Taking Accounting to the Next Level
A lot of processes for business and other things have taken the paperless route thanks to the many innovations people have made and we are now taking advantage of. After all, it seemed like the next logical step after the ubiquity of information and the advent of internet phone services. While all these things are known to dramatically decrease people’s carbon footprints, there are more benefits to be seen. Here are some of the advantages of using online accounting.
- Deliveries costs will go down, if not disappear completely. Most companies have to spend money whenever they send documents off, with the use of paper, ink, and stamps. If your business has a habit of sending out a huge volume of documents regularly, these small costs will add up to quite a hefty sum. Send them the electronic way and save your company more money.
- If you look at an average office, you will notice that a lot of space is taken up by filing cabinets and others storage containers for documents. The more files the business has, the more space they need and if they find that their current office space can no longer accommodate their documents, they must get more space. Obviously, this will cost money. However, if you store documents electronically the only thing you will ever need to buy is a hefty hard drive.
- It can reduce the potential for any disputes with a supplier. With human error removed from the equation, the odds of making mistakes will be greatly decreased. Also, your finance staff will be relieved of the burden associated with suppliers who are hunting down their payment. All necessary details will be on file and nobody can make any bogus claims.
- It greatly reduces the time needed for authorization. When there are orders or purchases that must be approved, multiple individuals are required for the transaction to be completed. Simply put, the entire process can be delayed because of various factors when paper documents are used. Worse, these documents could go missing. By automating things and turning paper into digital files, they can be sent to the involved parties through email and be assured that they are given attention by way of reminders.
- The skills and competencies of your finance department can be concentrated elsewhere. Instead of spending a lot of time on tasks that add minimal value to the organization, they can devote their energies to planning and strategy.
- When you use online accounting, you can improve your cash flow. This can happen because bills will be able to get to customers when they are due and will promote the use of electronic payments on their end.
- You will free time for your employees. Processing documents manually will usually require an actual employee poring over them and this could take some time. By taking your accounting digital, you save time and reduce the margin of human error. “With online accounting, businesses can take the guesswork out of managing their financial records. Instead of searching through financial records or waiting for important documents to come in the mail, business owners can access all their records and get answers to their financial questions fast. Accessing financial records online also allows business leaders to do what they do best—drive sales and grow the business.” (Marie Larsen)
There is so much more to online accounting than saving the planet since it can play a part in making you much more productive and efficient without having to add additional manpower. It may be time to consider breaking free from your dependence on paper and reap the benefits of digital accounting.
Image by Sandro Wittassek.