direct uploads and connected Google Drive folders. Email intake and OneDrive are planned. Recurring-contract processing is available; broader depreciation, accrual and deferral scheduling modules remain planned.

For the reviewer’s work, continue with how to assess a booking proposal and the monthly review in Hans.