Business owners are busy people who don't often have the time to sort through stacks of financial documents to find what they need. As technology changes virtually every aspect of business recordkeeping, paperless accounting has shown to improve efficiency and productivity. Here are four ways moving to a paperless accounting system helps business owners stay on track and reduce stress.
1. Improved Organization and Accessibility
Gone are the days of hiring a clerk to file financial documents in bulky filing cabinets. Today's cloud-based accounting programs allow quick and easy data storage that is automatically organized into a hierarchy of easily understood and logical files, making accounting data retrieval simpler and faster. Accounting information is always organized and accessible 24/7, providing peace of mind for business owners.
2. Improved Efficiency
It can be frustrating to get sidetracked from a task while trying to track down a missing invoice, purchase order, or other document. Even with the most organized paper-based accounting method, it can take precious time to find the needed documents — time that could otherwise be spent attending to clients or pursuing new sales. Paperless accounting, on the other hand, frees up time and improves efficiency by de-cluttering financial records. Using their laptops, desktops, or mobile devices, authorized users are immediately directed to the document or file they need, when they need it.
3. Access to Real-Time Financial Data
Another major benefit of paperless accounting systems is the fact that they are updated in real time. This means that as users input and save data, forms and records are updated to reflect the new information. This way, business owners can make decisions with current information instead of outdated figures, helping them stay on track. Cloud-based systems may have the added benefit of giving users access to records from previous accounting periods, making it easier to spot financial trends and patterns. This may allow businesses to identify problem accounts, as well better monitor data input by individual users.
4. Reduced Stress
Dealing with misfiled, mislabeled, or missing accounting documents can mean serious headaches for business owners and employees — especially around tax time. Paperless accounting mitigates this potential stressor with automated online forms that reduce the likelihood of incomplete or incorrectly filled out forms, and automatic data backups that protect valuable documents. Online accounting software may also help streamline billing and collections workflows, saving even more time and headaches.
Learn more about how small-business accounting software can help your business.