Rows upon rows of filing cabinets and endless stacks of paper documents have been the only way of organizing and keeping track of paperwork, pretty much ever since bookkeeping has been around. What was once the norm doesn’t necessarily stay the most efficient way of doing things today. Many companies nowadays are transitioning away from this paper-based process and opting for cloud accounting and other such electronic document management systems for a paperless environment.
The Benefits of Going Paperless
There are plenty of ways where physical paper documents can and will become a hindrance, especially when compared to cloud accounting.
Document Handling and Manipulation
When factoring in the many distractions that can present themselves along the way, such as talking to coworkers, grabbing a cup of coffee, or going to the bathroom, the simple process of retrieving a paper document from the archive can take up more than 20 minutes. 19.8% of the business time is spent looking for records. It is, of course, without taking into account the possibility of that document being misfiled or located in a separate location, away from the office.
And this is only the tip of the iceberg when it comes to paper document handling. Everything that involves accounting revolves around paper, which means that your accounting department will spend lots of time putting together and organizing these physical documents.
But with cloud accounting, the job that usually required several people and numerous hours of manual tasks, can now be done with a few keystrokes and several mouse clicks.
With electronic file management systems in place, your accounting department will have access to any required information within seconds, without the need for a physical search in various filing cabinets.
Less Storage Space and Fewer Costs
As time goes on, companies need to expand their archives to make room for new documents. It should also go without saying that all materials that are required in a paper accounting process cost money.
It includes everything from storage space to filing cabinets, paper, manila folders, printer ink, etc. With cloud accounting, on the other hand, all of these materials as well as the storage space, itself, are made redundant, saving the company a ton in costs.
Faster Response Time and Invoice Processing
Having instant access to accounting information also makes it easier to answer various inquiries coming from partners or customers. When someone calls about a purchase order or payment, your accountants will no longer have to hunt down the document in question, as they will be able to retrieve it on the spot.
The same thing can also be said about invoice processing. Instead of manually typing in the information into the ERP system, it can easily be replaced by electronic invoice processing or a combination of OCR processing and document scanning. The high degree of automation will not only reduce the time required to perform these actions but also reduce the number of errors by a significant margin.
Improving Customer Satisfaction and Retention
Since much more of the accounting process will be automated or simplified, staff members can better focus their attention on your customers, increasing their overall customer care, in the process.
Storing their information in the cloud instead of a file cabinet can also give them the necessary peace of mind that their information is in a secure location. Actual archives and warehouses can be subject to fire, water damage, or theft, in which case, the data will be lost.
Also, going digital and renouncing on paper documentation will set you on track to becoming an eco-friendly organization. When customers hear that you’ve gone paperless, they are more inclined to remain loyal.
With cloud accounting, companies can better organize their documents and have them at the ready whenever they need them. There will no longer be any need for physical storage, and your customers will appreciate your green initiative.
Until the next time,